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 sustained nearly 300,000 jobs, based on a comprehensive economic study commissioned by the Motion Picture Association. The report, produced by Oxford Economics and presented 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 spending and consumer spending. Television proved to be the dominant segment, accounting for approximately 65% of the industry’s total output, whilst the video-on-demand sector showed the greatest efficiency per worker. The findings highlight the screen industry’s critical role in South Korea’s economy and employment landscape.

Financial Heavyweight Delivering Significant Gains

The screen industry’s financial influence goes well past its immediate outputs, with the Oxford Economics study revealing a multiplier effect 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, producing a GDP multiplier of 3.1. This cascading impact illustrates how investment in screen production spreads throughout various sectors, from transport and hospitality to retail and professional services. The employment multiplier of 3.4 additionally demonstrates this effect, 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 micro, small and medium-sized enterprises. These compact firms 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 highest job numbers at 116,500 jobs, reflecting the digitally intensive nature of modern screen production and the technical knowledge required across the industry.

• GDP multiplier of 3.1 generates additional KRW2.1 billion per KRW1 billion created
• Employment multiplier of 3.4 enables 240 extra jobs per 100 direct positions
• KRW7,170 billion in aggregate tax income produced across all segments
• 78% of jobs located in micro, small and medium-sized enterprises

TV Leads the Market, Streaming Becomes 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 supporting 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, variety shows and documentaries that command 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 high-quality content ensure its role as the sector’s main economic engine and largest employer.

However, video-on-demand services constitute the sector’s fastest-growing growth opportunity, despite now generating 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 high-value nature of streaming production. Projections forecast VOD will expand at approximately 7.4% annually through 2028, exceeding both film and television growth rates and placing streaming as the sector’s quickest-growing segment.

Sector Breakdown and Employment Distribution

Film production, accounting for KRW4,960 billion (£3.4 billion) and supporting 77,800 jobs, represents the sector’s central position. Whilst smaller than television, South Korea’s film industry maintains significant economic value and worldwide recognition, with productions spanning blockbuster releases to smaller-scale films gaining recognition at renowned film festivals. The balanced portfolio of television, film and streaming supports economic robustness whilst facilitating specialist development and creative advancement across diverse formats and distribution channels.

Korean Content Dominates International Markets

South Korea’s screen industry has gone beyond 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 capturing audiences across Asia, Europe and the Americas. This international growth has transformed the nation into a cultural powerhouse, positioning Korean production companies as major rivals to established Western production hubs. The industry’s ability to blend distinctive storytelling with high production values has appealed to global audiences, driving both audience numbers and box office returns that reach well outside South Korea’s borders.

The international reach of Korean screen content keeps growing, bolstered by the worldwide demand for varied storytelling and innovative formats. Streaming platforms have accelerated this global expansion, allowing Korean productions to connect with worldwide viewers in real time whilst minimising traditional distribution barriers. Significant cross-border partnerships and co-productions have become more frequent, attracting foreign investment and talent to South Korean studios. This growing interconnectedness reinforces the sector’s financial stability whilst positioning Korea as an indispensable hub within the worldwide entertainment ecosystem. The multiplier effects generated by global interest ripple throughout the supply chain, generating more jobs and funding prospects across the entire industry.

• Korean dramas reach unprecedented audience numbers throughout Netflix and international streaming platforms globally
• Film exports produce significant revenue from overseas markets whilst enhancing Korea’s cultural standing on the world stage
• Cross-border collaborations attract overseas funding and specialist knowledge to Korean studios
• Global recognition fuels visitor numbers, branded products and additional income sources beyond traditional production

Travel and Cultural Influence

The financial effects of Korean screen content extends considerably beyond direct industry revenues, creating substantial tourism and cultural knock-on benefits. Overseas tourists increasingly journey to South Korea specifically to experience production sites, visit branded venues and engage with Korean cultural products. This “hallyu” or Korean Wave phenomenon has transformed tourism patterns, with film and television attractions emerging as major draws for tourists from across Asia and beyond. The cultural sway wielded by successful productions establishes enduring brand equity 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 generates a virtuous economic cycle that amplifies the sector’s broader contribution to the nation’s economic wellbeing. Well-known television programmes and feature films encourage international travel, whilst travellers subsequently consume more Korean cultural offerings. This trend has led to development of screen-related tourist amenities, encompassing entertainment parks, visitor centres and curated tours around renowned production locations. The resulting employment opportunities cover the hospitality, transport and retail industries, extending the screen industry’s economic impact substantially further than conventional production measures and highlighting its transformative influence in South Korea’s economic landscape.

Difficulties and Long-term Vision

Despite the screen sector’s impressive economic contribution, South Korea’s audiovisual industry confronts growing market pressures from international streaming services and overseas production centres providing significant tax benefits. Increasing production outlays, challenges in keeping talented staff and the swift technological advancement of content delivery systems pose continuous challenges to ongoing development. The sector must manage progressively complicated regulatory landscapes across multiple territories whilst adjusting to evolving audience tastes towards diverse content formats. Additionally, the aggregation of capital within major production firms jeopardises the sustainability of smaller enterprises that currently employ over three-quarters of the workforce, potentially constraining innovation and creative range.

Looking ahead, the sector’s path hinges upon deliberate funding in emerging technologies and talent development programmes. Video-on-demand platforms are expected to drive growth at approximately 7.4% annually through 2028, substantially outpacing traditional television and film segments. However, realising this potential requires coordinated efforts to modernise production facilities, cultivate tech-savvy creators and bolster intellectual property protections across international markets. The report’s findings underscore the urgency of anticipatory government action to ensure South Korea maintains its competitive advantage within the rapidly evolving global entertainment landscape whilst protecting the ecosystem enabling smaller production companies.

• Intensifying competitive pressure from global streaming services undermines domestic market share
• Climbing production expenses and talent acquisition obstacles strain smaller production companies
• Accelerating technological advancement requires continuous investment in equipment and training
• Compliance complexity across multiple jurisdictions amplifies compliance burdens considerably
• Market consolidation risk limit creative variety and independent production opportunities

Government Support and Talent Development

Government support mechanisms remain critical to maintaining the sector’s development momentum and protecting employment across smaller independent companies. South Korea’s policymakers should focus on strategic investment for standalone production companies, digital capability development schemes and infrastructure investment to strengthen the sector’s resilience against global market pressures. Tax incentives, funding awards and reduced-cost facility provision can support fair competition for independent firms whilst encouraging innovation in new technologies and formats that define next-generation entertainment.

Investment in professional development schemes addresses the sector’s most pressing challenge: attracting and retaining experienced practitioners across production, technical, and creative specialisations. University partnerships with universities, vocational training schemes and coaching schemes can nurture the coming generation of Korean film and television professionals whilst promoting entrepreneurial ventures. Increased funding for new talent through development initiatives and small-scale funding would bolster the infrastructure backing smaller enterprises, guaranteeing the sector’s sustained growth and cultural relevance across international markets.