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

South Korea’s screen industry produced £12.4 billion in economic value during 2025 and supported nearly 300,000 jobs, based on a detailed economic analysis commissioned by the Motion Picture Association. The report, prepared by Oxford Economics and delivered to legislators and industry leaders at the National Assembly in Seoul, reveals the sector’s significant impact to the country’s GDP via direct production activity, supply-chain spending and consumer spending. Television emerged as the dominant segment, accounting for approximately 65% of the industry’s combined output, whilst the video-on-demand sector showed the greatest efficiency per worker. The findings underscore the screen industry’s vital importance in South Korea’s economic and employment landscape.

Economic Powerhouse Generating Significant Gains

The screen industry’s financial influence extends far beyond its immediate outputs, with the Oxford Economics study uncovering a multiplication factor that increases value throughout South Korea’s wider economic landscape. For every KRW1 billion generated directly by the sector, an additional KRW2.1 billion circulates across supply chains and consumer spending, resulting in a GDP multiplier of 3.1. This ripple effect illustrates how funding for screen production spreads throughout various sectors, from hospitality and transport to professional services and retail. The employment multiplier of 3.4 further illustrates this phenomenon, with each 100 direct jobs sustaining an additional 240 positions elsewhere in 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 employment composition reveals its firmly embedded nature within South Korea’s economy, with nearly 78% of jobs based within micro, small and medium-sized enterprises. These smaller businesses form the foundation for production networks, supporting everything from gear hire and finishing work to marketing and distribution. The information and communication sector accounted for the highest job numbers at 116,500 jobs, reflecting the technology-driven nature of contemporary audiovisual work and the technical knowledge required across the industry.

• GDP multiplier of 3.1 generates extra KRW2.1 billion per KRW1 billion generated
• Employment multiplier of 3.4 supports 240 extra jobs per 100 primary positions
• KRW7,170 billion in aggregate tax income created among all divisions
• 78% of jobs concentrated in small and medium-sized businesses

TV Leads the Market, Streaming Becomes Growth Engine

Television continues to be the undisputed heavyweight of South Korea’s screen sector, commanding approximately 65% of the industry’s combined GDP output with a contribution of KRW15,620 billion (£10.6 billion) and supporting 181,200 jobs. The dominance of television demonstrates both the established infrastructure of traditional broadcasting and the sector’s continuous output of dramas, entertainment programmes and documentary content that command significant domestic and international audiences. 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 role as the sector’s main economic engine and biggest source of employment.

However, video-on-demand services form the sector’s most vibrant growth opportunity, despite presently accounting for KRW3,500 billion (£2.4 billion) and 32,100 jobs. VOD workers display exceptional output, generating KRW437 million (£297,000) in direct GDP contribution per head—roughly five times the national average—signalling the premium nature of streaming production. Projections forecast VOD will increase at approximately 7.4% per year through 2028, outpacing both film and television growth rates and establishing streaming as the sector’s quickest-growing segment.

Sectoral Breakdown and Employment Distribution

Film production, generating KRW4,960 billion (£3.4 billion) and sustaining 77,800 jobs, represents the sector’s middle ground. Whilst smaller than television, South Korea’s film industry maintains considerable economic significance and worldwide recognition, with productions extending across high-budget productions to smaller-scale films achieving recognition at renowned film festivals. The balanced portfolio of television, film and streaming supports economic robustness whilst enabling focused expertise and creative growth across different content formats and distribution methods.

Korean Content Captures Worldwide Audiences

South Korea’s screen industry has surpassed domestic boundaries to become a formidable force in international entertainment sectors. 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 the Americas. This international growth has established the country as a cultural force, establishing Korean production companies as major rivals to traditional Western production centres. The industry’s capacity for combining distinctive storytelling with strong production quality has resonated with international viewers, boosting both viewership figures and box office returns that extend far beyond South Korea’s borders.

The international reach of Korean screen content keeps growing, bolstered by the global appetite for varied storytelling and creative approaches. Streaming platforms have accelerated this internationalisation, allowing Korean productions to reach global audiences in real time whilst reducing traditional market obstacles. Major international collaborations and joint ventures have become more frequent, drawing international funding and talent to South Korean studios. This expanding integration reinforces the sector’s economic resilience whilst establishing Korea as an essential centre within the global entertainment landscape. The multiplier effects generated by global interest ripple throughout the supply chain, generating additional employment and investment opportunities across the entire industry.

