South Korea is investing heavily in the metaverse as a new economic growth engine, with the country’s Ministry of Science and ICT announcing a fund dedicated to driving metaverse initiatives in the country.
The South Korean government invested 24 billion Korean won ($18.1 million) to create a fund of more than 40 billion Korean won ($30.2 million) toward metaverse development.
The investment includes a fund for supporting the growth of metaverse companies and another special investment to build several services, including region-specific projects.
A growth engine for the future
The South Korean government has cited the rising interest of major tech companies in the metaverse as a reason for investing in the fund.
With the help of the Metaverse Fund, South Korea will support the mergers and acquisitions of various firms in the metaverse ecosystem while also helping domestic metaverse-related companies compete with global players.
The government has acknowledged that it is difficult for local players to raise capital through private investments, considering the underlying investment risks.
South Korea has been investing heavily in the metaverse for some time, with Seoul launching a digital replica of the city in the metaverse in January.
The country’s government spent roughly 2 billion won ($1.6 million) for the first phase of the metaverse project, which is aimed at creating a virtual space that mirrors the real world.
Doubling down on the Metaverse bet
South Korea’s Ministry of Science and ICT has approved investments of $51 million in various metaverse projects, doubling down on its metaverse bet for the future.
The country announced a pair of initiatives directed to support metaverse projects and companies to build products on top of virtual worlds.
The first initiative constitutes a metaverse growth fund that will allow companies that want to develop virtual projects to get funding directly from the Ministry of Science and ICT of South Korea.
The institution has allocated $30 million for this fund. The second project has to do with the development of 13 specific initiatives, including the metaverse in different convergence areas, including technology, regional projects, the public sector, and industry. This second project has allocated $21 million for its completion.
The future looks bright for Metaverse in South Korea
While some private companies’ interest in the metaverse has started to cool off, South Korea is doubling down on its bet to keep supporting the local metaverse economy.
As South Korea invests heavily in the metaverse, the country is poised to become a global leader in the field, especially given the government’s commitment to providing financial support and resources for local firms.
With more investments and government support, South Korea is well on its way to establishing itself as a major player in the metaverse market.
