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 sustained approximately 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 through 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 streaming sector demonstrated the greatest efficiency per worker. The findings highlight the screen industry’s critical role in South Korea’s economic and employment landscape.

Economic Powerhouse Producing Significant Gains

The screen industry’s economic impact goes well past its direct contributions, with the Oxford Economics study revealing a multiplier effect that increases value throughout South Korea’s wider economic landscape. For every KRW1 billion generated directly by the sector, an additional KRW2.1 billion flows through consumer spending and supply chains, producing a GDP multiplier of 3.1. This cascading impact illustrates how funding for screen production spreads throughout various sectors, from hospitality and transport to retail and professional services. The employment multiplier of 3.4 further illustrates this effect, with each 100 direct jobs supporting an further 240 positions in other parts of 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 backbone of production networks, supporting everything from gear hire and post-production services to marketing and distribution. The information and communication sector accounted for the largest employment share at 116,500 jobs, reflecting the digitally intensive nature of contemporary audiovisual work 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 enables 240 extra jobs per 100 direct positions
• KRW7,170 billion in total tax revenues produced among all divisions
• 78% of jobs focused within micro, small and medium-sized enterprises

TV Leads the Market, Streaming Becomes Key Driver

Television remains 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 supporting 181,200 jobs. The television’s market dominance demonstrates both the existing framework of traditional broadcasting and the sector’s continuous output of dramas, variety shows and documentaries that attract substantial viewership across domestic and overseas markets. Despite the rise of digital platforms, television’s deep roots in South Korean culture and its sustained commitment in premium programming ensure its position as the sector’s main economic engine and biggest source of employment.

However, video-on-demand services constitute the sector’s most vibrant growth opportunity, despite now generating KRW3,500 billion (£2.4 billion) and 32,100 jobs. VOD workers exhibit exceptional output, generating KRW437 million (£297,000) in gross domestic product contribution per head—roughly five times the national average—signalling the premium nature of streaming production. Projections forecast VOD will expand at approximately 7.4% annually through 2028, surpassing both film and television growth rates and placing streaming as the sector’s fastest-growing segment.

Sectoral Breakdown and Workforce Distribution

Film production, generating KRW4,960 billion (£3.4 billion) and sustaining 77,800 jobs, holds the sector’s central position. Whilst smaller than television, South Korea’s film industry preserves substantial financial importance and international prestige, with productions spanning major commercial films to smaller-scale films achieving recognition at renowned film festivals. The diverse mix of television, film and streaming ensures economic resilience whilst enabling focused expertise and creative growth across various content types and distribution methods.

Korean Content Dominates Worldwide Audiences

South Korea’s screen industry has surpassed national borders to become a formidable force in international entertainment sectors. The sector’s economic success is fundamentally connected with its international reach, with Korean television dramas, films and streaming content engaging viewers across Asia, Europe and the Americas. 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 ability to blend distinctive storytelling with strong production quality has appealed to global audiences, driving both viewership figures and box office returns that reach well outside South Korea’s borders.

The export potential of Korean screen content continues to expand, supported by the global appetite for varied storytelling and innovative formats. Streaming platforms have accelerated this internationalisation, allowing Korean productions to connect with worldwide viewers in real time whilst minimising traditional distribution barriers. Major international collaborations and co-productions have become increasingly common, attracting foreign investment and talent to South Korean studios. This growing interconnectedness reinforces the sector’s financial stability whilst establishing Korea as an essential centre within the worldwide entertainment ecosystem. The multiplier effects generated by international demand ripple throughout the supply chain, creating more jobs and funding prospects throughout the sector.

• Korean dramas attain unprecedented audience numbers throughout Netflix and international streaming platforms worldwide
• Film exports produce significant revenue from overseas markets whilst boosting Korea’s cultural standing internationally
• International co-productions attract overseas funding and specialist knowledge to Korean studios
• Worldwide acclaim drives visitor numbers, branded products and additional income sources beyond traditional production

Tourism and Heritage Influence

The financial effects of Korean screen content stretches considerably beyond immediate sector earnings, creating significant tourism and cultural spillover effects. Overseas tourists increasingly journey to South Korea specifically to explore filming locations, explore branded venues and engage with Korean popular culture. This “Korean Wave” or Korean Wave phenomenon has transformed travel trends, with film and television attractions becoming significant attractions for tourists from throughout Asia and further afield. The cultural influence wielded by acclaimed content creates lasting brand value for South Korea, enhancing the nation’s soft power whilst producing significant revenue via tourism spending, hospitality services and cultural merchandise.

The link between film and television production and tourism generates a virtuous economic cycle that enhances the sector’s extended role to economic growth. Successful TV shows and movies drive overseas tourism, whilst tourists subsequently consume more Korean cultural offerings. This phenomenon has prompted development of screen-related tourist amenities, including themed parks, visitor centres and curated tours around renowned production locations. The created employment positions cover accommodation, travel and shopping services, stretching the screen industry’s economic impact substantially further than conventional production measures and demonstrating its catalytic role in South Korea’s economic landscape.

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 global production facilities offering substantial tax incentives. Escalating production expenses, talent retention challenges and the accelerating technological change of content distribution platforms create persistent difficulties to sustained growth. The sector must navigate increasingly complex regulatory environments across numerous jurisdictions whilst adapting to shifting consumer preferences towards diverse content formats. Additionally, the clustering of investment within larger production companies threatens the viability of smaller operations that currently account for employment of the vast majority of staff, risking reduced innovation and creative diversity.

Looking forward, the sector’s direction hinges upon strategic investment in emerging technologies and skills training initiatives. Video-on-demand platforms are forecast to drive growth at approximately 7.4% annually through 2028, significantly exceeding traditional television and film segments. However, achieving this potential requires collaborative action to modernise production systems, develop digitally-skilled professionals and reinforce intellectual property protections across global territories. The report’s results underscore the urgency of anticipatory government action to ensure South Korea maintains its market leadership within the dynamic global entertainment landscape whilst protecting the ecosystem supporting smaller production companies.

• Intensifying rivalry with international streaming platforms jeopardises home market presence
• Increasing filming budgets and skilled worker recruitment challenges burden independent producers
• Accelerating tech evolution necessitates continuous investment in equipment and training
• Compliance complexity across multiple jurisdictions heightens compliance burdens considerably
• Consolidation trends threaten to diminish creative diversity and opportunities for independent producers

State Backing and Talent Development

Government funding initiatives remain critical to sustaining the sector’s development momentum and safeguarding employment across micro and small enterprises. South Korea’s policymakers must prioritise strategic investment for independent producers, digital capability development schemes and infrastructure development to enhance the sector’s resilience against overseas competitors. Tax incentives, production grants and reduced-cost facility provision can support fair competition for smaller companies whilst promoting innovation in emerging formats and technologies that characterise next-generation entertainment.

Support of skills training initiatives tackles the sector’s most pressing challenge: recruiting and keeping qualified experts across production, technical, and creative specialisations. Educational partnerships with universities, vocational training schemes and mentorship initiatives can nurture the coming generation of Korean film and television professionals whilst fostering creative enterprises. Greater investment for up-and-coming professionals through business incubators and small-scale funding would strengthen the infrastructure backing smaller enterprises, ensuring the sector’s continued dynamism and cultural relevance on the global stage.