The "art service business registration system," which requires operators of art service businesses to register with the government, will take effect starting on the 26th. Implementation of the registration system had been delayed for three years after the enactment of the related law, and it has now been granted an additional one-year grace period. The move is seen as reflecting market confusion and a lack of government preparation.
The Ministry of Culture, Sports and Tourism said on the 24th that the "art service business registration system" will take effect on the 26th, following the approval of the "Enforcement Decree of the Art Promotion Act" at the Cabinet meeting on the 21st. The art service businesses subject to registration under the Art Promotion Act fall into six categories: gallery businesses, art auction businesses, art advisory businesses, art rental and sales businesses, art appraisal businesses, and art exhibition businesses.
The ministry explained, "The art service business registration system is a system introduced to systematically foster and support the art distribution sector and to create a transparent and fair art market." It added, "With the implementation of this system, those seeking to operate an art service business must register with the head of the relevant local government."
The Art Promotion Act, enacted in July 2023, imposes obligations on art service operators such as managing art distribution records, disclosing hammer prices, and using standard appraisal certificate formats, in order to enhance transparency in the art market and protect consumers. Until now, there had been no public oversight of art service operators, prompting many to point out difficulties not only in addressing illegal activity but also in revitalizing the art market.
In other words, operating an art service business without registration, or violating the obligations imposed on art service operators, will be subject to fines or business suspension. However, the registration system itself is not a licensing system but a registration system.
Yet because there was controversy, including backlash from art service operators concerned about regulation, the system went through a three-year grace period, and now an additional one-year grace period has been added.
The ministry said, "As the art service business registration system is a newly implemented system, we will operate a one-year grace period until July 25, 2027, to reduce confusion in the field and help the system successfully take root." During the coming one-year grace period, measures such as fines or business suspension for non-registration will be deferred.
