Recent growth of the Korean art market reached its peak at the end of 2007, when the global economy and art markets experienced booms, having started its growth when an oligopolistic market structure of auction houses developed from the end of 2005. During this period, Korea's representative art fair, KIAF had grown 209% annually for 3 years, galleries traded art works through various exhibitions and art fairs, and the number of auction houses increased rapidly as the amounts of successful bids expanded. However, the domestic art market sharply declined at the end of 2007 when the global economy went into a recession, experiencing a serious depression in 2008 and up until the first quarter of 2009. The objective of this research is to enhance understandings about changes in the size of the Korean art market, its relationship with business cycles and implications by examining the expansion and contraction phases of the market, viewing the 2005-2009 period as a business cycle. For this goal, this paper utilizes the statistics on the total sales of major galleries recorded in the electronic public notice system of the Financial Supervisory Service, the publicly-announced amounts of sales of art fairs, and amounts of successful bids in the auction markets, art funds, exports and imports of art works shown on the Korea Customs Service homepage. This paper focuses on measuring the market size and its change for 5 years of recovery, boom, contraction and depression, dividing the period into the boom and development phase of the art market from 2005 to 2007 and the depression and structural change phase in 2008 and 2009. It also shows that the boom and bust of the domestic art market involved the effects of economic factors, major art-related socio-political events, and the vulnerability and problems of domestic art markets. During the boom, there was growth factors such as economic factors, the impact of cultural industry development, and internal market changes, which led to the increases in the sales and number of galleries and their overseas branches, establishments of auction houses, amounts of successful bids, the debut of art funds and the provision of art works by private banking centers of commercial banks and department stores. In the depression period, we could observe market disturbances from decreases in exhibitions and sales of galleries, sharp declines in the amounts of successful bids, plummeting exports and imports due to the global economic recession and soaring oil prices. Yet, we should mention some positive factors for development such as informationization of the market, increased research, and forecasts for recovery, etc. The domestic art market has changed dramatically through the business cycle, and the government, firms and individuals participating in the market obtained the valuable knowledge on recovery of trust, establishment of the appraisal system, price determination, cultivation and training of art-market experts, cooperation of art museums and art markets, etc. The most crucial implication is that the art market also experiences changes linked to other capital markets such as securities and real estate markets and the national and global economy.