[MZ Art Tech]① 'If They Get Hooked, Billions Invested' MZ Generation's Preferred Artists

Young Artists Kim Seon-woo, Woo Guk-won, and Ok Seung-chul Capturing MZ Generation's Attention
Art as Investment, Not Just Decoration... Printmaking and Sculpture Investments Also Popular

Photo by Sunwoo Kim, 'A Sunday on La Mauritius' provided by Seoul Auction

[Asia Economy Reporter Kim Heeyoon] ‘Deokjil’ refers to the act of deeply researching and obsessing over a particular field or person, similar to the Japanese term ‘otaku (御宅)’ which denotes someone who is deeply passionate about a subject. It is also called ‘digging,’ meaning to delve deeply, and is considered a core element of the tastes and consumption patterns of the MZ generation, for whom personal happiness and beliefs are top priorities. The tendencies of the MZ generation, represented by Deokjil, are clearly reflected in art collecting as well. While previous generations tended to purchase artworks based on expert recommendations and to flaunt their wealth, the MZ generation attends lectures and studies independently to clarify their own tastes before buying artworks.

According to the ‘Study on Korean MZ Generation Art Buyers’ released by the Arts Management Support Center last September, the average art purchase score of the MZ generation (born 1980?2005) over the past three years was 7.5 points. This is a significant figure compared to the 10.5 points average for Generation X (born 1965?1979) and the Baby Boomer generation (born 1946?1964).

Most MZ generation buyers spent less than 50 million KRW on art purchases over the past three years, but 80% of the top MZ buyers spent between 100 million KRW and less than 500 million KRW, and 20% spent over 500 million KRW. Even during the period when the offline market was depressed due to the spread of COVID-19, top buyers competitively purchased artworks by absorbing information such as auction records online.

They cited ‘investment’ as the reason for purchasing art. Seventy percent of MZ generation buyers responded that investment purposes were important. Top MZ buyers had clear short- and long-term investment goals, and 48.2% had experience reselling artworks in the past 10 years, showing a tendency to focus on art as a financial investment.

About perspective II. 130x162cm, gouache on canvas, 2018. Photo by Gana Art Center

There are notable success stories behind this investment trend. The 1988-born artist Kim Sunwoo, famous for his ‘Dodo Bird’ works, saw his piece ‘Sunday Afternoon on Mauritius Island’ sold for 115 million KRW at the Seoul Auction Fall Sale in September 2021. This artwork was sold for about 5.4 million KRW (35,000 Hong Kong dollars) at the Seoul Auction Hong Kong auction in May 2019, meaning its value increased more than 20 times in just two years and four months.

The dodo bird, which inhabited Mauritius Island in the Indian Ocean, became extinct in 1681 due to indiscriminate hunting. Attracted by the story that the dodo bird forgot how to fly because it stopped flying, Kim personally visited Mauritius Island to conduct research, and the dodo bird became his signature motif. The artist’s reflections on modern dreams and freedom projected onto the extinct dodo bird moved the hearts of the MZ generation and soon led to value-based consumption.

Ugukwon. The Ugly Duckling. Oil on Stainless Steel_1400x1000mm. Photo by K Auction

The popularity of artist Woo Gukwon (46), who creates works that stimulate fairy-tale-like imagination, is also strong. His work ‘Ugly Duckling,’ which was auctioned at K Auction last September, was sold for 230 million KRW after fierce competition. When the artwork’s price more than doubled within a month, recording a ‘jackpot’ profit, collectors eagerly rushed to purchase his works. Although the artist himself described the intense interest in him as a ‘strange phenomenon’ and distanced himself from it, he expressed in an interview that it seemed the market’s collective sentiment had chosen his work.

Pop art-style artist Ok Seungcheol (34) has long attracted the MZ generation’s attention with his ‘Instagrammable’ works. His artwork, which made a mark as the album cover for the band ADOY in 2017, carries the familiarity of Japanese animation characters consumed by the MZ generation during their growth. His works, characterized by the appropriation and personalization of familiar motifs rather than uniqueness, boldly cross the boundaries between art and commerce. Reflecting this, his solo exhibition held last April saw an open-run event as visitors rushed to purchase editions sold at the exhibition space, demonstrating high interest.

Ok Seungcheol. up, 2021, acrylic on canvas, 180 x 200cm

Goods and offset prints, which were not highly valued in the past, are actively traded among the MZ generation who focus on ‘ownership,’ recognizing them as part of the artist’s extensive lineup. This interest in ownership has also led to art fractional investment, expanding the market.

According to SOTWO, an art co-purchasing platform operated by Seoul Auction Blue, 40% of members who purchase over 10 million KRW per session are from the MZ generation. The art fractional investment platform TESSA also announced that it surpassed 100,000 cumulative mobile app members within two years of its launch. According to the Arts Management Support Center, the art fractional investment market accounted for 5.5% of the domestic art market in the first half of this year, with sales reaching 31 billion KRW in just the first half. It is expected to surpass last year’s sales of 54.5 billion KRW this year.

A SOTWO representative analyzed, “The MZ generation, who spend 5?10% of their annual income on art purchases and obtain various information online, visit art fairs and galleries to observe market trends and develop their own perspectives, then enter the fractional investment market, which has relatively low entry barriers.”