- The Ministry of Science and ICT of South Korea has announced funding for a special fund.
- The government acknowledges that it is challenging for local players to obtain funds.
South Korea has doubled down on the metaverse’s promise as a new economic development hub. While other countries around the world have been sidetracked. By the noise around price volatility and ecosystem failures in crypto.
The Ministry of Science and ICT of South Korea has announced funding for a special fund. In order to advance metaverse projects in the nation. An official release states that 24 billion Korean won ($18.1 million) was funded by the South Korean government. In order to establish a fund of over 40 billion Korean won ($30.2 million) for metaverse development.
Backing Domestic Players
South Korea will encourage consolidation within the metaverse industry by contributing to a new fund called the Metaverse Fund. The government justified the fund by pointing to the growing enthusiasm of major technology firms for the metaverse.
Furthermore, given the inherent investment risks, the government acknowledges that it is challenging for local players to obtain funds via private investments. Hence, South Korea plans to assist local metaverse-related enterprises to compete with global competitors via mergers and acquisitions and other means, adding, “we plan to actively support it.”
Seoul’s virtual metropolis was unveiled in the metaverse in January. It was earlier reported that the South Korean government allocated around 2 billion won ($1.6 million) for the project’s first phase in the metaverse.
South Korea, meanwhile, continues to maintain physical safeguards against transnational threats. Moreover, it launched its first unilateral sanctions in February, targeting certain organizations and people in North Korea for their involvement in the theft and hacking of cryptocurrencies.
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