[Click eStock] "Art Market Boom, Spotlight as Investment... Growing Expectations for Seoul Auction"

Projected Sales of 51 Billion KRW and Operating Profit of 10.1 Billion KRW This Year
Increased Demand for Investment and Interior Design... Art Market in 'Super Boom'

[Asia Economy Reporter Minwoo Lee] As the domestic art market experiences a boom, Seoul Auction's performance is rapidly growing. Noticeable improvements in results from the first quarter are expected to turn the company profitable compared to the previous year.

On the 16th, Yuanta Securities forecasted that Seoul Auction will record sales of 51 billion KRW and an operating profit of 10.1 billion KRW this year. Sales are expected to increase by 76.7% year-on-year, and operating losses are projected to turn into profits. This is based on the judgment that the art market is quickly recovering as art consumption increases amid difficulties in overseas travel and as art is gaining attention as a financial investment tool. Analyst Juwon Ahn of Yuanta Securities explained, "Seoul Auction's first major domestic auction held last month achieved a total bid amount of 11 billion KRW with a bid rate of 90%," adding, "The ongoing online auctions are also seeing average total bid amounts of 700 to 800 million KRW, growing from the previous 100 to 200 million KRW."

The product division is also effectively driving performance growth. Seoul Auction is increasing its scale and profits by individually selling art assets it holds. Analyst Ahn noted, "Art prices are rising across the board, so the product division has an open ceiling for sales," and added, "As the art market's growth strengthens in the future, expectations for performance will also increase."

The outlook is also bright. With noticeable performance improvements from the first quarter, the number of auctions is increasing quarterly, and momentum is expected to grow in the second half with auctions held in Hong Kong. Analyst Ahn analyzed, "While the art market was previously centered on a small number of collectors, it is now becoming a sustainable and popular market with a diversified consumer base through online platforms," and said, "Seoul Auction is the only listed art auction company in Korea and the top player, so it is bound to benefit the most from a favorable business environment."

Against this backdrop, Yuanta Securities maintained a 'Buy' investment rating on Seoul Auction and raised the target price by 63.6% to 18,000 KRW. The closing price the previous day was 12,400 KRW.