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, based on a comprehensive economic study commissioned by the Motion Picture Association. The report, prepared by Oxford Economics and delivered to legislators and industry leaders 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 emerged as the leading sector, representing roughly 65% of the industry’s total 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.

Economic Powerhouse Producing Impressive Results

The screen industry’s economic impact goes well past its direct contributions, with the Oxford Economics study revealing a multiplication factor that amplifies value throughout South Korea’s broader economy. For every KRW1 billion generated 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 multiple industries, from hospitality and transport to professional services and retail. The employment multiplier of 3.4 additionally demonstrates this effect, 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 micro, small and medium-sized enterprises. These smaller businesses form the backbone of production networks, supporting everything from equipment rental and finishing work to promotion and delivery. 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 technical knowledge required across the industry.

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

Television Dominates, Streaming Becomes Key Driver

Television continues to be 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 supporting 181,200 jobs. The television’s market dominance reflects both the existing framework of conventional broadcast services and the sector’s ongoing production of dramas, variety shows and documentaries that command 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 premium programming guarantee its position as the sector’s main economic engine and largest employer.

However, video-on-demand services form the sector’s most dynamic growth opportunity, despite presently accounting for KRW3,500 billion (£2.4 billion) and 32,100 jobs. VOD workers exhibit exceptional performance, delivering KRW437 million (£297,000) in economic value creation per head—roughly 5x the national average—signalling the premium nature of streaming production. Projections forecast VOD will increase at approximately 7.4% per year through 2028, surpassing both film and television growth rates and positioning 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, occupies the sector’s intermediate tier. Whilst smaller than television, South Korea’s film industry maintains significant economic value and international prestige, with productions spanning major commercial films to smaller-scale films gaining recognition at renowned film festivals. The balanced portfolio of television, film and streaming ensures economic resilience whilst enabling focused expertise and creative growth across diverse formats and delivery platforms.

Korean Content Dominates International Markets

South Korea’s screen industry has gone beyond national borders to become a powerful player in international entertainment sectors. The sector’s economic success is intrinsically linked to its global presence, with Korean dramas, films and streaming shows capturing audiences across Asia, Europe and North America. This global expansion has established the country as a cultural powerhouse, positioning Korean production companies as serious competitors to established Western production hubs. The industry’s capacity for combining distinctive storytelling with strong production quality has appealed to global audiences, boosting both viewership figures and box office returns that reach well outside South Korea’s borders.

The international reach of Korean screen content keeps growing, supported by the worldwide demand for diverse narratives and creative approaches. Streaming platforms have accelerated this internationalisation, allowing Korean productions to reach global audiences instantaneously whilst reducing 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 establishing Korea as an indispensable hub within the worldwide entertainment ecosystem. The cascading benefits generated by global interest spread across the production network, creating more jobs and funding prospects throughout the sector.

• Korean dramas reach record viewership figures across Netflix and international streaming platforms worldwide
• Film exports deliver significant revenue from overseas markets whilst enhancing national cultural prestige on the world stage
• International co-productions attract foreign investment capital and technical expertise to Korean studios
• Global recognition fuels visitor numbers, branded products and additional income sources outside of traditional production

Tourism and Heritage Impact

The economic impact of Korean screen content stretches considerably beyond immediate sector earnings, creating significant travel and cultural spillover effects. Overseas tourists increasingly travel to South Korea specifically to explore production sites, explore themed attractions and immerse themselves in Korean cultural products. This “Korean cultural phenomenon” or Korean Wave movement has transformed tourism patterns, with screen-related attractions becoming major draws for visitors from across Asia and beyond. The cultural influence exerted by acclaimed content establishes lasting brand value for South Korea, enhancing the nation’s soft power whilst generating substantial income via visitor expenditure, accommodation and dining and branded goods.

The interconnection between screen production and tourism creates a virtuous economic cycle that strengthens the sector’s extended role to the nation’s economic wellbeing. Successful TV shows and movies encourage overseas tourism, whilst visitors then purchase more Korean cultural offerings. This development has spurred funding for screen tourism infrastructure, such as themed parks, display areas and organised visits to famous filming sites. The created employment positions span accommodation, travel and shopping services, stretching the screen industry’s economic impact far more than conventional production measures and demonstrating its driving force in South Korea’s economic landscape.

Challenges and Future Outlook

Despite the screen sector’s significant financial impact, South Korea’s audiovisual industry faces mounting competitive pressures from international streaming services and global production facilities delivering considerable tax advantages. Escalating production expenses, talent retention challenges and the rapid technological evolution of content delivery systems create persistent difficulties to sustained growth. The sector must contend with more intricate regulatory frameworks across multiple territories whilst adjusting to evolving audience tastes towards varied content types. Additionally, the clustering of investment within bigger production enterprises undermines the long-term prospects of smaller enterprises that currently account for employment of the vast majority of staff, potentially constraining innovation and creative diversity.

Looking ahead, the sector’s path hinges upon targeted capital allocation in emerging technologies and talent development programmes. Video-on-demand platforms are forecast to drive growth at approximately 7.4% annually through 2028, far surpassing traditional TV and film segments. However, realising this potential requires coordinated efforts to enhance production infrastructure, cultivate tech-savvy creators and strengthen intellectual property protections across overseas markets. The report’s conclusions underscore the critical importance of anticipatory government action to ensure South Korea maintains its market leadership within the dynamic global entertainment landscape whilst preserving the ecosystem sustaining smaller production companies.

• Escalating competitive pressure from global streaming services undermines home market presence
• Rising filming budgets and skilled worker recruitment challenges burden independent producers
• Swift technological change demands sustained spending in equipment and training
• Regulatory challenges across multiple jurisdictions heightens regulatory obligations significantly
• Consolidation trends risk diminish artistic diversity and opportunities for independent producers

Government Support and Skills Enhancement

Government assistance programmes continue to be critical to sustaining the sector’s growth trajectory and safeguarding employment across smaller independent companies. South Korea’s policymakers need to emphasise strategic investment for self-employed creators, digital capability development schemes and facility improvements to reinforce the sector’s resilience against international competition. Tax incentives, funding awards and subsidised facilities access can support fair competition for smaller businesses whilst fostering innovation in new technologies and formats that define next-generation entertainment.

Funding for talent development programmes resolves the sector’s most pressing challenge: drawing and maintaining skilled professionals across production, technical, and creative specialisations. Educational partnerships with academic institutions, vocational training schemes and coaching schemes can cultivate the future generation of Korean screen talent whilst fostering creative enterprises. Enhanced support for up-and-coming professionals through development initiatives and accessible finance solutions would strengthen the ecosystem supporting smaller enterprises, securing the sector’s continued dynamism and cultural importance internationally.