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

South Korea’s entertainment industry generated £12.4 billion in financial contribution during 2025 and sustained nearly 300,000 jobs, according to a comprehensive economic study undertaken for the Motion Picture Association. The report, produced by Oxford Economics and presented to legislators and sector representatives at the National Assembly in Seoul, demonstrates the sector’s significant impact to the country’s GDP through production spending, supply chain expenditure and consumer expenditure. Television proved to be the dominant segment, accounting for 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 economy and employment landscape.

Financial Heavyweight Delivering Substantial Returns

The screen industry’s economic impact extends far beyond 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 generated directly by the sector, an further KRW2.1 billion flows through consumer spending and supply chains, resulting in a GDP multiplier of 3.1. This cascading impact demonstrates how investment in screen production spreads throughout multiple industries, from transport and hospitality to professional services and retail. The employment multiplier of 3.4 further illustrates this phenomenon, 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 compact firms form the backbone of production networks, supporting everything from equipment rental and finishing work to marketing and distribution. The information and communication sector accounted for the highest job numbers 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 supports 240 additional jobs per 100 primary positions
• KRW7,170 billion in total tax revenues generated among all divisions
• 78% of jobs concentrated in micro, small and medium-sized enterprises

TV Leads the Market, Streaming Becomes Growth Engine

Television continues to be 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 supporting 181,200 jobs. The television’s market dominance reflects both the established infrastructure 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 rise of digital platforms, television’s deep roots in South Korean culture and its sustained commitment in high-quality content ensure its role as the sector’s primary economic driver and largest employer.

However, video-on-demand services represent the sector’s most vibrant growth opportunity, despite currently contributing 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, outpacing both film and television growth rates and positioning streaming as the sector’s most rapidly expanding segment.

Industry Breakdown and Employment Allocation

Film production, accounting for KRW4,960 billion (£3.4 billion) and sustaining 77,800 jobs, represents the sector’s central position. Whilst not as large as television, South Korea’s film industry upholds substantial financial importance and global standing, with productions spanning high-budget productions to independent features achieving recognition at prestigious festivals. The balanced portfolio of television, film and streaming ensures economic resilience whilst facilitating specialist development and creative advancement across different content formats and distribution methods.

Korean Content Captures Worldwide Audiences

South Korea’s screen industry has gone beyond national borders to become a powerful player in global entertainment markets. The sector’s economic success is intrinsically linked to its international reach, with Korean dramas, films and streaming shows engaging viewers across Asia, Europe and the Americas. This global expansion has established the country as a cultural force, establishing Korean content creators as serious competitors to established Western production hubs. The industry’s ability to blend unique narrative styles with strong production quality has appealed to international viewers, driving both viewership figures and commercial revenues that reach well outside South Korea’s borders.

The export potential of Korean screen content keeps growing, driven by the global appetite for diverse narratives and creative approaches. Streaming platforms have accelerated this global expansion, allowing Korean productions to reach global audiences in real time whilst minimising traditional market obstacles. Significant cross-border partnerships and co-productions have become increasingly common, attracting international funding and talent to South Korean studios. This growing interconnectedness reinforces the sector’s economic resilience whilst positioning Korea as an essential centre within the worldwide entertainment ecosystem. The multiplier effects created by international demand ripple throughout the supply chain, creating more jobs and investment opportunities across the entire industry.

• Korean dramas reach record viewership figures across Netflix and international streaming platforms globally
• Film exports deliver substantial foreign exchange earnings whilst boosting Korea’s cultural standing internationally
• Cross-border collaborations draw in foreign investment capital and technical expertise to Korean studios
• Global recognition stimulates tourism, merchandise sales and ancillary revenue streams beyond traditional production

Travel and Cultural Influence

The financial effects of Korean screen content stretches considerably past direct industry revenues, generating substantial travel and cultural spillover effects. Overseas tourists progressively journey to South Korea specifically to explore production sites, visit themed attractions and immerse themselves in Korean popular culture. This “Korean cultural phenomenon” or Korean Wave phenomenon has reshaped travel trends, with film and television attractions becoming significant attractions for visitors from throughout Asia and further afield. The cultural sway exerted by successful productions establishes lasting brand value for South Korea, strengthening the nation’s cultural influence whilst producing substantial income via tourism spending, hospitality services and cultural merchandise.

The link between film and television production and tourism creates a beneficial cycle of growth that amplifies the sector’s extended role to the nation’s economic wellbeing. Well-known television programmes and feature films inspire overseas tourism, whilst visitors subsequently consume more Korean cultural offerings. This development has prompted investment in screen-related tourist amenities, including entertainment parks, display areas and guided tours of iconic filming locations. The resulting employment opportunities span accommodation, travel and shopping services, extending the screen industry’s economic impact well beyond conventional production measures and demonstrating its driving force in Korea’s wider economy.

Challenges and Future Outlook

Despite the screen sector’s impressive economic contribution, South Korea’s audiovisual industry encounters intensifying competitive challenges from global streaming platforms and global production facilities delivering considerable tax advantages. Escalating production expenses, challenges in keeping talented staff and the rapid technological evolution of content distribution platforms present ongoing obstacles to sustained growth. The sector must contend with more intricate regulatory frameworks across various regions whilst responding to changing viewer preferences towards diverse content formats. 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 strategic investment in emerging technologies and workforce development initiatives. Video-on-demand platforms are expected to drive expansion at approximately 7.4% annually through 2028, far surpassing traditional broadcast and cinema segments. However, achieving this potential requires coordinated efforts to modernise production facilities, cultivate tech-savvy creators and strengthen intellectual property protections across international markets. The report’s findings underscore the critical importance of anticipatory government action to ensure South Korea maintains its market leadership within the rapidly evolving global entertainment landscape whilst safeguarding the ecosystem supporting smaller production companies.

• Growing rivalry with international streaming platforms jeopardises home market presence
• Climbing production costs and talent acquisition obstacles pressure independent producers
• Rapid technological advancement demands ongoing investment in equipment and staff development
• Regulatory challenges across multiple jurisdictions heightens regulatory obligations significantly
• Market consolidation stand to diminish creative variety and opportunities for independent producers

State Backing and Talent Development

Government support mechanisms continue to be critical to sustaining the sector’s development momentum and protecting employment across small and micro businesses. South Korea’s policymakers must prioritise targeted funding for independent producers, digital capability development schemes and infrastructure development to reinforce the sector’s ability to endure against overseas competitors. Tax breaks, funding awards and affordable infrastructure access can create equal opportunities for smaller companies whilst encouraging innovation in new technologies and formats that shape next-generation entertainment.

Funding for skills training initiatives tackles the sector’s biggest challenge: attracting and retaining experienced practitioners across production, technical, and creative fields. University partnerships with higher education institutions, vocational training schemes and mentorship initiatives can cultivate the next generation of Korean film and television professionals whilst supporting creative enterprises. Increased funding for up-and-coming professionals through business incubators and accessible finance solutions would bolster the infrastructure backing independent producers, guaranteeing the sector’s ongoing vitality and creative significance on the global stage.