South Korea’s Screen Sector Generates £12.4bn and Supports Nearly 300,000 Jobs

South Korea’s entertainment industry generated £12.4 billion in financial contribution during 2025 and supported nearly 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, demonstrates 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, representing roughly 65% of the industry’s total output, whilst the video-on-demand sector showed the highest productivity per worker. The findings underscore the screen industry’s critical role in South Korea’s economy and employment landscape.

Economic Powerhouse Generating Substantial Returns

The screen industry’s economic impact goes well past its immediate outputs, with the Oxford Economics study revealing a multiplier effect that amplifies value throughout South Korea’s wider economic landscape. For every KRW1 billion generated directly by the sector, an further KRW2.1 billion circulates across consumer spending and supply chains, producing a GDP multiplier of 3.1. This cascading impact demonstrates how funding for screen production reverberates across various sectors, from transport and hospitality to professional services and retail. 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 compact firms form the backbone of production networks, supporting everything from equipment rental and finishing work 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 technical knowledge required across the industry.

• GDP multiplier of 3.1 produces extra KRW2.1 billion per KRW1 billion generated
• Employment multiplier of 3.4 enables 240 additional jobs per 100 direct positions
• KRW7,170 billion in total tax revenues created throughout all sectors
• 78% of jobs focused within small and medium-sized businesses

Television Dominates, Streaming Emerges as Key Driver

Television remains the undisputed heavyweight of South Korea’s screen sector, controlling approximately 65% of the industry’s aggregate economic output with a contribution of KRW15,620 billion (£10.6 billion) and sustaining 181,200 jobs. The dominance of television demonstrates both the existing framework of conventional broadcast services and the sector’s ongoing production of dramas, variety shows and documentaries that attract 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 guarantee its position as the sector’s main economic engine and largest employer.

However, video-on-demand services constitute the sector’s fastest-growing growth opportunity, despite now generating KRW3,500 billion (£2.4 billion) and 32,100 jobs. VOD workers display exceptional performance, 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% annually through 2028, outpacing both film and television growth rates and establishing streaming as the sector’s quickest-growing segment.

Industry Breakdown and Workforce Distribution

Film production, accounting for KRW4,960 billion (£3.4 billion) and supporting 77,800 jobs, occupies the sector’s intermediate tier. Whilst smaller than television, South Korea’s film industry preserves significant economic value and worldwide recognition, with productions spanning blockbuster releases to independent features earning acclaim at prestigious festivals. The well-rounded combination of television, film and streaming provides financial stability whilst allowing for focused expertise and creative growth across different content formats and distribution channels.

Korean Content Dominates International Markets

South Korea’s screen industry has surpassed national borders to become a powerful player in international entertainment sectors. The sector’s commercial performance is fundamentally connected with its international reach, with Korean dramas, films and streaming shows capturing audiences across Asia, Europe and North America. This global expansion has transformed the nation into a cultural powerhouse, positioning Korean content creators as serious competitors to established Western production hubs. The industry’s ability to blend distinctive storytelling with strong production quality has appealed to international viewers, boosting both viewership figures and box office returns that reach well outside South Korea’s borders.

The export potential of Korean screen content keeps growing, bolstered by the worldwide demand for diverse narratives and creative approaches. Streaming platforms have accelerated this global expansion, allowing Korean productions to reach global audiences in real time whilst minimising traditional market obstacles. Major international collaborations and joint ventures have become more frequent, drawing international funding and talent to South Korean studios. This expanding integration strengthens the sector’s financial stability whilst positioning Korea as an essential centre within the worldwide entertainment ecosystem. The cascading benefits created by global interest ripple throughout the supply chain, creating additional employment and funding prospects throughout the sector.

• Korean dramas attain record viewership figures throughout Netflix and international streaming platforms worldwide
• Film exports produce significant revenue from overseas markets whilst enhancing Korea’s cultural standing internationally
• International co-productions bring foreign investment capital and specialist knowledge to Korean studios
• Worldwide acclaim drives tourism, merchandise sales and ancillary revenue streams beyond traditional production

Tourism and Heritage Impact

The economic impact of Korean screen content stretches considerably beyond direct industry revenues, generating significant travel and cultural knock-on benefits. International visitors increasingly travel to South Korea specifically to explore production sites, explore branded venues and engage with Korean cultural products. This “Korean cultural phenomenon” or Korean Wave phenomenon has reshaped tourism patterns, with film and television attractions emerging as significant attractions for tourists from across Asia and beyond. The cultural sway wielded by successful productions creates enduring brand equity for South Korea, strengthening the nation’s cultural influence whilst generating substantial income via tourism spending, hospitality services and branded goods.

The interconnection between screen production and tourism establishes a virtuous economic cycle that enhances the sector’s broader contribution to the nation’s economic wellbeing. Popular television series and films encourage overseas tourism, whilst tourists then purchase additional Korean cultural products and services. This phenomenon has spurred investment in screen-related tourist amenities, encompassing entertainment parks, exhibition spaces and organised visits to famous filming sites. The resulting employment opportunities cover accommodation, travel and shopping services, pushing the screen industry’s economic footprint far more than traditional production metrics and demonstrating its catalytic role in the broader Korean economy.

Difficulties and Long-term Vision

Despite the screen sector’s significant financial impact, South Korea’s audiovisual industry encounters intensifying competitive challenges from worldwide streaming providers and international production hubs delivering considerable tax advantages. Escalating production expenses, challenges in keeping talented staff and the swift technological advancement of content delivery systems present ongoing obstacles to sustained growth. The sector must contend with more intricate regulatory frameworks across various regions whilst adapting to shifting consumer preferences towards varied content types. Additionally, the clustering of investment within larger production companies jeopardises the sustainability of smaller operations that currently provide jobs for more than 75% of workers, possibly limiting creative development and creative range.

Looking forward, the sector’s direction hinges upon strategic investment in emerging technologies and skills training initiatives. Video-on-demand platforms are expected to drive growth at approximately 7.4% annually through 2028, significantly exceeding traditional television and film segments. However, unlocking this potential requires collaborative action to enhance production facilities, nurture tech-savvy creators and strengthen intellectual property protections across overseas markets. The report’s results underscore the pressing need of anticipatory government action to ensure South Korea maintains its market leadership within the fast-changing global entertainment landscape whilst safeguarding the ecosystem supporting smaller production companies.

• Growing rivalry with international streaming platforms undermines local market position
• Rising filming budgets and talent recruitment obstacles burden smaller production companies
• Swift technological advancement demands continuous investment in tools and professional development
• Regulatory complexity across multiple jurisdictions amplifies regulatory obligations significantly
• Consolidation trends threaten to diminish creative variety and independent production prospects

State Backing and Skills Enhancement

Government support mechanisms continue to be critical to supporting the sector’s expansion path and safeguarding employment across small and micro businesses. South Korea’s policymakers must prioritise directed financial support for standalone production companies, digital capability development schemes and infrastructure development to strengthen the sector’s ability to endure against international competition. Tax breaks, funding awards and affordable infrastructure access can support fair competition for smaller companies whilst fostering innovation in emerging formats and technologies that define next-generation entertainment.

Investment in skills training initiatives tackles the sector’s biggest challenge: recruiting and keeping skilled professionals across production, technical and creative disciplines. University partnerships with universities, apprenticeship schemes and mentoring programmes can develop the future generation of Korean screen talent whilst fostering entrepreneurial ventures. Greater investment for up-and-coming professionals through development initiatives and accessible finance solutions would bolster the ecosystem supporting smaller companies, guaranteeing the sector’s continued dynamism and cultural relevance across international markets.