South Korea doubled heavily on the potential of the metaverse as a new economic development engine as other global economies were distracted by price volatility and ecosystem collapses in cryptocurrencies.
The Ministry of Science and ICT of South Korea has announced investments in a fund dedicated to advancing metaverse activities in the nation. According to the official statement, the South Korean government contributed 24 billion Korean won ($18.1 million) to establish a fund of over 40 billion Korean won ($30.2 million) for metaverse development.
South Korea will promote the mergers and acquisitions of various enterprises in the metaverse ecosystem with the aid of the Metaverse Fund. As justification for its investment in the fund, the government emphasized the growing interest of major technology firms in the metaverse.
Acknowledging the potential investment risks, the government agrees that it can be challenging for local companies to secure funding through private investments. To help domestic metaverse-related businesses compete with global rivals, South Korea plans to provide active support in addition to facilitating mergers and acquisitions.
Seoul debuted a digital representation of the city in the metaverse in January. The South Korean government allocated approximately 2 billion won ($1.6 million) for the initial phase of the metaverse project.
Nonetheless, South Korea continues to maintain physical checks and balances against cross-border threats. In February, the nation issued its first independent sanctions against specific North Korean groups and individuals in relation to cryptocurrency thefts and cyberattacks.