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

South Korea’s entertainment industry produced £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 presented to legislators and sector representatives at the National Assembly in Seoul, demonstrates the sector’s substantial contribution to the country’s GDP via production spending, supply chain expenditure and consumer spending. Television emerged as the leading sector, accounting for approximately 65% of the industry’s combined output, whilst the video-on-demand sector demonstrated the highest productivity per worker. The findings highlight the screen industry’s vital importance in South Korea’s economic and employment landscape.

Strong Economic Engine Producing Substantial Returns

The screen industry’s financial influence extends far beyond its immediate outputs, with the Oxford Economics study uncovering a multiplier effect that increases value throughout South Korea’s wider economic landscape. For every KRW1 billion produced directly by the sector, an additional 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 reverberates across various sectors, from transport and hospitality to professional services and retail. The employment multiplier of 3.4 further illustrates this phenomenon, with each 100 direct jobs supporting an additional 240 positions elsewhere in 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 approximately 78% of jobs concentrated in micro, small and medium-sized enterprises. These compact firms form the backbone of production networks, supporting everything from gear hire 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 technological expertise 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 additional jobs per 100 direct positions
• KRW7,170 billion in total tax revenues created across all segments
• 78% of jobs focused within micro, small and medium-sized enterprises

Television Dominates, Streaming Becomes 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 contribution 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 significant domestic and international audiences. Despite the growth of online streaming services, television’s deep roots in South Korean culture and its continued investment 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 most dynamic growth opportunity, despite now generating KRW3,500 billion (£2.4 billion) and 32,100 jobs. VOD workers display exceptional productivity, averaging KRW437 million (£297,000) in gross domestic product contribution per head—roughly five times the national average—signalling the high-value nature of streaming production. Projections indicate VOD will increase 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 Allocation

Film production, accounting for KRW4,960 billion (£3.4 billion) and sustaining 77,800 jobs, occupies the sector’s intermediate tier. Whilst smaller than television, South Korea’s film industry preserves considerable economic significance and international prestige, with productions spanning high-budget productions to smaller-scale films achieving recognition at major festival events. The well-rounded combination of television, film and streaming supports economic robustness whilst enabling specialisation and innovation across different content formats and distribution channels.

Korean Content Sweeps International Markets

South Korea’s screen industry has transcended national borders to become a formidable force in international entertainment sectors. The sector’s economic success is fundamentally connected with its international reach, with Korean dramas, films and streaming shows engaging viewers across Asia, Europe and the Americas. This international growth has transformed the nation into a cultural powerhouse, establishing Korean production companies as serious competitors to traditional Western production centres. The industry’s capacity for combining unique narrative styles with strong production quality has appealed to global audiences, driving both viewership figures and commercial revenues that reach well outside South Korea’s borders.

The export potential of Korean screen content keeps growing, driven by the worldwide demand for diverse narratives and creative approaches. Digital distribution services have expedited this internationalisation, allowing Korean productions to reach global audiences instantaneously whilst reducing traditional market obstacles. Major international collaborations and joint ventures have become more frequent, drawing foreign investment and talent to South Korean studios. This growing interconnectedness strengthens the sector’s economic resilience whilst positioning Korea as an essential centre within the worldwide entertainment ecosystem. The cascading benefits created by global interest spread across the supply chain, creating additional employment and investment opportunities throughout the sector.

• Korean dramas attain record viewership figures across Netflix and global streaming services globally
• Film exports generate significant revenue from overseas markets whilst elevating national cultural prestige internationally
• Cross-border collaborations attract overseas funding and specialist knowledge to Korean studios
• Worldwide acclaim drives tourism, merchandise sales and ancillary revenue streams outside of traditional production

Tourism and Heritage Impact

The financial effects of Korean screen content extends considerably beyond immediate sector earnings, creating significant travel and cultural knock-on benefits. Overseas tourists progressively travel to South Korea specifically to explore filming locations, visit themed attractions and engage with Korean popular culture. This “Korean Wave” or Korean Wave phenomenon has reshaped travel trends, with film and television attractions becoming major draws for visitors from throughout Asia and further afield. The cultural influence wielded by successful productions creates enduring brand equity for South Korea, enhancing the nation’s soft power whilst producing significant revenue via visitor expenditure, hospitality services and branded goods.

The link between film and television production and tourism generates a beneficial cycle of growth that amplifies the sector’s wider impact to national prosperity. Well-known television programmes and feature films inspire overseas tourism, whilst tourists then purchase additional Korean cultural products and services. This phenomenon has prompted development of screen-related tourist amenities, such as entertainment parks, display areas and guided tours of iconic filming locations. The resulting employment opportunities span hospitality, transportation and retail sectors, stretching the screen industry’s economic impact well beyond standard industry benchmarks and highlighting 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 worldwide streaming providers and global production facilities offering substantial tax incentives. Rising production costs, difficulties retaining skilled personnel and the swift technological advancement of content delivery systems present ongoing obstacles to continued expansion. The sector must contend with more intricate regulatory frameworks across multiple territories whilst adjusting to evolving audience tastes towards varied content types. Additionally, the clustering of investment within larger production companies undermines the long-term prospects of independent producers that currently account for employment of the vast majority of staff, possibly limiting creative development and creative range.

Looking ahead, the sector’s path hinges upon targeted capital allocation in new technological developments and workforce development initiatives. Video-on-demand platforms are projected to drive expansion at approximately 7.4% annually through 2028, substantially outpacing traditional TV and film segments. However, achieving this potential requires joint initiatives to upgrade production systems, cultivate digital-native talent and reinforce intellectual property protections across overseas markets. The report’s findings underscore the critical importance of forward-looking regulatory measures to ensure South Korea maintains its market leadership within the rapidly evolving global entertainment landscape whilst safeguarding the ecosystem enabling smaller production companies.

• Intensifying rivalry with global streaming services jeopardises local market position
• Rising production costs and talent recruitment obstacles strain smaller production houses
• Accelerating technological change requires continuous investment in equipment and training
• Regulatory complexity across different regions increases compliance demands considerably
• Consolidation trends threaten to reduce creative variety and opportunities for independent producers

Government Support and Talent Development

Government funding initiatives continue to be critical to maintaining the sector’s expansion path and safeguarding employment across micro and small enterprises. South Korea’s policymakers must prioritise targeted funding for standalone production companies, digital capability development schemes and infrastructure development to enhance the sector’s capacity to withstand against overseas competitors. Tax relief measures, production grants 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 tackles the sector’s most pressing challenge: drawing and maintaining skilled professionals across production, technical and creative disciplines. Academic collaborations with academic institutions, vocational training schemes and coaching schemes can nurture the coming generation of Korean film and television professionals whilst supporting creative enterprises. Increased funding for new talent through business incubators and small-scale funding would bolster the infrastructure backing independent producers, securing the sector’s continued dynamism and cultural relevance across international markets.