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

South Korea’s screen industry generated £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 significant impact to the country’s GDP via direct production activity, supply-chain spending and consumer expenditure. Television proved to be the dominant segment, accounting for roughly 65% of the industry’s total output, whilst the streaming sector demonstrated the greatest efficiency per worker. The findings underscore the screen industry’s vital importance in South Korea’s economy and employment landscape.

Financial Heavyweight Producing Substantial Returns

The screen industry’s economic impact goes well past its direct contributions, with the Oxford Economics study uncovering a multiplication factor that increases value throughout South Korea’s wider economic landscape. For every KRW1 billion produced 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 cascading impact demonstrates how funding for screen production spreads throughout various sectors, from hospitality and transport to professional services and retail. 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 a major 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 concentrated in small and micro businesses. These compact firms form the backbone of production networks, supporting everything from equipment rental and finishing work 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 contemporary audiovisual work and the technological expertise required across the industry.

• GDP multiplier of 3.1 creates additional KRW2.1 billion per KRW1 billion generated
• Employment multiplier of 3.4 supports 240 additional jobs per 100 primary positions
• KRW7,170 billion in total tax revenues generated throughout all sectors
• 78% of jobs focused within 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 combined GDP output with a financial input of KRW15,620 billion (£10.6 billion) and sustaining 181,200 jobs. The television’s market dominance demonstrates both the established infrastructure of traditional broadcasting and the sector’s continuous output of dramas, variety shows and documentaries that command substantial viewership across domestic and overseas markets. Despite the growth of online streaming services, television’s strong cultural foundations in South Korean culture and its continued investment in high-quality content guarantee its position as the sector’s primary economic driver and biggest source of employment.

However, video-on-demand services represent the sector’s most dynamic growth opportunity, despite now generating KRW3,500 billion (£2.4 billion) and 32,100 jobs. VOD workers exhibit exceptional output, delivering 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 suggest 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.

Industry Breakdown and Employment Distribution

Film production, generating KRW4,960 billion (£3.4 billion) and supporting 77,800 jobs, holds the sector’s central position. Whilst smaller than television, South Korea’s film industry preserves considerable economic significance and global standing, with productions spanning major commercial films to indie productions earning acclaim at major festival events. The well-rounded combination of television, film and streaming ensures economic resilience whilst enabling specialisation and innovation across various content types and distribution channels.

Korean Content Sweeps Global Markets

South Korea’s screen industry has transcended domestic boundaries to become a formidable force in international entertainment sectors. The sector’s commercial performance is intrinsically linked to its global presence, with Korean dramas, films and streaming shows capturing audiences across Asia, Europe and North America. This global expansion has established the country as a cultural force, establishing Korean production companies as major rivals to traditional Western production centres. The industry’s ability to blend distinctive storytelling with strong production quality has resonated with international viewers, 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, driven by the worldwide demand for varied storytelling and creative approaches. Digital distribution services have accelerated this internationalisation, allowing Korean productions to connect with worldwide viewers instantaneously whilst reducing traditional distribution barriers. Major international collaborations and joint ventures have become increasingly common, drawing international funding and talent to South Korean studios. This expanding integration strengthens the sector’s economic resilience whilst establishing Korea as an indispensable hub within the global entertainment landscape. The cascading benefits generated by international demand spread across the supply chain, generating more jobs and funding prospects across the entire industry.

• Korean dramas attain record viewership figures across Netflix and international streaming platforms globally
• Film exports produce substantial foreign exchange earnings whilst elevating Korea’s cultural standing on the world stage
• Cross-border collaborations attract overseas funding and specialist knowledge to Korean studios
• Global recognition fuels tourism, merchandise sales and ancillary revenue streams beyond traditional production

Tourism and Cultural Influence

The economic impact of Korean screen content extends considerably beyond immediate sector earnings, generating significant tourism and cultural spillover effects. International visitors increasingly travel to South Korea deliberately to explore production sites, visit branded venues and immerse themselves in Korean popular culture. This “hallyu” or Korean Wave phenomenon has reshaped tourism patterns, with film and television attractions becoming significant attractions for tourists from throughout Asia and further afield. The cultural sway exerted by successful productions establishes enduring brand equity for South Korea, strengthening the nation’s soft power whilst producing substantial income via visitor expenditure, hospitality services and branded goods.

The link between screen production and tourism creates a virtuous economic cycle that strengthens the sector’s extended role to economic growth. Successful TV shows and movies inspire travel from abroad, whilst visitors go on to buy further Korean cultural goods and services. This development has led to funding for screen-related tourist amenities, such as entertainment parks, visitor centres and organised visits to famous filming sites. The resulting employment opportunities span the hospitality, transport and retail industries, stretching the screen industry’s financial reach far more than traditional production metrics and showcasing its driving force in the broader Korean economy.

Challenges and What Lies Ahead

Despite the screen sector’s considerable economic value, South Korea’s audiovisual industry confronts growing market pressures from worldwide streaming providers and global production facilities providing significant tax benefits. Rising production costs, challenges in keeping talented staff and the swift technological advancement of content delivery systems pose continuous challenges to sustained growth. The sector must manage progressively complicated regulatory landscapes across numerous jurisdictions whilst responding to changing viewer preferences towards varied content types. Additionally, the concentration of resources within major production firms jeopardises the sustainability of independent producers that currently provide jobs for more than 75% of workers, potentially constraining innovation and creative diversity.

Looking ahead, the sector’s direction hinges upon strategic investment in emerging technologies and talent development programmes. Video-on-demand platforms are expected to drive growth at approximately 7.4% annually through 2028, far surpassing traditional broadcast and cinema segments. However, unlocking this potential requires coordinated efforts to enhance production systems, cultivate digital-native talent and bolster intellectual property protections across global territories. The report’s results underscore the critical importance of proactive policy interventions to ensure South Korea maintains its market leadership within the fast-changing global entertainment landscape whilst safeguarding the ecosystem enabling smaller production companies.

• Intensifying competitive pressure from global streaming services undermines local market position
• Rising production expenses and talent acquisition difficulties strain smaller production houses
• Accelerating tech evolution necessitates ongoing investment in equipment and training
• Regulatory complexity across multiple jurisdictions heightens compliance demands significantly
• Industry consolidation risk limit artistic diversity and independent production prospects

State Backing and Workforce Development

Government support mechanisms continue to be critical to supporting the sector’s development momentum and safeguarding employment across smaller independent companies. South Korea’s policymakers need to emphasise directed financial support for standalone production companies, technology training initiatives and infrastructure investment to enhance the sector’s ability to endure against global market pressures. Tax relief measures, production grants and subsidised facilities access can create equal opportunities for smaller businesses whilst promoting innovation in emerging formats and technologies that characterise next-generation entertainment.

Investment in talent development programmes resolves the sector’s critical challenge: attracting and retaining qualified experts across production, technical, and creative fields. Academic collaborations with universities, vocational training schemes and mentoring programmes can develop the future generation of Korean audiovisual creators whilst fostering business start-ups. Enhanced support for new talent through business incubators and microfinance options would bolster the landscape supporting independent producers, ensuring the sector’s ongoing vitality and cultural importance on the global stage.