Observations on the Art Market 5.15

Sometimes it seems as if the goal of every artist isn't to create art but to own a gallery to hang their still yet to be created art in. Jonathan Grossmalerman has said that artists today ask themselves what good an artist is without a gallery and the answer is always not much. He sarcastically added maybe the fact that no one wants to show your work is a sign.

I can't say the thought of owning a gallery has never crossed my mind but I always leaned towards dreams of curating in a museum of some sort. If I did open a gallery I know just the place to do it. Seoul, as in Korea. There is a total lack of galleries in Korea supporting local artists. Even the vaunted Larry Gagosian doesn't have a gallery In Korea and it seems every time I open an art mag he is opening a gallery in some dark alley somewhere. At a time when Asian markets are exploding (China, Hong Kong) Korea is the most isolated art market in the world. As an example Hwang Dal Seung is one of the largest gallery owners in Korea and the driving force behind the largest Korean art fair yet the Asian Hotel Art Fair is held in Hong Kong.

There are a few reasons for this. The first is the unique philosophy of many Korean artists. They are more interested in the creation of the art and the personal meaning it may have than any public reaction. It's unique in that it's not the prevailing philosophy today but it's something I totally understand because often I think the same way.

The other reasons have more to do with the traditions and legalities of the Korean art market, or maybe I should say lack of legalities. A few years ago it was found Shin Jeong-ah, an art professor and curator, had forged her academic record and embezzled gallery money for which she spent two years in prison. At the same time works by artists such as Kwon Ok-yeon and Do Sang-bok were put up at auction but than exposed as forgeries. The auctions were canceled at the last minute. These are just a few examples but there are many others.

Samsung, LG, and Hyundai and three of the largest corporate sponsors of art in the world but in Korea itself art transactions are very secretive. Until 2011 there were no taxes at all on works of art or art transactions, now any work over 60 million (approx. $50,000) is taxable but not if involves a Korean artist. At the same time the law also allows works of art to be regarded as corporate assets so in most cases individuals aren't responsible for the taxes the very same law levies. Korean art collectors don't release specific price or transaction information so I have no clue how taxes are going to be collected.

Traditionally art is a favorite form of bribe in Korea because there is so little oversight. One of the more prominent cases involved Samsung chairman Lee Kun-hee who resigned in 2008 and was convicted of operating a bribery slush fund. He was later pardoned by the South Korean government and returned to his position at Samsung.

More recently art has become the favored way to launder money* in South Korea. This has become a world wide problem, The New York Times ran an article on it just days ago, but South Korea's tradition of secrecy aggravates the problem.

So upon further review maybe my Seoul gallery is a bad idea.

*A non-Korean example happened in New York last month when charges were filed against the New York dealer Helly Nahmad charging that he worked "to launder tens of millions of dollars on behalf of the illegal gambling business." Also there is a book being published this month on this subject, "Money Laundering Through Art: A Criminal Justice Perspective" by Fausto Martin De Sanctis. De Sanctis has a Doctorate in Criminal Law from the University of São Paulo’s School of Law and is currently on a Brazilian court specializing in money laundering.

Observations on Art 3.10

It's the last day of Art Week and the breakfast conversation isn't so much about art as the dearth of coverage this year. I should say lack of sleep, not helped by the changing of the clocks, may have something to do with the topic because I have never seen a sorrier looking group of artists. Massive quantities of coffee will be needed today if anybody is going to function properly at all.

In all honesty something does just seem off about the fairs this year. It wasn't the crowds, they were there, but more about the feeling, the buzz for lack of a better word. The usual art publications covered all the shows but even The New York Times reviewed only the three major ones (see previous post for links). Here are some of the reasons our gloomy brain trust has come up with.

The big galleries seemed to have stayed away the piers this year leaving a show full of galleries that normally are seen at lesser events. Good for the galleries' exposure but not all that good for the coverage of the overall show. Granted Gagosian was there but in the Focus section which normally is reserved for emerging markets and artists, not for the crown prince of the art world.

Another possible reason we discussed was the show's current owner, Merchandise Mart Property Inc. of Chicago, which is a holding company specializing in trade shows. A major art fair isn't exactly the same as a home builders show. On their website MMPI says they have "assured the continued development and enhancement of the Art Show division by bringing together some of the top minds in art fairs under one partnership." Funny thing to be saying as rumor has it their art fair holdings are currently for sale. According to The Art Newspaper the leading candidate to purchase the fairs is Louise Blouin who is the publisher of Art + Auction, Modern Painters, and owner of Louise Blouin Media. We shall see.

My pet theory, which I mentioned a couple days ago, is the effect the Frieze is having on the Armory Show. Last year it was new and unknown in New York and it did an awesome job. This year the Frieze is a known and more people are planning for it. Being in mid-May it has weather on its side, it snowed for three days this week, and its location on Randall"s Island lets you be in the city but yet feel like you aren't in it at the same time. The Frieze may also be the reason the Armory Show has turned so much more American. I don't think it has as much to do with some misplaced idea of patriotism as it does with major international galleries planning to do one fair in New York and that fair is in May.

In the end maybe the whole reason is the interwebs as Art.sy had the whole show online before it even opened. This could be the main issue art fairs have to deal with in the future if they are going to survive as they are now.