Korea's Screen Industry: A $17.1 Billion Economic Powerhouse

SEOUL, South Korea – April 21, 2026 – South Korea's globally celebrated film, television, and streaming industry has become a formidable economic engine, generating KRW 24.08 trillion (USD 17.1 billion) in GDP and supporting 291,100 jobs in 2025. These figures come from a landmark economic report released today by the Motion Picture Association (MPA) at the National Assembly in Seoul.

The independent report, produced by the renowned firm Oxford Economics, provides the most comprehensive assessment to date of the audiovisual sector's economic footprint. It analyzes not only the direct impact of production but also the cascading benefits through the national supply chain and consumer spending, painting a picture of an industry deeply woven into the country's economic fabric.

"South Korea's audiovisual industry has become one of the most influential in the world," said Charles Rivkin, Chairman and CEO of the Motion Picture Association, during the launch event. "This report shows an industry that delivers substantial economic value at home while exporting creativity, culture and innovation to global audiences."

A Blueprint for Cultural and Economic Success

The report, titled Economic Contribution of the Audiovisual Industry in South Korea, reveals a powerful multiplier effect. For every KRW 1 billion in economic value generated directly by the industry, an additional KRW 2.1 billion is created in other sectors of the Korean economy. This results in a remarkable GDP multiplier of 3.1, demonstrating how investment in content creation ripples outward to benefit a wide array of businesses.

This economic boom is no accident. It is the culmination of decades of strategic government policy designed to nurture the 'Hallyu,' or Korean Wave. Following the 1997 Asian Financial Crisis, South Korean policymakers identified cultural exports as a new pillar for economic growth. This led to the establishment of crucial support bodies like the Korea Creative Content Agency (KOCCA) and a significant, sustained increase in the national budget for cultural industries.

In her remarks at the launch, Rep. Lim O-Kyeong, a key policymaker for culture and content, affirmed this view. "Korea's video content industry has evolved beyond the global spread of Hallyu to become a key driver of the national economy," she stated. Lim noted that the data-driven analysis from the report would serve as "a meaningful foundation for future policy and institutional development," guiding regulatory improvements.

The success has created a powerful feedback loop, with policymakers worldwide now studying the Korean model. "Wherever we travel, policymakers ask how Korea did it," noted Mila Venugopalan, President and Managing Director for Asia-Pacific at the MPA. "This report shows that Korea's success is grounded in strong creative talent, evidence-based policy and international collaboration."

The Hollywood Connection: Fueling Growth with Global Capital

A critical component of this explosive growth has been the symbiotic relationship between South Korea's creative ecosystem and major international studios. MPA member studios—including Netflix, Disney, Warner Bros. Discovery, and Amazon MGM Studios—have become major investors, pouring billions into co-productions and original content.

Netflix has been particularly aggressive, announcing in 2023 a plan to invest an additional $2.5 billion in South Korea over four years, doubling its total investment since 2016. This capital has funded the creation of global hits and the establishment of two dedicated production facilities in the country. Similarly, a Netflix subsidiary, Scanline VFX, is investing $100 million to build a special effects facility, aiming to make Korea an Asian hub for high-tech post-production.

Disney+ has also identified the nation as a "key pillar" of its global content strategy, with Korean originals frequently dominating its most-watched lists across the Asia-Pacific region. The company has deepened its local ties through a strategic partnership with domestic streaming platform TVING to bundle services and expand its content library.

Meanwhile, Warner Bros. Discovery recently forged a multi-year partnership with Korean media giant CJ ENM to co-produce original dramas and distribute hundreds of hours of Korean content globally via its HBO Max platform. These partnerships provide Korean creators with unprecedented global reach while supplying international platforms with a steady stream of high-quality, in-demand content.

"MPA member studios are proud to partner with Korean creators to bring these stories to screens worldwide," Rivkin added, underscoring the collaborative nature of the industry's success.

Beyond the Blockbuster: Powering a Nation of Small Businesses

While blockbuster series and films grab headlines, the report emphasizes that the industry's economic benefits are broadly distributed. Nearly four in five jobs supported by the sector—approximately 78% of the total 291,100—are within micro, small, and medium-sized enterprises (MSMEs). Micro-enterprises with fewer than 10 employees alone account for 36% of the industry's total employment footprint.

This highlights a deeply integrated production ecosystem where large-scale productions rely on a vast network of smaller, specialized businesses. From catering and transportation companies to post-production houses, equipment rental firms, and set designers, the economic impact extends far beyond the studio gates. The industry's growth directly stimulates demand across this extensive supply chain, creating stable employment and fostering entrepreneurship.

Furthermore, the sector is a significant contributor to government revenue. According to the Oxford Economics analysis, the audiovisual industry generated an estimated KRW 7.17 trillion in tax revenues for the South Korean government in 2025. A substantial portion of this revenue—KRW 2.6 trillion—was generated indirectly through the supply chain and induced consumer spending, further proving the industry's role as a broad-based economic driver.

A Global Contender in the Creative Economy

South Korea's rise as a content superpower is also reflected in its soaring export numbers. According to the press release, exports of Korean film and television content reached KRW 1.8 trillion in 2024, nearly doubling since 2019. This content not only generates direct revenue but also acts as a powerful form of soft power, driving tourism and boosting international engagement with Korean culture.

When placed in a global context, South Korea's performance is remarkable. While established markets like the UK, which saw £5.8 billion in inward investment for film and high-end TV in 2025, and larger, diverse markets like India's $32 billion media sector, remain formidable, South Korea's rapid, policy-driven growth sets it apart. Its strategy has proven so effective that it has surpassed the export value of some traditional manufacturing sectors.

As Bo Son, Managing Director of MPA Korea, summarized, the nation's screen industry successfully "combines domestic strength with global reach." Its profound impact on employment, exports, and long-term economic growth has solidified its position not just as a cultural phenomenon, but as a cornerstone of the modern Korean economy.