South Korea establishes the ‘Metaverse Fund’ to boost local efforts

With the assistance of the Metaverse Fund, South Korea will encourage the mergers and acquisitions of different enterprises inside the ecosystem of the metaverse.

South Korea doubled hard on the promise of the metaverse as a new economic development engine as other global economies were distracted by price volatility and ecosystem breakdowns in cryptocurrencies.

The Ministry of Science and Information and Communications Technology of South Korea announced funding in a fund devoted to advancing metaverse activities in the nation. According to the official statement, the South Korean government committed 24 billion Korean won to build a fund of more than 40 billion Korean won to develop the metaverse.

South Korea will promote the mergers and acquisitions of different enterprises in the metaverse ecosystem with the aid of the Metaverse Fund. As justification for its investment in the fund, the government emphasized the growing interest of major technology firms in the metaverse.

Given the inherent investment risks, the government concurs that it is difficult for local players to obtain funds via private investments. In addition to mergers and acquisitions, South Korea plans to assist local metaverse-related enterprises in competing with global competitors, saying, “we intend to actively support it.”

Seoul debuted a digital representation of the city in the metaverse in January. According to Cointelegraph, the South Korean government allocated around 2 billion won ($1.6 million) for the first phase of the metaverse project.

Nonetheless, South Korea maintains physical checks and balances against cross-border threats. In February, the nation issued its first independent sanctions against specific North Korean organizations and people for cryptocurrency thefts and cyberattacks.

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