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

South Korea’s screen industry produced £12.4 billion in economic value during 2025 and supported nearly 300,000 jobs, according to a detailed economic analysis 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 significant impact to the country’s GDP through production spending, supply-chain spending and consumer expenditure. Television proved to be the leading sector, 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 vital importance in South Korea’s economic and employment landscape.

Economic Powerhouse Producing Substantial Returns

The screen industry’s economic impact extends far beyond its immediate outputs, with the Oxford Economics study revealing a multiplier effect that amplifies value throughout South Korea’s wider economic landscape. For every KRW1 billion generated directly by the sector, an additional KRW2.1 billion flows through consumer spending and supply chains, 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 professional services and retail. The employment multiplier of 3.4 further illustrates this phenomenon, with each 100 direct jobs sustaining an further 240 positions in other parts of 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 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 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 produces additional KRW2.1 billion per KRW1 billion generated
• Employment multiplier of 3.4 sustains 240 extra jobs per 100 direct positions
• KRW7,170 billion in aggregate tax income produced across all segments
• 78% of jobs located in SMEs and micro-businesses

TV Leads the Market, Streaming Becomes Growth Engine

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 supporting 181,200 jobs. The television’s market dominance demonstrates both the established infrastructure of conventional broadcast services and the sector’s ongoing production of dramas, variety shows and documentaries that attract substantial viewership across domestic and overseas markets. Despite the rise of digital platforms, television’s deep roots in South Korean culture and its sustained commitment in premium programming ensure its role as the sector’s main economic engine and biggest source of employment.

However, video-on-demand services constitute the sector’s most dynamic growth opportunity, despite now generating KRW3,500 billion (£2.4 billion) and 32,100 jobs. VOD workers display exceptional productivity, delivering KRW437 million (£297,000) in gross domestic product contribution per head—roughly 5x the national average—signalling the high-value nature of streaming production. Projections suggest VOD will expand at approximately 7.4% annually 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, generating 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 maintains considerable economic significance and worldwide recognition, with productions extending across blockbuster releases to indie productions gaining recognition at renowned film festivals. The diverse mix of television, film and streaming supports economic robustness whilst enabling specialist development and creative advancement across diverse formats and delivery platforms.

Korean Content Captures Worldwide Audiences

South Korea’s screen industry has surpassed domestic boundaries to become a formidable force in international entertainment sectors. The sector’s economic success is fundamentally connected with its international reach, with Korean television dramas, films and streaming content capturing audiences across Asia, Europe and North America. This international growth has established the country as a cultural force, positioning Korean content creators as major rivals to established Western production hubs. The industry’s ability to blend distinctive storytelling with strong production quality has appealed to global audiences, 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, driven by the worldwide demand for varied storytelling and creative approaches. Digital distribution services have expedited this internationalisation, enabling Korean productions to connect with worldwide viewers in real time whilst reducing traditional distribution barriers. Major international collaborations and co-productions have become more frequent, attracting international funding and talent to South Korean studios. This growing interconnectedness strengthens the sector’s financial stability whilst positioning Korea as an indispensable hub within the global entertainment landscape. The cascading benefits created by global interest spread across the production network, generating more jobs and funding prospects across the entire industry.

• Korean dramas reach record viewership figures throughout Netflix and international streaming platforms worldwide
• Film exports deliver significant revenue from overseas markets whilst enhancing Korea’s cultural standing internationally
• Cross-border collaborations bring overseas funding and technical expertise to Korean studios
• Worldwide acclaim drives tourism, merchandise sales and ancillary revenue streams beyond traditional production

Tourism and Heritage Impact

The financial effects of Korean screen content extends considerably beyond direct industry revenues, creating significant travel and cultural knock-on benefits. Overseas tourists progressively travel to South Korea specifically to explore production sites, visit branded venues and engage with Korean popular culture. This “Korean cultural phenomenon” or Korean Wave phenomenon has reshaped travel trends, with screen-related attractions becoming major draws for visitors from across Asia and beyond. The cultural influence wielded by acclaimed content creates lasting brand value for South Korea, strengthening the nation’s cultural influence whilst producing significant revenue through visitor expenditure, hospitality services and branded goods.

The relationship between screen production and tourism generates a virtuous economic cycle that strengthens the sector’s extended role to the nation’s economic wellbeing. Popular television series and films encourage travel from abroad, whilst tourists subsequently consume additional Korean cultural products and services. This development has prompted funding for film tourism facilities, including themed parks, visitor centres and organised visits to famous filming sites. The generated job prospects span the hospitality, transport and retail industries, pushing the screen industry’s economic impact substantially further than standard industry benchmarks and showcasing 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 worldwide streaming providers and overseas production centres providing significant tax benefits. Increasing production outlays, difficulties retaining skilled personnel and the accelerating technological change of content distribution platforms pose continuous challenges to sustained growth. The sector must manage progressively complicated regulatory landscapes across multiple territories whilst adapting to shifting consumer preferences towards varied content types. Additionally, the concentration of resources within bigger production enterprises threatens the viability of smaller enterprises that currently employ over three-quarters of the workforce, potentially constraining 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% per year through 2028, significantly exceeding traditional TV and film segments. However, unlocking this potential requires coordinated efforts to enhance production systems, cultivate digitally-skilled professionals and strengthen intellectual property protections across overseas markets. The report’s conclusions underscore the critical importance of anticipatory government action to ensure South Korea maintains its market leadership within the dynamic global entertainment landscape whilst protecting the ecosystem sustaining smaller production companies.

• Intensifying rivalry with global streaming services threatens local market position
• Increasing production costs and talent acquisition obstacles pressure smaller production houses
• Accelerating technological change necessitates ongoing investment in tools and professional development
• Regulatory complexity in multiple territories amplifies compliance demands significantly
• Consolidation trends threaten to diminish creative variety and independent production prospects

State Backing and Skills Enhancement

Government support mechanisms remain critical to supporting the sector’s development momentum and safeguarding employment across small and micro businesses. South Korea’s policymakers must prioritise directed financial support for independent producers, digital skills training programmes and infrastructure development to enhance the sector’s ability to endure against overseas competitors. Tax incentives, funding awards and affordable infrastructure access can create equal opportunities for smaller businesses whilst encouraging innovation in developing creative platforms that define next-generation entertainment.

Support of professional development schemes resolves the sector’s biggest challenge: attracting and retaining experienced practitioners across production, technical, and creative fields. University partnerships with universities, apprenticeship programmes and coaching schemes can nurture the next generation of Korean film and television professionals whilst promoting creative enterprises. Increased funding for new talent through business incubators and small-scale funding would reinforce the ecosystem supporting smaller companies, guaranteeing the sector’s continued dynamism and cultural relevance across international markets.