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

South Korea’s screen industry produced £12.4 billion in financial contribution during 2025 and sustained approximately 300,000 jobs, according to a comprehensive economic study commissioned by the Motion Picture Association. The report, produced by Oxford Economics and presented to legislators and industry leaders at the National Assembly in Seoul, reveals the sector’s significant impact to the country’s GDP through direct production activity, supply chain expenditure and consumer spending. 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.

Strong Economic Engine Generating Impressive Results

The screen industry’s financial influence extends far beyond its direct contributions, with the Oxford Economics study revealing a multiplication factor that increases value throughout South Korea’s wider economic landscape. For every KRW1 billion generated directly by the sector, an further KRW2.1 billion circulates across supply chains and consumer spending, producing a GDP multiplier of 3.1. This ripple effect demonstrates how funding for screen production spreads throughout multiple industries, from transport and hospitality to retail and professional services. The employment multiplier of 3.4 additionally demonstrates this phenomenon, with each 100 direct jobs sustaining an additional 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 firmly embedded nature within South Korea’s economy, with nearly 78% of jobs based within micro, small and medium-sized enterprises. These compact firms form the backbone of production networks, supporting everything from equipment rental and post-production services to promotion and delivery. 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 generates extra KRW2.1 billion per KRW1 billion created
• Employment multiplier of 3.4 sustains 240 additional jobs per 100 direct positions
• KRW7,170 billion in aggregate tax income produced among all divisions
• 78% of jobs concentrated in micro, small and medium-sized enterprises

TV Leads the Market, Streaming Emerges as Growth Engine

Television continues to be the undisputed heavyweight of South Korea’s visual media industry, controlling approximately 65% of the industry’s combined GDP 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 existing framework 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 deep roots in South Korean culture and its continued investment in premium programming ensure its role as the sector’s main economic engine and largest employer.

However, video-on-demand services form the sector’s fastest-growing growth opportunity, despite now generating KRW3,500 billion (£2.4 billion) and 32,100 jobs. VOD workers demonstrate exceptional output, delivering KRW437 million (£297,000) in gross domestic product contribution per head—roughly 5x the national average—signalling the substantial nature of streaming production. Projections suggest VOD will increase at approximately 7.4% annually through 2028, outpacing both film and television growth rates and establishing streaming as the sector’s fastest-growing segment.

Sector Breakdown and Employment Distribution

Film production, generating KRW4,960 billion (£3.4 billion) and supporting 77,800 jobs, represents the sector’s middle ground. Whilst not as large as television, South Korea’s film industry maintains significant economic value and global standing, with productions spanning blockbuster releases to indie productions earning acclaim at major festival events. The diverse mix of television, film and streaming supports economic robustness whilst facilitating specialist development and creative advancement across various content types and delivery platforms.

Korean Content Sweeps Global Markets

South Korea’s screen industry has surpassed national borders to become a powerful player in international entertainment sectors. The sector’s economic success is intrinsically linked to its international reach, with Korean dramas, films and streaming shows engaging viewers across Asia, Europe and North America. This global expansion has established the country as a cultural force, positioning Korean production companies as serious competitors to traditional Western production centres. The industry’s ability to blend distinctive storytelling with strong production quality has appealed to international viewers, boosting both audience numbers and box office returns that reach well outside South Korea’s borders.

The international reach of Korean screen content keeps growing, supported by the global appetite for diverse narratives and innovative formats. Streaming platforms have accelerated this global expansion, enabling Korean productions to reach global audiences in real time whilst minimising traditional distribution barriers. Significant cross-border partnerships and joint ventures have become more frequent, drawing foreign investment and talent to South Korean studios. This expanding integration reinforces the sector’s economic resilience whilst positioning Korea as an indispensable hub within the worldwide entertainment ecosystem. The cascading benefits generated by international demand spread across the production network, creating additional employment and investment opportunities throughout the sector.

