The South Korean government is doubling down on its commitment to the metaverse, with the creation of the Metaverse Fund.
South Korea is creating a new fund to assist the growth and development of the metaverse. According to the official statement, the Ministry of Science and ICT is investing 24 billion Korean won ($18.4 million) into the fund. Currently, the fund is worth $40 billion Korean won ($30.2 million).
Ultimately, the fund will support the mergers and acquisitions from various companies within the metaverse ecosystem. Moreover, the government will actively support domestic metaverse initiatives to compete on a global scale.
A statement of intent
Essentially, South Korea is making a strong statement during uncertain financial times. Furthermore, the government is aware that the growth of domestic technology is dependent on heavy investment. In essence, the metaverse needs venture capital to realise its full potential.
We have already seen South Korea launch its own national metaverse. In fact, its capital city Seoul became the first city to launch its own fully immersive virtual world. Currently, $187 million is being pumped into ‘Metaverse Seoul‘, which aims to inspire growth in art, industry, education, and media.
Indeed, as a country with high cryptocurrency adoption and the fourth largest gaming industry in the world, South Korea looks set to be a leader in Web3 technology.
South Korea’s vision
South Korea fully intends to drive the advancement of the new digital age. Indeed, the country is working towards an ambitious 58.2 trillion won ($44.6 billion) plan called the ‘Digital New Deal’. In summary, this plan involves pumping the industry full of venture capital, supporting its growth, and eventually, having one of the top 5 metaverse industries in the world.
Experts believe that the South Korean metaverse industry will be worth 400 trillion won ($306.5 billion) by 2026. Therefore, now is the time to build, and the government is doing just that.
In addition, it’s clear that the government sees the potential of the metaverse and how it can drive the economy forward. Firstly, millions of new virtual jobs will emerge in the metaverse. What is more, the government is investing in higher education courses specifically focused on metaverse training.
However, the government is more skeptical when it comes to cryptocurrency. As things stand, the government is strictly regulating play-to-earn games in South Korea – owing to their speculative nature. Despite this, the government remains steadfast in adopting blockchain technologies. A prime example is Metaverse Seoul, which is still moving through the phases.
In phase two of Metaverse Seoul, due for completion in 2024, the metaverse will expand to include real estate counselling and connect foreign investors with local industries.