Despite the chaos caused by price fluctuations and ecosystem failures in the crypto world, South Korea has focused on the potential of the metaverse as a new source of economic growth.
The Ministry of Science and ICT in South Korea has declared its support by investing 24 billion Korean won ($18.1 million) in a fund specifically aimed at driving metaverse initiatives in the country. As per the official announcement, this fund will have a total of over 40 billion Korean won ($30.2 million) for the development of the metaverse.
South Korea intends to facilitate mergers and acquisitions of different companies within the metaverse ecosystem through the Metaverse Fund. The government's investment in this fund is motivated by the increasing interest of leading technology firms in the metaverse.
The South Korean government recognizes that local companies in the metaverse sector face challenges in raising funds through private investments due to the inherent risks involved.
Therefore, apart from assisting in mergers and acquisitions, the government plans to support domestic metaverse-related companies to enable them to compete effectively with international players. The government has expressed its intention to provide active support to this effect.
In January, the city of Seoul introduced a digital version of itself in the metaverse, which was funded by the South Korean government's investment of around 2 billion won ($1.6 million) for the initial phase of the project.
Despite its focus on the metaverse, South Korea remains vigilant about monitoring and preventing potential cross-border threats in the physical world. In February, the country imposed its own set of sanctions relating to crypto thefts and cyberattacks carried out by certain North Korean groups and individuals.
The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash