South Korea will promote various companies from the metaverse ecosystem’s mergers and acquisitions with the aid of the Metaverse Fund.
South Korea increased its focus on the metaverse’s potential as a new source of economic growth as other nations’ economy became sidetracked by the hullabaloo surrounding cryptocurrency’s price volatility and ecosystem breakdowns.
The Ministry of Science and Technology of South Korea announced investments in a fund intended to support metaverse efforts there. The South Korean government invested 24 billion Korean won ($18.1 million) to establish a fund of more than 40 billion Korean won ($30.2 million) for the development of the metaverse, according to the official announcement.
South Korea will promote the mergers and acquisitions of various businesses in the metaverse ecosystem with the aid of the Metaverse Fund. The government justified its investment in the fund by pointing to the growing interest of big IT corporations in the metaverse.
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 enterprises involved in the metaverse so they can compete with international players.
Seoul unveiled a virtual representation of the city in the metaverse in January. The initial phase of the metaverse initiative cost the South Korean government about 2 billion won ($1.6 million). On the other hand, the country keeps reining in cross-border threats in the real world.
The nation made its first independent sanctions for cryptocurrency thefts and cyberattacks against particular North Korean organizations and individuals public in February.
