On July 26, Korea’s Art Promotion Act and its enforcement decree partially came into effect, with all measures expected to be fully implemented in 2027. This landmark bill, passed by Korea’s National Assembly last year on June 30, 2023, regulates the country’s art industry and establishes a comprehensive framework for the systematic promotion and development of Korea’s art market. Specifically designed to protect artists’ rights and economic interests, the Act ensures that artists receive a fair share of resale profits. Additionally, art buyers are granted the legal ability to request warranties for their purchases, a policy introduced to enhance market transparency and accountability.

Here are some of the major impacts on artists, sellers, and buyers of art in Korea.

Warranty for Buyers: Starting in 2024, the Act requires artists and art dealers to provide buyers with a certificate of authenticity for each artwork sold. The document must contain details such as the date and location of the purchase.

Art Service Industry Reporting System: Beginning in 2026, art businesses—including galleries, art fairs, auction houses, and consultancies—will be required to submit annual reports detailing their activities and transactions to the government.

Artist’s Resale Right: Currently, artists are not legally entitled to a share of the profits when their artworks are resold at a higher value. Article 24 of the Act introduces the Artist’s Resale Right, which will grant artists a percentage of profits when a person who is engaged in a “gallery business, artwork auction business, artwork consulting business or artwork rental/sales business” is involved in the resale of their work as a seller, purchaser, or agent. This Right covers all forms of artistic works, both tangible and intangible, including paintings, sculptures, photographs, digital art, installations, and performances. Expected to take effect by 2027, the policy will ensure artists benefit financially from the rising value of their creations over time.

Artists and collectors should be mindful that the Artist’s Resale Right is subject to a number of exceptions. Crucially, this Right remains in effect for only 30 years following an artist’s death, benefiting their estate or other stated beneficiaries.

Moreover, the Right does not extend to cases where:

(i) The resale price of the artwork is below USD 3,700 (KRW 5 million);

(ii) The artwork being resold can be classified as a “work made for hire” under Article 9 of the Copyright Act; or

(iii) The resale price is under USD 14,700 (KRW 20 million), and the seller had acquired the artwork directly from the artist within the last three years.

The Act’s functionality in terms of timing is guided by the principle of non-retroactivity, which dictates that new laws will apply only to actions or events occurring after their enactment, unless explicitly stated otherwise, to ensure fairness and predictability for those affected. To illustrate, if a seller had resold an artist’s painting five years ago, the artist would not be entitled to claim financial compensation retroactively. However, upon the Right’s implementation, if a seller resells an artist’s painting that is not covered by any of the listed exceptions, the artist will have a legal claim to a share of the resale profit. Notably, the Right does not involve renegotiation of the original contract terms, but rather a separate statutory entitlement.

Revamp Korea’s Public Art Bank: To scale up the government-owned facility that oversees all artworks in the possession of state-owned museums or regional governments, to tighten its management, particularly in the areas of artwork preservation, documentation, and promotion.

Report on Annual Market Analysis & Five-Year Promotion Strategy: The government is obligated to publish a report on promotion strategies for the art market every five years, derived from annual market analyses conducted by the Ministry of Culture, Sports, and Tourism. The first of these reports, set for publication in late 2024, will provide essential insights into Korea’s art valuation and rental practices.

The Art Promotion Act is poised to have a profound impact on Korea’s art scene, affecting both artists and collectors alike. Given the Act’s far-reaching implications, it will be crucial for all market participants to remain closely informed and adaptable as the new regulations take effect.

Mioie Kwok is a former editorial intern at ArtAsiaPacific.

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