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Conflict between the government and the art world is mounting over a plan to impose capital gains tax on artworks. The Ministry of Strategy and Finance submitted a tentative bill last Wednesday, the opening day of the regular session of the National Assembly, to the Strategy and Finance Committee. The Ministry hopes the bill gets passed before Dec. 9, the last day of the plenary session. The bill would impose tax on 20 percent of the marginal profits when selling an artwork worth W40 million (US$1=W1,269) or more.
The plan has been brewing since 1990. The government says capital gains tax should be charged on anything that makes profits, but the National Assembly threw the bill out every time. An official at the Finance Ministry said the ministry is only trying to follow international standards and the principle of equality.
However, the art world is against the tax. ˇ°This is a matter of life or death for the Korean art market, and it is absolutely unacceptable,ˇ± one insider said. ˇ°Collectors who buy expensive works are more worried about revealing their identity than about paying taxes,ˇ± said Lee Hyun-sook, the president of the Galleries Association of Korea. ˇ°Since the art market is led by a handful of collectors, if they withdraw, the entire Korean art market will collapse.ˇ±
(englishnews@chosun.com )
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