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

South Korea’s entertainment industry produced £12.4 billion in economic value during 2025 and sustained approximately 300,000 jobs, based on a comprehensive economic study undertaken for 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 production spending, supply-chain spending and consumer expenditure. Television proved to be the leading sector, accounting for approximately 65% of the industry’s combined output, whilst the video-on-demand sector demonstrated the highest productivity per worker. The findings highlight the screen industry’s vital importance in South Korea’s economy and employment landscape.

Financial Heavyweight Generating Substantial Returns

The screen industry’s economic impact extends far beyond its direct contributions, with the Oxford Economics study uncovering a multiplier effect that increases value throughout South Korea’s wider economic landscape. For every KRW1 billion generated directly by the sector, an additional KRW2.1 billion circulates across consumer spending and supply chains, producing a GDP multiplier of 3.1. This ripple effect demonstrates how investment in screen production reverberates across multiple industries, from hospitality and transport to professional services and retail. The employment multiplier of 3.4 additionally demonstrates this effect, 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 employment composition reveals its firmly embedded nature within South Korea’s economy, with approximately 78% of jobs concentrated in micro, small and medium-sized enterprises. These smaller businesses form the foundation for production networks, supporting everything from equipment rental and finishing work to marketing and distribution. The digital and technology sector accounted for the highest job numbers 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 additional KRW2.1 billion per KRW1 billion produced
• Employment multiplier of 3.4 sustains 240 extra jobs per 100 direct positions
• KRW7,170 billion in overall tax receipts produced among all divisions
• 78% of jobs focused within SMEs and micro-businesses

TV Leads the Market, 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 financial input of KRW15,620 billion (£10.6 billion) and sustaining 181,200 jobs. The dominance of television demonstrates both the established infrastructure of conventional broadcast services and the sector’s continuous output of dramas, entertainment programmes and documentary content that attract substantial viewership across domestic and overseas markets. Despite the rise of digital platforms, television’s strong cultural foundations in South Korean culture and its continued investment in premium programming ensure its position as the sector’s primary economic driver and largest employer.

However, video-on-demand services constitute the sector’s fastest-growing growth opportunity, despite now generating KRW3,500 billion (£2.4 billion) and 32,100 jobs. VOD workers demonstrate exceptional productivity, generating KRW437 million (£297,000) in economic value creation per head—roughly five times the national average—signalling the high-value nature of streaming production. Projections indicate VOD will expand at approximately 7.4% annually through 2028, exceeding both film and television growth rates and positioning streaming as the sector’s most rapidly expanding segment.

Sectoral Breakdown and Employment Allocation

Film production, generating KRW4,960 billion (£3.4 billion) and supporting 77,800 jobs, holds the sector’s central position. Whilst not as large as television, South Korea’s film industry preserves significant economic value and global standing, with productions spanning blockbuster releases to independent features achieving recognition at major festival events. The diverse mix of television, film and streaming ensures economic resilience whilst facilitating focused expertise and creative growth across various content types and delivery platforms.

Korean Content Dominates Worldwide Audiences

South Korea’s screen industry has transcended domestic boundaries to become a formidable force in global entertainment markets. The sector’s economic success is intrinsically linked to its global presence, with Korean television dramas, films and streaming content engaging viewers across Asia, Europe and the Americas. This international growth has established the country as a cultural force, positioning Korean production companies as serious competitors to traditional Western production centres. The industry’s ability to blend distinctive storytelling with strong production quality has resonated with global audiences, driving both audience numbers and box office returns that extend far beyond South Korea’s borders.

The export potential of Korean screen content continues to expand, driven by the worldwide demand for varied storytelling and innovative formats. Digital distribution services have expedited this internationalisation, allowing Korean productions to reach global audiences in real time whilst minimising traditional market obstacles. Major international collaborations and joint ventures have become increasingly common, attracting foreign investment and talent to South Korean studios. This expanding integration strengthens the sector’s economic resilience whilst establishing Korea as an indispensable hub within the worldwide entertainment ecosystem. The cascading benefits created by international demand ripple throughout the production network, creating more jobs and investment opportunities throughout the sector.

