South Korea Invests $18.1 Million in Fund for Metaverse Development
South Korea’s Ministry of Science and ICT has announced a major investment in a fund dedicated to the development of metaverse initiatives in the country.
The government invested KRW 24 billion (approximately $18.1 million) to create a fund worth over KRW 40 billion ($30.2 million) to support the growth and expansion of small and medium-sized enterprises (SMEs) operating in the metaverse sector.
The metaverse fund is intended to support mergers and acquisitions, as well as growth in the business areas and scale of SMEs that require a convergence of various information and communication technologies. It is an expansion of the existing digital content fund established in 2014 and has been operational since 2022.
Despite the recent economic downturn and reduced investment, the global market continues to focus on metaverse as a new source of economic growth. As a result, major global tech companies are competing to take the lead in metaverse-related markets through mergers and acquisitions and technology-related investments. However, domestic metaverse-related SMEs in South Korea face high investment risks, making it challenging to attract private investment, and resulting in weak growth conditions.
The Ministry of Science and ICT plans to create a fund that supports metaverse technology investment, mergers and acquisitions, and other activities to help domestic metaverse-related companies expand their business areas and scale, enabling them to become key players that can compete with global companies. Additionally, to address economic uncertainty, the Ministry intends to provide investment incentives to ensure that investment funds are quickly and stably provided to early-stage companies, including SMEs.
The Korean government aims to create a fund worth over KRW 400 billion ($302 million), with the government contributing KRW 240 billion ($181 million) and private entities investing over KRW 160 billion ($121 million). This investment is part of the government’s broader efforts to support innovative and emerging technologies, such as 5G, artificial intelligence (AI), and the Internet of Things (IoT), to ensure that South Korea remains a leader in the technology sector.
The Ministry’s announcement reflects the growing interest in the metaverse, which is expected to revolutionize various industries, including gaming, education, entertainment, and social networking, and change the way people interact with each other and with technology. The Ministry’s investment is expected to create new opportunities for SMEs in the metaverse sector and to help South Korea to become a global leader in this field.
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