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 comprehensive economic study commissioned by the Motion Picture Association. The report, prepared by Oxford Economics and presented to legislators and sector representatives at the National Assembly in Seoul, reveals the sector’s substantial contribution to the country’s GDP via production spending, supply chain expenditure and consumer expenditure. Television emerged as the dominant segment, representing 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 critical role in South Korea’s economy and employment landscape.

Strong Economic Engine Producing Significant Gains

The screen industry’s economic impact extends far beyond its direct contributions, with the Oxford Economics study revealing a multiplier effect that amplifies value throughout South Korea’s wider economic landscape. For every KRW1 billion generated directly by the sector, an additional KRW2.1 billion flows through supply chains and consumer spending, producing a GDP multiplier of 3.1. This ripple effect illustrates how funding for screen production reverberates across multiple industries, from transport and hospitality to retail and professional services. The employment multiplier of 3.4 additionally demonstrates this phenomenon, with each 100 direct jobs supporting 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 smaller businesses form the backbone of production networks, supporting everything from gear hire and post-production services 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 technological expertise required across the industry.

• GDP multiplier of 3.1 generates extra KRW2.1 billion per KRW1 billion created
• Employment multiplier of 3.4 sustains 240 extra jobs per 100 direct positions
• KRW7,170 billion in aggregate tax income created across all segments
• 78% of jobs concentrated in small and medium-sized businesses

Television Dominates, Streaming Becomes 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 reflects 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 growth of online streaming services, television’s deep roots in South Korean culture and its sustained commitment in premium programming ensure its position as the sector’s primary economic driver and biggest source of employment.

However, video-on-demand services form the sector’s fastest-growing growth opportunity, despite currently contributing KRW3,500 billion (£2.4 billion) and 32,100 jobs. VOD workers exhibit exceptional output, averaging KRW437 million (£297,000) in gross domestic product contribution per head—roughly 5x the national average—signalling the premium nature of streaming production. Projections suggest 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.

Sectoral Breakdown and Workforce Distribution

Film production, contributing 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 maintains considerable economic significance and global standing, with productions extending across major commercial films to indie productions achieving recognition at major festival events. The balanced portfolio of television, film and streaming supports economic robustness whilst enabling focused expertise and creative growth across diverse formats and delivery platforms.

Korean Content Captures Worldwide Audiences

South Korea’s screen industry has transcended domestic boundaries to become a powerful player in international entertainment sectors. The sector’s economic success is intrinsically linked to its international reach, with Korean dramas, films and streaming shows capturing audiences across Asia, Europe and North America. This international growth has transformed the nation into a cultural force, 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 audience numbers and commercial revenues that reach well outside South Korea’s borders.

The export potential of Korean screen content keeps growing, driven by the worldwide demand for diverse narratives and innovative formats. Digital distribution services have accelerated this global expansion, enabling Korean productions to connect with worldwide viewers in real time whilst reducing traditional market obstacles. Major international collaborations and co-productions have become more frequent, drawing foreign investment and talent to South Korean studios. This growing interconnectedness reinforces the sector’s economic resilience whilst positioning Korea as an indispensable hub within the global entertainment landscape. The cascading benefits generated by international demand ripple throughout the supply chain, creating more jobs and funding prospects throughout the sector.

• Korean dramas achieve unprecedented audience numbers across Netflix and global streaming services worldwide
• Film exports generate substantial foreign exchange earnings whilst boosting national cultural prestige on the world stage
• International co-productions draw in foreign investment capital and specialist knowledge to Korean studios
• Worldwide acclaim drives visitor numbers, branded products and additional income sources outside of traditional production

Travel and Cultural Influence

The financial effects of Korean screen content stretches considerably past immediate sector earnings, generating substantial tourism and cultural knock-on benefits. Overseas tourists progressively journey to South Korea deliberately to explore filming locations, visit branded venues and engage with Korean popular culture. This “hallyu” or Korean Wave phenomenon has reshaped travel trends, with film and television attractions emerging as major draws for visitors from across Asia and beyond. The cultural sway exerted by successful productions establishes enduring brand equity for South Korea, strengthening the nation’s soft power whilst generating significant revenue through tourism spending, hospitality services and cultural merchandise.

The relationship between screen production and tourism generates a beneficial cycle of growth that enhances the sector’s wider impact to the nation’s economic wellbeing. Well-known television programmes and feature films inspire overseas tourism, whilst tourists go on to buy further Korean cultural goods and services. This trend has led to funding for screen-related tourist amenities, including entertainment parks, exhibition spaces and guided tours of iconic filming locations. The generated job prospects span the hospitality, transport and retail industries, stretching the screen industry’s economic impact far more than standard industry benchmarks and highlighting its driving force in Korea’s wider 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 international production hubs offering substantial tax incentives. Rising production costs, difficulties retaining skilled personnel and the rapid technological evolution of content delivery systems present ongoing obstacles to continued expansion. The sector must manage progressively complicated regulatory landscapes across numerous jurisdictions whilst responding to changing viewer preferences towards diverse content formats. Additionally, the clustering of investment within major production firms jeopardises the sustainability of smaller enterprises that currently account for employment of the vast majority of staff, possibly limiting creative development and artistic variety.

Looking ahead, the sector’s direction hinges upon strategic investment in emerging technologies and talent development programmes. Video-on-demand platforms are forecast to drive expansion at approximately 7.4% per year through 2028, substantially outpacing traditional TV and film segments. However, unlocking this potential requires coordinated efforts to modernise production systems, develop tech-savvy creators and bolster intellectual property protections across international markets. The report’s conclusions underscore the pressing need of anticipatory government action to ensure South Korea maintains its competitive edge within the rapidly evolving global entertainment landscape whilst safeguarding the ecosystem enabling smaller production companies.

• Growing rivalry with international streaming platforms undermines local market position
• Increasing filming budgets and skilled worker recruitment difficulties pressure independent producers
• Rapid technological advancement requires ongoing investment in equipment and training
• Regulatory complexity across different regions amplifies compliance demands considerably
• Market consolidation risk limit creative variety and independent production opportunities

Government Support and Workforce Development

Government support mechanisms remain critical to supporting the sector’s growth trajectory and safeguarding employment across smaller independent companies. South Korea’s policymakers must prioritise directed financial support for self-employed creators, technology training initiatives and facility improvements to reinforce the sector’s ability to endure 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.

Funding for talent development programmes tackles the sector’s most pressing challenge: drawing and maintaining skilled professionals across production, technical and creative disciplines. Academic collaborations with universities, apprenticeship programmes and coaching schemes can develop the next generation of Korean film and television professionals whilst promoting business start-ups. Greater investment for up-and-coming professionals through incubation programmes and small-scale funding would reinforce the ecosystem supporting independent producers, securing the sector’s ongoing vitality and cultural importance across international markets.