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 sustained approximately 300,000 jobs, according to a comprehensive economic study undertaken for the Motion Picture Association. The report, produced by Oxford Economics and delivered to legislators and sector representatives at the National Assembly in Seoul, reveals the sector’s significant impact to the country’s GDP through production spending, supply-chain spending and consumer expenditure. Television proved to be the dominant segment, representing approximately 65% of the industry’s combined output, whilst the video-on-demand sector showed the greatest efficiency per worker. The findings highlight the screen industry’s critical role in South Korea’s economy and employment landscape.

Economic Powerhouse Delivering Impressive Results

The screen industry’s economic impact extends far beyond 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 further KRW2.1 billion circulates across consumer spending and supply chains, producing a GDP multiplier of 3.1. This ripple effect demonstrates how funding for screen production spreads throughout various sectors, 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 employment composition reveals its deeply integrated nature within South Korea’s economy, with nearly 78% of jobs based within small and micro businesses. These compact firms form the foundation for production networks, supporting everything from equipment rental and post-production services to marketing and distribution. The digital and technology sector accounted for the largest employment share at 116,500 jobs, reflecting the digitally intensive nature of modern screen production and the technological expertise required across the industry.

• GDP multiplier of 3.1 creates extra KRW2.1 billion per KRW1 billion produced
• Employment multiplier of 3.4 supports 240 additional jobs per 100 direct positions
• KRW7,170 billion in overall tax receipts generated across all segments
• 78% of jobs concentrated in SMEs and micro-businesses

Television Dominates, Streaming Becomes Key Driver

Television remains the undisputed heavyweight of South Korea’s screen sector, 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 conventional broadcast services and the sector’s continuous output of dramas, variety shows and documentaries that attract 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 high-quality content guarantee its position as the sector’s primary economic driver and largest employer.

However, video-on-demand services constitute the sector’s fastest-growing growth opportunity, despite currently contributing KRW3,500 billion (£2.4 billion) and 32,100 jobs. VOD workers exhibit exceptional performance, generating KRW437 million (£297,000) in direct GDP contribution per head—roughly five times the national average—signalling the premium nature of streaming production. Projections suggest VOD will expand at approximately 7.4% per year through 2028, outpacing both film and television growth rates and placing streaming as the sector’s fastest-growing segment.

Industry Breakdown and Employment Distribution

Film production, contributing KRW4,960 billion (£3.4 billion) and supporting 77,800 jobs, occupies the sector’s middle ground. Whilst not as large as television, South Korea’s film industry preserves significant economic value and worldwide recognition, with productions extending across blockbuster releases to independent features achieving recognition at prestigious festivals. The balanced portfolio of television, film and streaming ensures economic resilience whilst enabling specialist development and creative advancement across various content types and distribution methods.

Korean Content Sweeps Worldwide Audiences

South Korea’s screen industry has transcended domestic boundaries to become a formidable force in global entertainment markets. 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 transformed the nation into a cultural force, positioning Korean content creators as serious competitors to traditional Western production centres. The industry’s capacity for combining distinctive storytelling with strong production quality has appealed to global audiences, 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, driven 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 in real time whilst minimising traditional market obstacles. Major international collaborations and joint ventures have become increasingly common, attracting international funding 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 multiplier effects created by international demand ripple throughout the production network, generating more jobs and funding prospects throughout the sector.

• Korean dramas reach record viewership figures across Netflix and international streaming platforms worldwide
• Film exports deliver substantial foreign exchange earnings whilst elevating Korea’s cultural standing internationally
• Cross-border collaborations draw in overseas funding and technical expertise to Korean studios
• Global recognition fuels tourism, merchandise sales and ancillary revenue streams outside of traditional production

Travel and Cultural Influence

The financial effects of Korean screen content extends considerably beyond direct industry revenues, creating substantial tourism and cultural spillover effects. Overseas tourists increasingly travel to South Korea specifically to explore filming locations, explore branded venues and engage with Korean popular culture. This “hallyu” or Korean Wave movement has reshaped tourism patterns, with screen-related attractions becoming major draws for visitors from across Asia and beyond. The cultural influence wielded by successful productions creates enduring brand equity for South Korea, enhancing the nation’s cultural influence whilst producing substantial income through visitor expenditure, accommodation and dining and cultural merchandise.

The link between film and television production and tourism establishes a virtuous economic cycle that strengthens the sector’s broader contribution to national prosperity. Well-known television programmes and feature films encourage overseas tourism, whilst travellers then purchase more Korean cultural offerings. This trend has prompted investment in screen tourism infrastructure, encompassing dedicated attractions, exhibition spaces and organised visits to famous filming sites. The resulting employment opportunities cover accommodation, travel and shopping services, extending the screen industry’s economic footprint substantially further than traditional production metrics and demonstrating its driving force in South Korea’s economic landscape.

Challenges and What Lies Ahead

Despite the screen sector’s impressive economic contribution, South Korea’s audiovisual industry faces mounting competitive pressures from global streaming platforms and global production facilities offering substantial tax incentives. Escalating production expenses, difficulties retaining skilled personnel and the rapid technological evolution of content distribution platforms present ongoing obstacles to sustained growth. 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 bigger production enterprises undermines the long-term prospects of smaller enterprises that currently employ over three-quarters of the workforce, risking reduced innovation and creative range.

Looking ahead, the sector’s direction hinges upon deliberate funding in new technological developments and skills training initiatives. Video-on-demand platforms are forecast to drive growth at approximately 7.4% annually through 2028, significantly exceeding traditional television and film segments. However, achieving this potential requires collaborative action to upgrade production systems, develop digital-native talent and reinforce intellectual property protections across international markets. The report’s results underscore the pressing need of forward-looking regulatory measures to ensure South Korea maintains its market leadership within the fast-changing global entertainment landscape whilst safeguarding the ecosystem supporting smaller production companies.

• Growing competition from international streaming platforms threatens local market position
• Rising production expenses and talent recruitment difficulties pressure smaller production houses
• Rapid tech evolution necessitates ongoing investment in equipment and training
• Regulatory complexity in multiple territories heightens compliance burdens significantly
• Industry consolidation threaten to limit creative diversity and opportunities for independent producers

State Backing and Workforce Development

Government assistance programmes remain critical to sustaining the sector’s expansion path and safeguarding employment across smaller independent companies. South Korea’s policymakers need to emphasise strategic investment for independent producers, technology training initiatives and facility improvements to strengthen the sector’s capacity to withstand against global market pressures. Tax relief measures, production grants and subsidised facilities access can support fair competition for smaller businesses whilst promoting innovation in new technologies and formats that shape next-generation entertainment.

Support of talent development programmes tackles the sector’s most pressing challenge: drawing and maintaining qualified experts across production, technical, and creative fields. Educational partnerships with academic institutions, apprenticeship programmes and coaching schemes can cultivate the future generation of Korean film and television professionals whilst supporting entrepreneurial ventures. Greater investment for up-and-coming professionals through business incubators and microfinance options would bolster the ecosystem supporting smaller companies, ensuring the sector’s ongoing vitality and cultural importance on the global stage.