While the global economy continues to grapple with crypto price instability and ecosystem collapses, South Korea is forging ahead with its vision of the metaverse as a new economic growth engine.
The country’s Ministry of Science and ICT recently announced an $18.1 million investment into a fund dedicated to driving metaverse initiatives in the country. The goal is to create a fund of over $30.2 million towards metaverse development.
With the Metaverse Fund, South Korea aims to support mergers and acquisitions of various firms from the metaverse ecosystem.
Major tech companies are already showing interest in the Metaverse, and the government hopes to provide domestic metaverse-related companies with the support they need to compete with global players.
The government acknowledges that it can be difficult for local players to raise capital through private investments, given the underlying investment risks.
This is why South Korea intends to actively support domestic metaverse companies, in addition to mergers and acquisitions.
The city of Seoul has already taken steps towards the metaverse with the launch of a digital replica of the city earlier this year. The South Korean government spent roughly $1.6 million for the first phase of the metaverse project.
Despite its commitment to innovation, South Korea continues to maintain checks and balances on cross-border threats in the physical world. In February, the country announced its first independent sanctions related to cryptocurrency thefts and cyberattacks against specific North Korean groups and individuals.
South Korea’s Metaverse Fund represents a bold move towards a new economic frontier, fueling growth through innovation and investment. As the world continues to shift towards digitalization and new technologies, South Korea is positioning itself at the forefront of this transformative trend.
