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 approximately 300,000 jobs, according to a comprehensive economic study undertaken for the Motion Picture Association. The report, produced 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, representing roughly 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.

Financial Heavyweight Generating Substantial Returns

The screen industry’s financial influence extends far beyond its direct contributions, with the Oxford Economics study revealing a multiplier effect that amplifies value throughout South Korea’s wider economic landscape. For every KRW1 billion produced directly by the sector, an further KRW2.1 billion circulates across supply chains and consumer spending, resulting in a GDP multiplier of 3.1. This ripple effect demonstrates how funding for screen production reverberates across multiple industries, from hospitality and transport to professional services and retail. The employment multiplier of 3.4 additionally demonstrates this effect, 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 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 marketing and distribution. The digital and technology sector accounted for the largest employment share at 116,500 jobs, reflecting the technology-driven nature of modern screen production and the technological expertise required across the industry.

• GDP multiplier of 3.1 produces extra KRW2.1 billion per KRW1 billion created
• Employment multiplier of 3.4 enables 240 additional jobs per 100 primary positions
• KRW7,170 billion in aggregate tax income produced 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, controlling 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 reflects both the existing framework of traditional broadcasting 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 deep roots in South Korean culture and its sustained commitment in premium programming ensure its position as the sector’s primary economic driver and largest employer.

However, video-on-demand services constitute the sector’s most dynamic growth opportunity, despite now generating KRW3,500 billion (£2.4 billion) and 32,100 jobs. VOD workers demonstrate exceptional productivity, generating KRW437 million (£297,000) in direct GDP contribution per head—roughly 5x the national average—signalling the substantial nature of streaming production. Projections indicate VOD will expand at approximately 7.4% annually through 2028, surpassing both film and television growth rates and placing streaming as the sector’s most rapidly expanding segment.

Sector Breakdown and Employment Allocation

Film production, contributing 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 upholds substantial financial importance and worldwide recognition, with productions extending across high-budget productions to indie productions gaining recognition at major festival events. The well-rounded combination of television, film and streaming provides financial stability whilst allowing for specialist development and creative advancement across different content formats and delivery platforms.

Korean Content Sweeps 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 international reach, with Korean television dramas, films and streaming content capturing audiences across Asia, Europe and North America. This global expansion has transformed the nation into a cultural powerhouse, establishing Korean production companies as serious competitors to established Western production hubs. The industry’s capacity for combining unique narrative styles with strong production quality has resonated with global audiences, driving both audience numbers and box office returns that extend far beyond South Korea’s borders.

The export potential of Korean screen content keeps growing, driven by the worldwide demand for varied storytelling and innovative formats. Streaming platforms have accelerated this internationalisation, allowing Korean productions to connect with worldwide viewers in real time whilst reducing traditional market obstacles. Significant cross-border partnerships and co-productions have become increasingly common, drawing 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 global entertainment landscape. The multiplier effects generated by global interest spread across the production network, creating additional employment and investment opportunities throughout the sector.

• Korean dramas reach unprecedented audience numbers across Netflix and international streaming platforms globally
• Film exports produce significant revenue from overseas markets whilst elevating Korea’s cultural standing on the world stage
• International co-productions attract foreign investment capital and specialist knowledge to Korean studios
• Global recognition drives visitor numbers, branded products and additional income sources beyond traditional production

Travel and Cultural Influence

The financial effects of Korean screen content stretches considerably past immediate sector earnings, generating substantial tourism and cultural spillover effects. Overseas tourists progressively journey to South Korea specifically to explore filming locations, visit branded venues and engage with Korean cultural products. This “Korean cultural phenomenon” or Korean Wave movement has reshaped tourism patterns, with screen-related attractions becoming major draws for tourists from throughout Asia and further afield. The cultural influence exerted by successful productions creates lasting brand value for South Korea, strengthening the nation’s soft power whilst generating substantial income through visitor expenditure, accommodation and dining and branded goods.

The link between film and television production and tourism generates a beneficial cycle of growth that amplifies the sector’s broader contribution to economic growth. Successful TV shows and movies encourage travel from abroad, whilst tourists go on to buy further Korean cultural goods and services. This trend has led to investment in film tourism facilities, including dedicated attractions, display areas and guided tours of iconic filming locations. The resulting employment opportunities span hospitality, transportation and retail sectors, stretching the screen industry’s economic footprint well beyond traditional production metrics and showcasing its catalytic role in the broader Korean economy.

Obstacles and Prospects Ahead

Despite the screen sector’s impressive economic contribution, South Korea’s audiovisual industry confronts growing market pressures from worldwide streaming providers and overseas production centres providing significant tax benefits. Rising production costs, challenges in keeping talented staff and the rapid technological evolution of distribution technology pose continuous challenges to continued expansion. The sector must navigate increasingly complex regulatory environments across numerous jurisdictions 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 enterprises that currently account for employment of the vast majority of staff, potentially constraining innovation and creative diversity.

Looking ahead, the sector’s path hinges upon strategic investment in cutting-edge innovations and talent development programmes. Video-on-demand platforms are forecast to drive expansion at approximately 7.4% annually through 2028, significantly exceeding traditional television and film segments. However, achieving this potential requires collaborative action to enhance production facilities, cultivate tech-savvy creators and bolster intellectual property protections across global territories. The report’s conclusions underscore the critical importance of forward-looking regulatory measures to ensure South Korea maintains its market leadership within the rapidly evolving global entertainment landscape whilst preserving the ecosystem sustaining smaller production companies.

• Escalating rivalry with global streaming services jeopardises local market position
• Climbing production expenses and skilled worker recruitment difficulties pressure smaller production houses
• Rapid technological change demands ongoing investment in equipment and training
• Regulatory challenges across different regions heightens regulatory obligations considerably
• Market consolidation stand to limit creative variety and opportunities for independent producers

State Backing and Talent Development

Government support mechanisms continue to be critical to sustaining the sector’s growth trajectory and protecting employment across smaller independent companies. South Korea’s policymakers must prioritise strategic investment for self-employed creators, technology training initiatives and infrastructure development to enhance the sector’s resilience against international competition. Tax incentives, production grants and reduced-cost facility provision can help level the playing field for independent firms whilst promoting innovation in new technologies and formats that define next-generation entertainment.

Support of skills training initiatives addresses the sector’s most pressing challenge: drawing and maintaining experienced practitioners across production, technical and creative disciplines. Academic collaborations with academic institutions, vocational training schemes and mentoring programmes can develop the future generation of Korean screen talent whilst promoting business start-ups. Increased funding for new talent through development initiatives and small-scale funding would strengthen the landscape supporting smaller companies, securing the sector’s ongoing vitality and creative significance on the global stage.