"K-Content Generates 24 Trillion Won in Output, 291,000 Jobs...1% of Total GDP and Employment" - Oxford Economics

Yonhap News Agency

It has been found that K-content, including films, TV broadcasting, and video-on-demand (VOD), accounts for approximately 1% of both South Korea's total gross domestic product (GDP) and employment.

As of 2025, the GDP generated by the video content industry is estimated at 24.08 trillion won, representing 0.9% of the total GDP of 2,663 trillion won. In terms of employment (number of people employed), the industry supported 291,100 jobs, accounting for 1.0% of the country's total workforce of 28.77 million.

Oxford Economics, a UK-based think tank, published a report titled "The Economic Contribution of the Korean Screen Content Industry" on its website on April 21 (local time), commissioned by the Motion Picture Association (MPA) of the United States.

Of the 24.08 trillion won in GDP generated by the video content industry in 2025, the direct effect from the industry's operational activities amounted to 7.75 trillion won. The indirect effect, generated throughout the supply chain, was 10.44 trillion won, while the induced effect—stemming from the consumption expenditures of workers in the sector—was 5.88 trillion won.

Of the 291,100 jobs supported by the video content industry, 85,900 were created through direct effects, 120,500 through indirect effects, and 84,800 through induced effects.

Oxford Economics evaluated that the multiplier effect of this economic contribution structure is significant. For every 1 billion won of GDP directly generated by the video content industry, an additional 2.1 billion won of GDP was created across the broader economy, resulting in a GDP multiplier of 3.1 times.

For every 100 people directly employed in the video content industry, another 240 jobs were supported in other sectors, resulting in an employment multiplier of 3.4 times. This economic contribution was clearly observed in the distribution of employment across various industrial sectors.

Among the jobs supported by the video content industry, the information and communications sector accounted for the largest share at 116,500 jobs. While this is partly because information and communications is the broader sector encompassing the video content industry, it also reflects the digital-intensive nature of the industry's supply chain. The next largest contributors were business services with 30,500 jobs, and arts, entertainment, and leisure services with 24,600 jobs. This demonstrates the industry's heavy reliance on professional, creative, and technical skills.

In addition, the industry contributed to employment in other sectors such as accommodation and food services, wholesale and retail, transportation and storage, and manufacturing. Oxford Economics stated, "This pattern reflects a closely interconnected production ecosystem in which studios, suppliers, and service providers collaborate on a large scale," adding, "Such an ecosystem places high-value creative and digital activities at its core while simultaneously supporting economic activity throughout the broad service sector."

The video content industry played an important role in supporting employment at small and medium-sized enterprises (SMEs), as well as making broad economic contributions across various sectors. When including direct activities, supply chain activities, and all induced economic activity, it is estimated that 78% of the total employment supported by the video content industry was generated at SMEs. Among SMEs, micro-enterprises—very small businesses—accounted for 36% of total industry employment, small enterprises for 22%, and medium-sized enterprises for 21%.

The video content industry also generated a significant amount of tax revenue for the Korean government. As of 2025, tax revenue generated by the industry reached 7.17 trillion won. Of this, 4.57 trillion won came from taxes paid directly by businesses and workers, 1.73 trillion won was indirectly generated through the supply chain, and 870 billion won resulted from the induced effect of household consumption expenditures.

Breaking the video content industry down into its core sectors—film, TV broadcasting, and VOD—TV broadcasting generated 15.62 trillion won, accounting for about 65% of the industry's total GDP contribution and forming the backbone of the sector. The film sector contributed 4.96 trillion won (21%), while VOD generated 3.5 trillion won (14%). In terms of employment, of the total 291,100 jobs, TV broadcasting accounted for 181,200 (62%), film for 77,800 (27%), and VOD for 32,100 (11%).

Oxford Economics assessed that the video content industry is built on a diversified foundation. Broadcasting contributes the most to employment, film creates significant added value through high-quality content, and VOD is emerging as a meaningful sector with clear potential for further growth.

Looking ahead to 2028, the report expects VOD to continue outperforming other segments of the video content industry. VOD's direct GDP contribution and tax revenue are projected to increase by about 7.4% and 7.2%, respectively, compared to 2025, with direct employment also expected to rise by approximately 6.1%. In contrast, the TV broadcasting and film sectors are anticipated to see slight declines in direct GDP, tax revenue, and employment. These projections reflect global shifts in media consumption toward streaming and digital platforms.

This content was produced with the assistance of AI translation services.