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

South Korea’s screen industry generated £12.4 billion in economic value during 2025 and sustained approximately 300,000 jobs, based on a detailed economic analysis undertaken for the Motion Picture Association. The report, prepared by Oxford Economics and delivered to legislators and sector representatives at the National Assembly in Seoul, reveals the sector’s significant impact to the country’s GDP through direct production activity, supply chain expenditure and consumer expenditure. Television emerged as the leading sector, accounting for approximately 65% of the industry’s total output, whilst the video-on-demand sector showed the highest productivity per worker. The findings underscore the screen industry’s critical role in South Korea’s economic and employment landscape.

Financial Heavyweight Producing Substantial Returns

The screen industry’s financial influence goes well past its direct contributions, with the Oxford Economics study uncovering a multiplier effect that amplifies value throughout South Korea’s broader economy. For every KRW1 billion generated directly by the sector, an additional KRW2.1 billion circulates across consumer spending and supply chains, resulting in a GDP multiplier of 3.1. This ripple effect illustrates how funding for screen production spreads throughout 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 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 employment composition reveals its firmly embedded nature within South Korea’s economy, with nearly 78% of jobs based within micro, small and medium-sized enterprises. These smaller businesses form the foundation for production networks, supporting everything from gear hire and finishing work to promotion and delivery. The information and communication sector accounted for the highest job numbers at 116,500 jobs, reflecting the digitally intensive nature of modern screen production and the technological expertise required across the industry.

• GDP multiplier of 3.1 creates extra KRW2.1 billion per KRW1 billion generated
• Employment multiplier of 3.4 enables 240 extra jobs per 100 direct positions
• KRW7,170 billion in aggregate tax income generated throughout all sectors
• 78% of jobs focused within small and medium-sized businesses

TV Leads the Market, Streaming Emerges as Growth Engine

Television remains the undisputed heavyweight of South Korea’s screen sector, commanding approximately 65% of the industry’s combined GDP 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 conventional broadcast services and the sector’s continuous output of dramas, variety shows and documentaries that attract 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 sustained commitment 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 most dynamic growth opportunity, despite now generating KRW3,500 billion (£2.4 billion) and 32,100 jobs. VOD workers demonstrate exceptional performance, averaging 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 forecast VOD will increase at approximately 7.4% per year through 2028, surpassing both film and television growth rates and positioning streaming as the sector’s most rapidly expanding segment.

Industry Breakdown and Employment Distribution

Film production, generating 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 preserves significant economic value and worldwide recognition, with productions ranging from blockbuster releases to indie productions gaining recognition at prestigious festivals. The diverse mix of television, film and streaming provides financial stability whilst enabling specialist development and creative advancement across diverse formats and distribution channels.

Korean Content Dominates International Markets

South Korea’s screen industry has transcended national borders to become a powerful player in global entertainment markets. The sector’s commercial performance 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 powerhouse, positioning Korean content creators as major rivals to traditional Western production centres. The industry’s ability to blend unique narrative styles with high production values has appealed to international viewers, driving both viewership figures and commercial revenues that extend far beyond South Korea’s borders.

The international reach of Korean screen content keeps growing, supported by the worldwide demand for varied storytelling and creative approaches. Streaming platforms have accelerated this global expansion, enabling Korean productions to connect with worldwide viewers in real time whilst reducing traditional distribution barriers. Major international collaborations and joint ventures have become more frequent, drawing international funding and talent to South Korean studios. This growing interconnectedness reinforces the sector’s financial stability whilst establishing Korea as an indispensable hub within the worldwide entertainment ecosystem. The cascading benefits generated by global interest spread across the production network, generating more jobs and investment opportunities throughout the sector.

• Korean dramas attain unprecedented audience numbers throughout Netflix and global streaming services globally
• Film exports generate substantial foreign exchange earnings whilst enhancing national cultural prestige internationally
• Cross-border collaborations bring overseas funding and specialist knowledge to Korean studios
• Global recognition fuels tourism, merchandise sales and ancillary revenue streams beyond traditional production

Tourism and Cultural Impact

The economic impact of Korean screen content stretches considerably beyond direct industry revenues, generating significant travel and cultural knock-on benefits. International visitors progressively journey to South Korea specifically to experience filming locations, explore themed attractions and engage with Korean popular culture. This “hallyu” or Korean Wave movement has reshaped tourism patterns, with film and television attractions becoming major draws for visitors from across Asia and beyond. The cultural influence wielded by successful productions establishes lasting brand value for South Korea, strengthening the nation’s cultural influence whilst generating significant revenue via tourism spending, hospitality services and branded goods.

The link between screen production and tourism establishes a virtuous economic cycle that enhances the sector’s wider impact to national prosperity. Well-known television programmes and feature films inspire travel from abroad, whilst tourists subsequently consume further Korean cultural goods and services. This development has prompted development of film tourism facilities, encompassing themed parks, display areas and curated tours around renowned production locations. The resulting employment opportunities span accommodation, travel and shopping services, extending the screen industry’s financial reach well beyond standard industry benchmarks and highlighting its transformative influence in the broader Korean economy.

Challenges and What Lies Ahead

Despite the screen sector’s significant financial impact, South Korea’s audiovisual industry confronts growing market pressures from international streaming services and overseas production centres delivering considerable tax advantages. Escalating production expenses, talent retention challenges and the rapid technological evolution of content delivery systems create persistent difficulties to ongoing development. The sector must navigate increasingly complex regulatory environments across various regions whilst adjusting to evolving audience tastes towards diverse content formats. Additionally, the aggregation of capital within major production firms threatens the viability of smaller enterprises that currently account for employment of the vast majority of staff, potentially constraining innovation and creative diversity.

Looking forward, the sector’s path hinges upon targeted capital allocation in emerging technologies and skills training initiatives. Video-on-demand platforms are forecast to drive expansion at approximately 7.4% per year through 2028, far surpassing traditional broadcast and cinema segments. However, achieving this potential requires coordinated efforts to modernise production systems, nurture digital-native talent and strengthen intellectual property protections across international markets. The report’s results underscore the critical importance of proactive policy interventions to ensure South Korea maintains its competitive edge within the rapidly evolving global entertainment landscape whilst protecting the ecosystem supporting smaller production companies.

• Growing competition from international streaming platforms undermines local market position
• Rising production expenses and skilled worker recruitment difficulties pressure smaller production houses
• Rapid technological advancement necessitates ongoing investment in equipment and staff development
• Regulatory complexity across multiple jurisdictions increases compliance burdens considerably
• Market consolidation threaten to reduce artistic diversity and opportunities for independent producers

Government Support and Workforce Development

Government support mechanisms continue to be critical to maintaining the sector’s development momentum and protecting employment across small and micro businesses. South Korea’s policymakers need to emphasise targeted funding for self-employed creators, digital capability development schemes and facility improvements to reinforce the sector’s capacity to withstand against global market pressures. Tax breaks, funding awards and reduced-cost facility provision can support fair competition for smaller companies whilst promoting innovation in emerging formats and technologies that define next-generation entertainment.

Funding for professional development schemes addresses the sector’s critical challenge: attracting and retaining qualified experts across production, technical, and creative fields. University partnerships with higher education institutions, apprenticeship schemes and mentorship initiatives can cultivate the next generation of Korean screen talent whilst supporting creative enterprises. Enhanced support for up-and-coming professionals through incubation programmes and small-scale funding would bolster the ecosystem supporting smaller companies, guaranteeing the sector’s ongoing vitality and cultural importance across international markets.