South Korea’s Screen Sector Generates £12.4bn and Supports Nearly 300,000 Jobs

South Korea’s entertainment industry generated £12.4 billion in economic value during 2025 and sustained approximately 300,000 jobs, according to a comprehensive economic study commissioned by the Motion Picture Association. The report, produced by Oxford Economics and delivered to legislators and industry leaders at the National Assembly in Seoul, demonstrates the sector’s substantial contribution to the country’s GDP via production spending, supply-chain spending and consumer expenditure. Television proved to be the leading sector, accounting for approximately 65% of the industry’s total output, whilst the video-on-demand sector demonstrated the greatest efficiency per worker. The findings underscore the screen industry’s critical role in South Korea’s economy and employment landscape.

Economic Powerhouse Delivering Significant Gains

The screen industry’s economic impact extends far beyond its immediate outputs, with the Oxford Economics study uncovering a multiplication factor that increases value throughout South Korea’s broader economy. For every KRW1 billion produced directly by the sector, an further KRW2.1 billion flows through consumer spending and supply chains, resulting in a GDP multiplier of 3.1. This cascading impact demonstrates how investment in screen production reverberates across various sectors, from transport and hospitality to professional services and retail. The employment multiplier of 3.4 additionally demonstrates this phenomenon, with each 100 direct jobs supporting an further 240 positions in other parts of the economy.

Tax revenues from the screen industry represent a major economic benefit, totalling KRW7,170 billion (approximately £4.9 billion) in 2025. The sector’s workforce structure reveals its firmly embedded nature within South Korea’s economy, with nearly 78% of jobs based within micro, small and medium-sized enterprises. These compact firms form the backbone of production networks, supporting everything from gear hire and post-production services to promotion and delivery. The information and communication sector accounted for the highest job numbers at 116,500 jobs, reflecting the digitally intensive nature of contemporary audiovisual work and the technical knowledge required across the industry.

• GDP multiplier of 3.1 generates additional KRW2.1 billion per KRW1 billion generated
• Employment multiplier of 3.4 enables 240 extra jobs per 100 primary positions
• KRW7,170 billion in aggregate tax income generated across all segments
• 78% of jobs located in small and medium-sized businesses

Television Dominates, Streaming Becomes Growth Engine

Television continues to be the undisputed heavyweight of South Korea’s screen sector, controlling approximately 65% of the industry’s aggregate economic output with a contribution of KRW15,620 billion (£10.6 billion) and sustaining 181,200 jobs. The television’s market dominance demonstrates both the existing framework of traditional broadcasting and the sector’s continuous output of dramas, variety shows and documentaries that attract substantial viewership across domestic and overseas markets. Despite the growth of online streaming services, television’s deep roots in South Korean culture and its sustained commitment in high-quality content guarantee its position as the sector’s main economic engine and largest employer.

However, video-on-demand services form the sector’s most vibrant growth opportunity, despite currently contributing KRW3,500 billion (£2.4 billion) and 32,100 jobs. VOD workers exhibit exceptional performance, generating KRW437 million (£297,000) in gross domestic product contribution per head—roughly five times the national average—signalling the premium nature of streaming production. Projections indicate VOD will grow at approximately 7.4% per year through 2028, outpacing both film and television growth rates and establishing streaming as the sector’s fastest-growing segment.

Sector Breakdown and Employment Allocation

Film production, accounting for KRW4,960 billion (£3.4 billion) and supporting 77,800 jobs, occupies the sector’s middle ground. Whilst smaller than television, South Korea’s film industry upholds substantial financial importance and global standing, with productions extending across major commercial films to independent features earning acclaim at prestigious festivals. The diverse mix of television, film and streaming supports economic robustness whilst enabling specialist development and creative advancement across various content types and distribution methods.

Korean Content Sweeps International Markets

South Korea’s screen industry has gone beyond domestic boundaries to become a powerful player in global entertainment markets. The sector’s commercial performance is intrinsically linked to its global presence, with Korean dramas, films and streaming shows engaging viewers across Asia, Europe and North America. This international growth has transformed the nation into a cultural powerhouse, positioning Korean production companies as serious competitors to traditional Western production centres. The industry’s capacity for combining unique narrative styles with strong production quality has appealed to global audiences, driving both audience numbers and commercial revenues that extend far beyond South Korea’s borders.

