A New Way to Grow Your Wealth: What Is Art-Tech?

There are many investment products you can use to grow your wealth.
Many people make various investments, such as stocks, bonds and real estate, to increase their assets.
Among these many products, today we will look not at ordinary financial products but at investing in artwork.
Art investment is mainly referred to by the term art-tech. As the name suggests, it means investing in art.
In the past, people thought that only wealthy people or art experts dealt with artwork in this field.
Recently, however, the number of people investing small amounts in artworks has been increasing.
The reasons art investment is drawing attention can be analyzed as follows.
Artworks are not affected by economic conditions.
Even when financial markets are unstable and the economy is in recession, unlike other financial products, art is evaluated solely on its intrinsic value.
In addition, because artworks belong to the field of the arts, artists whose value is recognized and their works have the characteristic of being more highly valued as time passes. Since the value of such works does not fall easily, you can expect stable investment returns.
To invest in art, the usual way is to visit an art gallery.
You can visit an art gallery, consult with a curator, and then purchase the artwork you want to invest in.
Purchased artworks can then be rented out. You entrust the work to the gallery, and when it is rented to or sold to another buyer, you take the corresponding profit.
For example, if you buy an artwork for 1,000,000 won and a rental contract for the work is concluded at 1% per month, you will earn 10,000 won per month, or 120,000 won per year.
And if it is sold for 1,200,000 won, you will make a profit of 200,000 won.
The rental yield on artworks is said to average 7% or more, which can be called a far better return than bank interest.
The biggest advantage of investing in artworks is taxes.
If the artist of the work you are selling is still living, all taxes are exempt regardless of the amount. Conversely, if the artist of the work has passed away, a 22% tax is imposed only on works sold for 60,000,000 won or more.
Therefore, if you invest small amounts in art, you can assume there is no tax. This tax advantage is also one of the reasons art investment is drawing more attention.
When transferring a high-priced artwork worth 60,000,000 won or more, the capital gains tax is calculated as follows.
※ Capital gains tax = (Sale price - Necessary expenses) X 22% .
(Necessary expenses are calculated here; they are explained at the bottom of this article, so please refer to that)

For example, if you sell a work bought for 500,000,000 won for 1,000,000,000 won and the necessary expenses are 900,000,000 won, 22% is levied on 100,000,000 won, so according to the formula, a tax of 22,000,000 won arises.
The tax rate is 22%, but considering the capital gain of 500,000,000 won, the tax is clearly low compared with other products.
However, as with all investment products, there are many things to watch out for with artworks.
Because artworks belong to the field of the arts, there are no clear valuation standards.
Works by famous artists whom everyone recognizes are likely to rise in value, but if a work is not of that kind, you should be all the more careful about buying it.
Therefore, you must study the artist and the work.
And you must verify the authenticity of the work. Since fake works sometimes circulate in the art market, you must check the certificate of authenticity when buying.
Finally, because artworks are physical objects, they must be stored well. If a work is damaged after purchase, its value drops sharply.
If you are starting art-tech, it seems best to first study the points to watch out for before you begin.
※ Necessary Expenses
100,000,000 won or less -> 90% of the sale price
Over 100,000,000 won, held for less than 10 years -> 80% of the sale price
Over 100,000,000 won, held for 10 years or more -> 90% of the sale price