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

South Korea’s entertainment industry produced £12.4 billion in financial contribution during 2025 and supported nearly 300,000 jobs, based on a detailed economic analysis commissioned by the Motion Picture Association. The report, produced by Oxford Economics and delivered to legislators and sector representatives at the National Assembly in Seoul, demonstrates the sector’s significant impact to the country’s GDP via direct production activity, supply-chain spending 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 showed the highest productivity per worker. The findings highlight the screen industry’s vital importance in South Korea’s economic and employment landscape.

Financial Heavyweight Delivering Significant Gains

The screen industry’s financial influence goes well past its immediate outputs, with the Oxford Economics study revealing a multiplication factor that increases value throughout South Korea’s wider economic landscape. For every KRW1 billion produced directly by the sector, an further KRW2.1 billion flows through supply chains and consumer spending, resulting in a GDP multiplier of 3.1. This cascading impact illustrates how funding for screen production reverberates across various sectors, 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 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 based within micro, small and medium-sized enterprises. These compact firms form the foundation for production networks, supporting everything from equipment rental and post-production services to promotion and delivery. The information and communication 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 generated
• Employment multiplier of 3.4 enables 240 extra jobs per 100 primary positions
• KRW7,170 billion in total tax revenues generated throughout all sectors
• 78% of jobs focused within micro, small and medium-sized enterprises

Television Dominates, Streaming Emerges as Growth Engine

Television continues to be the undisputed heavyweight of South Korea’s visual media industry, 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 dominance of television reflects both the existing framework of traditional broadcasting and the sector’s ongoing production of dramas, variety shows and documentaries that attract significant domestic and international audiences. Despite the growth of online streaming services, television’s deep roots in South Korean culture and its continued investment in high-quality content ensure its position as the sector’s main economic engine and biggest source of employment.

However, video-on-demand services constitute the sector’s fastest-growing growth opportunity, despite presently accounting for KRW3,500 billion (£2.4 billion) and 32,100 jobs. VOD workers exhibit exceptional performance, generating KRW437 million (£297,000) in economic value creation per head—roughly 5x the national average—signalling the substantial nature of streaming production. Projections forecast VOD will expand at approximately 7.4% per year through 2028, outpacing both film and television growth rates and placing streaming as the sector’s quickest-growing segment.

Sector Breakdown and Employment Distribution

Film production, accounting for KRW4,960 billion (£3.4 billion) and sustaining 77,800 jobs, holds the sector’s middle ground. Whilst smaller than television, South Korea’s film industry upholds considerable economic significance and worldwide recognition, with productions ranging from high-budget productions to independent features gaining recognition at prestigious festivals. The diverse mix of television, film and streaming supports economic robustness whilst facilitating specialist development and creative advancement across various content types and distribution channels.

Korean Content Captures Worldwide Audiences

South Korea’s screen industry has surpassed national borders to become a powerful player 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 transformed the nation into a cultural force, positioning Korean production companies as serious competitors to traditional Western production centres. The industry’s capacity for combining distinctive storytelling with strong production quality has resonated with international viewers, driving both viewership figures and box office returns that reach well outside South Korea’s borders.

The export potential of Korean screen content keeps growing, bolstered by the worldwide demand for diverse narratives and creative approaches. Digital distribution services have accelerated this global expansion, allowing Korean productions to connect with worldwide viewers instantaneously whilst minimising traditional distribution barriers. Major international collaborations and joint ventures have become more frequent, drawing foreign investment and talent to South Korean studios. This expanding integration strengthens the sector’s financial stability whilst positioning Korea as an indispensable hub within the worldwide entertainment ecosystem. The cascading benefits created by international demand ripple throughout the supply chain, creating more jobs and funding prospects across the entire industry.

• Korean dramas reach unprecedented audience numbers throughout Netflix and international streaming platforms globally
• Film exports deliver significant revenue from overseas markets whilst enhancing national cultural prestige internationally
• International co-productions bring overseas funding and technical expertise to Korean studios
• Global recognition fuels tourism, merchandise sales and ancillary revenue streams beyond traditional production

Tourism and Cultural Impact

The financial effects of Korean screen content extends considerably beyond immediate sector earnings, creating significant travel and cultural spillover effects. International visitors progressively journey to South Korea specifically to experience production sites, visit branded venues and immerse themselves in Korean popular culture. This “hallyu” or Korean Wave phenomenon has reshaped tourism patterns, with screen-related attractions becoming significant attractions for visitors from across Asia and beyond. The cultural sway wielded by successful productions establishes enduring brand equity for South Korea, strengthening the nation’s cultural influence whilst producing substantial income via tourism spending, accommodation and dining and cultural merchandise.

The interconnection between screen production and tourism establishes a virtuous economic cycle that amplifies the sector’s extended role to the nation’s economic wellbeing. Successful TV shows and movies encourage travel from abroad, whilst tourists subsequently consume additional Korean cultural products and services. This trend has led to development of screen-related tourist amenities, including themed parks, display areas and curated tours around renowned production locations. The resulting employment opportunities extend across the hospitality, transport and retail industries, extending the screen industry’s economic impact well beyond conventional production measures and showcasing 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 international streaming services and overseas production centres delivering considerable tax advantages. Escalating production expenses, talent retention challenges and the accelerating technological change of content delivery systems present ongoing obstacles to sustained growth. The sector must manage progressively complicated regulatory landscapes across numerous jurisdictions whilst responding to changing viewer preferences towards diverse content formats. Additionally, the concentration of resources within bigger production enterprises jeopardises the sustainability of independent producers that currently account for employment of the vast majority of staff, possibly limiting creative development and creative range.

Looking forward, the sector’s path hinges upon deliberate funding in cutting-edge innovations and talent development programmes. 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 collaborative action to modernise production systems, cultivate digital-native talent 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 protecting the ecosystem sustaining smaller production companies.

• Growing rivalry with international streaming platforms jeopardises local market position
• Rising production costs and talent recruitment difficulties pressure independent producers
• Swift technological advancement necessitates continuous investment in tools and professional development
• Regulatory complexity in multiple territories increases compliance demands significantly
• Industry consolidation risk reduce artistic diversity and opportunities for independent producers

State Backing and Talent Development

Government support mechanisms remain critical to supporting the sector’s development momentum and safeguarding employment across small and micro businesses. South Korea’s policymakers should focus on directed financial support for independent producers, technology training initiatives and infrastructure investment to reinforce the sector’s resilience against overseas competitors. Tax incentives, financial grants and affordable infrastructure access can support fair competition for smaller businesses whilst encouraging innovation in emerging formats and technologies 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. Educational partnerships with higher education institutions, apprenticeship programmes and mentorship initiatives can develop the future generation of Korean film and television professionals whilst fostering entrepreneurial ventures. Greater investment for up-and-coming professionals through incubation programmes and accessible finance solutions would reinforce the landscape supporting independent producers, securing the sector’s continued dynamism and cultural importance across international markets.