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

South Korea’s entertainment industry produced £12.4 billion in financial contribution during 2025 and supported nearly 300,000 jobs, according to a detailed economic analysis commissioned by the Motion Picture Association. The report, prepared by Oxford Economics and presented to legislators and industry leaders at the National Assembly in Seoul, demonstrates the sector’s substantial contribution to the country’s GDP through direct production activity, supply-chain spending and consumer spending. Television emerged as the dominant segment, accounting for roughly 65% of the industry’s combined output, whilst the streaming sector showed the greatest efficiency per worker. The findings highlight the screen industry’s vital importance in South Korea’s economy and employment landscape.

Financial Heavyweight Producing Significant Gains

The screen industry’s financial influence extends far beyond its direct contributions, with the Oxford Economics study revealing a multiplier effect that increases value throughout South Korea’s wider economic landscape. 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 cascading impact demonstrates how funding for screen production spreads throughout multiple industries, from hospitality and transport to retail and professional services. The employment multiplier of 3.4 further illustrates this phenomenon, with each 100 direct jobs sustaining 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 nearly 78% of jobs concentrated in small and micro businesses. These compact firms form the foundation for production networks, supporting everything from equipment rental and finishing work 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 modern screen production and the technological expertise required across the industry.

• GDP multiplier of 3.1 produces additional KRW2.1 billion per KRW1 billion generated
• Employment multiplier of 3.4 enables 240 extra jobs per 100 direct positions
• KRW7,170 billion in aggregate tax income created among all divisions
• 78% of jobs concentrated in small and medium-sized businesses

Television Dominates, Streaming Emerges as Key Driver

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 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 attract significant domestic and international audiences. 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 most dynamic growth opportunity, despite currently contributing KRW3,500 billion (£2.4 billion) and 32,100 jobs. VOD workers exhibit exceptional output, generating KRW437 million (£297,000) in economic value creation per head—roughly five times the national average—signalling the substantial nature of streaming production. Projections indicate VOD will expand at approximately 7.4% per year through 2028, surpassing both film and television growth rates and positioning streaming as the sector’s fastest-growing segment.

Industry Breakdown and Workforce Distribution

Film production, generating KRW4,960 billion (£3.4 billion) and supporting 77,800 jobs, occupies the sector’s central position. Whilst not as large as television, South Korea’s film industry maintains substantial financial importance and international prestige, with productions extending across high-budget productions to smaller-scale films achieving recognition at renowned film festivals. The well-rounded combination of television, film and streaming provides financial stability whilst facilitating focused expertise and creative growth across diverse formats and distribution methods.

Korean Content Captures International Markets

South Korea’s screen industry has transcended domestic boundaries to become a powerful player in global entertainment markets. The sector’s commercial performance is intrinsically linked to its global presence, with Korean dramas, films and streaming shows capturing audiences across Asia, Europe and the Americas. This international growth has transformed the nation into a cultural powerhouse, positioning Korean content creators as major rivals to traditional Western production centres. The industry’s ability to blend unique narrative styles with strong production quality has resonated with global audiences, driving both viewership figures and commercial revenues that extend far beyond South Korea’s borders.

The export potential of Korean screen content keeps growing, bolstered by the global appetite for varied storytelling and innovative formats. Streaming platforms have expedited this global expansion, enabling Korean productions to connect with worldwide viewers instantaneously whilst reducing traditional distribution barriers. Significant cross-border partnerships and co-productions have become increasingly common, attracting international funding and talent to South Korean studios. This growing interconnectedness strengthens the sector’s financial stability whilst establishing Korea as an essential centre within the worldwide entertainment ecosystem. The multiplier effects created by global interest spread across the production network, creating additional employment and investment opportunities across the entire industry.

• Korean dramas attain record viewership figures across Netflix and global streaming services globally
• Film exports produce significant revenue from overseas markets whilst boosting Korea’s cultural standing on the world stage
• Cross-border collaborations attract overseas funding and technical expertise to Korean studios
• Worldwide acclaim drives visitor numbers, branded products and additional income sources beyond traditional production

Tourism and Cultural Impact

The economic impact of Korean screen content stretches considerably past immediate sector earnings, creating significant travel and cultural knock-on benefits. International visitors increasingly travel to South Korea deliberately to explore filming locations, visit branded venues and immerse themselves in Korean cultural products. This “Korean Wave” or Korean Wave phenomenon has transformed travel trends, with screen-related attractions emerging as major draws for visitors from across Asia and beyond. The cultural sway exerted by successful productions creates enduring brand equity for South Korea, strengthening the nation’s cultural influence whilst producing significant revenue through visitor expenditure, hospitality services and cultural merchandise.

The interconnection between screen production and tourism generates a beneficial cycle of growth that enhances the sector’s broader contribution to the nation’s economic wellbeing. Successful TV shows and movies drive overseas tourism, whilst travellers subsequently consume further Korean cultural goods and services. This development has prompted development of film tourism facilities, including dedicated attractions, display areas and guided tours of iconic filming locations. The created employment positions span hospitality, transportation and retail sectors, stretching the screen industry’s economic footprint far more than standard industry benchmarks and showcasing its catalytic role in Korea’s wider economy.

Challenges and What Lies Ahead

Despite the screen sector’s considerable economic value, South Korea’s audiovisual industry encounters intensifying competitive challenges from global streaming platforms and international production hubs offering substantial tax incentives. Increasing production outlays, difficulties retaining skilled personnel and the swift technological advancement of content delivery systems create persistent difficulties to continued expansion. The sector must manage progressively complicated regulatory landscapes across numerous jurisdictions whilst responding to changing viewer preferences towards varied content types. Additionally, the aggregation of capital within larger production companies jeopardises the sustainability of independent producers that currently provide jobs for more than 75% of workers, risking reduced innovation and creative diversity.

Looking forward, the sector’s trajectory hinges upon deliberate funding in cutting-edge innovations and talent development programmes. Video-on-demand platforms are expected to drive growth at approximately 7.4% annually through 2028, far surpassing traditional broadcast and cinema segments. However, unlocking this potential requires joint initiatives to enhance production facilities, nurture digitally-skilled professionals and strengthen intellectual property protections across global territories. The report’s findings 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.

• Growing rivalry with global streaming services threatens home market presence
• Increasing filming budgets and talent recruitment challenges strain smaller production companies
• Swift technological change requires continuous investment in tools and professional development
• Regulatory complexity in multiple territories heightens compliance demands significantly
• Industry consolidation risk reduce artistic diversity and independent production prospects

State Backing and Skills Enhancement

Government assistance programmes remain critical to maintaining the sector’s expansion path and protecting employment across small and micro businesses. South Korea’s policymakers should focus on targeted funding for self-employed creators, digital capability development schemes and infrastructure investment to enhance the sector’s resilience against overseas competitors. Tax breaks, financial grants and reduced-cost facility provision can support fair competition for independent firms whilst promoting innovation in developing creative platforms that define next-generation entertainment.

Investment in professional development schemes resolves the sector’s biggest challenge: attracting and retaining experienced practitioners across production, technical and creative disciplines. Educational partnerships with universities, vocational training schemes and mentorship initiatives can cultivate the future generation of Korean screen talent whilst fostering entrepreneurial ventures. Enhanced support for emerging creators through business incubators and accessible finance solutions would reinforce the infrastructure backing independent producers, guaranteeing the sector’s sustained growth and cultural relevance on the global stage.