South Korea has announced a $51 million investment to expand the country's metaverse sector. This comes just a month after the nation contributed $185 million to initiatives related to the metaverse. While other countries' economies have been sidetracked by the commotion surrounding cryptocurrency's ecosystem collapses and price instability, South Korea has increased its focus on the potential of the metaverse as a new source of economic development.
The South Korean Ministry of Science and ICT has revealed that investments will be made in a fund intended to support metaverse initiatives in the country. The South Korean government contributed 24 billion Korean won ($18.1 million) to establish a fund for metaverse growth totaling more than 40 billion Korean won ($30.2 million). The Metaverse Fund will help promote mergers and acquisitions among different metaverse ecosystem companies. The government has justified its investment in the fund by pointing to the growing interest of big tech firms in the metaverse.
The second project's focus is to create 13 specific initiatives using the metaverse in various convergence areas, including technology, regional projects, the public sector, and industry. $21 million has been allotted for the completion of this second undertaking.
The government acknowledges the inherent investment risks in the metaverse industry and agrees that it is challenging for local players to raise money through private investments. Therefore, South Korea intends to actively support domestic companies engaged in the metaverse in addition to mergers and acquisitions. Oh Yong-soo, a software policy official at the Ministry of Science and ICT, made the following comments regarding this: "Due to the deteriorating economic situation at home and abroad, civilian venture investment has dried up. Government support is needed more than ever. It's time to do it."
South Korea has been making a concerted effort since last year to support the growth of its regional metaverse market by investing millions of dollars in the industry's companies. South Korea was one of the first countries to directly invest in the metaverse when the head of the Ministry of Science and ICT, Lim Hye-sook, revealed in May that $177 million would be invested in metaverse businesses.
In addition, the ministry unveiled a program in June to solicit businesses to participate in its initiative to develop metaverse content. The program's goal is to ignite a local movement to produce material for the metaverse as part of the country's plan to lead the field.
Meanwhile, South Korea is also taking steps to reign in cross-border dangers in the real world. The country made its first independent sanctions regarding cryptocurrency thefts and cyberattacks against particular North Korean organizations and people public in February.
