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

South Korea’s entertainment industry produced £12.4 billion in economic value during 2025 and sustained nearly 300,000 jobs, according to a comprehensive economic study commissioned by the Motion Picture Association. The report, prepared by Oxford Economics and presented to legislators and industry leaders at the National Assembly in Seoul, demonstrates the sector’s significant impact to the country’s GDP via production spending, supply-chain spending and consumer spending. Television proved to be the leading sector, accounting for roughly 65% of the industry’s combined output, whilst the video-on-demand sector demonstrated the highest productivity per worker. The findings underscore the screen industry’s vital importance in South Korea’s economy and employment landscape.

Strong Economic Engine Generating Significant Gains

The screen industry’s economic impact extends far beyond its immediate outputs, with the Oxford Economics study uncovering a multiplication factor that amplifies value throughout South Korea’s broader economy. For every KRW1 billion generated directly by the sector, an further KRW2.1 billion circulates across consumer spending and supply chains, producing a GDP multiplier of 3.1. This ripple effect demonstrates how investment in screen production reverberates across multiple industries, from transport and hospitality to retail and professional services. The employment multiplier of 3.4 additionally demonstrates this phenomenon, with each 100 direct jobs supporting an additional 240 positions elsewhere in the economy.

Tax revenues from the screen industry represent another significant economic benefit, totalling KRW7,170 billion (approximately £4.9 billion) in 2025. The sector’s employment composition reveals its deeply integrated nature within South Korea’s economy, with approximately 78% of jobs concentrated in small and micro businesses. These compact firms form the foundation for production networks, supporting everything from equipment rental and finishing work to promotion and delivery. The information and communication sector accounted for the largest employment share at 116,500 jobs, reflecting the technology-driven nature of modern screen production and the technical knowledge required across the industry.

• GDP multiplier of 3.1 creates additional KRW2.1 billion per KRW1 billion generated
• Employment multiplier of 3.4 sustains 240 extra jobs per 100 primary positions
• KRW7,170 billion in overall tax receipts created across all segments
• 78% of jobs focused within SMEs and micro-businesses

Television Dominates, Streaming Becomes Key Driver

Television continues to be the undisputed heavyweight of South Korea’s visual media industry, 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 dominance of television reflects both the established infrastructure of traditional broadcasting and the sector’s ongoing production of dramas, variety shows and documentaries that command significant domestic and international audiences. Despite the rise of digital platforms, television’s deep roots in South Korean culture and its sustained commitment in high-quality content guarantee its role as the sector’s primary economic driver and largest employer.

However, video-on-demand services represent the sector’s most vibrant growth opportunity, despite currently contributing KRW3,500 billion (£2.4 billion) and 32,100 jobs. VOD workers display exceptional performance, delivering KRW437 million (£297,000) in direct GDP contribution per head—roughly 5x the national average—signalling the high-value nature of streaming production. Projections suggest VOD will expand at approximately 7.4% per year through 2028, surpassing both film and television growth rates and establishing streaming as the sector’s quickest-growing segment.

Sector Breakdown and Workforce Distribution

Film production, contributing KRW4,960 billion (£3.4 billion) and supporting 77,800 jobs, holds the sector’s intermediate tier. Whilst smaller than television, South Korea’s film industry upholds substantial financial importance and worldwide recognition, with productions extending across high-budget productions to indie productions achieving recognition at major festival events. The well-rounded combination of television, film and streaming ensures economic resilience whilst allowing for specialist development and creative advancement across various content types and delivery platforms.

Korean Content Dominates International Markets

South Korea’s screen industry has surpassed national borders to become a powerful player in global entertainment markets. The sector’s economic success is intrinsically linked to its global presence, with Korean television dramas, films and streaming content engaging viewers across Asia, Europe and the Americas. This global expansion has transformed the nation into a cultural powerhouse, positioning Korean production companies as serious competitors to established Western production hubs. The industry’s capacity for combining unique narrative styles with high production values has resonated with global audiences, driving both audience numbers and commercial revenues that extend far beyond South Korea’s borders.

