South Korea takes a step further into the metaverse despite the crypto crackdown

As the crypto market continues to move up and down in its regular market pattern in a bear market, amidst the various events of crypto company collapse and implosion, and regulator’s clamp down, it seems the South Korean government isn’t done or put to pause its metaverse mission. In a metaverse-focused investment push reaffirming its commitment to the industry, the nation’s Ministry of Science and ICT has announced it is investing in a fund targeted towards driving metaverse initiatives in the country. The move is aimed at enhancing the potential of the metaverse and securing a new economic growth engine for the nation.

In an official announcement by the South Korean government, 24 billion Korean won equivalent to 18.1 million USD was invested towards metaverse development to create a fund of about 30.2 million USD equivalent to more than 40 billion Korean won. In January, the South Korean government spent about 2 billion Korean won valued at $1.6 million for the first phase of the Seoul-launched City Metaverse.  

Major tech companies have shown to hold an interest in the metaverse, the government opined, in view of this, the South Korean government made move to invest in the fund. The Metaverse Fund will be used by South Korea to provide support for mergers and acquisitions of firms in the metaverse ecosystem.

The government acknowledges that, given the inherent investment risks, it is challenging for local players to raise cash through private investments. As a result, in addition to mergers and acquisitions, South Korea says it plans to actively encourage indigenous firms involved in the metaverse so they can compete with global players.

On crypto and blockchain adoption, South Korea on February 6th, 2023 issued guidelines on how blockchain-based assets will be developed and regulated. 

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