How to Report an Art Service Business

Procedure

Procedure

1. 01

   1. Identify which of the 6 business types applies — A gallery business discovers or develops artists and brokers, rents or sells artworks through art exhibitions, and an art auction business brokers or sells artworks through auctions. An art advisory business repeatedly provides opinions on the valuation, acquisition or disposal of artworks for profit, an art rental and sales business brokers, rents or sells artworks by means other than galleries and auctions, an art appraisal business evaluates authenticity or quality and issues appraisal reports, and an art exhibition business plans, holds or operates exhibitions. The same applies to businesses run on online platforms, and if you run several types you mark all of them on the report.

2. 02

   2. Check disqualifications and the right to use the premises — Minors, persons under adult guardianship, persons declared bankrupt and not reinstated, and persons without an address in Korea cannot file the report. The same applies to anyone who, in connection with an art service business, received a prison sentence, a suspended sentence or a fine for document forgery, fraud, embezzlement, breach of trust or similar offenses less than 1 year ago, and to anyone whose business closure order was less than 1 year ago; a corporation or organization whose representative, officer or auditor falls under these grounds also cannot file. If the main place of business is owned by someone else, prepare documents proving the right to use it, such as a lease agreement.

3. 03

   3. Complete the report and submit it to the city, county or district office — On the art service business (change) report, enter the reporting person's information, the trade name, the location of the main place of business and the business types, and submit it to the city, county or district office where the main place of business is located. The corporate register, business registration certificate and building register are checked by the official through shared use of administrative information, and if you do not consent to checking the business registration certificate you attach it yourself. Processing takes 3 days and the fee is the amount set by the local ordinance.

4. 04

   4. Post the certificate and keep transaction records — Once the report is accepted, you receive an art service business report certificate and must post it at the place of business or on your own website. Gallery, auction, advisory, and rental and sales businesses must keep records of the artworks they have distributed, and auction businesses must also publish hammer prices and whether payment has been completed and give advance notice when putting up artworks owned by themselves or their relatives. A buyer of an artwork may request a certificate of authenticity or an equivalent certificate.

5. 05

   5. Change, succession and closure reports — If you change the trade name, the location of the main place of business, the representative's name or the business types, file a change report on the same form. A person who acquires the business by transfer, inheritance or merger must file a succession report within 30 days of that date, and a business that closes must file a closure report with the certificate attached within 14 days. If you file a new report within 1 year of a closure report, you succeed to the status held before the closure.

Filing route

Filing route

Deadlines & processing notes

Deadlines & processing notes

Fees & official charges

Fees & official charges

Included in the basic fee — Initial document review, required-document guidance, basic form preparation, one filing support and one ordinary supplement.

Conditional success fee — For this service, any conditional success fee may be separately agreed within the lawful service scope and stated in a written engagement agreement. No outcome is guaranteed.

Displayed amounts are starting estimates, not statutory or standard rates. The final fee is confirmed after consultation and document review in the engagement agreement. Government fees and actual expenses may change.

Basic documents

Basic documents

Filing a report by false or other improper means, or continuing to operate in violation of a business suspension order, is subject to business closure, and after a closure order you cannot file a new report for 1 year. If a gallery, auction, advisory, or rental and sales business violates Article 15, Paragraph 5 of the same Act, for example by not keeping records of artworks it has distributed, the disposition standard is a warning for a first violation, 10 days of business suspension for a second, 1 month for a third and 3 months for a fourth or later.