A Korean Auction House Looks to China

Published: March 19, 2010


Courtesy Seoul Auction
Yoshitomo Nara, "Walking alone," 1998. Acrylic on canvas, 48.3×36.1 cm. Estimate: HK$1.3–1.5 million ($168,000–193,000)

BEIJING—With characteristic swiftness, a segment of the art market has in recent years fixed its radar on that eminently desirable but still imperfectly understood client, the Chinese collector. Ascertaining the taste of these emerging buyers is no easy task, though recent auction records reveal they have a strong penchant for masterworks of Chinese painting and calligraphy, antique furniture of dynastic provenance, recent oil paintings that realistically depict beautiful women from bygone eras, and work by that handful of contemporary painters whose iconographies have achieved brand status — from Zeng Fanzhi, with his masked faces, to Yue Mingjun's rictus grins and Zhang Xiaogang's disaffected frowns.

Seoul Auction, however, was offering something different at its first auction preview in Beijing, held earlier this month in a small storefront on the third floor of the tony Yintai Center. Highlights of their April 4 Hong Kong Modern and Contemporary Spring Sale were on view — a clear effort to reach out to mainland Chinese collectors — but the focus was not entirely on the usual suspects. Instead, one found works by younger Chinese artists, such as painter Chen Ke's A Smooth Run (est. RMB 260,000-345,000, or $38,000-55,000) next to Nam Jun Paik’s Cello, made of television monitors (est. RMB 1.3-1.735 million, or $200,000-250,000), and one of Gerhard Richter’s colorful abstract paintings, Grün-Blau-Rot (est. RMB 738,000-868,000, or $108,000-127,000).

Seoul Auction, easily Korea’s most established auction house, is well known for selling works by major artists from the West — from Richter and Robert Indiana to Damien Hirst and Cindy Sherman — to collectors through their auctions in Korea and, since 2008, Hong Kong. It occupies a unique niche in the Asian auction world, one Seoul Auction is hoping its Chinese clients will appreciate. At the preview, ARTINFO sat down with Minsung Shim, managing director of the auction house, to talk with her about selecting auction highlights, enduring the financial crisis, and her company’s evolving presence in China.

Seoul Auction has been at the forefront of the Korean auction market since opening in 1998, taking 58 percent of the Korean market share in 2008 (RMB 394.6 million, or $58 million). How do you account for this success?

The key success factor of Seoul Auction is that for ten years, we were the only auction house in Korea, so we have a long history and very good relationships with our clients. Only recently did other auction houses join the market. Also, the Korean contemporary-art market suddenly got so big during the last three or four years, which has been another factor in our success. And two years ago, Seoul Auction was listed on the Korean stock market, which I think means a lot to the history of the art market in Korea. So in many ways, Seoul Auction has been a pioneer in the Korean art market.

You were the only game in town for a decade. Why do you think it took so long for others to catch on and recognize that this is a viable business?

Personally, I think the art business in Korea is a very private, almost closed market. But in recent years, throughout the world, the contemporary market has been booming. We have also had more young collectors entering the market, and they’ve changed the nature of the business. The art business in Korea is developing.

You told me earlier that you had your first auction in Hong Kong just a few days before the 2008 financial crisis hit. How has Seoul Auction weathered the storm of the economic downturn? How have you adapted?

We spent two years planning our entry into Hong Kong, but as soon as we began we suddenly encountered the economic crisis. We had to reconsider whether we wanted to continue doing business in Hong Kong, and we decided to go for it. The first auction, as I told you, took place just a few days after the crisis and the consigners were very disappointed.

Because the won had fallen?

Yes. And secondly, many potential buyers from Korea canceled. So we were really devastated. But we did make 68 percent of our sales, and we sold many of the most important works. After that first auction, we arranged contracts for the clients in Hong Kong dollars, which makes them feel more confident. Now we are more prepared.

You’ve had particular success in Asia selling works by very established Western artists like Damien Hirst. As one of the few auction houses in Hong Kong dealing in contemporary Western art, how do you decide which Western works might command higher prices on the Hong Kong market versus your Seoul auction house?
We are very careful about selecting the highlight pieces for the Hong Kong auction, especially the Western pieces. At the 2009 Modern and Contemporary Sale in Hong Kong, for example, we sold a work from Damien Hirst’s "Butterfly" series [The Importance of Elsewhere—The Kingdom of Heaven, for RMB 14.9 million, or $2.8 million] and have also sold works by Anish Kapoor and Warhol in Hong Kong. We are more focused on the big names in Western art.

You’re currently holding your first auction preview in Beijing for the Hong Kong Modern and Contemporary Art Spring Sale on April 4. All of the major auction houses are strengthening their relationships with mainland Chinese clients now. How are you reaching out to these potential buyers? What do you think differentiates Seoul Auction from its competitors in Hong Kong?

At our last Hong Kong auction, we noted that the number of buyers from mainland China was increasing, and we recognize the importance of Chinese market. Last year, when we participated in the SH Contemporary art fair, we discovered many things. The Chinese clients really like to collect works by Chinese artists. We are still learning. From a business perspective, Chinese customs is more complex, but we are very committed to doing business here in the long-term. So we plan to do regular previews here, and we will present works by Western artists. It won’t take too long for Chinese buyers develop a taste for these artists — perhaps one or two years. They are already starting to buy Picassos and Impressionist works from London and New York.

The choices for the preview here in Beijing are very interesting. Auction highlights for the April 4 sale include artists with very strong auction records in Hong Kong and the mainland, such as Zeng Fanzhi, as well as works by younger, lesser-known Korean artists. How do these selections anticipate mainland Chinese tastes?

We are using the Beijing preview as a testing ground to learn about local tastes, so we brought a variety of things. In the past, Chinese buyers have had to travel if they wanted to buy Western artworks, but we can bring the work to them. For example, we are also offering a Chagall painting [Le Bouquet], and we wanted to bring it to the preview, but we were not able to.

Because of customs issues?

Yes, it would have taken too long. I think if we had brought the Chagall, we could find interested clients in Beijing. They can view it in Hong Kong.

Going forward, what is your ambition for Seoul Auction in China?

It’s my wish that Chinese collectors will have more opportunities to get to know artists from outside of China. Many museums in China are planning to hold exhibitions by well-known Western artists, so that will generate interest in these artists and help people to know their work better. At the same time, Seoul Auction would also like to introduce young Chinese artists to clients in Korea and throughout Asia. I think Beijing is quite ready to embrace work from other parts of the world. They are curious and excited about new things, so I think it’s the right time to start new things here in China.