[MZ Art Tech]③ "World's 5th Largest Han Art Market to Stabilize Quickly After Adjustment Period"

Interview with Kim Hyunhee, Senior Auctioneer at Seoul Auction
"The characteristic of MZ collectors is their proactive search for artists of our generation"

[Asia Economy Reporter Kim Heeyoon] “The characteristic of MZ generation collectors is their proactive approach to seek out artists from their own generation rather than following the artists favored by older generations. Even if these artists are not widely known, if they judge there is potential, they invest in them without hesitation. This movement to discover and nurture contemporary artists is observed as a global phenomenon.”

Kim Hyun-hee, Senior Auctioneer at Seoul Auction [Photo by Seoul Auction]

Kim Hyunhee, a senior auctioneer at Seoul Auction with 19 years of experience, says she has personally felt the rapid changes in the art market over the past three years. As the demand from newly emerging MZ generation collectors shifted towards different types of artworks, the supply market took the lead in preparing for this change, driving rapid transformation. The prices of works by contemporary artists favored by MZ collectors showed a remarkable rise compared to blue-chip artists. She explains, “As of 2020, 52% of collectors worldwide have become MZ generation, so their influence in the market can only grow.”

The dream milestone of 1 trillion won in the Korean art market was realized last year. The market had not surpassed the 500 billion won barrier from 2008 to 2020. According to the ‘2022 Art Market Size Estimation Results’ announced on the 4th by the Ministry of Culture, Sports and Tourism and the Arts Management Support Center, the domestic art market’s transaction volume last year recorded 1.0377 trillion won. This represents a 37.2% growth compared to 756.3 billion won in 2021. Capital injected into the market to overcome the economic crisis caused by COVID-19 quickly flowed into artworks. The domestic auction market transaction volume in 2021 reached a record high of 329.4 billion won. The 2020 transaction volume was 115.3 billion won, showing nearly a threefold explosive growth.

Total Global Art Auction Sales Volume.

The auction market, a barometer of the art market, also showed growth. According to a market analysis report released by the global art research firm Artprice in November last year, South Korea rose to 5th place in the global contemporary art auction market and ranked 2nd in Asia. The United States traded $1.05 billion (approximately 1.51 trillion won) in contemporary art alone, followed by China with $740 million (approximately 1.065 trillion won), and the UK with $486 million (approximately 700 billion won). France followed with $68 million (approximately 97.8 billion won), South Korea with $65.5 million (approximately 94.1 billion won), and Japan with $65.2 million (approximately 93.7 billion won).

Although at the center of the booming market, Senior Auctioneer Kim diagnoses the current market situation as a period of adjustment. She explains that because the rise was so steep, temporary demand that resembled a bubble is retreating and the market is stabilizing. She says, “The market over the past three years had abundant cash liquidity, and wealth was accumulated through various investments such as stocks and cryptocurrencies. However, as the economic trend changed and bubble demand disappeared, phenomena such as auction failures have recently appeared. Although this is perceived as a market downturn, it is rather a breathing space for the market to stabilize.”

Korean Dansaekhwa, which mid-career and overseas collectors have focused on, was reappraised from 2016 and established itself as a blue-chip artist group. On the other hand, MZ collectors focused on contemporary artists. Senior Auctioneer Kim believes this demand is quickly filling the gaps in the art market. She analyzes, “In particular, demand for Black artists and female artists has increased, and this influence is continuing in Korea. Emerging artists such as Sarah Hughes, Emily Mae Smith, and Anna Weyant, who are attracting global MZ collectors, are rapidly raising their price levels and growing.”

Emily Mae Smith, Brooms with a View [Photo by Whitney Museum of American Art]

Regarding the secret behind the particularly high preference for certain artworks, she explains, “There are two cases: one is when demand increases depending on the timing, and the other is steady sellers that consistently perform well.” She adds, “MZ collectors who fit the former have been exposed to popular culture frequently since childhood and have experienced diverse foreign cultures, so they have no national boundaries and prefer works featuring new, eye-catching, and fun characters.”

Recalling her first auction at age 26, Senior Auctioneer Kim said, “I was shy and couldn’t call out price bids in front of collectors in their 50s to 70s.” However, she smiled and said, “Recently, I have directly confirmed that the age range at auction sites has diversified, from MZ generation to people in their 70s, and even those participating via phone bidding.” Emphasizing the importance of discerning good artworks, she said, “The best way is to see many actual works. It’s good to view artworks as investment targets, but it’s also necessary to have the leisure to recognize and appreciate artworks in our daily lives.”

At the end of the interview, when asked where good artworks encountered in daily life can be found, she introduced, “I recently visited Severance Hospital, and ‘Autumn’ by Kim Chang-ryeol hanging on the first floor caught my eye. Personally, ‘Silence’ by Oh Suhwan in the lobby of the Hyundai Marine & Fire Insurance headquarters in Gwanghwamun is also one of the works that moves me every time I see it.”