• Korean dramas reach unprecedented audience numbers across Netflix and international streaming platforms worldwide
• Film exports generate significant revenue from overseas markets whilst elevating Korea’s cultural standing on the world stage
• Cross-border collaborations bring overseas funding and technical expertise to Korean studios
• Global recognition fuels tourism, merchandise sales and ancillary revenue streams beyond traditional production

Travel and Cultural Impact

The economic impact of Korean screen content stretches considerably past immediate sector earnings, generating substantial travel and cultural spillover effects. International visitors increasingly journey to South Korea deliberately to explore filming locations, visit themed attractions and engage with Korean popular culture. This “Korean Wave” or Korean Wave phenomenon has reshaped travel trends, with screen-related attractions emerging as significant attractions for visitors from throughout Asia and further afield. The cultural sway wielded by successful productions creates lasting brand value for South Korea, strengthening the nation’s soft power whilst producing significant revenue via tourism spending, accommodation and dining and branded goods.

The relationship between film and television production and tourism creates a beneficial cycle of growth that strengthens the sector’s wider impact to the nation’s economic wellbeing. Successful TV shows and movies drive international travel, whilst tourists then purchase further Korean cultural goods and services. This development has spurred investment in screen-related tourist amenities, encompassing entertainment parks, exhibition spaces and curated tours around renowned production locations. The generated job prospects cover the hospitality, transport and retail industries, pushing the screen industry’s financial reach substantially further than traditional production metrics and demonstrating its driving force in South Korea’s economic landscape.

Obstacles and Prospects Ahead

Despite the screen sector’s considerable economic value, South Korea’s audiovisual industry encounters intensifying competitive challenges from worldwide streaming providers and international production hubs offering substantial tax incentives. Rising production costs, difficulties retaining skilled personnel and the accelerating technological change of content distribution platforms present ongoing obstacles to ongoing development. The sector must manage progressively complicated regulatory landscapes across multiple territories whilst adjusting to evolving audience tastes towards different content styles. Additionally, the aggregation of capital within major production firms undermines the long-term prospects of independent producers that currently employ over three-quarters of the workforce, risking reduced innovation and artistic variety.

Looking ahead, the sector’s path hinges upon deliberate funding in cutting-edge innovations and skills training initiatives. Video-on-demand platforms are projected to drive expansion at approximately 7.4% annually through 2028, far surpassing traditional TV and film segments. However, realising this potential requires collaborative action to modernise production facilities, cultivate tech-savvy creators and strengthen intellectual property protections across global territories. The report’s findings underscore the pressing need of proactive policy interventions to ensure South Korea maintains its market leadership within the fast-changing global entertainment landscape whilst safeguarding the ecosystem supporting smaller production companies.

• Growing competitive pressure from international streaming platforms undermines local market position
• Rising production expenses and talent acquisition challenges strain smaller production companies
• Rapid technological change necessitates continuous investment in equipment and staff development
• Regulatory complexity across different regions heightens compliance demands considerably
• Consolidation trends stand to reduce creative diversity and independent production prospects

Government Support and Talent Development

Government assistance programmes continue to be 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 infrastructure development to reinforce the sector’s resilience against overseas competitors. Tax incentives, production grants and affordable infrastructure access can help level the playing field for smaller companies whilst fostering innovation in new technologies and formats that characterise next-generation entertainment.

Funding for talent development programmes addresses the sector’s critical challenge: recruiting and keeping experienced practitioners across production, technical, and creative specialisations. University partnerships with academic institutions, apprenticeship programmes and mentoring programmes can cultivate the coming generation of Korean screen talent whilst supporting business start-ups. Increased funding for emerging creators through incubation programmes and accessible finance solutions would bolster the infrastructure backing smaller enterprises, ensuring the sector’s continued dynamism and cultural relevance internationally.