The Korean art market in the first half of 2025 stands not in decline, but at a structural turning point. Assessing the art market purely through numerical indicators is no longer sufficient.

The decline in total transaction volume, the retreat of high-end sales, the rise of mid-market segments, and the emergence of younger collectors all point in the same direction: what we are witnessing is not a temporary downturn, but a strategic reconfiguration of distribution models, value perception, and buyer behavior.


 
1. Global Trends: Lower Sales Volumes, Higher Activity

In 2024, the global art market totaled USD 57.5 billion (approx. KRW 77.6 trillion), marking a 12% decline from the previous year. However, the total number of transactions rose by 3% to 40.5 million, indicating that the market has expanded particularly in the mid- to lower-price segments.¹ This trend reflects both the post-pandemic acceleration of digital distribution and the influx of younger collectors.

According to the ‘Art Basel & UBS Art Market Report 2025’, high-value artworks are increasingly shifting away from public auctions toward private sales. While the number of auction sales exceeding USD 10 million (approx. KRW 13.5 billion) dropped by 39%, private transactions through mega-galleries and auction houses rose by 14%.² This shift is not merely a change in sales channels—it represents a return to trust-based transactions, where relational capital now plays a central role in market dynamics.

(Source: Arts Economics, Art Basel & UBS Art Market Report 2025; The Business Research Company, Arts Global Market Report 2025–2034)

2. Korea’s Dual Movement: Contraction and Expansion

According to the ‘2023 Art Market Survey’ by the Korea Arts Management Service, Korea’s total art market transaction volume reached KRW 692.8 billion (approx. USD 512.8 million), down 14.1% from the previous year.³ The auction sector experienced the sharpest drop—nearly 33%. However, works priced under USD 50,000 (approx. KRW 67.5 million) saw increased demand, driven largely by new, younger collectors.⁴

These buyers are not simply drawn by affordability. Their decisions are increasingly shaped by artists’ identities, creative narratives, and social engagement. Collecting is evolving from asset accumulation into an expression of personal taste and philosophical consumption.

3. Price Transparency and Trust as New Market Standards

With the rapid growth of online distribution, price transparency has become crucial. According to the ‘Hiscox Online Art Trade Report 2023’, 90% of new online buyers reported hesitancy when prices were not disclosed.⁵ Today’s art market demands not concealment but the contextualization and justification of price—an ability to narrate value, not just assign it.


 
4. Regional Art Fairs and the Shift Toward Ecosystem Thinking

In the first half of 2025, the Busan Annual Market of Art (BAMA) welcomed over 120,000 visitors, confirming the growing strength of regional art markets.⁶ Events such as Art Fair Daegu and the Yangpyeong Art Festival have also delivered consistent results through regional identity, curatorial direction, and experiential content.

The Yangpyeong Art Festival, in particular, has led a paradigm shift from “exhibition” to “cultural experience.” It has positioned itself beyond a commercial platform, embracing artist discovery, art-tourism integration, and community-based programming.⁷ This exemplifies how the art market is evolving into a key pillar of the wider cultural ecosystem.

5. Global Ambitions, Structural Limitations

Despite increased international attention, Korea's share of the global art market remains at just 0.6%.⁸ This reflects not a lack of individual artist competitiveness, but systemic challenges: the absence of integrated linkages among artists, galleries, institutions, and platforms; and the lack of long-term brand-building infrastructure.

To address this, the Korea Art Authentication and Appraisal Research Center has outlined the following strategic directions:⁹
 
- Expand participation in international art fairs and biennales
- Establish collaboration frameworks with overseas mega-galleries
- Develop pricing strategies aligned with artists’ life cycles
- Analyze MZ generation collectors and enhance online distribution

 
The Center also introduces the “Golden Circle” model—a conceptual framework of Why (reputation) → How (narrative) → What (price) —arguing that storytelling and relational trust must be integral to any pricing strategy.
 
 

Conclusion: A Time of Recomposition and the Challenge of Ecosystem Building

The Korean art market in the first half of 2025 reflects a paradoxical duality: a decline in overall revenue, but diversification in transactional modes. High-end artworks are increasingly sold through private channels, while mid-market works are finding vitality through online platforms and regional fairs.

This is not merely a contraction—it’s a reorganization of distribution structures, demand topography, and decision-making criteria. The growing momentum in mid-market demand, the entry of emerging artists, the activation of regional markets, and the rise of digital and transparent pricing are emerging as new engines of vitality.

The market structure may be shifting, but within that turbulence, trust, narrative, and connectivity are emerging as the new core axes. The future competitiveness of the Korean art market depends not on short-term sales, but on its capacity to design and sustain a long-term, interdependent ecosystem.

Pessimism that claims “art is over” does not hold. What we are witnessing is not an end, but a strategic reordering. The agents of this transformation are no longer merely prices—but trust, narrative, and the architecture of relationships.

References

1. 1. 1. Art Basel & UBS, ‘The Art Market Report 2025’, www.artbasel.com
      2. Maddox Gallery, ‘Is the Global Art Market Turning?’, 2025, www.maddoxgallery.com
      3. Korea Arts Management Service, ‘2023 Art Market Annual Report’, www.kartprice.net
      4. Ibid.
      5. Hiscox, ‘Online Art Trade Report 2023’, www.hiscox.co.uk
      6. ‘Busan Ilbo & Daegu MBC’, May 2025 coverage
      7. Ministry of Culture, Sports and Tourism & MISULIN press releases, 2025
      8. Korea Culture & Tourism Institute, ‘2024 Korea Art Market Global Benchmarking Report’
      9. Korea Art Authentication and Appraisal Research Center, ‘Art Market Trend 2025’, June 2025