• Korean dramas reach record viewership figures across Netflix and global streaming services globally
• Film exports deliver substantial foreign exchange earnings whilst boosting Korea’s cultural standing internationally
• International co-productions attract overseas funding and specialist knowledge to Korean studios
• Worldwide acclaim fuels tourism, merchandise sales and ancillary revenue streams beyond traditional production

Tourism and Heritage Influence

The financial effects of Korean screen content extends considerably past direct industry revenues, creating substantial tourism and cultural knock-on benefits. International visitors progressively travel to South Korea deliberately to explore filming locations, explore themed attractions and engage with Korean cultural products. This “Korean cultural phenomenon” or Korean Wave phenomenon has transformed tourism patterns, with film and television attractions emerging as significant attractions for visitors from across Asia and beyond. The cultural influence wielded by acclaimed content establishes enduring brand equity for South Korea, enhancing the nation’s soft power whilst generating significant revenue through visitor expenditure, hospitality services and branded goods.

The interconnection between film and television production and tourism establishes a beneficial cycle of growth that strengthens the sector’s wider impact to the nation’s economic wellbeing. Successful TV shows and movies encourage overseas tourism, whilst tourists then purchase further Korean cultural goods and services. This trend has led to funding for screen-related tourist amenities, including entertainment parks, visitor centres and curated tours around renowned production locations. The generated job prospects span the hospitality, transport and retail industries, pushing the screen industry’s economic footprint far more than traditional production metrics and highlighting its catalytic role in Korea’s wider economy.

Challenges and Future Outlook

Despite the screen sector’s impressive economic contribution, South Korea’s audiovisual industry faces mounting competitive pressures from worldwide streaming providers and overseas production centres providing significant tax benefits. Increasing production outlays, challenges in keeping talented staff and the swift technological advancement of content delivery systems create persistent difficulties to ongoing development. The sector must contend with more intricate regulatory frameworks across multiple territories whilst adjusting to evolving audience tastes towards diverse content formats. Additionally, the concentration of resources within larger production companies threatens the viability of independent producers that currently account for employment of the vast majority of staff, risking reduced innovation and creative diversity.

Looking forward, the sector’s path hinges upon targeted capital allocation in new technological developments and talent development programmes. Video-on-demand platforms are expected to drive growth at approximately 7.4% annually through 2028, substantially outpacing traditional broadcast and cinema segments. However, achieving this potential requires joint initiatives to enhance production facilities, cultivate tech-savvy creators and reinforce intellectual property protections across global territories. The report’s findings underscore the urgency of forward-looking regulatory measures to ensure South Korea maintains its competitive advantage within the fast-changing global entertainment landscape whilst protecting the ecosystem sustaining smaller production companies.

• Intensifying competition from global streaming services threatens local market position
• Rising production expenses and skilled worker recruitment obstacles burden independent producers
• Accelerating technological advancement requires sustained spending in tools and professional development
• Regulatory challenges across different regions heightens compliance demands substantially
• Industry consolidation risk diminish creative variety and independent production prospects

State Backing and Skills Enhancement

Government funding initiatives continue to be critical to maintaining the sector’s expansion path and safeguarding employment across small and micro businesses. South Korea’s policymakers need to emphasise targeted funding for self-employed creators, digital capability development schemes and infrastructure investment to reinforce the sector’s resilience against overseas competitors. Tax incentives, funding awards and reduced-cost facility provision can create equal opportunities for independent firms whilst promoting innovation in developing creative platforms that define next-generation entertainment.

Investment in talent development programmes resolves the sector’s most pressing challenge: recruiting and keeping skilled professionals across production, technical and creative disciplines. Educational partnerships with academic institutions, apprenticeship programmes and coaching schemes can cultivate the coming generation of Korean audiovisual creators whilst fostering creative enterprises. Enhanced support for new talent through incubation programmes and small-scale funding would bolster the infrastructure backing smaller enterprises, guaranteeing the sector’s ongoing vitality and creative significance across international markets.