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

South Korea’s entertainment industry generated £12.4 billion in economic value during 2025 and sustained 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 sector representatives at the National Assembly in Seoul, reveals the sector’s substantial contribution to the country’s GDP via direct production activity, supply chain expenditure and consumer expenditure. Television emerged as the leading sector, accounting for approximately 65% of the industry’s combined output, whilst the streaming sector demonstrated the highest productivity per worker. The findings highlight 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 goes well past its immediate outputs, with the Oxford Economics study revealing a multiplication factor that increases value throughout South Korea’s wider economic landscape. For every KRW1 billion produced directly by the sector, an further KRW2.1 billion flows through consumer spending and supply chains, producing a GDP multiplier of 3.1. This cascading impact illustrates how funding for screen production spreads throughout 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 additional 240 positions elsewhere in 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 approximately 78% of jobs based within micro, small and medium-sized enterprises. These smaller businesses form the backbone of production networks, supporting everything from gear hire and post-production services to marketing and distribution. The digital and technology sector accounted for the highest job numbers at 116,500 jobs, reflecting the technology-driven nature of contemporary audiovisual work and the technological expertise required across the industry.

• GDP multiplier of 3.1 generates additional KRW2.1 billion per KRW1 billion generated
• Employment multiplier of 3.4 supports 240 extra jobs per 100 direct positions
• KRW7,170 billion in overall tax receipts generated across all segments
• 78% of jobs located in small and medium-sized businesses

Television Dominates, Streaming Emerges as Key Driver

Television remains the undisputed heavyweight of South Korea’s screen sector, controlling approximately 65% of the industry’s combined GDP output with a financial input of KRW15,620 billion (£10.6 billion) and supporting 181,200 jobs. The dominance of television demonstrates 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 continued investment in high-quality content guarantee its role as the sector’s main economic engine and biggest source of employment.

However, video-on-demand services constitute the sector’s most vibrant growth opportunity, despite currently contributing KRW3,500 billion (£2.4 billion) and 32,100 jobs. VOD workers exhibit exceptional productivity, 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% annually through 2028, exceeding both film and television growth rates and positioning streaming as the sector’s most rapidly expanding segment.

Sectoral Breakdown and Employment Allocation

Film production, generating KRW4,960 billion (£3.4 billion) and supporting 77,800 jobs, represents the sector’s central position. Whilst not as large as television, South Korea’s film industry upholds substantial financial importance and global standing, with productions extending across major commercial films to indie productions gaining recognition at renowned film festivals. The diverse mix of television, film and streaming ensures economic resilience whilst enabling specialisation and innovation across different content formats and distribution channels.

Korean Content Dominates Global Markets

South Korea’s screen industry has surpassed national borders to become a powerful player in global entertainment markets. The sector’s economic success is intrinsically linked to its international reach, with Korean television dramas, films and streaming content capturing audiences across Asia, Europe and North America. This global expansion has transformed the nation into a cultural powerhouse, positioning Korean content creators as major rivals to traditional Western production centres. The industry’s capacity for combining distinctive storytelling with high production values has appealed to global audiences, boosting both viewership figures and commercial revenues that extend far beyond 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. Streaming platforms have expedited this internationalisation, allowing Korean productions to reach global audiences in real time whilst minimising traditional market obstacles. Significant cross-border partnerships 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 global entertainment landscape. The multiplier effects generated by international demand spread across the supply chain, generating additional employment and funding prospects throughout the sector.

• Korean dramas attain unprecedented audience numbers throughout Netflix and global streaming services globally
• Film exports deliver substantial foreign exchange earnings whilst elevating national cultural prestige on the world stage
• International co-productions attract overseas funding and technical expertise to Korean studios
• Global recognition stimulates visitor numbers, branded products and additional income sources outside of traditional production

Tourism and Heritage Influence

The economic impact of Korean screen content stretches considerably past immediate sector earnings, creating substantial travel and cultural spillover effects. Overseas tourists increasingly travel to South Korea deliberately to experience filming locations, visit branded venues and engage with Korean popular culture. This “Korean Wave” or Korean Wave movement has reshaped travel trends, with film and television attractions emerging as significant attractions for visitors from across Asia and beyond. The cultural influence wielded by successful productions establishes lasting brand value for South Korea, strengthening the nation’s soft power whilst producing substantial income through tourism spending, hospitality services and cultural merchandise.

The relationship between screen production and tourism generates a beneficial cycle of growth that strengthens the sector’s wider impact to national prosperity. Popular television series and films inspire international travel, whilst tourists then purchase further Korean cultural goods and services. This phenomenon has led to funding for screen-related tourist amenities, such as dedicated attractions, visitor centres and curated tours around renowned production locations. The generated job prospects extend across hospitality, transportation and retail sectors, extending the screen industry’s financial reach well beyond traditional production metrics and showcasing its catalytic role in Korea’s wider economy.

Obstacles and Prospects Ahead

Despite the screen sector’s significant financial impact, South Korea’s audiovisual industry faces mounting competitive pressures from international streaming services and international production hubs offering substantial tax incentives. Increasing production outlays, challenges in keeping talented staff and the rapid technological evolution of distribution technology present ongoing obstacles to sustained growth. The sector must navigate increasingly complex regulatory environments across various regions whilst responding to changing viewer preferences towards varied content types. Additionally, the aggregation of capital within major production firms 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 path hinges upon strategic investment in new technological developments and talent development programmes. Video-on-demand platforms are forecast to drive expansion at approximately 7.4% annually through 2028, far surpassing traditional broadcast and cinema segments. However, realising this potential requires joint initiatives to enhance production systems, cultivate tech-savvy creators and strengthen intellectual property protections across international markets. The report’s findings underscore the urgency of anticipatory government action to ensure South Korea maintains its competitive edge within the fast-changing global entertainment landscape whilst preserving the ecosystem sustaining smaller production companies.

• Escalating rivalry with global streaming services jeopardises local market position
• Rising filming budgets and talent acquisition challenges burden independent producers
• Rapid technological advancement demands sustained spending in equipment and staff development
• Regulatory challenges in multiple territories increases compliance burdens significantly
• Market consolidation threaten to limit creative variety and opportunities for independent producers

State Backing and Talent Development

Government support mechanisms continue to be critical to maintaining the sector’s development momentum and safeguarding employment across small and micro businesses. South Korea’s policymakers need to emphasise strategic investment for standalone production companies, technology training initiatives and facility improvements to strengthen the sector’s ability to endure against overseas competitors. Tax breaks, funding awards and reduced-cost facility provision can help level the playing field for independent firms whilst fostering innovation in emerging formats and technologies that shape next-generation entertainment.

Investment in professional development schemes resolves the sector’s critical challenge: recruiting and keeping qualified experts across production, technical, and creative specialisations. Educational partnerships with universities, apprenticeship programmes and mentorship initiatives can cultivate the next generation of Korean screen talent whilst promoting entrepreneurial ventures. Increased funding for up-and-coming professionals through incubation programmes and small-scale funding would bolster the ecosystem supporting smaller companies, securing the sector’s continued dynamism and cultural relevance internationally.