Art Fairs in Korea: The Pre-Game Knowledge You Absolutely Need

In a recent report released by the Korea Arts Management Service, it has been released that eighty-two art fairs, encompassing both international and local exhibitions, graced the Korean landscape over the past year. Notably, the art fair market in Korea has witnessed a remarkable surge, experiencing a 160% increase since the year 2019. Furthermore, sales at these art fairs, excluding Frieze Seoul, have surged nearly fourfold since the same period. These figures paint a vivid picture of the flourishing art scene in Korea, indicative of its growing prominence on the global stage.

Gallerists, art dealers, and committed collectors are likely already heeding the call of Korean art fairs, initiating preparations for what promises to be an exhilarating venture. Before embarking on your journey to Korea, it is essential to review a checklist of key information about the Korean art market.

1. Customs Duties and VAT

First, the good news: No customs duties apply to artworks imported or exported for art fairs in Korea, regardless of the purpose, whether for sales or exhibitions. If you are selling artworks you have previously acquired from an artist or collector, you do not pay VAT or sales tax. The same applies if you purchase artworks in Korea and take them abroad. Notably, Korea and Hong Kong stand out as the only venues in Asia offering such exemptions.

2. Artworks Classification

However, it is important to note that customs duties or VAT benefits only apply to artworks meeting the specific criteria outlined in the law. The artworks listed in the tariff schedule do not encompass prints created electronically or through phototypography, while lithographs or etchings created by artists’ “hands” in limited editions qualify for the benefit. The Korean Customs recently levied tariffs on David Hockney’s work, which was created on his iPad and printed using a printer. According to the Tax Tribunal, even if artists take photos, edit images on their computer, and then print them using a printer, the exemption benefit does not apply.²

In principle, furniture, lighting fixtures, jewelry, and watches are considered general merchandise, making them subject to tariffs, VAT, and other levies. The key criterion here is functionality. Chairs designed by renowned designers and produced in limited quantities of three editions or less may not be categorized as artworks due to their practical function, serving as seating. Even if Korean Customs classifies a specific chair as an artwork and exempts it from tariffs, an individual consumption tax of 20% will still be applicable if the purchase price exceeds five million Korean won (approximately 3,718 USD). Exercise caution when selling a sculpture or collage adorned with expensive jewelry or luxury items since an individual consumption tax may apply.