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 supported approximately 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, reveals the sector’s significant impact to the country’s GDP via direct production activity, supply-chain spending and consumer expenditure. Television emerged as the dominant segment, accounting for roughly 65% of the industry’s total output, whilst the video-on-demand sector demonstrated the highest productivity per worker. The findings underscore the screen industry’s critical role in South Korea’s economic and employment landscape.

Financial Heavyweight Delivering Impressive Results

The screen industry’s financial influence goes well past its direct contributions, with the Oxford Economics study revealing a multiplication factor that increases value throughout South Korea’s wider economic landscape. For every KRW1 billion produced directly by the sector, an additional KRW2.1 billion flows through consumer spending and supply chains, resulting in a GDP multiplier of 3.1. This ripple effect demonstrates how investment in screen production reverberates across various sectors, from hospitality and transport to retail and professional services. The employment multiplier of 3.4 additionally demonstrates 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 workforce structure reveals its firmly embedded nature within South Korea’s economy, with approximately 78% of jobs based within small and micro businesses. These smaller businesses form the foundation for production networks, supporting everything from gear hire and post-production services to marketing and distribution. The information and communication sector accounted for the highest job numbers at 116,500 jobs, reflecting the digitally intensive nature of modern screen production and the technological expertise required across the industry.

• GDP multiplier of 3.1 creates additional KRW2.1 billion per KRW1 billion produced
• Employment multiplier of 3.4 sustains 240 additional jobs per 100 direct positions
• KRW7,170 billion in total tax revenues produced across all segments
• 78% of jobs concentrated in micro, small and medium-sized enterprises

Television Dominates, Streaming Emerges as Growth Engine

Television continues to be the undisputed heavyweight of South Korea’s visual media industry, 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 television’s market dominance demonstrates both the existing framework 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 strong cultural foundations in South Korean culture and its sustained commitment in high-quality content ensure its role as the sector’s main economic engine and biggest source of employment.

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

Sector Breakdown and Employment Allocation

Film production, contributing KRW4,960 billion (£3.4 billion) and supporting 77,800 jobs, occupies the sector’s central position. Whilst not as large as television, South Korea’s film industry upholds considerable economic significance and worldwide recognition, with productions spanning blockbuster releases to smaller-scale films earning acclaim at renowned film festivals. The diverse mix of television, film and streaming supports economic robustness whilst enabling specialist development and creative advancement across different content formats and distribution methods.

Korean Content Captures Worldwide Audiences

South Korea’s screen industry has surpassed national borders to become a powerful player in international entertainment sectors. The sector’s commercial performance is intrinsically linked to its international reach, with Korean television dramas, films and streaming content engaging viewers across Asia, Europe and North America. This international growth has transformed the nation into a cultural force, positioning Korean production companies as major rivals to established Western production hubs. The industry’s capacity for combining distinctive storytelling with strong production quality has resonated with international viewers, boosting both audience numbers and commercial revenues that reach well outside South Korea’s borders.

The export potential of Korean screen content keeps growing, supported by the worldwide demand for diverse narratives and innovative formats. Digital distribution services have accelerated this internationalisation, allowing Korean productions to connect with worldwide viewers instantaneously whilst minimising traditional market obstacles. Significant cross-border partnerships and co-productions have become more frequent, attracting international funding and talent to South Korean studios. This growing interconnectedness strengthens the sector’s financial stability whilst establishing Korea as an indispensable hub within the global entertainment landscape. The cascading benefits generated by global interest spread across the supply chain, creating additional employment and funding prospects throughout the sector.

• Korean dramas attain unprecedented audience numbers throughout Netflix and global streaming services worldwide
• Film exports produce significant revenue from overseas markets whilst boosting national cultural prestige on the world stage
• International co-productions draw in overseas funding and technical expertise to Korean studios
• Worldwide acclaim drives visitor numbers, branded products and additional income sources outside of traditional production

Travel and Cultural Influence

The economic impact of Korean screen content stretches considerably beyond direct industry revenues, generating significant tourism and cultural knock-on benefits. International visitors progressively travel to South Korea deliberately to explore production sites, visit themed attractions and immerse themselves in Korean cultural products. This “Korean cultural phenomenon” or Korean Wave movement has reshaped travel trends, with screen-related attractions emerging as major draws for tourists from across Asia and beyond. The cultural sway exerted by acclaimed content establishes lasting brand value for South Korea, strengthening the nation’s soft power whilst generating significant revenue through tourism spending, accommodation and dining and cultural merchandise.

The link between screen production and tourism generates a positive economic loop that amplifies the sector’s broader contribution to economic growth. Successful TV shows and movies drive overseas tourism, whilst tourists then purchase further Korean cultural goods and services. This development has spurred funding for screen-related tourist amenities, including dedicated attractions, visitor centres and guided tours of iconic filming locations. The created employment positions extend across the hospitality, transport and retail industries, pushing the screen industry’s economic footprint substantially further than traditional production metrics and showcasing its transformative influence in the broader Korean economy.

Challenges and Future Outlook

Despite the screen sector’s significant financial impact, South Korea’s audiovisual industry faces mounting competitive pressures from global streaming platforms and global production facilities offering substantial tax incentives. Increasing production outlays, talent retention challenges and the accelerating technological change of content delivery systems pose continuous challenges to ongoing development. The sector must manage progressively complicated regulatory landscapes across various regions whilst responding to changing viewer preferences towards diverse content formats. Additionally, the concentration of resources within major production firms undermines the long-term prospects of smaller operations that currently account for employment of the vast majority of staff, risking reduced innovation and creative diversity.

Looking ahead, the sector’s path hinges upon strategic investment in emerging technologies and skills training initiatives. Video-on-demand platforms are expected to drive growth at approximately 7.4% per year through 2028, substantially outpacing traditional TV and film segments. However, realising this potential requires joint initiatives to upgrade production facilities, cultivate tech-savvy creators and reinforce intellectual property protections across overseas markets. The report’s findings underscore the critical importance of anticipatory government action to ensure South Korea maintains its competitive edge within the rapidly evolving global entertainment landscape whilst safeguarding the ecosystem sustaining smaller production companies.

• Intensifying competitive pressure from international streaming platforms undermines home market presence
• Rising production expenses and talent acquisition challenges strain smaller production companies
• Accelerating technological advancement requires continuous investment in equipment and training
• Regulatory challenges across different regions amplifies regulatory obligations considerably
• Consolidation trends threaten to reduce artistic diversity and independent production prospects

State Backing and Talent Development

Government assistance programmes continue to be critical to maintaining the sector’s growth trajectory and safeguarding employment across micro and small enterprises. South Korea’s policymakers need to emphasise targeted funding for independent producers, technology training initiatives and infrastructure development to enhance the sector’s resilience against international competition. Tax incentives, funding awards and reduced-cost facility provision can create equal opportunities for smaller businesses whilst promoting innovation in new technologies and formats that define next-generation entertainment.

Support of talent development programmes addresses the sector’s biggest challenge: recruiting and keeping experienced practitioners across production, technical and creative disciplines. Educational partnerships with higher education institutions, vocational training schemes and mentoring programmes can cultivate the next generation of Korean audiovisual creators whilst fostering creative enterprises. Increased funding for new talent through incubation programmes and small-scale funding would strengthen the ecosystem supporting smaller enterprises, securing the sector’s ongoing vitality and cultural relevance across international markets.