The export potential of Korean screen content continues to expand, supported by the worldwide demand for diverse narratives and innovative formats. Streaming platforms have accelerated this global expansion, allowing Korean productions to connect with worldwide viewers instantaneously whilst minimising traditional distribution barriers. Major international collaborations and co-productions have become increasingly common, drawing international funding and talent to South Korean studios. This expanding integration strengthens the sector’s economic resilience whilst establishing Korea as an essential centre within the global entertainment landscape. The multiplier effects created by international demand spread across the supply chain, generating additional employment and investment opportunities across the entire industry.

• Korean dramas achieve record viewership figures throughout Netflix and global streaming services worldwide
• Film exports generate substantial foreign exchange earnings whilst enhancing Korea’s cultural standing on the world stage
• International co-productions bring foreign investment capital and specialist knowledge to Korean studios
• Global recognition drives visitor numbers, branded products and additional income sources beyond traditional production

Tourism and Cultural Influence

The economic impact of Korean screen content extends considerably beyond direct industry revenues, generating significant travel and cultural knock-on benefits. International visitors increasingly travel to South Korea deliberately to experience filming locations, visit themed attractions and immerse themselves in Korean cultural products. This “Korean Wave” or Korean Wave phenomenon has transformed tourism patterns, with film and television attractions emerging as significant attractions for tourists from across Asia and beyond. The cultural sway exerted by successful productions establishes lasting brand value for South Korea, strengthening the nation’s cultural influence whilst generating significant revenue via visitor expenditure, accommodation and dining and cultural merchandise.

The interconnection between screen production and tourism generates a positive economic loop that amplifies the sector’s extended role to national prosperity. Successful TV shows and movies encourage international travel, whilst visitors go on to buy more Korean cultural offerings. This development has led to development of screen-related tourist amenities, encompassing entertainment parks, visitor centres and guided tours of iconic filming locations. The generated job prospects span accommodation, travel and shopping services, extending the screen industry’s economic footprint substantially further than standard industry benchmarks and highlighting its driving force in Korea’s wider economy.

Obstacles and Prospects Ahead

Despite the screen sector’s considerable economic value, South Korea’s audiovisual industry faces mounting competitive pressures from international streaming services and overseas production centres offering substantial tax incentives. Escalating production expenses, talent retention challenges and the accelerating technological change of distribution technology create persistent difficulties to ongoing development. The sector must navigate increasingly complex regulatory environments across multiple territories whilst responding to changing viewer preferences towards different content styles. Additionally, the aggregation of capital within major production firms jeopardises the sustainability of independent producers that currently provide jobs for more than 75% of workers, risking reduced innovation and creative diversity.

Looking ahead, the sector’s direction hinges upon targeted capital allocation in emerging technologies and talent development programmes. Video-on-demand platforms are forecast to drive growth at approximately 7.4% annually through 2028, substantially outpacing traditional TV and film segments. However, realising this potential requires collaborative action to modernise production systems, develop tech-savvy creators and bolster intellectual property protections across overseas markets. The report’s findings underscore the urgency of anticipatory government action to ensure South Korea maintains its competitive edge within the dynamic global entertainment landscape whilst preserving the ecosystem supporting smaller production companies.

• Growing competition from international streaming platforms undermines domestic market share
• Increasing filming budgets and talent acquisition challenges pressure smaller production houses
• Accelerating tech evolution demands sustained spending in equipment and training
• Regulatory challenges across multiple jurisdictions amplifies compliance demands considerably
• Market consolidation stand to diminish creative variety and independent production opportunities

Government Support and Talent Development

Government funding initiatives continue to be critical to supporting the sector’s development momentum and protecting employment across small and micro businesses. South Korea’s policymakers must prioritise directed financial support for standalone production companies, digital capability development schemes and facility improvements to reinforce the sector’s capacity to withstand against overseas competitors. Tax incentives, funding awards and affordable infrastructure access can create equal opportunities for smaller companies whilst promoting innovation in emerging formats and technologies that define next-generation entertainment.

Investment in skills training initiatives tackles the sector’s critical challenge: attracting and retaining experienced practitioners across production, technical, and creative fields. Academic collaborations with universities, apprenticeship schemes and mentorship initiatives can develop the coming generation of Korean audiovisual creators whilst promoting creative enterprises. Increased funding for emerging creators through development initiatives and microfinance options would bolster the landscape supporting independent producers, guaranteeing the sector’s ongoing vitality and creative significance internationally.