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 nearly 300,000 jobs, based on a comprehensive economic study commissioned by 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 significant impact to the country’s GDP through production spending, supply-chain spending and consumer expenditure. Television proved to be the leading sector, accounting for approximately 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.

Economic Powerhouse Delivering Significant Gains

The screen industry’s economic impact goes well past its immediate outputs, with the Oxford Economics study revealing a multiplication factor that increases value throughout South Korea’s broader economy. For every KRW1 billion generated directly by the sector, an additional KRW2.1 billion circulates across consumer spending and supply chains, producing a GDP multiplier of 3.1. This ripple effect illustrates how investment in screen production reverberates across various sectors, from transport and hospitality to professional services and retail. The employment multiplier of 3.4 additionally demonstrates 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 employment composition reveals its firmly embedded nature within South Korea’s economy, with nearly 78% of jobs concentrated in 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 produces additional KRW2.1 billion per KRW1 billion produced
• Employment multiplier of 3.4 sustains 240 additional jobs per 100 direct positions
• KRW7,170 billion in total tax revenues produced among all divisions
• 78% of jobs located in SMEs and micro-businesses

TV Leads the Market, Streaming Becomes Growth Engine

Television continues to be the undisputed heavyweight of South Korea’s visual media industry, controlling approximately 65% of the industry’s aggregate economic 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 conventional broadcast services and the sector’s continuous output of dramas, variety shows and documentaries 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 high-quality content guarantee its position as the sector’s primary economic driver and biggest source of employment.

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

Industry 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 upholds substantial financial importance and worldwide recognition, with productions spanning blockbuster releases to independent features earning acclaim at major festival events. The diverse mix of television, film and streaming provides financial stability whilst enabling specialist development and creative advancement across different content formats and distribution methods.

Korean Content Captures International Markets

South Korea’s screen industry has transcended national borders to become a powerful player in international entertainment sectors. The sector’s economic success is fundamentally connected with its international reach, with Korean television dramas, films and streaming content engaging viewers across Asia, Europe and the Americas. This international growth has established the country as a cultural force, establishing Korean content creators as major rivals to traditional Western production centres. The industry’s ability to blend unique narrative styles with strong production quality has resonated with global audiences, driving both audience numbers 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 creative approaches. Digital distribution services have expedited this global expansion, enabling Korean productions to reach global audiences in real time whilst minimising traditional market obstacles. Major international collaborations and co-productions have become increasingly common, drawing international funding and talent to South Korean studios. This expanding integration reinforces the sector’s financial stability whilst establishing Korea as an indispensable hub within the global entertainment landscape. The cascading benefits generated by international demand spread across the production network, creating more jobs and funding prospects throughout the sector.

• Korean dramas attain unprecedented audience numbers across Netflix and international streaming platforms globally
• Film exports generate substantial foreign exchange earnings whilst boosting national cultural prestige on the world stage
• Cross-border collaborations draw in foreign investment capital and specialist knowledge to Korean studios
• Global recognition fuels visitor numbers, branded products and additional income sources beyond traditional production

Tourism and Heritage Influence

The economic impact 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 specifically to explore filming locations, visit branded venues and engage with Korean popular culture. This “Korean cultural phenomenon” or Korean Wave phenomenon has transformed travel trends, with film and television attractions emerging as major draws for tourists from across Asia and beyond. The cultural influence wielded by acclaimed content creates enduring brand equity for South Korea, strengthening the nation’s cultural influence whilst producing substantial income via tourism spending, hospitality services and cultural merchandise.

The interconnection between screen production and tourism generates a virtuous economic cycle that amplifies the sector’s broader contribution to national prosperity. Popular television series and films drive international travel, whilst tourists then purchase further Korean cultural goods and services. This phenomenon has led to investment in screen-related tourist amenities, such as dedicated attractions, 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 conventional production measures and demonstrating its transformative influence in the broader Korean economy.

Challenges and What Lies Ahead

Despite the screen sector’s considerable economic value, South Korea’s audiovisual industry faces mounting competitive pressures from international streaming services and global production facilities delivering considerable tax advantages. Increasing production outlays, difficulties retaining skilled personnel and the rapid technological evolution of content distribution platforms create persistent difficulties to ongoing development. The sector must manage progressively complicated regulatory landscapes across various regions whilst responding to changing viewer preferences towards different content styles. Additionally, the concentration of resources within bigger production enterprises undermines the long-term prospects of smaller operations that currently provide jobs for more than 75% of workers, risking reduced innovation and artistic variety.

Looking ahead, the sector’s path hinges upon strategic investment in new technological developments and talent development programmes. Video-on-demand platforms are expected to drive expansion at approximately 7.4% per year through 2028, significantly exceeding traditional TV and film segments. However, unlocking this potential requires joint initiatives to upgrade production infrastructure, nurture digital-native talent and reinforce intellectual property protections across global territories. The report’s conclusions underscore the critical importance of proactive policy interventions to ensure South Korea maintains its market leadership within the dynamic global entertainment landscape whilst safeguarding the ecosystem enabling smaller production companies.

• Escalating competition from international streaming platforms jeopardises home market presence
• Climbing production expenses and talent recruitment challenges strain smaller production companies
• Swift tech evolution requires sustained spending in equipment and staff development
• Regulatory challenges across different regions increases compliance burdens considerably
• Market consolidation risk limit creative diversity and opportunities for independent producers

State Backing and Talent Development

Government assistance programmes remain critical to maintaining the sector’s growth trajectory and protecting employment across smaller independent companies. South Korea’s policymakers should focus on strategic investment for self-employed creators, technology training initiatives and facility improvements to reinforce the sector’s capacity to withstand against global market pressures. Tax incentives, financial grants and affordable infrastructure access can help level the playing field for independent firms whilst promoting innovation in new technologies and formats that define next-generation entertainment.

Investment in skills training initiatives addresses the sector’s most pressing challenge: drawing and maintaining qualified experts across production, technical and creative disciplines. University partnerships with academic institutions, apprenticeship programmes and coaching schemes can nurture the future generation of Korean film and television professionals whilst fostering business start-ups. Enhanced support for new talent through business incubators and microfinance options would strengthen the landscape supporting independent producers, guaranteeing the sector’s ongoing vitality and creative significance on the global stage.