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 comprehensive economic study undertaken for 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 direct production activity, supply chain expenditure and consumer spending. Television proved to be the leading sector, accounting for approximately 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 critical role in South Korea’s economic and employment landscape.

Economic Powerhouse Delivering Impressive Results

The screen industry’s financial influence extends far beyond its direct contributions, with the Oxford Economics study uncovering a multiplier effect that increases value throughout South Korea’s broader economy. 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 demonstrates how investment in screen production spreads throughout various sectors, from hospitality and transport to retail and professional services. The employment multiplier of 3.4 further illustrates this phenomenon, with each 100 direct jobs supporting 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 concentrated in micro, small and medium-sized enterprises. These smaller businesses form the foundation for 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 technology-driven nature of contemporary audiovisual work and the technological expertise required across the industry.

• GDP multiplier of 3.1 creates additional KRW2.1 billion per KRW1 billion generated
• Employment multiplier of 3.4 enables 240 additional jobs per 100 primary positions
• KRW7,170 billion in total tax revenues generated across all segments
• 78% of jobs concentrated in SMEs and micro-businesses

TV Leads the Market, Streaming Emerges as Growth Engine

Television remains 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 sustaining 181,200 jobs. The dominance of television reflects both the established infrastructure of conventional broadcast services and the sector’s continuous output of dramas, variety shows and documentaries that command substantial viewership across domestic and overseas markets. Despite the growth of online streaming services, television’s strong cultural foundations in South Korean culture and its sustained commitment in high-quality content guarantee its role as the sector’s main economic engine and largest employer.

However, video-on-demand services form the sector’s most dynamic growth opportunity, despite currently contributing KRW3,500 billion (£2.4 billion) and 32,100 jobs. VOD workers display exceptional output, generating KRW437 million (£297,000) in economic value creation per head—roughly 5x the national average—signalling the high-value nature of streaming production. Projections suggest VOD will increase at approximately 7.4% per year through 2028, outpacing both film and television growth rates and placing streaming as the sector’s most rapidly expanding segment.

Industry Breakdown and Employment Distribution

Film production, accounting for KRW4,960 billion (£3.4 billion) and sustaining 77,800 jobs, holds the sector’s middle ground. Whilst not as large as television, South Korea’s film industry upholds significant economic value and international prestige, with productions spanning high-budget productions to independent features gaining recognition at prestigious festivals. The well-rounded combination of television, film and streaming supports economic robustness whilst enabling focused expertise and creative growth across various content types and distribution methods.

Korean Content Captures Global Markets

South Korea’s screen industry has surpassed national borders to become a formidable force in international entertainment sectors. The sector’s commercial performance is intrinsically linked to its international reach, with Korean dramas, films and streaming shows engaging viewers across Asia, Europe and North America. 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 high production values has resonated with international viewers, boosting both viewership figures and commercial revenues that reach well outside South Korea’s borders.

The international reach of Korean screen content keeps growing, supported by the worldwide demand for varied storytelling and creative approaches. Digital distribution services have expedited this global expansion, enabling Korean productions to reach global audiences instantaneously whilst minimising traditional market obstacles. Significant cross-border partnerships and co-productions have become increasingly common, attracting international funding and talent to South Korean studios. This growing interconnectedness strengthens the sector’s financial stability whilst positioning Korea as an indispensable hub within the worldwide entertainment ecosystem. The multiplier effects created by international demand ripple throughout the production network, generating more jobs and investment opportunities throughout the sector.

• Korean dramas attain unprecedented audience numbers throughout Netflix and global streaming services worldwide
• Film exports deliver significant revenue from overseas markets whilst boosting Korea’s cultural standing internationally
• Cross-border collaborations draw in foreign investment capital and technical expertise to Korean studios
• Global recognition stimulates visitor numbers, branded products and additional income sources beyond traditional production

Tourism and Cultural Influence

The economic impact of Korean screen content stretches considerably past direct industry revenues, creating substantial travel and cultural knock-on benefits. Overseas tourists increasingly journey to South Korea specifically to explore filming locations, visit branded venues and immerse themselves in Korean cultural products. This “Korean cultural phenomenon” or Korean Wave movement has reshaped tourism patterns, with screen-related 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 cultural merchandise.

The relationship between screen production and tourism creates a virtuous economic cycle that strengthens the sector’s extended role to national prosperity. Successful TV shows and movies drive international travel, whilst travellers then purchase more Korean cultural offerings. This development has spurred investment in film tourism facilities, such as entertainment parks, display areas and organised visits to famous filming sites. The resulting employment opportunities span accommodation, travel and shopping services, extending the screen industry’s financial reach far more than standard industry benchmarks and highlighting its transformative influence in Korea’s wider economy.

Difficulties and Long-term Vision

Despite the screen sector’s impressive economic contribution, South Korea’s audiovisual industry encounters intensifying competitive challenges from international streaming services and global production facilities delivering considerable tax advantages. Escalating production expenses, difficulties retaining skilled personnel and the accelerating technological change of content distribution platforms create persistent difficulties to continued expansion. The sector must navigate increasingly complex regulatory environments across various regions whilst adjusting to evolving audience tastes towards varied content types. Additionally, the clustering of investment within larger production companies threatens the viability of smaller enterprises that currently account for employment of the vast majority of staff, risking reduced innovation and artistic variety.

Looking ahead, the sector’s direction hinges upon strategic investment in new technological developments and skills training initiatives. Video-on-demand platforms are expected to drive growth at approximately 7.4% per year through 2028, substantially outpacing traditional television and film segments. However, realising this potential requires joint initiatives to modernise production infrastructure, nurture digital-native talent and reinforce intellectual property protections across overseas markets. The report’s results underscore the pressing need of forward-looking regulatory measures to ensure South Korea maintains its market leadership within the fast-changing global entertainment landscape whilst safeguarding the ecosystem sustaining smaller production companies.

• Growing competitive pressure from global streaming services undermines home market presence
• Climbing filming budgets and talent recruitment obstacles strain smaller production houses
• Accelerating technological change requires sustained spending in equipment and training
• Compliance complexity in multiple territories heightens compliance burdens considerably
• Industry consolidation risk limit artistic diversity and independent production opportunities

State Backing and Skills Enhancement

Government support mechanisms continue to be critical to sustaining the sector’s expansion path and safeguarding employment across smaller independent companies. South Korea’s policymakers must prioritise strategic investment for standalone production companies, digital skills training programmes and facility improvements to strengthen the sector’s ability to endure against international competition. Tax incentives, financial grants and reduced-cost facility provision can create equal opportunities for smaller companies whilst promoting innovation in emerging formats and technologies that characterise next-generation entertainment.

Investment in professional development schemes tackles the sector’s critical challenge: attracting and retaining experienced practitioners across production, technical and creative disciplines. Educational partnerships with higher education institutions, apprenticeship programmes and coaching schemes can develop the coming generation of Korean film and television professionals whilst fostering entrepreneurial ventures. Increased funding for new talent through business incubators and small-scale funding would bolster the ecosystem supporting smaller companies, guaranteeing the sector’s sustained growth and cultural importance on the global stage.