While some global economies have been focused on the instability and ecosystem collapses of cryptocurrencies, South Korea is taking a different approach.
The country has recognized the potential of the metaverse as a new economic growth engine and is doubling down on investments in the space.
The Ministry of Science and ICT in South Korea recently announced investments in a fund dedicated to driving metaverse initiatives in the country.
The government invested approximately $18.1 million (24 billion Korean won) with the goal of creating a fund of over 40 billion Korean won (around $30.2 million) for metaverse development.
Through the Metaverse Fund, South Korea aims to support mergers and acquisitions of various firms from the metaverse ecosystem. The government emphasized the increasing interest of major tech companies in the metaverse to justify this move.
Local players face difficulty raising capital through private investments due to underlying investment risks. Therefore, South Korea intends to help domestic metaverse-related companies compete with global players, stating that they “plan to actively support it.”
In January, the city of Seoul launched a digital replica of the city in the metaverse. The South Korean government spent approximately $1.6 million for the first phase of the metaverse project.
South Korea is also keeping 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 investment in the metaverse shows its commitment to embracing emerging technologies to drive economic growth. With the support of the Metaverse Fund, South Korea is set to become a leader in metaverse development and a major player in the global digital economy.
