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

South Korea’s entertainment industry produced £12.4 billion in financial contribution during 2025 and supported approximately 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 sector representatives at the National Assembly in Seoul, reveals the sector’s substantial contribution to the country’s GDP through production spending, supply-chain spending and consumer spending. Television emerged as the dominant segment, accounting for roughly 65% of the industry’s combined output, whilst the streaming sector demonstrated the greatest efficiency per worker. The findings highlight the screen industry’s vital importance in South Korea’s economic and employment landscape.

Economic Powerhouse Generating Substantial Returns

The screen industry’s economic impact extends far beyond its direct contributions, with the Oxford Economics study uncovering a multiplier effect that increases value throughout South Korea’s wider economic landscape. For every KRW1 billion produced directly by the sector, an further KRW2.1 billion flows through supply chains and consumer spending, resulting in a GDP multiplier of 3.1. This ripple effect demonstrates how funding for screen production spreads throughout various sectors, from hospitality and transport to retail and professional services. The employment multiplier of 3.4 additionally demonstrates this phenomenon, with each 100 direct jobs sustaining an further 240 positions elsewhere in 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 workforce structure reveals its deeply integrated nature within South Korea’s economy, with nearly 78% of jobs based within small and micro businesses. 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 contemporary audiovisual work and the technical knowledge required across the industry.

• GDP multiplier of 3.1 generates additional KRW2.1 billion per KRW1 billion created
• Employment multiplier of 3.4 enables 240 additional jobs per 100 direct positions
• KRW7,170 billion in aggregate tax income created across all segments
• 78% of jobs focused within SMEs and micro-businesses

TV Leads the Market, Streaming Emerges as Key Driver

Television continues to be the undisputed heavyweight of South Korea’s visual media industry, commanding approximately 65% of the industry’s aggregate economic output with a financial input of KRW15,620 billion (£10.6 billion) and sustaining 181,200 jobs. The television’s market dominance reflects both the established infrastructure of conventional broadcast services and the sector’s continuous output of dramas, entertainment programmes and documentary content 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 continued investment in premium programming ensure its role as the sector’s main economic engine and biggest source of employment.

However, video-on-demand services form the sector’s most dynamic growth opportunity, despite presently accounting for KRW3,500 billion (£2.4 billion) and 32,100 jobs. VOD workers display exceptional performance, generating KRW437 million (£297,000) in economic value creation per head—roughly five times the national average—signalling the premium 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 placing streaming as the sector’s most rapidly expanding segment.

Sectoral Breakdown and Employment Distribution

Film production, accounting for KRW4,960 billion (£3.4 billion) and supporting 77,800 jobs, holds the sector’s intermediate tier. Whilst smaller than television, South Korea’s film industry maintains substantial financial importance and worldwide recognition, with productions ranging from major commercial films to smaller-scale films earning acclaim at renowned film festivals. The well-rounded combination of television, film and streaming provides financial stability whilst allowing for specialisation and innovation across diverse formats and distribution methods.

Korean Content Dominates Global Markets

South Korea’s screen industry has gone beyond domestic boundaries to become a formidable force 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 the Americas. This international growth has established the country as a cultural force, positioning Korean production companies as major rivals to traditional Western production centres. The industry’s capacity for combining distinctive storytelling with strong production quality has resonated with international viewers, driving both viewership figures and box office returns that reach well outside South Korea’s borders.

The export potential of Korean screen content keeps growing, driven by the global appetite for varied storytelling and creative approaches. Streaming platforms have expedited this internationalisation, allowing Korean productions to reach global audiences in real time whilst reducing traditional distribution barriers. Significant cross-border partnerships and joint ventures have become increasingly common, attracting 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 international demand spread across the production network, creating more jobs and investment opportunities across the entire industry.

