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 approximately 300,000 jobs, according to a detailed economic analysis commissioned by the Motion Picture Association. The report, produced by Oxford Economics and delivered to legislators and sector representatives at the National Assembly in Seoul, demonstrates the sector’s significant impact to the country’s GDP via production spending, supply-chain spending and consumer expenditure. Television emerged as the leading sector, accounting for roughly 65% of the industry’s total output, whilst the video-on-demand sector demonstrated 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 Significant Gains

The screen industry’s financial influence extends far beyond its immediate outputs, 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 further KRW2.1 billion circulates across consumer spending and supply chains, resulting in a GDP multiplier of 3.1. This cascading impact illustrates how funding for screen production reverberates across multiple industries, from transport and hospitality to retail and professional services. The employment multiplier of 3.4 further illustrates this effect, with each 100 direct jobs sustaining 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 workforce structure reveals its firmly embedded nature within South Korea’s economy, with nearly 78% of jobs concentrated in micro, small and medium-sized enterprises. These smaller businesses form the foundation for production networks, supporting everything from gear hire and post-production services to marketing and distribution. The information and communication sector accounted for the highest job numbers at 116,500 jobs, reflecting the technology-driven nature of contemporary audiovisual work and the technical knowledge required across the industry.

• GDP multiplier of 3.1 creates additional KRW2.1 billion per KRW1 billion produced
• Employment multiplier of 3.4 sustains 240 additional jobs per 100 primary positions
• KRW7,170 billion in total tax revenues produced across all segments
• 78% of jobs focused within small and medium-sized businesses

Television Dominates, Streaming Becomes Key Driver

Television continues to be the undisputed heavyweight of South Korea’s screen sector, controlling approximately 65% of the industry’s combined GDP output with a contribution of KRW15,620 billion (£10.6 billion) and supporting 181,200 jobs. The television’s market dominance reflects both the established infrastructure of conventional broadcast services and the sector’s ongoing production of dramas, variety shows and documentaries that command substantial viewership across domestic and overseas markets. Despite the rise of digital platforms, television’s strong cultural foundations in South Korean culture and its sustained commitment in high-quality content guarantee its role as the sector’s primary economic driver and largest employer.

However, video-on-demand services represent the sector’s most dynamic growth opportunity, despite now generating KRW3,500 billion (£2.4 billion) and 32,100 jobs. VOD workers exhibit exceptional performance, delivering KRW437 million (£297,000) in economic value creation per head—roughly five times 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 positioning streaming as the sector’s quickest-growing segment.

Sector Breakdown and Workforce Distribution

Film production, generating KRW4,960 billion (£3.4 billion) and sustaining 77,800 jobs, occupies 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 spanning blockbuster releases to independent features gaining recognition at renowned film festivals. The balanced portfolio of television, film and streaming provides financial stability whilst enabling focused expertise and creative growth across various content types and delivery platforms.

Korean Content Sweeps Worldwide Audiences

South Korea’s screen industry has surpassed national borders to become a powerful player in international entertainment sectors. The sector’s economic success is fundamentally connected with its global presence, with Korean television dramas, films and streaming content capturing audiences across Asia, Europe and North America. This global expansion has established the country as a cultural force, establishing Korean production companies as major rivals to established Western production hubs. The industry’s ability to blend unique narrative styles with strong production quality has appealed to international viewers, boosting both audience numbers and commercial revenues that extend far beyond South Korea’s borders.

The international reach of Korean screen content continues to expand, bolstered by the worldwide demand for diverse narratives and innovative formats. Digital distribution services have expedited this global expansion, allowing Korean productions to connect with worldwide viewers in real time 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 strengthens 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 supply chain, generating more jobs and funding prospects across the entire industry.

• Korean dramas reach unprecedented audience numbers throughout Netflix and global streaming services worldwide
• Film exports generate substantial foreign exchange earnings whilst boosting Korea’s cultural standing on the world stage
• International co-productions attract foreign investment capital and technical expertise to Korean studios
• Worldwide acclaim drives tourism, merchandise sales and ancillary revenue streams beyond traditional production

Tourism and Cultural Influence

The economic impact of Korean screen content stretches considerably past direct industry revenues, generating substantial travel and cultural knock-on benefits. Overseas tourists progressively journey to South Korea specifically to explore production sites, explore branded venues and immerse themselves in Korean popular culture. This “Korean Wave” or Korean Wave movement has reshaped tourism patterns, with screen-related attractions emerging as significant attractions for tourists from across Asia and beyond. The cultural sway wielded by acclaimed content establishes enduring brand equity for South Korea, strengthening the nation’s cultural influence whilst producing substantial income through visitor expenditure, accommodation and dining and branded goods.

The interconnection between film and television production and tourism creates a positive economic loop that amplifies the sector’s broader contribution to economic growth. Well-known television programmes and feature films inspire international travel, whilst travellers then purchase further Korean cultural goods and services. This trend has spurred development of film tourism facilities, including entertainment parks, display areas and curated tours around renowned production locations. The created employment positions span the hospitality, transport and retail industries, extending the screen industry’s financial reach substantially further than traditional production metrics and showcasing its driving force in Korea’s wider economy.

Challenges and What Lies Ahead

Despite the screen sector’s significant financial impact, South Korea’s audiovisual industry confronts growing market pressures from global streaming platforms and overseas production centres delivering considerable tax advantages. Rising production costs, talent retention challenges and the rapid technological evolution of distribution technology present ongoing obstacles to continued expansion. The sector must contend with more intricate regulatory frameworks across multiple territories whilst adapting to shifting consumer preferences towards diverse content formats. Additionally, the clustering of investment within larger production companies threatens the viability of smaller enterprises that currently provide jobs for more than 75% of workers, risking reduced innovation and artistic variety.

Looking ahead, the sector’s trajectory hinges upon targeted capital allocation in emerging technologies and skills training initiatives. Video-on-demand platforms are expected to drive expansion at approximately 7.4% annually through 2028, substantially outpacing traditional broadcast and cinema segments. However, achieving this potential requires collaborative action to upgrade production facilities, nurture digital-native talent and bolster intellectual property protections across global territories. The report’s findings underscore the critical importance of proactive policy interventions to ensure South Korea maintains its market leadership within the rapidly evolving global entertainment landscape whilst protecting the ecosystem supporting smaller production companies.

• Growing competition from international streaming platforms undermines local market position
• Climbing production costs and talent acquisition difficulties strain independent producers
• Accelerating technological advancement necessitates ongoing investment in equipment and staff development
• Compliance complexity across multiple jurisdictions heightens regulatory obligations considerably
• Industry consolidation threaten to reduce creative variety and opportunities for independent producers

State Backing and Skills Enhancement

Government funding initiatives continue to be critical to sustaining the sector’s expansion path and safeguarding employment across micro and small enterprises. South Korea’s policymakers must prioritise directed financial support for self-employed creators, digital capability development schemes and infrastructure development to reinforce the sector’s capacity to withstand against overseas competitors. Tax breaks, production grants and subsidised facilities access can support fair competition for smaller companies whilst encouraging innovation in new technologies and formats that define next-generation entertainment.

Support of professional development schemes tackles the sector’s critical challenge: drawing and maintaining experienced practitioners across production, technical, and creative fields. Educational partnerships with universities, apprenticeship programmes and coaching schemes can nurture the coming generation of Korean film and television professionals whilst promoting entrepreneurial ventures. Enhanced support for up-and-coming professionals through development initiatives and accessible finance solutions would bolster the landscape supporting smaller companies, guaranteeing the sector’s continued dynamism and cultural importance on the global stage.