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 sustained nearly 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 industry leaders 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 leading sector, 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.

Economic Powerhouse Generating Impressive Results

The screen industry’s financial influence goes well past 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 generated directly by the sector, an additional KRW2.1 billion flows through supply chains and consumer spending, resulting in a GDP multiplier of 3.1. This ripple effect illustrates how funding for screen production reverberates across various sectors, from hospitality and transport to professional services and retail. The employment multiplier of 3.4 additionally demonstrates this phenomenon, with each 100 direct jobs supporting 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 gear hire and finishing work to marketing and distribution. The information and communication sector accounted for the largest employment share at 116,500 jobs, reflecting the technology-driven nature of contemporary audiovisual work and the technological expertise required across the industry.

• GDP multiplier of 3.1 generates additional KRW2.1 billion per KRW1 billion generated
• Employment multiplier of 3.4 supports 240 additional jobs per 100 primary positions
• KRW7,170 billion in overall tax receipts generated across all segments
• 78% of jobs located in small and medium-sized businesses

Television Dominates, Streaming Emerges as Growth Engine

Television continues to be the undisputed heavyweight of South Korea’s visual media industry, commanding approximately 65% of the industry’s combined GDP output with a contribution of KRW15,620 billion (£10.6 billion) and sustaining 181,200 jobs. The dominance of television reflects both the existing framework of traditional broadcasting and the sector’s continuous output of dramas, entertainment programmes and documentary content that attract 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 high-quality content guarantee its position as the sector’s primary economic driver 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 demonstrate exceptional output, delivering KRW437 million (£297,000) in gross domestic product contribution per head—roughly 5x the national average—signalling the premium nature of streaming production. Projections indicate VOD will expand at approximately 7.4% annually through 2028, surpassing both film and television growth rates and establishing streaming as the sector’s most rapidly expanding segment.

Sector Breakdown and Employment Distribution

Film production, accounting for KRW4,960 billion (£3.4 billion) and supporting 77,800 jobs, holds the sector’s central position. Whilst not as large as television, South Korea’s film industry maintains considerable economic significance and global standing, with productions spanning high-budget productions to independent features achieving recognition at major festival events. The balanced portfolio of television, film and streaming provides financial stability whilst facilitating specialisation and innovation across diverse formats and distribution methods.

Korean Content Sweeps Worldwide Audiences

South Korea’s screen industry has gone beyond national borders to become a powerful player in global entertainment markets. The sector’s economic success is intrinsically linked to its global presence, with Korean dramas, films and streaming shows engaging viewers across Asia, Europe and the Americas. This global expansion has transformed the nation into a cultural powerhouse, establishing Korean content creators as serious competitors to traditional Western production centres. The industry’s ability to blend unique narrative styles with high production values has resonated with global audiences, driving both viewership figures and commercial revenues that reach well outside South Korea’s borders.

The export potential of Korean screen content continues to expand, supported by the global appetite for varied storytelling and innovative formats. Streaming platforms have accelerated this internationalisation, enabling Korean productions to connect with worldwide viewers in real time whilst reducing traditional distribution barriers. Major international collaborations and joint ventures have become more frequent, attracting international funding and talent to South Korean studios. This growing interconnectedness reinforces the sector’s financial stability whilst establishing Korea as an essential centre within the global entertainment landscape. The multiplier effects created by international demand spread across the production network, generating more jobs and funding prospects throughout the sector.

• Korean dramas achieve unprecedented audience numbers throughout Netflix and global streaming services globally
• Film exports produce substantial foreign exchange earnings whilst elevating national cultural prestige internationally
• Cross-border collaborations bring overseas funding and specialist knowledge to Korean studios
• Worldwide acclaim fuels tourism, merchandise sales and ancillary revenue streams beyond traditional production

Travel and Cultural Impact

The financial effects of Korean screen content stretches considerably beyond direct industry revenues, creating significant tourism and cultural spillover effects. International visitors increasingly travel to South Korea deliberately to experience production sites, visit themed attractions and engage with Korean popular culture. This “Korean cultural phenomenon” or Korean Wave phenomenon has transformed travel trends, with screen-related attractions becoming significant attractions for tourists from across Asia and beyond. The cultural sway exerted by successful productions creates enduring brand equity for South Korea, enhancing the nation’s soft power whilst producing significant revenue through visitor expenditure, accommodation and dining and branded goods.

The link between film and television production and tourism establishes a beneficial cycle of growth that enhances the sector’s extended role to national prosperity. Well-known television programmes and feature films inspire travel from abroad, whilst tourists then purchase more Korean cultural offerings. This development has spurred funding for screen-related tourist amenities, encompassing dedicated attractions, exhibition spaces and organised visits to famous filming sites. The generated job prospects cover hospitality, transportation and retail sectors, pushing the screen industry’s financial reach well beyond standard industry benchmarks and demonstrating its driving force in the broader Korean economy.

Difficulties and Long-term Vision

Despite the screen sector’s considerable economic value, South Korea’s audiovisual industry confronts growing market pressures from worldwide streaming providers and overseas production centres delivering considerable tax advantages. Rising production costs, talent retention challenges and the accelerating technological change of content distribution platforms pose continuous challenges to continued expansion. The sector must contend with more intricate regulatory frameworks across various regions whilst adapting to shifting consumer preferences towards different content styles. Additionally, the aggregation of capital within bigger production enterprises undermines the long-term prospects of independent producers that currently employ over three-quarters of the workforce, possibly limiting creative development and artistic variety.

Looking ahead, the sector’s direction hinges upon strategic investment in emerging technologies and skills training initiatives. Video-on-demand platforms are expected to drive expansion at approximately 7.4% annually through 2028, far surpassing traditional TV and film segments. However, realising this potential requires coordinated efforts to modernise production facilities, cultivate 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 edge within the fast-changing global entertainment landscape whilst safeguarding the ecosystem sustaining smaller production companies.

• Escalating rivalry with global streaming services undermines home market presence
• Climbing filming budgets and talent acquisition difficulties burden smaller production companies
• Rapid technological advancement necessitates continuous investment in tools and professional development
• Regulatory challenges in multiple territories heightens compliance burdens considerably
• Consolidation trends stand to limit artistic diversity and opportunities for independent producers

Government Support and Workforce Development

Government assistance programmes remain critical to maintaining the sector’s growth trajectory and protecting employment across small and micro businesses. South Korea’s policymakers should focus on targeted funding for independent producers, digital capability development schemes and facility improvements to strengthen the sector’s ability to endure against global market pressures. Tax relief measures, production grants and subsidised facilities access can support fair competition for independent firms whilst fostering innovation in new technologies and formats that define next-generation entertainment.

Investment in skills training initiatives addresses the sector’s most pressing challenge: attracting and retaining qualified experts across production, technical and creative disciplines. Academic collaborations with academic institutions, apprenticeship schemes and mentorship initiatives can develop the next generation of Korean screen talent whilst supporting business start-ups. Enhanced support for emerging creators through incubation programmes and microfinance options would strengthen the landscape supporting smaller enterprises, securing the sector’s ongoing vitality and cultural relevance on the global stage.