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

South Korea’s screen industry produced £12.4 billion in financial contribution during 2025 and supported nearly 300,000 jobs, according to a comprehensive economic study commissioned by the Motion Picture Association. The report, prepared 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 expenditure. Television proved to be the leading sector, representing roughly 65% of the industry’s combined output, whilst the streaming sector demonstrated the highest productivity per worker. The findings underscore the screen industry’s vital importance in South Korea’s economic and employment landscape.

Strong Economic Engine Producing Substantial Returns

The screen industry’s financial influence extends far beyond its immediate outputs, with the Oxford Economics study revealing a multiplication factor 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 supply chains and consumer spending, resulting in a GDP multiplier of 3.1. This ripple effect illustrates how funding for screen production spreads throughout multiple industries, from hospitality and transport 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 a major 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 small and micro businesses. These compact firms form the backbone of production networks, supporting everything from gear hire and finishing work to marketing and distribution. The digital and technology sector accounted for the largest employment share 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 generates extra KRW2.1 billion per KRW1 billion generated
• Employment multiplier of 3.4 supports 240 extra jobs per 100 primary positions
• KRW7,170 billion in total tax revenues generated across all segments
• 78% of jobs concentrated in small and medium-sized businesses

TV Leads the Market, 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 aggregate economic output with a financial input of KRW15,620 billion (£10.6 billion) and sustaining 181,200 jobs. The dominance of television 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 sustained commitment in premium programming guarantee its position as the sector’s primary economic driver and largest employer.

However, video-on-demand services constitute the sector’s fastest-growing growth opportunity, despite now generating KRW3,500 billion (£2.4 billion) and 32,100 jobs. VOD workers exhibit exceptional output, averaging KRW437 million (£297,000) in gross domestic product contribution per head—roughly 5x the national average—signalling the substantial nature of streaming production. Projections forecast VOD will grow at approximately 7.4% per year through 2028, exceeding both film and television growth rates and positioning streaming as the sector’s most rapidly expanding segment.

Sectoral Breakdown and Employment Allocation

Film production, accounting for KRW4,960 billion (£3.4 billion) and sustaining 77,800 jobs, represents the sector’s intermediate tier. Whilst smaller than television, South Korea’s film industry maintains substantial financial importance and worldwide recognition, with productions extending across high-budget productions to smaller-scale films earning acclaim at renowned film festivals. The diverse mix of television, film and streaming supports economic robustness whilst facilitating specialist development and creative advancement across various content types and delivery platforms.

Korean Content Sweeps Global Markets

South Korea’s screen industry has transcended domestic boundaries to become a powerful player in international entertainment sectors. The sector’s economic success is fundamentally connected with its global presence, with Korean television dramas, films and streaming content capturing audiences across Asia, Europe and the Americas. This international growth has established the country as a cultural force, positioning Korean production companies as serious competitors to established Western production hubs. The industry’s ability to blend distinctive storytelling with strong production quality has appealed to global audiences, driving both audience numbers and box office returns that extend far beyond South Korea’s borders.

The international reach of Korean screen content keeps growing, supported by the global appetite for diverse narratives and creative approaches. Streaming platforms have expedited this global expansion, allowing Korean productions to reach global audiences in real time whilst reducing traditional market obstacles. Major international collaborations and joint ventures have become increasingly common, drawing foreign investment and talent to South Korean studios. This growing interconnectedness strengthens the sector’s economic resilience whilst establishing Korea as an essential centre within the global entertainment landscape. The cascading benefits generated by global interest ripple throughout the supply chain, creating more jobs and investment opportunities across the entire industry.

• Korean dramas achieve record viewership figures throughout Netflix and global streaming services worldwide
• Film exports deliver significant revenue from overseas markets whilst elevating Korea’s cultural standing internationally
• International co-productions draw in foreign investment capital and specialist knowledge to Korean studios
• Worldwide acclaim stimulates visitor numbers, branded products and additional income sources outside of traditional production

Tourism and Heritage Influence

The financial effects of Korean screen content extends considerably beyond immediate sector earnings, generating substantial travel and cultural spillover effects. Overseas tourists increasingly travel to South Korea deliberately to explore filming locations, explore themed attractions and engage with Korean popular culture. This “Korean cultural phenomenon” or Korean Wave phenomenon has transformed travel trends, with screen-related attractions becoming significant attractions for visitors from across Asia and beyond. The cultural influence wielded by acclaimed content establishes lasting brand value for South Korea, enhancing the nation’s soft power whilst producing significant revenue via tourism spending, accommodation and dining and cultural merchandise.

The relationship between screen production and tourism generates a virtuous economic cycle that enhances the sector’s extended role to the nation’s economic wellbeing. Well-known television programmes and feature films inspire overseas tourism, whilst tourists then purchase more Korean cultural offerings. This phenomenon has spurred funding for screen tourism infrastructure, such as dedicated attractions, display areas and guided tours of iconic filming locations. The created employment positions span the hospitality, transport and retail industries, pushing the screen industry’s economic impact well beyond traditional production metrics and showcasing its transformative influence in the broader Korean economy.

Difficulties and Long-term Vision

Despite the screen sector’s significant financial impact, South Korea’s audiovisual industry faces mounting competitive pressures from worldwide streaming providers and global production facilities offering substantial tax incentives. Increasing production outlays, difficulties retaining skilled personnel and the rapid technological evolution of distribution technology present ongoing obstacles to sustained growth. The sector must navigate increasingly complex regulatory environments across multiple territories whilst adapting to shifting consumer preferences towards diverse content formats. Additionally, the clustering of investment within larger production companies threatens the viability of independent producers that currently provide jobs for more than 75% of workers, potentially constraining innovation and artistic variety.

Looking forward, the sector’s path hinges upon deliberate funding in new technological developments and talent development programmes. Video-on-demand platforms are projected to drive expansion at approximately 7.4% per year through 2028, substantially outpacing traditional broadcast and cinema segments. However, realising this potential requires joint initiatives to enhance production facilities, cultivate tech-savvy creators and reinforce intellectual property protections across international markets. The report’s results underscore the critical importance of forward-looking regulatory measures to ensure South Korea maintains its market leadership within the rapidly evolving global entertainment landscape whilst safeguarding the ecosystem supporting smaller production companies.

• Escalating rivalry with international streaming platforms threatens local market position
• Climbing production costs and talent recruitment obstacles burden independent producers
• Accelerating tech evolution necessitates continuous investment in equipment and staff development
• Compliance complexity across multiple jurisdictions amplifies compliance demands substantially
• Market consolidation risk limit creative variety and independent production opportunities

Government Support and Talent Development

Government funding initiatives remain critical to sustaining the sector’s development momentum and protecting employment across smaller independent companies. South Korea’s policymakers need to emphasise directed financial support for self-employed creators, technology training initiatives and infrastructure investment to strengthen the sector’s ability to endure against international competition. Tax relief measures, production grants and subsidised facilities access can support fair competition for independent firms whilst fostering innovation in emerging formats and technologies that define next-generation entertainment.

Investment in talent development programmes addresses the sector’s most pressing challenge: attracting and retaining qualified experts across production, technical and creative disciplines. Academic collaborations with academic institutions, vocational training schemes and mentoring programmes can develop the coming generation of Korean audiovisual creators whilst supporting creative enterprises. Enhanced support for up-and-coming professionals through development initiatives and accessible finance solutions would bolster the infrastructure backing independent producers, ensuring the sector’s ongoing vitality and cultural relevance across international markets.