With the Metaverse Fund, South Korea will support the mergers and acquisitions of various companies from the Metaverse ecosystem.
While some global economies were distracted by the commotion surrounding price instability and the collapse of crypto ecosystems, South Korea doubled down on the Metaverse’s potential as a new economic growth engine.
The South Korean Ministry of Science and ICT has announced investments in a fund aimed at boosting Metaverse initiatives in the country. According to the official announcement, the South Korean government has invested 24 billion Korean won, $18.1/€16.9 million. With this investment, it aims to create a fund of more than 40 billion Korean won, $30.2/€28.3 million for the development of the Metaverse.
With the help of the Metaverse Fund, South Korea will support the M&A of various companies in the Metaverse ecosystem. The government cited the growing interest of major technology companies in the Metaverse as a reason to invest in the fund.
The government agrees that it is difficult for local players to raise capital through private investments, given the underlying investment risks. As a result, South Korea plans to help domestic Metaverse-related companies compete with global players. In addition, it indicates the intention to actively work on it.
Digital replica of Seoul
In January, Seoul launched a digital replica of the city in the Metaverse. In addition, the South Korean government has spent approximately 2 billion won, or $1.6/€1.5 million, on the first phase of the Metaverse project.
However, South Korea continues to maintain control over cross-border threats in the physical world. In February, the country announced its first independent sanctions related to cryptocurrency theft and cyberattacks against specific North Korean groups and individuals. It is not yet known what will be the country’s next step within the blockchain world.