YouTube Contributes Approximately 90,000 Jobs and 2 Trillion KRW to South Korea's GDP

English Economic Research Report
Survey Targeting Creators

Creative Ecosystem Generates Secondary and Tertiary Indirect Effects Beyond Direct Impact
Channels Earning Over 10 Million KRW Annually Increase by More Than 30% Year-on-Year
SMEs Expand Globally Through Google Products

[Asia Economy Reporter Seungjin Lee] Mr. Kim Seong-yeon (29, pseudonym) successfully got a job last year as a professional YouTube video editor at a multi-channel network (MCN) company. The team he belongs to consists of about 10 people, including marketers, PDs, and graphic designers, all specializing in YouTube. Among full-time YouTubers around Kim, it is rare to find those who broadcast alone. As the profitability per channel increases, the YouTube ecosystem is expanding to include not only filming and editing personnel but also scriptwriters and broadcast planners.

YouTube Creates 2 Trillion KRW in GDP and 90,000 Jobs

According to the report "Platforms for Korea's Opportunities" released on the 18th by Oxford Economics, a British economic research institute that evaluated YouTube's economic, social, and cultural impact in Korea last year, the contribution of the YouTube creator ecosystem to Korea's 2021 gross domestic product (GDP) was estimated to be over 2 trillion KRW.

This survey was based on a questionnaire targeting Korea-based YouTube content creators and considered consumption and employment generated during the content production process. Contributions from YouTube's own operations and benefits companies received from increased sales through YouTube advertising were excluded.

The economic effects generated by the YouTube creator ecosystem start with the direct impact on content creators through advertising and music copyright payments, followed by secondary and tertiary economic ripple effects. The report analyzed that content creators earning revenue from YouTube indirectly stimulate additional employment of various supporting personnel and promote additional consumption, thereby generating economic effects.

Last year, more than 86,000 full-time equivalent jobs were created in Korea due to the YouTube creator ecosystem. These jobs include personnel directly related to YouTube content production such as video editors and producers, as well as those involved in the content supply chain.

The domestic YouTube creator ecosystem has grown significantly not only quantitatively but also qualitatively. According to the report, the number of YouTube channels in Korea generating annual revenue exceeding 10 million KRW increased by more than 30% compared to the previous year. Notably, over 700 channels had more than 1 million subscribers, which also represents an increase of over 30% year-on-year.

"Korean SMEs Going Global with Google"

On the 17th, Google held the online event "Google for Korea" to introduce the impact of Google Cloud services, including YouTube, on the domestic industry. Scott Vermote, Asia Pacific Regional Director, stated, "So far, about 973,000 Korean companies have expanded globally through Google products, 97% of which are small and medium-sized enterprises (SMEs). Going forward, Google will strengthen its partnership with Korea to support more Korean companies and creators in succeeding not only in Korea but also worldwide."

May Ann Lim, Senior Advisor at AlphaBeta, revealed in the report "The Driving Force of Korea’s Global Growth: Innovation and Cultural Exports" that domestic companies achieved economic benefits worth 19.3 trillion KRW through Google and created 106,000 jobs across various industries. The profits Korean companies earned in exports through Google reached as high as 8.5 trillion KRW, and Google also helped create 38,000 jobs enabling companies in multiple sectors to meet overseas demand.

Kim Kyung-hoon, President of Google Korea, said, "Along with Google.org’s ‘Digital Innovation Fund’ and the ‘COVID-19 Recovery and Leap Program,’ which handle Google’s philanthropic activities, we support Korean companies and citizens through various global products and the Android ecosystem. Google plans to support domestic companies and creators so that Korea becomes more accessible worldwide and widely recognized as one of the most global countries."