As some world economies were distracted by price instability and the collapse of the cryptocurrency ecosystem, 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 promoting metaverse initiatives in the country. 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 metaverse development.
With the help of the Metaverse Fund, South Korea will support mergers and acquisitions of various companies in the metaverse ecosystem. The government cites growing interest from big tech companies in the metaverse as a reason for investing in the fund.
The Government agrees that it is difficult for local players to raise capital through private investment, given the risks underlying the investment. So, in addition to M&A, South Korea aims 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 some 2 billion won ($1.6 million) on the first phase of the metaverse project.
However, South Korea continues to maintain controls over cross-border threats in the physical world. In February, the country announced its first separate sanctions related to cryptocurrency theft and cyber attacks against specific North Korean groups and individuals.
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