While the global art market shows signs of gradual recovery, the Korean auction market has recorded one of the steepest declines in recent years. More than a temporary contraction, experts suggest the current trend signals a need for a fundamental “recalibration of value.”

According to the Q1 2025 Domestic and Global Art Market Trends Report published by the Korea Art Authentication & Appraisal Institute (KAAAI), the total hammer price across nine major Korean auction houses—excluding buyer’s premiums—reached approximately 26.1 billion KRW (about $19.2 million), marking a 31.8% year-over-year decrease. Notably, no artwork surpassed the 1 billion KRW (approx. $735,000) threshold, a psychologically significant benchmark. This absence underscores that the market’s stagnation may reflect more than just a temporary downturn.
 
Key indicators—including the number of lots offered, average hammer prices, and sell-through rates—all trended downward, pointing to a broader structural reset in the Korean auction landscape.


 
Macroeconomic Headwinds and Investor Apathy: More Than a Cyclical Dip
 
KAAAI attributes this sharp decline to a complex mix of domestic and international macroeconomic pressures and heightened political uncertainty. The Bank of Korea recently revised its 2025 national economic growth forecast downward to 1.6–1.7%, while political instability in December 2024 further dampened investor sentiment—effects that have trickled into the art market.
 
“This downturn isn’t merely cyclical,” the report notes. “We’re witnessing a fundamental shift in how value is assessed and how participants engage with the market.”
 


Severe Decline at Seoul Auction, Recovery at K Auction: A Polarizing Market

Auction house performance diverged dramatically in Q1. Seoul Auction’s total sales plummeted from 20.9 billion KRW to 8.9 billion KRW (approx. $15.4 million to $6.5 million), a 57.1% drop. Offline auctions were reduced from three to just one, and offline sales revenue fell by over 80%.
 
In contrast, K Auction recorded a 12.9% increase in total hammer price, reaching 13.2 billion KRW (approx. $9.7 million). Although the number of lots sold decreased, average prices rose by 2.3 times, driving overall growth. iAuction also showed improvement, rising 16.4% to hover around 900 million KRW (approx. $660,000).
 
Meanwhile, smaller houses like Myart Auction (-32.1%), A Auction (-27.8%), and K-Auction (-32.5%) were unable to escape the downward trend.
 
The overall sell-through rate remained relatively stable at 49.8%, close to the previous year’s 50.8%. Seoul Auction and K Auction saw slight increases to 51.8% and 49.6%, respectively. Myart Auction dropped to 38.0%, while Kan Auction posted the highest sell-through rate at 66.7%.
 
K Auction’s average hammer price jumped from 12.55 million KRW to 28.81 million KRW (approx. $9,200 to $21,200). Myart Auction also saw average prices rise. Conversely, Seoul Auction's average plummeted from 34.85 million KRW to 13.05 million KRW (approx. $25,500 to $9,500), suffering a symbolic setback.



Global Market Declines Slightly—Signs of Recovery Ahead?

The combined Q1 2025 hammer total for major global houses Christie’s, Sotheby’s, and Phillips stood at approximately $1.03 billion—down 4.1% year-over-year. Though this marks the second-lowest quarterly result since 2016, the slowing pace of decline is prompting interpretations that the market may be “bottoming out.”
 
The number of lots sold increased from 17,872 to 20,954, up 17.2%, suggesting a gradual recovery in global liquidity. However, online auction volumes declined, hinting at the limits of digital platform scalability.


 
Auctions Evolving into ‘Platforms for Value Design’
 
Global auction houses are evolving from mere marketplaces into cultural agents that help define and contextualize artistic value. Sotheby’s, for instance, has supported artists featured at the Venice Biennale and curated exhibitions during Art Basel, actively constructing market value through curatorial framing and institutional alignment.
 
This strategy underscores a longer-term vision rooted in discursive legitimacy and institutional validation rather than transactional logic. Korea, too, must consider whether its auctions can evolve into platforms that transcend sales to include exhibition-making and interpretive authority.


 
Fewer High-Value Transactions, but Art Engagement Remains Robust
 
Although transactions worth tens of millions of KRW have declined, museums and exhibitions continue to attract large audiences. Public enthusiasm for art remains high, with a growing focus on art as an experiential, rather than purely transactional, pursuit.
 
Collectors are shifting from rapid consumption to more deliberate, meaning-driven acquisition patterns. This signals a broader market pivot—from price-centric to context- and value-centric engagement.


 
As Jeong Joonmo, Director of the Korea Art Authentication & Appraisal Institute, stated,

“In 2025, the art market is turning its attention from ‘highest price auctions’ to ‘highest quality exhibitions.’ Auctions should no longer treat lots as mere commodities, but rather as artworks worthy of museum-grade presentation. The strategy of curating auction sales as exhibitions will become increasingly crucial. Ultimately, it’s time to move from a price-based market to a value-based structure.”