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 supported nearly 300,000 jobs, based on a comprehensive economic study commissioned by the Motion Picture Association. The report, prepared by Oxford Economics and presented to legislators and sector representatives at the National Assembly in Seoul, demonstrates the sector’s substantial contribution to the country’s GDP through production spending, supply-chain spending and consumer expenditure. Television proved to be the dominant segment, accounting for roughly 65% of the industry’s total output, whilst the video-on-demand sector showed the greatest efficiency per worker. The findings highlight the screen industry’s critical role in South Korea’s economy and employment landscape.

Strong Economic Engine Delivering Significant Gains

The screen industry’s financial influence goes well past its direct contributions, 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 additional KRW2.1 billion circulates across consumer spending and supply chains, producing a GDP multiplier of 3.1. This cascading impact illustrates how funding for screen production reverberates across various sectors, from transport and hospitality to retail and professional services. The employment multiplier of 3.4 further illustrates this phenomenon, with each 100 direct jobs sustaining an additional 240 positions in other parts of 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 firmly embedded nature within South Korea’s economy, with approximately 78% of jobs based within micro, small and medium-sized enterprises. These smaller businesses form the backbone of production networks, supporting everything from equipment rental and finishing work to marketing and distribution. The digital and technology sector accounted for the largest employment share at 116,500 jobs, reflecting the digitally intensive nature of modern screen production and the technical knowledge required across the industry.

• GDP multiplier of 3.1 produces additional KRW2.1 billion per KRW1 billion created
• Employment multiplier of 3.4 supports 240 additional jobs per 100 direct positions
• KRW7,170 billion in aggregate tax income generated among all divisions
• 78% of jobs located in micro, small and medium-sized enterprises

TV Leads the Market, 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 growth of online streaming services, 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 dynamic growth opportunity, despite presently accounting for KRW3,500 billion (£2.4 billion) and 32,100 jobs. VOD workers exhibit exceptional output, delivering KRW437 million (£297,000) in economic value creation per head—roughly five times the national average—signalling the high-value nature of streaming production. Projections forecast VOD will expand at approximately 7.4% per year through 2028, exceeding both film and television growth rates and establishing streaming as the sector’s most rapidly expanding segment.

Sector Breakdown and Employment Distribution

Film production, accounting for KRW4,960 billion (£3.4 billion) and sustaining 77,800 jobs, holds the sector’s intermediate tier. Whilst smaller than television, South Korea’s film industry upholds considerable economic significance and international prestige, with productions extending across blockbuster releases to independent features achieving recognition at prestigious festivals. The well-rounded combination of television, film and streaming provides financial stability whilst enabling specialisation and innovation across diverse formats and distribution methods.

Korean Content Captures Worldwide Audiences

South Korea’s screen industry has transcended domestic boundaries to become a powerful player in international entertainment sectors. The sector’s economic success 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 established the country as a cultural powerhouse, establishing Korean content creators as major rivals to traditional Western production centres. The industry’s ability to blend distinctive storytelling with high production values has resonated with global audiences, boosting both audience numbers and commercial revenues that extend far beyond South Korea’s borders.

The international reach of Korean screen content continues to expand, bolstered by the global appetite for varied storytelling and creative approaches. Streaming platforms have accelerated this internationalisation, enabling Korean productions to connect with worldwide viewers in real time whilst reducing traditional distribution barriers. Significant cross-border partnerships and co-productions have become increasingly common, drawing foreign investment and talent to South Korean studios. This expanding integration strengthens the sector’s economic resilience whilst positioning Korea as an indispensable hub within the global entertainment landscape. The cascading benefits generated by global interest spread across the supply chain, generating more jobs and funding prospects throughout the sector.

• Korean dramas achieve record viewership figures throughout Netflix and global streaming services worldwide
• Film exports generate substantial foreign exchange earnings whilst boosting Korea’s cultural standing internationally
• International co-productions bring overseas funding and specialist knowledge to Korean studios
• Global recognition drives tourism, merchandise sales and ancillary revenue streams beyond traditional production

Tourism and Heritage Influence

The financial effects of Korean screen content extends considerably past direct industry revenues, generating significant travel and cultural spillover effects. International visitors increasingly travel to South Korea specifically to experience production sites, explore branded venues and immerse themselves in Korean cultural products. This “Korean Wave” or Korean Wave movement has reshaped travel trends, with film and television attractions becoming significant attractions for visitors from throughout Asia and further afield. The cultural influence wielded by successful productions establishes lasting brand value for South Korea, strengthening the nation’s cultural influence whilst generating substantial income through tourism spending, accommodation and dining and cultural merchandise.

The relationship between film and television production and tourism generates a beneficial cycle of growth that enhances the sector’s extended role to national prosperity. Popular television series and films inspire international travel, whilst travellers then purchase more Korean cultural offerings. This phenomenon has prompted investment in screen tourism infrastructure, encompassing themed parks, visitor centres and guided tours of iconic filming locations. The generated job prospects extend across the hospitality, transport and retail industries, pushing the screen industry’s financial reach substantially further than standard industry benchmarks and highlighting its catalytic role in Korea’s wider economy.

Challenges and What Lies Ahead

Despite the screen sector’s significant financial impact, South Korea’s audiovisual industry faces mounting competitive pressures from global streaming platforms and international production hubs providing significant tax benefits. Escalating production expenses, talent retention challenges and the accelerating technological change of distribution technology present ongoing obstacles to continued expansion. The sector must manage progressively complicated regulatory landscapes across multiple territories whilst responding to changing viewer preferences towards diverse content formats. Additionally, the clustering of investment within larger production companies undermines the long-term prospects of smaller operations that currently account for employment of the vast majority of staff, possibly limiting creative development and artistic variety.

Looking ahead, the sector’s path hinges upon deliberate funding in new technological developments and talent development programmes. Video-on-demand platforms are expected to drive expansion at approximately 7.4% per year through 2028, significantly exceeding traditional television and film segments. However, unlocking this potential requires collaborative action to modernise production facilities, cultivate tech-savvy creators 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 competitive edge within the dynamic global entertainment landscape whilst safeguarding the ecosystem sustaining smaller production companies.

• Intensifying competitive pressure from international streaming platforms undermines domestic market share
• Increasing filming budgets and talent acquisition challenges burden smaller production houses
• Swift technological advancement necessitates ongoing investment in equipment and staff development
• Regulatory complexity in multiple territories increases regulatory obligations considerably
• Consolidation trends risk diminish creative variety and independent production opportunities

State Backing and Talent Development

Government support mechanisms continue to be critical to maintaining the sector’s growth trajectory and protecting employment across micro and small enterprises. South Korea’s policymakers should focus on strategic investment for self-employed creators, technology training initiatives and infrastructure development to enhance the sector’s ability to endure against international competition. Tax relief measures, production grants and subsidised facilities access can create equal opportunities for independent firms whilst fostering innovation in new technologies and formats that characterise next-generation entertainment.

Funding for skills training initiatives addresses the sector’s biggest challenge: recruiting and keeping skilled professionals across production, technical and creative disciplines. University partnerships with higher education institutions, apprenticeship schemes and mentoring programmes can develop the next generation of Korean audiovisual creators whilst promoting creative enterprises. Enhanced support for new talent through incubation programmes and microfinance options would reinforce the landscape supporting smaller enterprises, guaranteeing the sector’s ongoing vitality and cultural relevance internationally.