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There are no limits to entrepreneurship. Even entrepreneurs who aren't experts in a particular field can become champions in any area. Sometimes, the fixed mindset formed from digging just one well can actually become an obstacle to innovation. So, in which cases is 'expert entrepreneurship' most effective? Perhaps when a high degree of expertise is needed in uncovering and solving problems. If we say that a hallmark of great expert entrepreneurship is the ability to recognize problems invisible to the general public and craft specialized solutions, the answer lies in Art & Guide, the top service for art fractional sales.
The art market has long operated as an OTC market, creating information asymmetry and high commissions—sometimes over 50%—which have often been cited as major issues. The sky-high prices also make it hard for the public to participate. While it's easy to spot these problems, many attempts to solve them have failed. The sheer passion of a startup alone isn’t enough to break into the art market’s closed networks, and since artworks are 'tradable assets', performing precise valuations for each piece every time is also extremely challenging.
Mr. Kim Jae-wook, CEO of Yeolmae Company, set out to tackle these market issues through the art fractional sales platform, Art & Guide. Although he had always regretted not being able to major in art due to his parents’ opposition when he was young, he started his career at a major accounting firm—only to find himself, almost by fate, advising an art fund. This blend of passion and profession eventually led him to leave the firm and join the Gansong Art Museum as an operations manager, immersing himself fully into the art industry. Leveraging his solid foundation in finance and building a career bridging investment and operations, he has used this accumulated expertise to address the market’s challenges.
The issue of accessibility caused by ultra-high prices has been solved by dividing each artwork and selling it in fractions, while transactional trust is established through blockchain technology. To assure profitability from an investment standpoint, we focus exclusively on works by top-tier artists whose value growth over time is clearly visible. We have developed a tool that determines appropriate price ranges by drawing on historical transaction data for every work by individual artists, and this process is supported by an expert team with some of the strongest skills in the industry. To secure excellent pieces, we collaborate with major global auction houses like Sotheby’s and Christie’s. In order to align our interests with those of investors, Yeolmae Company itself invests around 10% of the sales amount as equity in each transaction. For investor protection, we minimize risk and build trust through various financial strategies—such as setting a put option with the seller on large transactions to guarantee the principal.
As more customers experience successful investments through Art & Guide, most offerings are snapped up at lightning speed. Now, they've become collectors who can be called major players in the Korean art market, enjoying economies of scale built on stronger negotiating leverage and an expanded network.
Now, Yeolmae Company has its sights set on an even larger market.
Not only are we expanding our business footprint within the art market—such as art collateral loans and art brokerage—but we are also moving into new markets outside of art. We have built up the financial strength needed for an immediate IPO and are finalizing the selection of our lead underwriter. With BASS alongside us, we look forward to the day when we achieve recognized success in the broader distribution market.
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