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

South Korea’s entertainment industry produced £12.4 billion in economic value during 2025 and supported nearly 300,000 jobs, according to a detailed economic analysis undertaken for the Motion Picture Association. The report, prepared 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 via direct production activity, supply-chain spending and consumer spending. Television emerged as the dominant segment, representing roughly 65% of the industry’s combined output, whilst the streaming sector showed the highest productivity per worker. The findings highlight the screen industry’s critical role in South Korea’s economy and employment landscape.

Economic Powerhouse Generating Impressive Results

The screen industry’s financial influence extends far beyond its immediate outputs, with the Oxford Economics study uncovering a multiplication factor that increases 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 illustrates how funding for screen production spreads throughout multiple industries, from hospitality and transport to professional services and retail. The employment multiplier of 3.4 further illustrates this effect, with each 100 direct jobs supporting an further 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 workforce structure reveals its deeply integrated nature within South Korea’s economy, with approximately 78% of jobs based within small and micro businesses. These smaller businesses form the foundation for production networks, supporting everything from equipment rental 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 produces extra KRW2.1 billion per KRW1 billion generated
• Employment multiplier of 3.4 supports 240 additional jobs per 100 primary positions
• KRW7,170 billion in aggregate tax income produced throughout all sectors
• 78% of jobs located in micro, small and medium-sized enterprises

Television Dominates, Streaming Emerges as Key Driver

Television continues to be the undisputed heavyweight of South Korea’s screen sector, controlling approximately 65% of the industry’s aggregate economic output with a financial input of KRW15,620 billion (£10.6 billion) and supporting 181,200 jobs. The television’s market dominance reflects both the established infrastructure of traditional broadcasting and the sector’s continuous output of dramas, variety shows and documentaries that command significant domestic and international audiences. Despite the rise of digital platforms, television’s strong cultural foundations in South Korean culture and its sustained commitment in premium programming guarantee its position as the sector’s primary economic driver and biggest source of employment.

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 display exceptional productivity, delivering KRW437 million (£297,000) in gross domestic product contribution per head—roughly five times the national average—signalling the high-value nature of streaming production. Projections forecast VOD will increase at approximately 7.4% per year through 2028, outpacing both film and television growth rates and placing streaming as the sector’s most rapidly expanding segment.

Sector Breakdown and Employment Allocation

Film production, generating KRW4,960 billion (£3.4 billion) and sustaining 77,800 jobs, represents the sector’s intermediate tier. Whilst not as large as television, South Korea’s film industry upholds significant economic value and global standing, with productions extending across major commercial films to smaller-scale films gaining recognition at renowned film festivals. The well-rounded combination of television, film and streaming supports economic robustness whilst facilitating specialisation and innovation across different content formats and distribution methods.

Korean Content Dominates International Markets

South Korea’s screen industry has gone beyond domestic boundaries to become a formidable force in international entertainment sectors. The sector’s economic success is intrinsically linked to its global presence, with Korean television dramas, films and streaming content engaging viewers across Asia, Europe and the Americas. 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 capacity for combining distinctive storytelling with high production values has resonated with 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 worldwide demand for varied storytelling and innovative formats. Digital distribution services have accelerated this global expansion, allowing Korean productions to reach global audiences instantaneously whilst reducing traditional market obstacles. Significant cross-border partnerships and joint ventures have become increasingly common, drawing foreign investment and talent to South Korean studios. This expanding integration reinforces the sector’s economic resilience whilst establishing Korea as an essential centre within the global entertainment landscape. The cascading benefits created by global interest spread across the supply chain, generating more jobs and investment opportunities across the entire industry.

• Korean dramas achieve record viewership figures across Netflix and international streaming platforms worldwide
• Film exports deliver significant revenue from overseas markets whilst boosting Korea’s cultural standing internationally
• International co-productions bring overseas funding and specialist knowledge to Korean studios
• Worldwide acclaim drives visitor numbers, branded products and additional income sources outside of traditional production

Tourism and Heritage Influence

The economic impact of Korean screen content stretches considerably past immediate sector earnings, creating significant travel and cultural spillover effects. International visitors progressively journey to South Korea deliberately to experience production sites, visit branded venues and immerse themselves in Korean popular culture. This “Korean Wave” or Korean Wave phenomenon has transformed tourism patterns, with screen-related attractions emerging as major draws for visitors from across Asia and beyond. The cultural influence exerted by acclaimed content creates lasting brand value for South Korea, enhancing the nation’s cultural influence whilst producing significant revenue through tourism spending, hospitality services and cultural merchandise.

The relationship between screen production and tourism creates a positive economic loop that enhances the sector’s wider impact to the nation’s economic wellbeing. Successful TV shows and movies encourage overseas tourism, whilst travellers then purchase further Korean cultural goods and services. This phenomenon has spurred investment in screen tourism infrastructure, such as entertainment parks, visitor centres and organised visits to famous filming sites. The created employment positions span hospitality, transportation and retail sectors, pushing the screen industry’s economic impact substantially further than standard industry benchmarks and demonstrating its transformative influence in the broader Korean economy.

Difficulties and Long-term Vision

Despite the screen sector’s significant financial impact, South Korea’s audiovisual industry faces mounting competitive pressures from international streaming services and overseas production centres delivering considerable tax advantages. Rising production costs, challenges in keeping talented staff and the swift technological advancement of content distribution platforms create persistent difficulties to continued expansion. The sector must manage progressively complicated regulatory landscapes across various regions whilst adjusting to evolving audience tastes towards varied content types. Additionally, the clustering of investment within larger production companies undermines the long-term prospects of smaller enterprises that currently employ over three-quarters of the workforce, possibly limiting creative development and artistic variety.

Looking ahead, the sector’s path hinges upon strategic investment in new technological developments and skills training initiatives. Video-on-demand platforms are forecast to drive expansion at approximately 7.4% per year through 2028, significantly exceeding traditional television and film segments. However, realising this potential requires collaborative action to enhance production systems, nurture digitally-skilled professionals and reinforce intellectual property protections across international markets. The report’s results underscore the pressing need of anticipatory government action to ensure South Korea maintains its competitive advantage within the rapidly evolving global entertainment landscape whilst preserving the ecosystem enabling smaller production companies.

• Growing competitive pressure from global streaming services jeopardises domestic market share
• Increasing production costs and skilled worker recruitment obstacles strain independent producers
• Swift technological change requires sustained spending in equipment and training
• Compliance complexity across different regions heightens compliance burdens significantly
• Consolidation trends threaten to reduce creative diversity and opportunities for independent producers

Government Support and Workforce Development

Government support mechanisms continue to be critical to sustaining the sector’s growth trajectory and protecting employment across small and micro businesses. South Korea’s policymakers should focus on strategic investment for independent producers, technology training initiatives and facility improvements to reinforce the sector’s capacity to withstand against global market pressures. Tax breaks, financial grants and reduced-cost facility provision can create equal opportunities for independent firms whilst promoting innovation in new technologies and formats that define next-generation entertainment.

Funding for skills training initiatives tackles the sector’s critical challenge: attracting and retaining experienced practitioners across production, technical, and creative specialisations. Educational partnerships with universities, apprenticeship programmes and mentorship initiatives can develop the future generation of Korean audiovisual creators whilst supporting creative enterprises. Greater investment for up-and-coming professionals through development initiatives and small-scale funding would strengthen the landscape supporting independent producers, securing the sector’s sustained growth and cultural importance internationally.