The South Korean government has recognized the potential of the metaverse to drive economic growth and is taking action to support it. In an official announcement, South Korea’s Ministry of Science and ICT announced investments totaling 40 billion Korean won ($30.2 million) in a fund dedicated to driving metaverse initiatives in the country. This includes an investment from the government of 24 billion Korean won ($18.1 million), as well as contributions from major tech companies.
The Metaverse Fund will focus on mergers and acquisitions, helping to accelerate development within the metaverse ecosystem. With this investment, South Korea is looking to stay ahead of the curve amid growing global interest in this new technology.
The South Korean government understands the difficulty for local metaverse-related companies to raise capital through private investments, due to the risk it entails. Consequently, in order to assist domestic firms in competing with global players, the government plans to offer additional support besides mergers and acquisitions. It has stated that they plan to actively support it.
In January, Seoul took a bold step toward the future by launching a digital replica of the city in the metaverse. Also, the South Korean government poured approximately 2 billion won ($1.6 million) into this first phase of its project.
Even as it forges ahead with innovation and technological advancements, the country is still keeping an eye on potential cross-border threats in the physical world. To that end, South Korea recently imposed its first autonomous sanctions in relation to cryptocurrency thefts and cyberattacks initiated by certain North Korean groups and individuals.
