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

South Korea’s screen industry produced £12.4 billion in economic value during 2025 and sustained nearly 300,000 jobs, according to a detailed economic analysis undertaken for the Motion Picture Association. The report, prepared by Oxford Economics and delivered to legislators and industry leaders at the National Assembly in Seoul, demonstrates the sector’s substantial contribution to the country’s GDP via direct production activity, supply-chain spending and consumer spending. Television proved to be the dominant segment, representing roughly 65% of the industry’s total output, whilst the video-on-demand sector showed the highest productivity per worker. The findings highlight the screen industry’s critical role in South Korea’s economic and employment landscape.

Financial Heavyweight Generating Substantial Returns

The screen industry’s economic impact goes well past its immediate outputs, with the Oxford Economics study uncovering a multiplier effect that amplifies value throughout South Korea’s wider economic landscape. 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 ripple effect 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 sustaining 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 workforce structure reveals its deeply integrated nature within South Korea’s economy, with nearly 78% of jobs concentrated in micro, small and medium-sized enterprises. These compact firms form the foundation for production networks, supporting everything from equipment rental 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 technology-driven nature of contemporary audiovisual work and the technical knowledge required across the industry.

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

Television Dominates, Streaming Emerges as Key Driver

Television remains the undisputed heavyweight of South Korea’s visual media industry, controlling approximately 65% of the industry’s combined GDP 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, entertainment programmes and documentary content that attract substantial viewership across domestic and overseas markets. Despite the rise of digital platforms, television’s deep roots in South Korean culture and its continued investment in high-quality content guarantee its role as the sector’s primary economic driver and largest employer.

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 exhibit exceptional productivity, delivering KRW437 million (£297,000) in direct GDP contribution per head—roughly five times the national average—signalling the high-value nature of streaming production. Projections indicate VOD will grow at approximately 7.4% annually through 2028, exceeding both film and television growth rates and placing streaming as the sector’s most rapidly expanding segment.

Sector Breakdown and Workforce Distribution

Film production, accounting for KRW4,960 billion (£3.4 billion) and supporting 77,800 jobs, represents the sector’s intermediate tier. Whilst smaller than television, South Korea’s film industry preserves significant economic value and international prestige, with productions spanning major commercial films to independent features earning acclaim at prestigious festivals. The diverse mix of television, film and streaming supports economic robustness whilst facilitating focused expertise and creative growth across diverse formats and distribution methods.

Korean Content Dominates Global Markets

South Korea’s screen industry has gone beyond national borders to become a powerful player in international entertainment sectors. The sector’s commercial performance is fundamentally connected with its global presence, with Korean dramas, films and streaming shows capturing audiences across Asia, Europe and North America. This global expansion has transformed the nation into a cultural force, establishing Korean content creators as major rivals to established Western production hubs. The industry’s capacity for combining unique narrative styles with strong production quality has resonated with international viewers, driving both viewership figures 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. Streaming platforms have expedited this global expansion, enabling Korean productions to connect with worldwide viewers in real time whilst minimising traditional market obstacles. Significant cross-border partnerships and co-productions have become increasingly common, drawing international funding and talent to South Korean studios. This growing interconnectedness strengthens the sector’s economic resilience whilst establishing Korea as an indispensable hub within the global entertainment landscape. The multiplier effects created by global interest ripple throughout the supply chain, generating additional employment and investment opportunities throughout the sector.

• Korean dramas reach unprecedented audience numbers across Netflix and international streaming platforms globally
• Film exports generate significant revenue from overseas markets whilst boosting national cultural prestige on the world stage
• Cross-border collaborations draw in overseas funding and technical expertise to Korean studios
• Global recognition fuels tourism, merchandise sales and ancillary revenue streams beyond traditional production

Tourism and Cultural Impact

The financial effects of Korean screen content stretches considerably beyond immediate sector earnings, creating significant tourism and cultural knock-on benefits. International visitors progressively journey to South Korea deliberately to explore filming locations, explore branded venues and immerse themselves in Korean popular culture. This “hallyu” or Korean Wave movement has reshaped tourism patterns, with film and television attractions emerging as major draws for visitors from throughout Asia and further afield. The cultural sway wielded by successful productions creates enduring brand equity for South Korea, strengthening the nation’s soft power whilst generating significant revenue through tourism spending, hospitality services and branded goods.

The interconnection between screen production and tourism establishes a virtuous economic cycle that strengthens the sector’s broader contribution to the nation’s economic wellbeing. Successful TV shows and movies encourage overseas tourism, whilst visitors subsequently consume more Korean cultural offerings. This trend has prompted development of screen-related tourist amenities, such as themed parks, exhibition spaces and curated tours around renowned production locations. The resulting employment opportunities span accommodation, travel and shopping services, pushing the screen industry’s economic impact far more than traditional production metrics and highlighting its catalytic role in South Korea’s economic landscape.

Difficulties and Long-term Vision

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. Escalating production expenses, challenges in keeping talented staff and the accelerating technological change of distribution technology pose continuous challenges to continued expansion. The sector must contend with more intricate regulatory frameworks across multiple territories whilst adapting to shifting consumer preferences towards varied content types. Additionally, the aggregation of capital within larger production companies threatens the viability of smaller enterprises that currently provide jobs for more than 75% of workers, possibly limiting creative development and creative range.

Looking ahead, the sector’s trajectory hinges upon strategic investment in emerging technologies and skills training initiatives. Video-on-demand platforms are projected to drive growth at approximately 7.4% annually through 2028, substantially outpacing traditional television and film segments. However, achieving this potential requires collaborative action to upgrade production infrastructure, develop digital-native talent and bolster intellectual property protections across international markets. The report’s findings underscore the critical importance of forward-looking regulatory measures to ensure South Korea maintains its market leadership within the fast-changing global entertainment landscape whilst safeguarding the ecosystem enabling smaller production companies.

• Escalating competitive pressure from international streaming platforms threatens local market position
• Rising filming budgets and talent acquisition difficulties pressure independent producers
• Accelerating tech evolution requires continuous investment in equipment and training
• Compliance complexity across multiple jurisdictions amplifies regulatory obligations considerably
• Market consolidation stand to limit creative variety and independent production prospects

Government Support and Skills Enhancement

Government funding initiatives remain critical to maintaining the sector’s development momentum and safeguarding employment across smaller independent companies. South Korea’s policymakers must prioritise targeted funding for standalone production companies, digital skills training programmes and facility improvements to strengthen the sector’s ability to endure against international competition. Tax incentives, funding awards and subsidised facilities access can help level the playing field for independent firms whilst encouraging innovation in emerging formats and technologies that shape next-generation entertainment.

Funding for skills training initiatives resolves the sector’s critical challenge: attracting and retaining qualified experts across production, technical, and creative specialisations. Educational partnerships with academic institutions, apprenticeship programmes and coaching schemes can cultivate the next generation of Korean screen talent whilst supporting creative enterprises. Enhanced support for new talent through development initiatives and small-scale funding would reinforce the infrastructure backing smaller enterprises, securing the sector’s ongoing vitality and cultural importance across international markets.