South Korea's New Art Market Law Faces Implementation Chaos
On 26 July 2023, South Korea's Art Promotion Act came into effect, though its implementation encountered challenges due to insufficient readiness. The enforcement decree was released just two days earlier, and there is currently no electronic filing system available. Training for municipal officials occurred only three days before the law's launch. A grace period lasting until 25 July 2027 has been established, alongside plans for weekly briefings. This legislation mandates registration for six categories of art businesses, impacting around 5,000 entities, with penalties for those who do not comply. Opposition lawmaker Kim Jae-won criticized the ministry for its tardy preparations, while the Galleries Association of Korea raised concerns about the absence of an online system and the potential advantages of the royalty model. South Korea will be the first significant Asian market to implement resale royalties.
Key facts
- The Art Promotion Act took effect on 26 July, with the enforcement decree published two days prior.
- No electronic filing system exists; municipal officials had one training session three days before implementation.
- A one-year grace period runs until 25 July 2027.
- The law covers six categories of art businesses, affecting about 5,000 businesses.
- Fines up to 5 million won ($3,500) apply for non-compliance after the grace period.
- Kim Jae-won, opposition lawmaker, said filings will be manual for about a year.
- Resale royalty will be introduced next year, with exemptions for works under 5 million won and resales under 20 million won within three years.
- A 2017 study modeled a 1%-2% royalty rate with a cap of 15 million won per sale.
- South Korea will be the first major Asian art market with resale royalties.
- The law was first mooted in the 2011 EU free-trade deal, named as a 2018 policy target, and passed in 2023.
Entities
Institutions
- Ministry of Culture, Sports and Tourism
- The Art Newspaper
- Lehmann Maupin
- Galleries Association of Korea
- National Assembly
- Rebuilding Korea Party
- Hongik University
Locations
- South Korea
- Seoul