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 detailed economic analysis commissioned by the Motion Picture Association. The report, produced 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 through direct production activity, supply chain expenditure 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 demonstrated the greatest efficiency per worker. The findings underscore the screen industry’s vital importance in South Korea’s economic and employment landscape.

Financial Heavyweight Producing Impressive Results

The screen industry’s financial influence extends far beyond its direct contributions, 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 additional KRW2.1 billion flows through consumer spending and supply chains, resulting in a GDP multiplier of 3.1. This cascading impact demonstrates how investment in screen production reverberates across multiple industries, from transport and hospitality to retail and professional services. The employment multiplier of 3.4 additionally demonstrates this effect, with each 100 direct jobs supporting an additional 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 workforce structure reveals its firmly embedded nature within South Korea’s economy, with nearly 78% of jobs based within small and micro businesses. These compact firms form the foundation for production networks, supporting everything from equipment rental 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 modern screen production and the technical knowledge required across the industry.

• GDP multiplier of 3.1 creates extra KRW2.1 billion per KRW1 billion generated
• Employment multiplier of 3.4 sustains 240 extra jobs per 100 direct positions
• KRW7,170 billion in overall tax receipts created across all segments
• 78% of jobs located in micro, small and medium-sized enterprises

Television Dominates, Streaming Becomes Key Driver

Television remains the undisputed heavyweight of South Korea’s screen sector, commanding 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 demonstrates both the existing framework of conventional broadcast services and the sector’s ongoing production of dramas, entertainment programmes and documentary content that attract significant domestic and international audiences. Despite the growth of online streaming services, television’s deep roots in South Korean culture and its sustained commitment in high-quality content ensure its position as the sector’s main economic engine and biggest source of employment.

However, video-on-demand services form the sector’s most dynamic growth opportunity, despite presently accounting for KRW3,500 billion (£2.4 billion) and 32,100 jobs. VOD workers display exceptional productivity, generating 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% per year through 2028, exceeding both film and television growth rates and placing streaming as the sector’s quickest-growing segment.

Industry Breakdown and Employment Distribution

Film production, generating KRW4,960 billion (£3.4 billion) and sustaining 77,800 jobs, holds the sector’s middle ground. Whilst not as large as television, South Korea’s film industry preserves substantial financial importance and global standing, with productions extending across major commercial films to independent features achieving recognition at renowned film festivals. The diverse mix of television, film and streaming supports economic robustness whilst enabling specialisation and innovation across diverse formats and distribution methods.

Korean Content Dominates Global Markets

South Korea’s screen industry has surpassed national borders to become a powerful player in global entertainment markets. The sector’s economic success is fundamentally connected with its international reach, with Korean television dramas, films and streaming content capturing audiences across Asia, Europe and the Americas. This international growth has established the country as a cultural force, establishing Korean content creators as serious competitors to established Western production hubs. The industry’s capacity for combining unique narrative styles with high production values has appealed to global audiences, driving both viewership figures and commercial revenues that reach well outside South Korea’s borders.

The international reach of Korean screen content keeps growing, supported by the global appetite for diverse narratives and creative approaches. Streaming platforms have expedited this internationalisation, allowing Korean productions to reach global audiences instantaneously whilst reducing traditional distribution barriers. Significant cross-border partnerships and co-productions have become more frequent, drawing foreign investment and talent to South Korean studios. This expanding integration reinforces the sector’s economic resilience whilst establishing Korea as an indispensable hub within the worldwide entertainment ecosystem. The multiplier effects generated by global interest spread across the supply chain, generating additional employment and investment opportunities throughout the sector.

• Korean dramas achieve unprecedented audience numbers across Netflix and international streaming platforms worldwide
• Film exports generate significant revenue from overseas markets whilst boosting national cultural prestige on the world stage
• Cross-border collaborations bring foreign investment capital and specialist knowledge to Korean studios
• Worldwide acclaim fuels visitor numbers, branded products and additional income sources outside of traditional production

Tourism and Cultural Influence

The financial effects of Korean screen content extends considerably past direct industry revenues, generating significant travel and cultural spillover effects. International visitors increasingly travel to South Korea deliberately to explore production sites, explore themed attractions and engage with Korean popular culture. This “Korean cultural phenomenon” or Korean Wave movement has transformed tourism patterns, with film and television attractions becoming significant attractions for visitors from across Asia and beyond. The cultural influence wielded by acclaimed content creates lasting brand value for South Korea, enhancing the nation’s soft power whilst generating significant revenue through tourism spending, accommodation and dining and cultural merchandise.

The link between screen production and tourism establishes a virtuous economic cycle that strengthens the sector’s wider impact to national prosperity. Well-known television programmes and feature films encourage international travel, whilst travellers subsequently consume more Korean cultural offerings. This phenomenon has spurred investment in film tourism facilities, encompassing entertainment parks, display areas and curated tours around renowned production locations. The resulting employment opportunities cover accommodation, travel and shopping services, extending the screen industry’s economic footprint substantially further than conventional production measures and demonstrating its transformative influence in the broader Korean economy.

Challenges and Future Outlook

Despite the screen sector’s significant financial impact, South Korea’s audiovisual industry confronts growing market pressures from global streaming platforms and overseas production centres offering substantial tax incentives. Rising production costs, difficulties retaining skilled personnel and the rapid technological evolution of content distribution platforms pose continuous challenges to sustained growth. The sector must navigate increasingly complex regulatory environments across various regions whilst adapting to shifting consumer preferences towards diverse content formats. Additionally, the clustering of investment within major production firms undermines the long-term prospects of smaller enterprises that currently provide jobs for more than 75% of workers, possibly limiting creative development and creative diversity.

Looking ahead, the sector’s path hinges upon deliberate funding in cutting-edge innovations and talent development programmes. Video-on-demand platforms are forecast to drive expansion at approximately 7.4% annually through 2028, substantially outpacing traditional broadcast and cinema segments. However, realising this potential requires joint initiatives to upgrade production infrastructure, cultivate digital-native talent 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 market leadership within the dynamic global entertainment landscape whilst protecting the ecosystem supporting smaller production companies.

• Growing competitive pressure from international streaming platforms undermines home market presence
• Climbing filming budgets and talent recruitment difficulties burden independent producers
• Swift technological change requires continuous investment in tools and professional development
• Regulatory complexity across multiple jurisdictions heightens compliance burdens considerably
• Market consolidation risk diminish artistic diversity and opportunities for independent producers

Government Support and Talent Development

Government support mechanisms remain critical to maintaining the sector’s growth trajectory and protecting employment across small and micro businesses. South Korea’s policymakers should focus on targeted funding for independent producers, digital skills training programmes and facility improvements to reinforce the sector’s capacity to withstand against international competition. Tax relief measures, production grants and subsidised facilities access can help level the playing field for smaller businesses whilst encouraging innovation in emerging formats and technologies that characterise next-generation entertainment.

Funding for skills training initiatives addresses the sector’s critical challenge: recruiting and keeping qualified experts across production, technical and creative disciplines. Educational partnerships with universities, vocational training schemes and mentoring programmes can cultivate the coming generation of Korean film and television professionals whilst promoting business start-ups. Greater investment for emerging creators through incubation programmes and microfinance options would reinforce the landscape supporting smaller enterprises, securing the sector’s continued dynamism and creative significance on the global stage.