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 approximately 300,000 jobs, according to a comprehensive economic study 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 substantial contribution to the country’s GDP through direct production activity, supply chain expenditure and consumer expenditure. Television proved to be the leading sector, accounting for roughly 65% of the industry’s total output, whilst the video-on-demand sector showed the greatest efficiency per worker. The findings underscore the screen industry’s critical role in South Korea’s economic and employment landscape.

Economic Powerhouse Producing Substantial Returns

The screen industry’s economic impact extends far beyond its immediate outputs, with the Oxford Economics study revealing a multiplier effect that amplifies value throughout South Korea’s wider economic landscape. 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 funding for screen production spreads throughout various sectors, from hospitality and transport to retail and professional services. The employment multiplier of 3.4 additionally demonstrates this phenomenon, with each 100 direct jobs sustaining 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 based within small and micro businesses. These compact firms form the backbone of production networks, supporting everything from equipment rental and post-production services to promotion and delivery. The digital and technology sector accounted for the highest job numbers 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 generates extra KRW2.1 billion per KRW1 billion generated
• Employment multiplier of 3.4 enables 240 additional jobs per 100 direct positions
• KRW7,170 billion in aggregate tax income created across all segments
• 78% of jobs concentrated in SMEs and micro-businesses

TV Leads the Market, Streaming Becomes Key Driver

Television remains the undisputed heavyweight of South Korea’s screen sector, controlling 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 existing framework of traditional broadcasting and the sector’s ongoing production of dramas, entertainment programmes and documentary content that attract significant domestic and international audiences. Despite the rise of digital platforms, television’s deep roots in South Korean culture and its sustained commitment in high-quality content guarantee its role as the sector’s primary economic driver and biggest source of employment.

However, video-on-demand services constitute the sector’s fastest-growing growth opportunity, despite currently contributing KRW3,500 billion (£2.4 billion) and 32,100 jobs. VOD workers display exceptional output, generating KRW437 million (£297,000) in direct GDP contribution per head—roughly 5x the national average—signalling the premium nature of streaming production. Projections indicate VOD will grow at approximately 7.4% annually through 2028, surpassing both film and television growth rates and placing streaming as the sector’s quickest-growing segment.

Sectoral Breakdown and Employment Distribution

Film production, accounting for KRW4,960 billion (£3.4 billion) and sustaining 77,800 jobs, holds the sector’s central position. Whilst not as large as television, South Korea’s film industry upholds substantial financial importance and global standing, with productions extending across blockbuster releases to smaller-scale films gaining recognition at major festival events. The balanced portfolio of television, film and streaming provides financial stability whilst allowing for specialisation and innovation across various content types and distribution channels.

Korean Content Captures Worldwide Audiences

South Korea’s screen industry has transcended domestic boundaries to become a formidable force in global entertainment markets. The sector’s commercial performance is intrinsically linked to its international reach, with Korean dramas, films and streaming shows capturing audiences across Asia, Europe and North America. This international growth has established the country as a cultural powerhouse, positioning Korean production companies as serious competitors to traditional Western production centres. The industry’s capacity for combining distinctive storytelling with high production values has resonated with global audiences, boosting both audience numbers and commercial revenues that reach well outside South Korea’s borders.

The international reach of Korean screen content continues to expand, bolstered by the global appetite for diverse narratives and innovative formats. Digital distribution services have expedited this internationalisation, enabling 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 expanding integration reinforces the sector’s financial stability whilst positioning Korea as an essential centre within the global entertainment landscape. The multiplier effects generated by global interest spread across the production network, generating additional employment and investment opportunities across the entire industry.

• Korean dramas reach unprecedented audience numbers throughout Netflix and global streaming services globally
• Film exports deliver significant revenue from overseas markets whilst enhancing national cultural prestige internationally
• Cross-border collaborations attract foreign investment capital and specialist knowledge to Korean studios
• Global recognition stimulates tourism, merchandise sales and ancillary revenue streams beyond traditional production

Tourism and Heritage Influence

The financial effects of Korean screen content stretches considerably beyond immediate sector earnings, generating significant tourism and cultural spillover effects. International visitors increasingly journey to South Korea deliberately to explore production sites, explore branded venues and engage with Korean cultural products. This “Korean cultural phenomenon” or Korean Wave movement has transformed tourism patterns, with film and television 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 soft power whilst producing significant revenue via tourism spending, hospitality services and cultural merchandise.

The link between screen production and tourism generates a positive economic loop that amplifies the sector’s broader contribution to the nation’s economic wellbeing. Well-known television programmes and feature films encourage overseas tourism, whilst travellers subsequently consume further Korean cultural goods and services. This phenomenon has spurred funding for screen tourism infrastructure, including dedicated attractions, display areas and curated tours around renowned production locations. The generated job prospects span the hospitality, transport and retail industries, extending the screen industry’s economic impact far more than traditional production metrics and highlighting its catalytic role in South Korea’s economic landscape.

Challenges and What Lies Ahead

Despite the screen sector’s significant financial impact, South Korea’s audiovisual industry faces mounting competitive pressures from global streaming platforms and overseas production centres delivering considerable tax advantages. Increasing production outlays, difficulties retaining skilled personnel and the accelerating technological change of content delivery systems present ongoing obstacles to continued expansion. The sector must navigate increasingly complex regulatory environments across multiple territories whilst adjusting to evolving audience tastes towards different content styles. Additionally, the aggregation of capital within larger production companies jeopardises the sustainability of independent producers that currently account for employment of the vast majority of staff, risking reduced innovation and artistic variety.

Looking forward, the sector’s path hinges upon deliberate funding in cutting-edge innovations and workforce development initiatives. Video-on-demand platforms are forecast to drive growth at approximately 7.4% per year through 2028, substantially outpacing traditional television and film segments. However, realising this potential requires joint initiatives to enhance production facilities, cultivate digital-native talent and strengthen intellectual property protections across international markets. The report’s findings underscore the urgency of forward-looking regulatory measures to ensure South Korea maintains its competitive edge within the rapidly evolving global entertainment landscape whilst protecting the ecosystem supporting smaller production companies.

• Escalating rivalry with global streaming services jeopardises home market presence
• Rising filming budgets and talent recruitment difficulties pressure independent producers
• Accelerating technological change necessitates continuous investment in equipment and training
• Regulatory complexity across multiple jurisdictions amplifies compliance burdens substantially
• Market consolidation risk reduce creative diversity and opportunities for independent producers

State Backing and Skills Enhancement

Government support mechanisms continue to be critical to maintaining the sector’s growth trajectory and protecting employment across smaller independent companies. South Korea’s policymakers must prioritise strategic investment for standalone production companies, digital capability development schemes and facility improvements to strengthen the sector’s resilience against international competition. Tax incentives, funding awards and affordable infrastructure access can create equal opportunities for smaller companies whilst encouraging innovation in new technologies and formats that characterise next-generation entertainment.

Funding for talent development programmes resolves the sector’s critical challenge: drawing and maintaining skilled professionals across production, technical, and creative fields. Educational partnerships with higher education institutions, apprenticeship programmes and coaching schemes can develop the next generation of Korean film and television professionals whilst fostering business start-ups. Increased funding for emerging creators through development initiatives and microfinance options would bolster the ecosystem supporting smaller companies, securing the sector’s continued dynamism and cultural importance on the global stage.