The international reach of Korean screen content keeps growing, driven by the worldwide demand for diverse narratives and innovative formats. Streaming platforms have expedited this global expansion, allowing Korean productions to reach global audiences in real time whilst minimising traditional distribution barriers. Significant cross-border partnerships and joint ventures have become more frequent, attracting foreign investment and talent to South Korean studios. This expanding integration strengthens the sector’s economic resilience whilst establishing Korea as an essential centre within the worldwide entertainment ecosystem. The multiplier effects generated by international demand spread across the supply chain, generating additional employment and investment opportunities throughout the sector.

• Korean dramas achieve record viewership figures across Netflix and global streaming services worldwide
• Film exports generate substantial foreign exchange earnings whilst boosting Korea’s cultural standing on the world stage
• Cross-border collaborations draw in overseas funding and technical expertise to Korean studios
• Global recognition fuels visitor numbers, branded products and additional income sources beyond traditional production

Travel and Cultural Impact

The economic impact of Korean screen content extends considerably past immediate sector earnings, creating substantial tourism and cultural spillover effects. Overseas tourists progressively travel to South Korea deliberately to explore filming locations, explore branded venues and immerse themselves in Korean popular culture. This “Korean Wave” or Korean Wave phenomenon has transformed tourism patterns, with film and television attractions becoming significant attractions for visitors from across Asia and beyond. The cultural influence wielded by acclaimed content creates enduring brand equity for South Korea, strengthening the nation’s cultural influence whilst generating substantial income through visitor expenditure, hospitality services and branded goods.

The interconnection between screen production and tourism generates a beneficial cycle of growth that enhances the sector’s extended role to economic growth. Successful TV shows and movies encourage international travel, whilst travellers then purchase further Korean cultural goods and services. This phenomenon has prompted funding for screen-related tourist amenities, such as dedicated attractions, visitor centres and organised visits to famous filming sites. The generated job prospects extend across accommodation, travel and shopping services, pushing the screen industry’s economic impact far more than conventional production measures and showcasing its driving force in South Korea’s economic landscape.

Challenges and Future Outlook

Despite the screen sector’s impressive economic contribution, South Korea’s audiovisual industry confronts growing market pressures from international streaming services and international production hubs offering substantial tax incentives. Escalating production expenses, difficulties retaining skilled personnel and the accelerating technological change of content delivery systems present ongoing obstacles to sustained growth. The sector must contend with more intricate regulatory frameworks across multiple territories whilst adjusting to evolving audience tastes towards different content styles. Additionally, the concentration of resources within bigger production enterprises undermines the long-term prospects of smaller operations that currently provide jobs for more than 75% of workers, risking reduced innovation and creative range.

Looking ahead, the sector’s direction hinges upon deliberate funding in new technological developments and skills training initiatives. Video-on-demand platforms are projected to drive expansion at approximately 7.4% per year through 2028, substantially outpacing traditional broadcast and cinema segments. However, achieving this potential requires joint initiatives to enhance production systems, develop digital-native talent and reinforce intellectual property protections across international markets. The report’s conclusions underscore the critical importance of forward-looking regulatory measures to ensure South Korea maintains its competitive advantage within the fast-changing global entertainment landscape whilst protecting the ecosystem supporting smaller production companies.

• Intensifying competitive pressure from global streaming services threatens local market position
• Climbing production expenses and talent acquisition challenges burden independent producers
• Accelerating tech evolution demands sustained spending in equipment and staff development
• Compliance complexity across multiple jurisdictions increases compliance demands substantially
• Market consolidation threaten to reduce creative diversity and independent production opportunities

State Backing and Talent Development

Government support mechanisms remain critical to sustaining the sector’s expansion path and safeguarding employment across small and micro businesses. South Korea’s policymakers need to emphasise targeted funding for independent producers, digital capability development schemes and infrastructure development to strengthen the sector’s ability to endure against global market pressures. Tax relief measures, financial grants and subsidised facilities access can support fair competition for smaller companies whilst fostering innovation in developing creative platforms that characterise next-generation entertainment.

Support of professional development schemes addresses the sector’s most pressing challenge: recruiting and keeping skilled professionals across production, technical, and creative fields. Academic collaborations with universities, apprenticeship programmes and mentoring programmes can nurture the next generation of Korean audiovisual creators whilst fostering business start-ups. Enhanced support for new talent through development initiatives and accessible finance solutions would bolster the infrastructure backing independent producers, guaranteeing the sector’s continued dynamism and cultural relevance on the global stage.