New 신고제 for Art Services from July — Transparency Boost or Market Chill?
Creatrip Team
2 months ago
From July 26, 2026 South Korea will require six types of art service businesses — gallery operations (화랑업), art auctions, art advisory, rental/sales, appraisal, and exhibition services — to register under the new Art Promotion Act. The government says the 신고제 (reporting system) will improve market transparency, allow better industry data and consumer protection, and help curb fraud and forgeries. Violations could trigger business suspensions or fines. However, galleries and collectors worry the rule could expose sensitive sales data and privacy for private sales, shrinking a market that relies heavily on individual collectors. A related 2027 plan to introduce a resale royalty right (추급권) for artists — giving creators a share when works are resold — raises further debate: while it protects artists (as in the EU/UK), mandatory rules in a less mature market may discourage transactions or harm emerging artists. Industry voices call for policies that expand demand (for example encouraging corporate purchases) and tax changes to support market growth, arguing careful design and phased implementation will determine whether the new regime increases transparency or suppresses activity.
