On the morning of the 6th in Sinsa-dong, Gangnam District, Seoul, at the Seoul Auction Gangnam Center. People gathered in front of a transparent glass box in the middle of the auction hall. Inside the box was a gleaming Rolex "Day-Date" platinum model with a blue dial. A staffer said, "If you want, you can put on gloves and try it on." One visitor said, "The condition is really good," expressing admiration.
Visitors kept coming to the exhibition hall to look over luxury bags and watches and artworks. Even though it was early on a Friday morning, about 20 visitors were looking around the auction hall. A Seoul Auction official noted, "For a Friday morning slot, that's a lot of visitors."
It was the first day of an on-site exhibition to unveil the items ahead of the first-ever online auction of goods seized by the National Tax Service from high-value delinquents. The main auction will be held on the 11th.
There are 166 lots in total, ranging from luxury-brand bags such as Hermès and Chanel to watches by Rolex and Cartier, wine and whisky, and artworks. Except for the wines kept by the National Tax Service, everything could be viewed on site.
A considerable number of visitors to the exhibition hall were new to auctions. Some took photos or introduced items via social media (SNS) live streams. But among visitors who came hoping to buy luxury goods cheaply, some reacted that "prices are higher than resale."
◇ First-time citizens at the auction… "Came to strike gold"
There were not a few visitors who said this was their first time taking part in an auction. Most came with the expectation that they could buy luxury goods at relatively low prices.
A college student surnamed Heo (25) said, "I came to an auction for the first time thinking I might be able to buy a gift for my parents." A person surnamed Jeong (34), who said Jeong works at a nearby company, said, "I stopped by briefly during lunch to see if there's a 'gold mine.'"
Some made time to visit specifically to view artworks. On display were a limited-edition art book by British pop artist David Hockney (A Bigger Book) and "Butterflies and Flowers (Flower Garden)" by Japanese contemporary artist Kusama Yayoi. The top estimates for the two works are 7 million won and 50 million won, respectively.
A person surnamed Lee (50) from Pangyo, Seongnam, Gyeonggi Province, gazed at Kusama Yayoi's work for a long time and said, "I had only seen it in photos, but seeing it in person it's much more gorgeous and pretty."
◇ Hermès bag bid jumps eightfold… "More expensive than I thought"
However, as online bidding proceeded ahead of the main auction and prices rose quickly, quite a few said their expectations had dimmed. One visitor said, "I thought I could buy cheaply because it's an auction, but it doesn't seem much different from resale prices."
The "Hermès Kelly 35" bag climbed from a starting price of 4.5 million won to 37.2 million won as of 10 a.m. on the 9th. That is more than eight times the starting price. The Rolex Day-Date watch, which drew particular interest on site, also jumped from a starting price of 20 million won to a bid price of 58 million won, approaching the top appraised value of 60 million won.
Some items surpassed their top estimates. In the case of an Omega watch, the estimate was 500,000–1.2 million won, but the current bid is 5.6 million won. Of 47 luxury bags, 41, and of 11 watches, 8, have already exceeded their top estimates.
On top of that, a buyer's premium equivalent to 18% of the hammer price is added separately. If a purchase is canceled after the hammer falls, the fee comes to 30%.
A visitor surnamed Han (62) said, "I'd consider buying if it were 50%–70% of market price, but considering the fees, the prices aren't that attractive."
◇ Confused with Korea Customs Service public auctions… Some disappointed by used goods
Some visitors hesitated to bid because of uncertainty about guarantees. In particular, many high-priced items that drew strong interest, such as a Rolex Daytona watch or Hermès bags, did not come with guarantee cards (quality warranty cards).
Seoul Auction said it had appraised the seized items but could not provide a 100% guarantee of authenticity, so it does not issue separate certificates.
A person surnamed Shim (47) from Gangdong District, Seoul, said, "I came with friends thinking I might be able to buy a Hermès bag, but I'm concerned that there's no certificate."
Some visitors confused the National Tax Service auction with Korea Customs Service public auctions. Unlike customs public auctions, which sell new products seized during overseas clearance, most items in this auction are used goods seized from delinquents.
A person surnamed Ko (63) met on site said, "I came thinking they were new products seized by customs, but they were items with signs of use, so I was a bit disappointed."
The National Tax Service plans to hold a second public auction following this first one. A total of 326 lots will be offered in the second auction. The on-site exhibition will run from the 20th to the 24th, and the main auction will take place on the 25th. The proceeds will be turned over to the national treasury.