• Korean dramas attain unprecedented audience numbers across Netflix and global streaming services worldwide
• Film exports produce significant revenue from overseas markets whilst enhancing Korea’s cultural standing on the world stage
• International co-productions bring overseas funding and specialist knowledge to Korean studios
• Global recognition stimulates tourism, merchandise sales and ancillary revenue streams outside of traditional production

Travel and Cultural Influence

The financial effects of Korean screen content stretches considerably beyond immediate sector earnings, creating significant tourism and cultural knock-on benefits. International visitors progressively journey to South Korea deliberately to experience filming locations, visit themed attractions and engage with Korean cultural products. This “Korean Wave” or Korean Wave phenomenon has reshaped tourism patterns, with film and television attractions emerging as significant attractions for tourists from throughout Asia and further afield. The cultural sway exerted by successful productions creates enduring brand equity for South Korea, enhancing the nation’s cultural influence whilst generating substantial income via visitor expenditure, accommodation and dining and cultural merchandise.

The link between screen production and tourism establishes a positive economic loop that enhances the sector’s broader contribution to the nation’s economic wellbeing. Successful TV shows and movies encourage overseas tourism, whilst visitors go on to buy additional Korean cultural products and services. This phenomenon has led to investment in screen-related tourist amenities, such as dedicated attractions, exhibition spaces and curated tours around renowned production locations. The generated job prospects span hospitality, transportation and retail sectors, extending the screen industry’s economic footprint substantially further than conventional production measures and demonstrating its driving force in Korea’s wider economy.

Difficulties and Long-term Vision

Despite the screen sector’s significant financial impact, South Korea’s audiovisual industry confronts growing market pressures from worldwide streaming providers and overseas production centres providing significant tax benefits. Escalating production expenses, challenges in keeping talented staff and the accelerating technological change of content distribution platforms pose continuous challenges to continued expansion. The sector must contend with more intricate regulatory frameworks across various regions whilst responding to changing viewer preferences towards varied content types. Additionally, the concentration of resources within larger production companies threatens the viability of independent producers that currently provide jobs for more than 75% of workers, potentially constraining innovation and artistic variety.

Looking forward, the sector’s trajectory hinges upon deliberate funding in cutting-edge innovations and skills training initiatives. Video-on-demand platforms are expected to drive growth at approximately 7.4% annually through 2028, substantially outpacing traditional TV and film segments. However, unlocking this potential requires coordinated efforts to upgrade production systems, cultivate digitally-skilled professionals and reinforce intellectual property protections across international markets. The report’s findings underscore the pressing need of proactive policy interventions to ensure South Korea maintains its market leadership within the rapidly evolving global entertainment landscape whilst preserving the ecosystem supporting smaller production companies.

• Intensifying rivalry with international streaming platforms jeopardises local market position
• Climbing production expenses and talent acquisition difficulties burden smaller production houses
• Accelerating technological change demands sustained spending in equipment and training
• Regulatory challenges across multiple jurisdictions increases compliance demands considerably
• Industry consolidation risk limit creative diversity and opportunities for independent producers

Government Support and Skills Enhancement

Government assistance programmes remain critical to sustaining the sector’s expansion path and safeguarding employment across smaller independent companies. South Korea’s policymakers should focus on directed financial support for independent producers, digital capability development schemes and infrastructure investment to strengthen the sector’s ability to endure against overseas competitors. Tax breaks, financial grants and subsidised facilities access can support fair competition for smaller businesses whilst promoting innovation in new technologies and formats that characterise next-generation entertainment.

Investment in skills training initiatives resolves the sector’s critical challenge: drawing and maintaining qualified experts across production, technical, and creative fields. Educational partnerships with academic institutions, apprenticeship schemes and coaching schemes can develop the next generation of Korean screen talent whilst fostering entrepreneurial ventures. Greater investment for emerging creators through incubation programmes and microfinance options would strengthen the ecosystem supporting independent producers, guaranteeing the sector’s ongoing vitality and cultural importance on the global stage.