While some global economies were distracted by the commotion around price instability and ecosystem collapse in crypto, South Korea doubled down on the potential of the metaverse as a new engine of economic growth.
The South Korean Ministry of Science and ICT announced investments in a fund dedicated to boosting metaverse initiatives in the country. According According to the official announcement, 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) for development from the metaverse.
With the help of the Metaverse Fund, South Korea will support mergers and acquisitions of various companies in the metaverse ecosystem. The government cited growing interest from major tech companies in the metaverse as a reason to invest in the fund.
Related: South Korea to Examine Cryptocurrency Staking Services Following Kraken Case
The government agrees that it is difficult for local players to raise capital through private investment, considering the underlying investment risks. As a result, in addition to M&A, South Korea intends to help domestic metaverse-related companies compete with global players, adding that “we plan to actively support it.”
In January, Seoul released a digital replica of the city in the metaverse. As Cointelegraph reported, the South Korean government spent roughly 2 billion won ($1.6 million) on the first phase of the metaverse project.
However, South Korea continues to maintain checks and balances on cross-border threats in the physical world. In February, the country announced its first separate sanctions related to cryptocurrency theft and cyberattacks against specific North Korean groups and individuals.
