While some global economies got distracted by the commotion around price instability and ecosystem collapses in crypto, South Korea doubled down on the metaverse’s potential as a new economic growth engine.
South Korea’s Ministry of Science and ICT announced investments in a fund dedicated to driving metaverse initiatives in the country. According According to the official announcement, South Korea invested 24 billion Korean won ($18.1million) to establish a fund of over 40 billion Korean won ($30.2million) for metaverse development.
South Korea will help facilitate mergers and acquisitions in the metaverse ecosystem with the support of the Metaverse Fund. The fund was chosen by the government because of the growing interest in metaverse tech companies.
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The government agrees that it is difficult for local players to raise capital through private investments,considering the underlying investment risks. As a result, in addition to mergers and acquisitions, South Korea intends to help domestic metaverse-related companies compete with global players, adding that “we plan to actively support it.”
In January, Seoul launched a digital replica of the city in the metaverse. Cointelegraph reported that the South Korean government spent approximately 2 billion won ($1.6million) on the first phase.
South Korea maintains checks and balances regarding cross-border threats to the physical world. The country issued its first independent sanctions in February related to cyberattacks and cryptocurrency thefts against North Korean individuals and groups.