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

South Korea’s screen industry generated £12.4 billion in economic value during 2025 and sustained nearly 300,000 jobs, according to a detailed economic analysis 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, reveals the sector’s substantial contribution to the country’s GDP through direct production activity, supply chain expenditure 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 vital importance in South Korea’s economic and employment landscape.

Strong Economic Engine Delivering Significant Gains

The screen industry’s financial influence extends far beyond 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 generated directly by the sector, an additional KRW2.1 billion flows through consumer spending and supply chains, resulting in a GDP multiplier of 3.1. This ripple effect illustrates how investment in screen production spreads throughout multiple industries, from transport and hospitality to retail and professional services. The employment multiplier of 3.4 additionally demonstrates 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 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 smaller businesses form the foundation for production networks, supporting everything from equipment rental and post-production services to promotion and delivery. The information and communication sector accounted for the largest employment share at 116,500 jobs, reflecting the technology-driven nature of modern screen production 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 supports 240 extra jobs per 100 primary positions
• KRW7,170 billion in overall tax receipts created throughout all sectors
• 78% of jobs located in SMEs and micro-businesses

TV Leads the Market, Streaming Emerges as Key Driver

Television continues to be the undisputed heavyweight of South Korea’s screen sector, commanding approximately 65% of the industry’s combined GDP output with a financial input of KRW15,620 billion (£10.6 billion) and sustaining 181,200 jobs. The television’s market dominance reflects both the established infrastructure of conventional broadcast services and the sector’s continuous output of dramas, entertainment programmes and documentary content 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 sustained commitment in high-quality content ensure its position as the sector’s primary economic driver and largest employer.

However, video-on-demand services form the sector’s fastest-growing growth opportunity, despite now generating 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 suggest VOD will increase at approximately 7.4% per year through 2028, exceeding both film and television growth rates and placing streaming as the sector’s most rapidly expanding segment.

Industry Breakdown and Employment Distribution

Film production, contributing KRW4,960 billion (£3.4 billion) and supporting 77,800 jobs, holds the sector’s intermediate tier. Whilst not as large as television, South Korea’s film industry preserves significant economic value and global standing, with productions spanning blockbuster releases to indie productions gaining recognition at major festival events. The well-rounded combination of television, film and streaming provides financial stability whilst facilitating specialist development and creative advancement across different content formats and distribution channels.

Korean Content Dominates Global Markets

South Korea’s screen industry has surpassed domestic boundaries to become a powerful player in international entertainment sectors. The sector’s commercial performance is fundamentally connected with its global presence, 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 powerhouse, positioning Korean content creators as major rivals to traditional Western production centres. The industry’s ability to blend distinctive storytelling with high production values has resonated with international viewers, driving both audience numbers and box office returns that extend far beyond South Korea’s borders.

The international reach of Korean screen content continues to expand, driven by the global appetite for varied storytelling and creative approaches. Streaming platforms have accelerated this global expansion, allowing Korean productions to reach global audiences in real time whilst reducing traditional distribution barriers. Significant cross-border partnerships and co-productions have become increasingly common, drawing foreign investment and talent to South Korean studios. This expanding integration strengthens the sector’s economic resilience whilst establishing Korea as an essential centre within the global entertainment landscape. The multiplier effects created by global interest spread across the production network, generating additional employment and investment opportunities throughout the sector.

• Korean dramas achieve unprecedented audience numbers across Netflix and international streaming platforms globally
• Film exports produce substantial foreign exchange earnings whilst elevating national cultural prestige internationally
• Cross-border collaborations draw in overseas funding and technical expertise to Korean studios
• Worldwide acclaim stimulates visitor numbers, branded products and additional income sources outside of traditional production

Travel and Cultural Influence

The economic impact of Korean screen content stretches considerably past direct industry revenues, generating significant tourism and cultural knock-on benefits. Overseas tourists progressively journey to South Korea specifically to experience filming locations, visit themed attractions and immerse themselves in Korean cultural products. This “Korean Wave” or Korean Wave movement has reshaped travel trends, with film and television attractions emerging as significant attractions for tourists from throughout Asia and further afield. The cultural influence wielded by acclaimed content establishes enduring brand equity for South Korea, strengthening the nation’s cultural influence whilst producing substantial income through visitor expenditure, hospitality services and branded goods.

The interconnection between film and television production and tourism establishes a virtuous economic cycle that strengthens the sector’s wider impact to economic growth. Popular television series and films inspire international travel, whilst tourists then purchase further Korean cultural goods and services. This development has spurred investment in screen-related tourist amenities, such as themed parks, exhibition spaces and guided tours of iconic filming locations. The resulting employment opportunities span hospitality, transportation and retail sectors, stretching the screen industry’s economic impact substantially further than traditional production metrics and demonstrating its driving force in South Korea’s economic landscape.

Obstacles and Prospects Ahead

Despite the screen sector’s considerable economic value, South Korea’s audiovisual industry faces mounting competitive pressures from global streaming platforms and global production facilities delivering considerable tax advantages. Rising production costs, talent retention challenges and the accelerating technological change of content delivery systems create persistent difficulties to continued expansion. The sector must navigate increasingly complex regulatory environments across numerous jurisdictions whilst responding to changing viewer preferences towards different content styles. Additionally, the aggregation of capital within bigger production enterprises undermines the long-term prospects of independent producers that currently employ over three-quarters of the workforce, potentially constraining innovation and artistic variety.

Looking ahead, the sector’s trajectory hinges upon strategic investment in new technological developments and skills training initiatives. Video-on-demand platforms are projected to drive growth at approximately 7.4% annually through 2028, far surpassing traditional broadcast and cinema segments. However, realising this potential requires coordinated efforts to upgrade production infrastructure, develop digitally-skilled professionals and reinforce intellectual property protections across global territories. The report’s findings underscore the critical importance of forward-looking regulatory measures to ensure South Korea maintains its market leadership within the dynamic global entertainment landscape whilst preserving the ecosystem supporting smaller production companies.

• Intensifying competitive pressure from international streaming platforms jeopardises local market position
• Increasing filming budgets and talent acquisition difficulties pressure independent producers
• Accelerating technological advancement demands sustained spending in equipment and staff development
• Compliance complexity across multiple jurisdictions amplifies compliance burdens significantly
• Market consolidation threaten to reduce artistic diversity and independent production prospects

Government Support and Workforce Development

Government funding initiatives continue to be critical to maintaining the sector’s development momentum and protecting employment across small and micro businesses. South Korea’s policymakers should focus on directed financial support for independent producers, digital skills training programmes and infrastructure investment to strengthen the sector’s resilience against international competition. Tax incentives, funding awards and reduced-cost facility provision can help level the playing field for independent firms whilst fostering innovation in developing creative platforms that characterise next-generation entertainment.

Investment in talent development programmes resolves the sector’s most pressing challenge: attracting and retaining qualified experts across production, technical, and creative fields. Educational partnerships with universities, apprenticeship schemes and mentorship initiatives can develop the future generation of Korean film and television professionals whilst supporting entrepreneurial ventures. Enhanced support for up-and-coming professionals through incubation programmes and small-scale funding would bolster the landscape supporting smaller companies, securing the sector’s sustained growth and cultural importance across international markets.