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 undertaken for the Motion Picture Association. The report, produced by Oxford Economics and presented to legislators and sector representatives at the National Assembly in Seoul, reveals the sector’s substantial contribution to the country’s GDP through direct production activity, supply-chain spending and consumer spending. Television proved to be the leading sector, accounting for roughly 65% of the industry’s combined output, whilst the video-on-demand sector demonstrated the greatest efficiency per worker. The findings highlight the screen industry’s critical role in South Korea’s economy and employment landscape.

Economic Powerhouse Producing Impressive Results

The screen industry’s economic impact goes well past its direct contributions, with the Oxford Economics study revealing a multiplication factor that amplifies value throughout South Korea’s wider economic landscape. For every KRW1 billion produced 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 demonstrates how funding for screen production spreads throughout various sectors, from hospitality and transport to retail and professional services. The employment multiplier of 3.4 additionally demonstrates this effect, with each 100 direct jobs sustaining an additional 240 positions in other parts of 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 equipment rental and post-production services 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 technical knowledge required across the industry.

• GDP multiplier of 3.1 produces extra KRW2.1 billion per KRW1 billion created
• Employment multiplier of 3.4 sustains 240 extra jobs per 100 primary positions
• KRW7,170 billion in total tax revenues generated across all segments
• 78% of jobs located in small and medium-sized businesses

TV Leads the Market, 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 aggregate economic output with a financial input of KRW15,620 billion (£10.6 billion) and sustaining 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, entertainment programmes and documentary content that attract 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 premium programming ensure its role 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 currently contributing KRW3,500 billion (£2.4 billion) and 32,100 jobs. VOD workers demonstrate exceptional output, generating KRW437 million (£297,000) in direct GDP contribution per head—roughly five times the national average—signalling the substantial 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 quickest-growing segment.

Sector Breakdown and Employment Allocation

Film production, contributing KRW4,960 billion (£3.4 billion) and sustaining 77,800 jobs, represents the sector’s intermediate tier. Whilst not as large as television, South Korea’s film industry upholds substantial financial importance and international prestige, with productions extending across blockbuster releases to smaller-scale films achieving recognition at prestigious festivals. The diverse mix of television, film and streaming supports economic robustness whilst facilitating specialist development and creative advancement across diverse formats and distribution methods.

Korean Content Sweeps Global Markets

South Korea’s screen industry has transcended domestic boundaries to become a powerful player in international entertainment sectors. The sector’s economic success is intrinsically linked to its global presence, with Korean television dramas, films and streaming content engaging viewers across Asia, Europe and North America. This international growth has transformed the nation into a cultural force, positioning Korean content creators as major rivals to established Western production hubs. 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 export potential of Korean screen content keeps growing, supported by the global appetite for diverse narratives and innovative formats. Streaming platforms have accelerated this internationalisation, enabling Korean productions to reach global audiences in real time whilst reducing traditional distribution barriers. Significant cross-border partnerships and co-productions have become more frequent, drawing international funding and talent to South Korean studios. This growing interconnectedness reinforces the sector’s economic resilience whilst positioning Korea as an indispensable hub within the global entertainment landscape. The cascading benefits generated by global interest ripple throughout the supply chain, creating additional employment and investment opportunities throughout the sector.

• Korean dramas attain unprecedented audience numbers across Netflix and international streaming platforms worldwide
• Film exports generate significant revenue from overseas markets whilst boosting national cultural prestige internationally
• Cross-border collaborations attract overseas funding and technical expertise to Korean studios
• Global recognition drives visitor numbers, branded products and additional income sources outside of traditional production

Tourism and Cultural Impact

The economic impact of Korean screen content stretches considerably beyond direct industry revenues, generating substantial travel and cultural spillover effects. Overseas tourists progressively journey to South Korea deliberately to experience filming locations, visit themed attractions and engage with Korean popular culture. This “hallyu” or Korean Wave phenomenon has reshaped tourism patterns, with screen-related attractions becoming significant attractions for visitors from across Asia and beyond. The cultural influence wielded by successful productions creates lasting brand value for South Korea, strengthening the nation’s cultural influence whilst generating significant revenue through visitor expenditure, hospitality services and branded goods.

The relationship between film and television production and tourism creates a positive economic loop that amplifies the sector’s extended role to economic growth. Well-known television programmes and feature films drive overseas tourism, whilst visitors go on to buy more Korean cultural offerings. This development has prompted funding for screen-related tourist amenities, encompassing themed parks, visitor centres and curated tours around renowned production locations. The resulting employment opportunities cover accommodation, travel and shopping services, extending the screen industry’s economic footprint far more than traditional production metrics and demonstrating its transformative influence in the broader Korean economy.

Challenges and What Lies Ahead

Despite the screen sector’s impressive economic contribution, South Korea’s audiovisual industry faces mounting competitive pressures from international streaming services and global production facilities providing significant tax benefits. Increasing production outlays, talent retention challenges and the accelerating technological change of content delivery systems create persistent difficulties to ongoing development. The sector must navigate increasingly complex regulatory environments across numerous jurisdictions whilst responding to changing viewer preferences towards diverse content formats. Additionally, the concentration of resources within larger production companies jeopardises the sustainability of smaller operations that currently account for employment of the vast majority of staff, potentially constraining innovation and creative range.

Looking forward, the sector’s path hinges upon deliberate funding in emerging technologies and workforce development initiatives. Video-on-demand platforms are forecast to drive expansion at approximately 7.4% annually through 2028, far surpassing traditional broadcast and cinema segments. However, achieving this potential requires coordinated efforts to enhance production infrastructure, develop tech-savvy creators and bolster intellectual property protections across international markets. The report’s results underscore the urgency of proactive policy interventions to ensure South Korea maintains its competitive edge within the fast-changing global entertainment landscape whilst safeguarding the ecosystem enabling smaller production companies.

• Intensifying competitive pressure from international streaming platforms threatens home market presence
• Increasing production expenses and skilled worker recruitment difficulties pressure smaller production houses
• Accelerating technological change demands ongoing investment in tools and professional development
• Compliance complexity across multiple jurisdictions amplifies compliance demands substantially
• Consolidation trends threaten to reduce creative diversity and opportunities for independent producers

Government Support and Talent Development

Government assistance programmes continue to be critical to sustaining the sector’s expansion path and protecting employment across smaller independent companies. South Korea’s policymakers should focus on targeted funding for standalone production companies, digital skills training programmes and infrastructure investment to strengthen the sector’s ability to endure against overseas competitors. Tax incentives, financial grants and subsidised facilities access can support fair competition for smaller businesses whilst promoting innovation in emerging formats and technologies that characterise next-generation entertainment.

Investment in professional development schemes addresses the sector’s biggest challenge: drawing and maintaining experienced practitioners across production, technical, and creative fields. Academic collaborations with universities, apprenticeship schemes and mentorship initiatives can develop the coming generation of Korean film and television professionals whilst promoting business start-ups. Increased funding for new talent through development initiatives and microfinance options would bolster the landscape supporting smaller companies, securing the sector’s sustained growth and cultural importance internationally.