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

South Korea’s screen 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 delivered to legislators and sector representatives at the National Assembly in Seoul, demonstrates the sector’s substantial contribution to the country’s GDP via production spending, supply-chain spending and consumer spending. Television proved to be the leading sector, accounting for roughly 65% of the industry’s total output, whilst the streaming sector showed 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 Delivering Significant Gains

The screen industry’s economic impact extends far beyond its direct contributions, with the Oxford Economics study uncovering a multiplication factor that increases value throughout South Korea’s broader economy. For every KRW1 billion produced directly by the sector, an further 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 various sectors, from hospitality and transport to retail and professional services. The employment multiplier of 3.4 further illustrates this phenomenon, with each 100 direct jobs sustaining an additional 240 positions elsewhere in 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 small and micro businesses. These smaller businesses form the foundation for production networks, supporting everything from gear hire and finishing work to marketing and distribution. The digital and technology 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 generates additional KRW2.1 billion per KRW1 billion produced
• Employment multiplier of 3.4 supports 240 extra jobs per 100 direct positions
• KRW7,170 billion in aggregate tax income generated among all divisions
• 78% of jobs located in 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, 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 television’s market dominance demonstrates both the established infrastructure of conventional broadcast services and the sector’s ongoing production 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 continued investment in high-quality content guarantee its role as the sector’s main economic engine and largest employer.

However, video-on-demand services represent the sector’s fastest-growing growth opportunity, despite now generating KRW3,500 billion (£2.4 billion) and 32,100 jobs. VOD workers demonstrate exceptional output, generating KRW437 million (£297,000) in economic value creation per head—roughly five times the national average—signalling the substantial nature of streaming production. Projections forecast VOD will increase 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 Distribution

Film production, generating KRW4,960 billion (£3.4 billion) and supporting 77,800 jobs, occupies the sector’s middle ground. Whilst smaller than television, South Korea’s film industry maintains considerable economic significance and global standing, with productions ranging from high-budget productions to smaller-scale films achieving recognition at renowned film festivals. The diverse mix of television, film and streaming ensures economic resilience whilst allowing for focused expertise and creative growth across different content formats and distribution methods.

Korean Content Sweeps International Markets

South Korea’s screen industry has transcended domestic boundaries to become a formidable force in international entertainment sectors. The sector’s commercial performance is fundamentally connected with its global presence, 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 powerhouse, establishing 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 resonated with international viewers, boosting both audience numbers and commercial revenues that reach well outside South Korea’s borders.

The international reach of Korean screen content keeps growing, driven by the global appetite for varied storytelling and creative approaches. Streaming platforms have expedited this internationalisation, allowing Korean productions to reach global audiences instantaneously whilst reducing traditional market obstacles. Major international collaborations and joint ventures have become more frequent, attracting foreign investment and talent to South Korean studios. This expanding integration strengthens the sector’s financial stability whilst establishing Korea as an essential centre within the worldwide entertainment ecosystem. The multiplier effects generated by global interest ripple throughout the production network, creating additional employment and investment opportunities across the entire industry.

• Korean dramas attain record viewership figures throughout Netflix and global streaming services worldwide
• Film exports produce substantial foreign exchange earnings whilst boosting Korea’s cultural standing on the world stage
• International co-productions bring overseas funding and technical expertise to Korean studios
• Global recognition fuels tourism, merchandise sales and ancillary revenue streams outside of traditional production

Tourism and Heritage Impact

The economic impact of Korean screen content extends considerably past direct industry revenues, generating substantial travel and cultural knock-on benefits. Overseas tourists increasingly travel to South Korea deliberately to explore filming locations, visit themed attractions and immerse themselves in Korean cultural products. This “hallyu” or Korean Wave phenomenon has transformed travel trends, with screen-related attractions becoming major draws for visitors from throughout Asia and further afield. The cultural influence exerted by acclaimed content creates lasting brand value for South Korea, enhancing the nation’s soft power whilst producing significant revenue via tourism spending, hospitality services and cultural merchandise.

The relationship between film and television production and tourism generates a beneficial cycle of growth that enhances the sector’s extended role to national prosperity. Successful TV shows and movies drive travel from abroad, whilst tourists then purchase additional Korean cultural products and services. This trend has led to funding for screen-related tourist amenities, such as dedicated attractions, visitor centres and curated tours around renowned production locations. The resulting employment opportunities span accommodation, travel and shopping services, pushing the screen industry’s financial reach far more than standard industry benchmarks and highlighting its catalytic role in the broader Korean economy.

Obstacles and Prospects Ahead

Despite the screen sector’s considerable economic value, South Korea’s audiovisual industry encounters intensifying competitive challenges from worldwide streaming providers and overseas production centres offering substantial tax incentives. Rising production costs, challenges in keeping talented staff and the swift technological advancement of content delivery systems pose continuous challenges to continued expansion. The sector must manage progressively complicated regulatory landscapes across numerous jurisdictions whilst responding to changing viewer preferences towards different content styles. Additionally, the aggregation of capital within major production firms jeopardises the sustainability of independent producers that currently account for employment of the vast majority of staff, potentially constraining innovation and creative range.

Looking forward, the sector’s path hinges upon targeted capital allocation in emerging technologies and workforce development initiatives. Video-on-demand platforms are forecast to drive growth at approximately 7.4% annually through 2028, substantially outpacing traditional TV and film segments. However, unlocking this potential requires coordinated efforts to upgrade production infrastructure, develop digital-native talent and bolster intellectual property protections across overseas markets. 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 safeguarding the ecosystem sustaining smaller production companies.

• Growing competition from international streaming platforms threatens home market presence
• Rising production expenses and talent recruitment obstacles burden smaller production companies
• Rapid tech evolution necessitates ongoing investment in equipment and staff development
• Compliance complexity in multiple territories increases regulatory obligations significantly
• Market consolidation threaten to limit artistic diversity and opportunities for independent producers

Government Support and Workforce Development

Government funding initiatives continue to be critical to sustaining the sector’s growth trajectory and protecting employment across smaller independent companies. South Korea’s policymakers need to emphasise directed financial support for self-employed creators, digital capability development schemes and infrastructure development to strengthen the sector’s capacity to withstand against global market pressures. Tax incentives, production grants and affordable infrastructure access can create equal opportunities for smaller companies whilst fostering innovation in emerging formats and technologies that characterise next-generation entertainment.

Funding for professional development schemes tackles the sector’s biggest challenge: recruiting and keeping skilled professionals across production, technical, and creative fields. Academic collaborations with higher education institutions, apprenticeship schemes and mentorship initiatives can develop the future generation of Korean screen talent whilst supporting creative enterprises. Increased funding for up-and-coming professionals through business incubators and small-scale funding would bolster the infrastructure backing smaller enterprises, securing the sector’s ongoing vitality and cultural importance internationally.