Art Service Industry Reporting System to Take Effect on the 26th... Fines and Business Suspensions Deferred for One Year

Six Business Categories Including Galleries, Auctions, and Appraisals Subject to Reporting
Mandatory Management of Distribution Records and Disclosure of Winning Bid Prices

The Reporting System for Art Service Industry will be implemented starting July 26, 2026. Six business sectors, including art galleries, art auction houses, and art appraisal businesses, will be subject to this system. The Ministry of Culture, Sports and Tourism will offer a one-year guidance period until July 25, 2027, to help the system take root.

Visitors at the Gallery Art Fair held at COEX in Gangnam-gu, Seoul, are appreciating art pieces. Photo by Yonhap News

According to the Ministry of Culture, Sports and Tourism on July 24, 2026, the Enforcement Decree of the Art Promotion Act was approved at the Cabinet meeting on July 21, which has paved the way for the implementation of the Reporting System for Art Service Industry from July 26. Any business wishing to engage in art services must report to the head of the relevant local government.

The six sectors subject to reporting are: art gallery businesses, art auction houses, art consulting businesses, art rental and sales businesses, art appraisal businesses, and art exhibition businesses. The reporting system has been introduced to systematically foster and support the art distribution field and to create a transparent and fair art market.

With the implementation of the system, obligations will be imposed on each type of art service business. Art gallery businesses, art auction houses, art consulting businesses, and art rental and sales businesses must manage transaction records of art pieces. Art auction houses are required to disclose hammer prices and whether the auction payments have been settled in full, and must also operate auctions fairly. If an art auction house puts up works owned or managed by the business itself or by relatives, this must be disclosed beforehand.

Major Contents of Art Service Industry Reporting System

Appraisers of art pieces must conduct evaluations fairly and must not issue false appraisal documents. They are prohibited from conducting evaluations alone for works that they or their relatives own, manage, or distribute. Appraisal documents must be issued according to the Ministry's defined format, and they may not receive any remuneration other than appraisal fees and actual expenses.

Operating without registering or violating obligations will result in fines or business suspension. However, in order to minimize confusion at the early stage of the new system, the Ministry of Culture, Sports and Tourism will implement a one-year guidance period until July 25, 2027. During this period, fines and business suspension will be waived, and the Ministry plans to provide information and guidance about reporting procedures and important matters in cooperation with related agencies.

Jeong Hyangmi, policy chief at the Ministry of Culture, Sports and Tourism, stated, “The Reporting System for Art Service Industry will help build consumer trust in the art market and serve as a foundation for the further development of the Korean art sector. Moving forward, we plan to actively implement specialized policies and support projects tailored to each business type, based on the data collected from the reporting system.”

This content was produced with the assistance of AI translation services.