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 approximately 300,000 jobs, according to a comprehensive economic study undertaken for the Motion Picture Association. The report, prepared by Oxford Economics and presented 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 expenditure and consumer expenditure. Television emerged as the leading sector, accounting for roughly 65% of the industry’s total output, whilst the streaming sector demonstrated the highest productivity per worker. The findings highlight the screen industry’s vital importance in South Korea’s economic and employment landscape.

Financial Heavyweight Producing Substantial Returns

The screen industry’s financial influence goes well past 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 generated directly by the sector, an additional 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 reverberates across multiple industries, from transport and hospitality to retail and professional services. 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 workforce structure reveals its deeply integrated nature within South Korea’s economy, with approximately 78% of jobs concentrated in small and micro businesses. These smaller businesses form the backbone of production networks, supporting everything from equipment rental 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 contemporary audiovisual work and the technological expertise required across the industry.

• GDP multiplier of 3.1 generates additional KRW2.1 billion per KRW1 billion generated
• Employment multiplier of 3.4 sustains 240 additional jobs per 100 direct positions
• KRW7,170 billion in overall tax receipts generated across all segments
• 78% of jobs concentrated in micro, small and medium-sized enterprises

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 existing framework of traditional broadcasting 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 strong cultural foundations in South Korean culture and its sustained commitment in high-quality content guarantee its position 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 exhibit exceptional productivity, delivering KRW437 million (£297,000) in direct GDP contribution per head—roughly five times the national average—signalling the substantial nature of streaming production. Projections forecast VOD will grow at approximately 7.4% annually through 2028, surpassing both film and television growth rates and establishing streaming as the sector’s most rapidly expanding segment.

Sectoral Breakdown and Employment Distribution

Film production, generating 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 preserves substantial financial importance and global standing, with productions extending across blockbuster releases to independent features earning acclaim at prestigious festivals. The well-rounded combination of television, film and streaming ensures economic resilience whilst facilitating specialist development and creative advancement across diverse formats and distribution channels.

Korean Content Sweeps Worldwide Audiences

South Korea’s screen industry has gone beyond 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, establishing Korean content creators as serious competitors to established Western production hubs. The industry’s ability to blend distinctive storytelling with high production values has appealed to global audiences, 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 worldwide demand for diverse narratives and innovative formats. Streaming platforms have expedited this internationalisation, enabling Korean productions to connect with worldwide viewers instantaneously whilst reducing traditional market obstacles. Major international collaborations and co-productions have become increasingly common, attracting foreign investment and talent to South Korean studios. This growing interconnectedness strengthens the sector’s financial stability whilst establishing Korea as an indispensable hub within the global entertainment landscape. The multiplier effects generated by global interest spread across the production network, generating more jobs and investment opportunities throughout the sector.

• Korean dramas reach unprecedented audience numbers across Netflix and international streaming platforms worldwide
• Film exports deliver significant revenue from overseas markets whilst enhancing national cultural prestige internationally
• Cross-border collaborations attract foreign investment capital and specialist knowledge to Korean studios
• Global recognition fuels tourism, merchandise sales and ancillary revenue streams outside of traditional production

Tourism and Cultural Impact

The economic impact of Korean screen content extends considerably past direct industry revenues, generating substantial tourism and cultural knock-on benefits. Overseas tourists progressively journey to South Korea specifically to experience filming locations, explore branded venues and immerse themselves in Korean popular culture. This “hallyu” or Korean Wave movement has reshaped travel trends, with screen-related attractions becoming major draws for visitors from throughout Asia and further afield. The cultural sway wielded by acclaimed content establishes lasting brand value for South Korea, strengthening the nation’s soft power whilst producing substantial income through tourism spending, accommodation and dining and branded goods.

The interconnection between screen production and tourism creates a beneficial cycle of growth that enhances the sector’s broader contribution to the nation’s economic wellbeing. Popular television series and films encourage overseas tourism, whilst tourists then purchase further Korean cultural goods and services. This development has led to investment in film tourism facilities, such as entertainment parks, exhibition spaces and curated tours around renowned production locations. The generated job prospects cover hospitality, transportation and retail sectors, stretching the screen industry’s economic impact well beyond traditional production metrics and demonstrating its driving force in the broader Korean economy.

Challenges and Future Outlook

Despite the screen sector’s significant financial impact, South Korea’s audiovisual industry confronts growing market pressures from global streaming platforms and international production hubs offering substantial tax incentives. Escalating production expenses, challenges in keeping talented staff and the accelerating technological change of distribution technology present ongoing obstacles to sustained growth. The sector must contend with more intricate regulatory frameworks across various regions whilst adapting to shifting consumer preferences towards varied content types. Additionally, the concentration of resources within major production firms jeopardises the sustainability of smaller operations that currently account for employment of the vast majority of staff, possibly limiting creative development and artistic variety.

Looking ahead, the sector’s trajectory hinges upon deliberate funding in new technological developments and talent development programmes. Video-on-demand platforms are expected to drive growth at approximately 7.4% annually through 2028, far surpassing traditional TV and film segments. However, achieving this potential requires joint initiatives to modernise production infrastructure, cultivate digital-native talent and reinforce intellectual property protections across global territories. The report’s findings underscore the pressing need of proactive policy interventions to ensure South Korea maintains its competitive advantage within the dynamic global entertainment landscape whilst safeguarding the ecosystem sustaining smaller production companies.

• Growing competitive pressure from international streaming platforms undermines domestic market share
• Increasing filming budgets and talent recruitment difficulties pressure smaller production houses
• Rapid tech evolution necessitates sustained spending in equipment and training
• Regulatory complexity across different regions increases compliance demands significantly
• Consolidation trends threaten to limit artistic diversity and independent production opportunities

Government Support and Talent Development

Government funding initiatives remain critical to supporting the sector’s expansion path and protecting employment across small and micro businesses. South Korea’s policymakers need to emphasise strategic investment for standalone production companies, digital capability development schemes and infrastructure investment to reinforce the sector’s ability to endure against global market pressures. Tax incentives, funding awards and subsidised facilities access can create equal opportunities for smaller companies whilst encouraging innovation in new technologies and formats that define next-generation entertainment.

Funding for skills training initiatives tackles the sector’s biggest challenge: attracting and retaining skilled professionals across production, technical and creative disciplines. University partnerships with universities, vocational training schemes and coaching schemes can nurture the future generation of Korean screen talent whilst supporting entrepreneurial ventures. Enhanced support for up-and-coming professionals through development initiatives and accessible finance solutions would strengthen the ecosystem supporting independent producers, guaranteeing the sector’s ongoing vitality and creative significance on the global stage.