• Korean dramas attain unprecedented audience numbers throughout Netflix and international streaming platforms globally
• Film exports deliver substantial foreign exchange earnings whilst enhancing national cultural prestige on the world stage
• Cross-border collaborations attract overseas funding and technical expertise to Korean studios
• Worldwide acclaim fuels tourism, merchandise sales and ancillary revenue streams beyond traditional production

Tourism and Heritage Influence

The economic impact of Korean screen content extends considerably past direct industry revenues, generating substantial travel and cultural knock-on benefits. International visitors increasingly journey to South Korea deliberately to explore filming locations, visit branded venues and immerse themselves in Korean cultural products. This “Korean cultural phenomenon” or Korean Wave movement has transformed tourism patterns, with screen-related attractions emerging as major draws for visitors from across Asia and beyond. The cultural influence exerted by successful productions establishes lasting brand value for South Korea, enhancing the nation’s soft power whilst producing significant revenue through visitor expenditure, accommodation and dining and branded goods.

The relationship between screen production and tourism generates a beneficial cycle of growth that amplifies the sector’s wider impact to the nation’s economic wellbeing. Successful TV shows and movies inspire international travel, whilst travellers go on to buy further Korean cultural goods and services. This phenomenon has prompted investment in screen-related tourist amenities, encompassing dedicated attractions, exhibition spaces and guided tours of iconic filming locations. The resulting employment opportunities cover accommodation, travel and shopping services, extending the screen industry’s economic footprint far more than standard industry benchmarks and demonstrating its driving force in Korea’s wider economy.

Difficulties and Long-term Vision

Despite the screen sector’s considerable economic value, South Korea’s audiovisual industry confronts growing market pressures from international streaming services and international production hubs offering substantial tax incentives. Rising production costs, challenges in keeping talented staff and the rapid technological evolution of content distribution platforms pose continuous challenges to ongoing development. The sector must contend with more intricate regulatory frameworks across various regions whilst responding to changing viewer preferences towards varied content types. Additionally, the clustering of investment within bigger production enterprises jeopardises the sustainability of independent producers that currently employ over three-quarters of the workforce, potentially constraining innovation and creative diversity.

Looking ahead, the sector’s direction hinges upon targeted capital allocation in new technological developments and workforce development initiatives. Video-on-demand platforms are forecast to drive expansion at approximately 7.4% per year through 2028, far surpassing traditional broadcast and cinema segments. However, unlocking this potential requires coordinated efforts to upgrade production facilities, nurture digital-native talent and bolster intellectual property protections across overseas markets. The report’s results underscore the critical importance of anticipatory government action to ensure South Korea maintains its competitive advantage within the rapidly evolving global entertainment landscape whilst protecting the ecosystem enabling smaller production companies.

• Intensifying rivalry with global streaming services undermines local market position
• Increasing filming budgets and talent acquisition obstacles pressure smaller production houses
• Swift technological change necessitates continuous investment in tools and professional development
• Compliance complexity across multiple jurisdictions heightens compliance burdens substantially
• Industry consolidation threaten to diminish creative variety and independent production prospects

State Backing and Workforce Development

Government support mechanisms continue to be critical to sustaining the sector’s expansion path and protecting employment across small and micro businesses. South Korea’s policymakers must prioritise directed financial support for self-employed creators, technology training initiatives and infrastructure development to strengthen the sector’s resilience against global market pressures. Tax breaks, financial grants and subsidised facilities access can create equal opportunities for smaller businesses whilst fostering innovation in developing creative platforms that shape next-generation entertainment.

Investment in skills training initiatives tackles the sector’s critical challenge: attracting and retaining qualified experts across production, technical, and creative fields. Academic collaborations with higher education institutions, vocational training schemes and mentoring programmes can cultivate the coming generation of Korean screen talent whilst supporting business start-ups. Enhanced support for emerging creators through incubation programmes and accessible finance solutions would strengthen the ecosystem supporting independent producers, ensuring the sector’s continued dynamism and cultural importance internationally.