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 approximately 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, reveals the sector’s significant impact to the country’s GDP via direct production activity, supply chain expenditure and consumer spending. Television proved to be the leading sector, accounting for roughly 65% of the industry’s combined output, whilst the video-on-demand sector demonstrated the greatest efficiency per worker. The findings highlight the screen industry’s critical role in South Korea’s economic and employment landscape.

Strong Economic Engine Generating Significant Gains

The screen industry’s financial influence extends far beyond its direct contributions, with the Oxford Economics study revealing a multiplication factor that amplifies value throughout South Korea’s broader economy. For every KRW1 billion produced directly by the sector, an further KRW2.1 billion flows through supply chains and consumer spending, resulting in a GDP multiplier of 3.1. This cascading impact illustrates how funding for screen production reverberates across various sectors, from hospitality and transport to retail and professional services. The employment multiplier of 3.4 further illustrates this phenomenon, with each 100 direct jobs supporting an additional 240 positions in other parts of 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 deeply integrated nature within South Korea’s economy, with nearly 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 promotion and delivery. The digital and technology sector accounted for the largest employment share at 116,500 jobs, reflecting the digitally intensive nature of contemporary audiovisual work and the technical knowledge required across the industry.

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

TV Leads the Market, Streaming Becomes Key Driver

Television continues to be the undisputed heavyweight of South Korea’s screen sector, controlling approximately 65% of the industry’s aggregate economic output with a contribution of KRW15,620 billion (£10.6 billion) and sustaining 181,200 jobs. The dominance of television reflects both the established infrastructure of traditional broadcasting and the sector’s ongoing production of dramas, variety shows and documentaries 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 continued investment in high-quality content ensure its position as the sector’s primary economic driver and biggest source of employment.

However, video-on-demand services represent the sector’s fastest-growing growth opportunity, despite presently accounting for KRW3,500 billion (£2.4 billion) and 32,100 jobs. VOD workers exhibit exceptional performance, delivering KRW437 million (£297,000) in economic value creation per head—roughly 5x the national average—signalling the premium nature of streaming production. Projections forecast VOD will grow at approximately 7.4% per year through 2028, outpacing both film and television growth rates and positioning streaming as the sector’s quickest-growing segment.

Industry Breakdown and Employment Allocation

Film production, contributing KRW4,960 billion (£3.4 billion) and sustaining 77,800 jobs, holds the sector’s middle ground. Whilst smaller than television, South Korea’s film industry preserves substantial financial importance and global standing, with productions spanning blockbuster releases to indie productions achieving recognition at renowned film festivals. The balanced portfolio of television, film and streaming supports economic robustness whilst allowing for focused expertise and creative growth across diverse formats and distribution channels.

Korean Content Dominates International Markets

South Korea’s screen industry has transcended domestic boundaries to become a powerful player in international entertainment sectors. The sector’s economic success is fundamentally connected with its global presence, with Korean dramas, films and streaming shows engaging viewers across Asia, Europe and North America. This international growth has transformed the nation into a cultural force, establishing Korean production companies as major rivals to established Western production hubs. The industry’s ability to blend unique narrative styles with strong production quality has resonated with global audiences, boosting both audience numbers and box office returns that reach well outside South Korea’s borders.

The international reach of Korean screen content continues to expand, driven by the global appetite for diverse narratives and innovative formats. Streaming platforms have accelerated this internationalisation, allowing Korean productions to reach global audiences instantaneously whilst minimising traditional market obstacles. Significant cross-border partnerships and joint ventures have become more frequent, attracting foreign investment and talent to South Korean studios. This growing interconnectedness strengthens the sector’s financial stability whilst positioning Korea as an essential centre within the global entertainment landscape. The cascading benefits created by international demand ripple throughout the supply chain, generating more jobs and investment opportunities throughout the sector.

• Korean dramas achieve record viewership figures throughout Netflix and international streaming platforms worldwide
• Film exports deliver substantial foreign exchange earnings whilst boosting national cultural prestige on the world stage
• International co-productions draw in foreign investment capital and specialist knowledge to Korean studios
• Worldwide acclaim drives tourism, merchandise sales and ancillary revenue streams beyond traditional production

Tourism and Heritage Impact

The economic impact of Korean screen content extends considerably beyond immediate sector earnings, generating significant tourism and cultural spillover effects. Overseas tourists increasingly travel to South Korea specifically to explore filming locations, visit themed attractions and immerse themselves in Korean cultural products. This “hallyu” or Korean Wave movement has transformed tourism patterns, with screen-related attractions emerging as major draws for visitors from throughout Asia and further afield. The cultural sway wielded by acclaimed content establishes lasting brand value for South Korea, enhancing the nation’s cultural influence whilst generating substantial income via visitor expenditure, hospitality services and branded goods.

The link between screen production and tourism creates a beneficial cycle of growth that enhances the sector’s broader contribution to the nation’s economic wellbeing. Popular television series and films encourage travel from abroad, whilst visitors go on to buy additional Korean cultural products and services. This development has led to development of screen-related tourist amenities, such as entertainment parks, display areas and curated tours around renowned production locations. The resulting employment opportunities cover accommodation, travel and shopping services, pushing the screen industry’s economic impact well beyond traditional production metrics and highlighting its transformative influence in South Korea’s economic landscape.

Challenges and What Lies Ahead

Despite the screen sector’s significant financial impact, South Korea’s audiovisual industry encounters intensifying competitive challenges from worldwide streaming providers and overseas production centres providing significant tax benefits. Increasing production outlays, challenges in keeping talented staff and the swift technological advancement of distribution technology pose continuous challenges to continued expansion. The sector must contend with more intricate regulatory frameworks across various regions whilst responding to changing viewer preferences towards varied content types. Additionally, the aggregation of capital within bigger production enterprises threatens the viability of smaller enterprises that currently account for employment of the vast majority of staff, risking reduced innovation and artistic variety.

Looking forward, the sector’s trajectory hinges upon deliberate funding in cutting-edge innovations and skills training initiatives. Video-on-demand platforms are projected to drive growth at approximately 7.4% annually through 2028, significantly exceeding traditional TV and film segments. However, achieving this potential requires joint initiatives to modernise production systems, develop digitally-skilled professionals and bolster intellectual property protections across overseas markets. 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 safeguarding the ecosystem supporting smaller production companies.

• Growing competitive pressure from international streaming platforms threatens local market position
• Climbing production expenses and skilled worker recruitment challenges burden independent producers
• Rapid tech evolution demands continuous investment in tools and professional development
• Regulatory challenges in multiple territories heightens compliance burdens substantially
• Market consolidation risk limit creative variety and opportunities for independent producers

Government Support and Talent Development

Government funding initiatives continue to be critical to supporting the sector’s expansion path and protecting employment across small and micro businesses. South Korea’s policymakers must prioritise directed financial support for self-employed creators, digital skills training programmes and facility improvements to reinforce the sector’s resilience against overseas competitors. Tax breaks, production grants and affordable infrastructure access can help level the playing field for independent firms whilst promoting innovation in new technologies and formats that define next-generation entertainment.

Investment in talent development programmes resolves the sector’s biggest challenge: recruiting and keeping qualified experts across production, technical and creative disciplines. Academic collaborations with academic institutions, apprenticeship schemes and coaching schemes can cultivate the next generation of Korean audiovisual creators whilst promoting creative enterprises. Increased funding for up-and-coming professionals through development initiatives and accessible finance solutions would reinforce the ecosystem supporting smaller enterprises, securing the sector’s continued dynamism and cultural importance on the global stage.