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

South Korea’s screen industry produced £12.4 billion in financial contribution during 2025 and supported approximately 300,000 jobs, based on a comprehensive economic study undertaken for the Motion Picture Association. The report, produced by Oxford Economics and presented to legislators and industry leaders at the National Assembly in Seoul, demonstrates the sector’s significant impact to the country’s GDP through production spending, supply-chain spending and consumer spending. Television emerged as the dominant segment, representing roughly 65% of the industry’s total output, whilst the video-on-demand sector demonstrated the highest productivity per worker. The findings underscore the screen industry’s critical role in South Korea’s economic and employment landscape.

Financial Heavyweight Generating Impressive Results

The screen industry’s economic impact extends far beyond its direct contributions, with the Oxford Economics study revealing a multiplication factor that increases value throughout South Korea’s wider economic landscape. For every KRW1 billion generated directly by the sector, an further KRW2.1 billion circulates across consumer spending and supply chains, producing a GDP multiplier of 3.1. This cascading impact demonstrates how funding for screen production spreads throughout various sectors, 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 further 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 workforce structure reveals its firmly embedded nature within South Korea’s economy, with approximately 78% of jobs concentrated in micro, small and medium-sized enterprises. These compact firms form the backbone of 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 digitally intensive nature of contemporary audiovisual work and the technical knowledge required across the industry.

• GDP multiplier of 3.1 creates additional KRW2.1 billion per KRW1 billion created
• Employment multiplier of 3.4 sustains 240 extra jobs per 100 direct positions
• KRW7,170 billion in total tax revenues created throughout all sectors
• 78% of jobs located in SMEs and micro-businesses

TV Leads the Market, Streaming Emerges as Key Driver

Television remains the undisputed heavyweight of South Korea’s visual media industry, controlling 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, variety shows and documentaries that command significant domestic and international audiences. Despite the rise of digital platforms, television’s deep roots in South Korean culture and its sustained commitment in premium programming ensure its role as the sector’s primary economic driver and largest employer.

However, video-on-demand services represent 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, averaging KRW437 million (£297,000) in economic value creation per head—roughly 5x the national average—signalling the high-value nature of streaming production. Projections indicate VOD will expand at approximately 7.4% annually through 2028, surpassing both film and television growth rates and placing streaming as the sector’s most rapidly expanding segment.

Industry Breakdown and Employment Allocation

Film production, generating KRW4,960 billion (£3.4 billion) and supporting 77,800 jobs, occupies the sector’s central position. Whilst smaller than television, South Korea’s film industry maintains considerable economic significance and global standing, with productions extending across major commercial films to smaller-scale films gaining recognition at renowned film festivals. The well-rounded combination of television, film and streaming supports economic robustness whilst facilitating specialist development and creative advancement across different content formats and delivery platforms.

Korean Content Sweeps Worldwide Audiences

South Korea’s screen industry has gone beyond domestic boundaries to become a formidable force in international entertainment sectors. The sector’s economic success is fundamentally connected with its international reach, with Korean dramas, films and streaming shows capturing audiences across Asia, Europe and North America. This international growth has established the country as a cultural force, establishing Korean content creators as major rivals to established Western production hubs. The industry’s capacity for combining distinctive storytelling with high production values has resonated with global audiences, boosting both viewership figures and box office returns that extend far beyond South Korea’s borders.

The international reach of Korean screen content keeps growing, supported by the global appetite for diverse narratives and creative approaches. Digital distribution services have accelerated this internationalisation, allowing Korean productions to reach global audiences instantaneously whilst minimising traditional market obstacles. Major international collaborations and co-productions have become increasingly common, attracting international funding and talent to South Korean studios. This expanding integration strengthens the sector’s financial stability whilst positioning Korea as an essential centre within the global entertainment landscape. The multiplier effects created by international demand spread across the supply chain, generating more jobs and funding prospects throughout the sector.

• Korean dramas attain unprecedented audience numbers across Netflix and global streaming services worldwide
• Film exports produce significant revenue from overseas markets whilst enhancing Korea’s cultural standing internationally
• Cross-border collaborations bring foreign investment capital and specialist knowledge to Korean studios
• Global recognition drives visitor numbers, branded products and additional income sources beyond traditional production

Tourism and Heritage Influence

The economic impact of Korean screen content extends considerably beyond immediate sector earnings, creating substantial travel and cultural knock-on benefits. International visitors increasingly travel to South Korea specifically to explore filming locations, explore branded venues and immerse themselves in Korean popular culture. This “Korean cultural phenomenon” or Korean Wave movement has transformed travel trends, with film and television attractions emerging as significant attractions for tourists from throughout Asia and further afield. The cultural influence exerted by acclaimed content establishes enduring brand equity for South Korea, enhancing the nation’s cultural influence whilst producing significant revenue via tourism spending, hospitality services and cultural merchandise.

The relationship between film and television production and tourism creates a positive economic loop that strengthens the sector’s wider impact to the nation’s economic wellbeing. Popular television series and films drive overseas tourism, whilst travellers go on to buy additional Korean cultural products and services. This development has spurred investment in screen tourism infrastructure, encompassing entertainment parks, exhibition spaces and curated tours around renowned production locations. The generated job prospects span hospitality, transportation and retail sectors, extending the screen industry’s economic impact far more than conventional production measures and showcasing its driving force in South Korea’s economic landscape.

Obstacles and Prospects Ahead

Despite the screen sector’s significant financial impact, South Korea’s audiovisual industry confronts growing market pressures from international streaming services and international production hubs providing significant tax benefits. Increasing production outlays, difficulties retaining skilled personnel and the rapid technological evolution of content distribution platforms pose continuous challenges to sustained growth. The sector must manage progressively complicated regulatory landscapes across various regions whilst responding to changing viewer preferences towards varied content types. Additionally, the concentration of resources within bigger production enterprises undermines the long-term prospects of smaller enterprises that currently employ over three-quarters of the workforce, risking reduced innovation 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 projected to drive growth at approximately 7.4% per year through 2028, far surpassing traditional broadcast and cinema segments. However, realising this potential requires coordinated efforts to enhance production facilities, nurture tech-savvy creators and bolster intellectual property protections across overseas markets. The report’s results underscore the pressing need of forward-looking regulatory measures to ensure South Korea maintains its competitive advantage within the fast-changing global entertainment landscape whilst safeguarding the ecosystem enabling smaller production companies.

• Escalating rivalry with international streaming platforms undermines local market position
• Increasing production expenses and talent acquisition difficulties pressure smaller production companies
• Rapid tech evolution requires sustained spending in equipment and staff development
• Compliance complexity across different regions increases compliance demands substantially
• Market consolidation threaten to limit creative variety and independent production prospects

State Backing and Skills Enhancement

Government assistance programmes remain critical to supporting the sector’s growth trajectory and protecting employment across small and micro businesses. South Korea’s policymakers should focus on directed financial support for standalone production companies, digital capability development schemes and facility improvements to enhance the sector’s capacity to withstand against global market pressures. Tax relief measures, financial grants and affordable infrastructure access can support fair competition for smaller companies whilst fostering innovation in new technologies and formats that shape next-generation entertainment.

Support of professional development schemes tackles the sector’s most pressing challenge: drawing and maintaining qualified experts across production, technical, and creative fields. University partnerships with universities, apprenticeship schemes and mentoring programmes can nurture the future generation of Korean screen talent whilst promoting business start-ups. Increased funding for emerging creators through business incubators and accessible finance solutions would reinforce the landscape supporting smaller enterprises, securing the sector’s ongoing vitality and cultural relevance internationally.