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 supported approximately 300,000 jobs, according to a comprehensive economic study undertaken for the Motion Picture Association. The report, prepared by Oxford Economics and delivered to legislators and sector representatives at the National Assembly in Seoul, reveals the sector’s significant impact to the country’s GDP via production spending, supply-chain spending and consumer expenditure. Television proved to be the leading sector, accounting for approximately 65% of the industry’s total output, whilst the video-on-demand sector showed the highest productivity per worker. The findings highlight the screen industry’s critical role in South Korea’s economic and employment landscape.

Financial Heavyweight Delivering Impressive Results

The screen industry’s financial influence goes well past its direct contributions, with the Oxford Economics study revealing a multiplication factor that increases value throughout South Korea’s broader economy. For every KRW1 billion generated directly by the sector, an further KRW2.1 billion circulates across supply chains and consumer spending, resulting in a GDP multiplier of 3.1. This ripple effect illustrates how investment in 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 further 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 employment composition reveals its deeply integrated nature within South Korea’s economy, with nearly 78% of jobs concentrated in small and micro businesses. These smaller businesses form the backbone of production networks, supporting everything from gear hire 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 contemporary audiovisual work and the technical knowledge required across the industry.

• GDP multiplier of 3.1 generates additional KRW2.1 billion per KRW1 billion produced
• Employment multiplier of 3.4 supports 240 extra jobs per 100 direct positions
• KRW7,170 billion in total tax revenues produced among all divisions
• 78% of jobs focused within SMEs and micro-businesses

Television Dominates, Streaming Emerges as Key Driver

Television remains the undisputed heavyweight of South Korea’s visual media industry, controlling 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 existing framework of traditional broadcasting and the sector’s continuous output of dramas, entertainment programmes and documentary content 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 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 now generating KRW3,500 billion (£2.4 billion) and 32,100 jobs. VOD workers exhibit exceptional performance, averaging KRW437 million (£297,000) in direct GDP contribution per head—roughly five times the national average—signalling the premium nature of streaming production. Projections indicate VOD will increase at approximately 7.4% annually through 2028, outpacing both film and television growth rates and positioning streaming as the sector’s most rapidly expanding segment.

Industry Breakdown and Workforce 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 upholds substantial financial importance and worldwide recognition, with productions extending across major commercial films to indie productions earning acclaim at prestigious festivals. The diverse mix of television, film and streaming provides financial stability whilst facilitating focused expertise and creative growth across different content formats and distribution channels.

Korean Content Captures Global Markets

South Korea’s screen industry has surpassed national borders to become a formidable force in international entertainment sectors. The sector’s economic success is intrinsically linked to its global presence, with Korean dramas, films and streaming shows engaging viewers across Asia, Europe and the Americas. This international growth has established the country as a cultural powerhouse, positioning Korean production companies as major rivals to traditional Western production centres. The industry’s capacity for combining distinctive storytelling with strong production quality has resonated with international viewers, boosting both audience numbers and box office returns that extend far beyond South Korea’s borders.

The international reach of Korean screen content keeps growing, bolstered by the worldwide demand for varied storytelling and innovative formats. Digital distribution services have accelerated this internationalisation, enabling Korean productions to connect with worldwide viewers instantaneously whilst minimising traditional distribution barriers. Major international collaborations 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 worldwide entertainment ecosystem. The cascading benefits created by global interest ripple throughout the supply chain, generating more jobs and investment opportunities throughout the sector.

• Korean dramas attain unprecedented audience numbers across Netflix and international streaming platforms globally
• Film exports generate significant revenue from overseas markets whilst boosting national cultural prestige internationally
• Cross-border collaborations attract foreign investment capital and specialist knowledge to Korean studios
• Global recognition drives tourism, merchandise sales and ancillary revenue streams outside of traditional production

Tourism and Cultural Influence

The economic impact of Korean screen content extends considerably past immediate sector earnings, generating substantial tourism and cultural knock-on benefits. International visitors progressively journey to South Korea specifically to explore production sites, visit themed attractions and immerse themselves in Korean cultural products. This “hallyu” or Korean Wave movement has reshaped tourism patterns, with film and television attractions emerging as significant attractions for visitors from across Asia and beyond. The cultural sway exerted by successful productions creates lasting brand value for South Korea, strengthening the nation’s soft power whilst producing significant revenue via tourism spending, accommodation and dining and branded goods.

The link between screen production and tourism creates a positive economic loop that enhances the sector’s extended role to economic growth. Popular television series and films inspire overseas tourism, whilst tourists subsequently consume additional Korean cultural products and services. This phenomenon has prompted investment in screen-related tourist amenities, including themed parks, visitor centres and guided tours of iconic filming locations. The generated job prospects cover accommodation, travel and shopping services, stretching the screen industry’s financial reach substantially further than standard industry benchmarks and demonstrating its transformative influence in Korea’s wider economy.

Difficulties and Long-term Vision

Despite the screen sector’s significant financial impact, South Korea’s audiovisual industry encounters intensifying competitive challenges from international streaming services and international production hubs delivering considerable tax advantages. Rising production costs, difficulties retaining skilled personnel and the swift technological advancement of content distribution platforms pose continuous challenges to ongoing development. The sector must navigate increasingly complex regulatory environments across numerous jurisdictions whilst responding to changing viewer preferences towards varied content types. 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 diversity.

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 growth at approximately 7.4% per year through 2028, far surpassing traditional television and film segments. However, achieving this potential requires coordinated efforts to modernise production systems, nurture digitally-skilled professionals and strengthen intellectual property protections across global territories. The report’s findings underscore the pressing need of proactive policy interventions to ensure South Korea maintains its competitive edge within the rapidly evolving global entertainment landscape whilst protecting the ecosystem supporting smaller production companies.

• Escalating competitive pressure from international streaming platforms undermines domestic market share
• Increasing filming budgets and skilled worker recruitment challenges burden independent producers
• Swift technological change requires sustained spending in equipment and training
• Compliance complexity in multiple territories increases compliance burdens considerably
• Industry consolidation stand to reduce creative variety and independent production opportunities

Government Support and Workforce Development

Government support mechanisms continue to be critical to sustaining the sector’s expansion path and protecting employment across smaller independent companies. South Korea’s policymakers need to emphasise directed financial support for standalone production companies, digital capability development schemes and facility improvements to strengthen the sector’s resilience against global market pressures. Tax breaks, financial grants and affordable infrastructure access can support fair competition for independent firms whilst promoting innovation in emerging formats and technologies that characterise next-generation entertainment.

Support of professional development schemes tackles the sector’s biggest challenge: recruiting and keeping qualified experts across production, technical, and creative fields. Educational partnerships with academic institutions, vocational training schemes and mentoring programmes can nurture the coming generation of Korean film and television professionals whilst promoting creative enterprises. Greater investment for up-and-coming professionals through incubation programmes and small-scale funding would strengthen the ecosystem supporting smaller enterprises, securing the sector’s continued dynamism and cultural importance on the global stage.