Domestic Investment Contract Security No.1 Artwork Kusama Yayoi 'Pumpkin'
The first domestic investment contract security to bring fractional investment in artworks, which had been intermittently conducted on art brokerage platforms, into the formal system has been issued. The subject is the work "Pumpkin" by the famous Japanese artist Kusama Yayoi. As a result, attention is focusing on both the artwork and the artist Kusama Yayoi.
According to the investment banking (IB) industry on the 14th, the effectiveness of the securities registration statement submitted by the fractional art investment company Yeolmae Company will take effect for the first time on the 15th. This is the first case where a fractional investment product has been recognized as an investment contract security under the Capital Markets Act.
Yeolmae Company will conduct subscription through K Bank from the 18th to the 22nd of this month. The public offering size is 1.232 billion KRW, and the first distribution is scheduled to begin early next year. Currently, fractional art investment companies Together Art and Seoul Auction Blue have also submitted securities registration statements, so approvals for the second and third fractional investment products are expected to be additionally granted within the year.
Yeolmae Company and Together Art both submitted Kusama Yayoi's work "Pumpkin." Both are size 3, with the only difference being the production years, 2001 and 2002 respectively. The high liquidity of the artwork and the fact that Kusama Yayoi is currently the artist with the highest liquidity seem to have contributed to the high product value.
Kusama Yayoi is a female artist loved worldwide for works such as "Pumpkin" and "Infinity Mirror Room." The polka dot pattern, which repeats infinitely, is a trademark representing Kusama Yayoi's unique artistic world. Recently, through collaboration with Louis Vuitton, she once again introduced her signature "repetitive pattern" to the world.
The reason the artist applied her trademark polka dot pattern to the pumpkin is her love for pumpkins. Having lived through mental confusion and anxiety due to abuse and neglect from her parents during childhood, she was fascinated by the stable, humorous shape and warm feeling of pumpkins piled up in a warehouse, developing a tremendous attachment to them. This attachment and love for pumpkins naturally expressed itself in various works, becoming the representative piece most associated with Kusama Yayoi.
Despite being born in 1929, Kusama Yayoi continues her artistic activities without pause. Major art museums and galleries worldwide continue to send invitations to exhibit her works.
Yeolmae Company underwent value appraisal verification at Seongyeong Accounting Corporation after passing through Unified Appraisal Corporation and the Korea Art Market Appraisal Association. The final appraisal value was 1.3 billion KRW, but the public offering price was set at 1.232 billion KRW to enhance investment appeal.
An art industry insider predicted, "As the art investment market opens with investment contract securities, successful cases will emerge."
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