South Korea will allocate roughly $177 million into the metaverse to fund companies and jobs in this space.
The metaverse, or living in a virtual world, isn’t a new concept, but it’s only now that the hype around it is gaining rapid attention from many industries.
With AI and AR at work, investing in the metaverse seems lucrative for many companies. Even the South Korean government agrees on the future of metaverse.
The New Digital Deal
South Korea has recently announced its intent to invest its money in metaverse-based companies and projects directly.
Lim Hyesook, Minister of Science and Information and Communication Technologies, has announced the investment plan and pointed out that the metaverse coupled with advanced technology has enormous potential.
The South Korean government believes in the potential of the metaverse (JournalTime).
This investment is a massive part of the Asian country’s Digital New Deal, guidelines established by the government aiming for a smooth transition to complete digitization.
Seoul is jumping head-on to the metaverse that could go mainstream in the next few years. This move also provides other countries with a blueprint to follow through.
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Shanghai has also started with public services now designed according to the metaverse. Both Alibaba and Tencent are currently developing metaverse-based products. Alibaba has recently invested in a startup with AR glasses as its main product.
Crypto total market cap at $1.26 trillion on the daily chart | Source: TradingView.com
South Korea Metaverse – Connecting Communities
Are governments starting to look at the metaverse as the future of how communities convene or connect?
Investing in the metaverse is risky because you are pouring money into something unsustainable or at which value is based on demand and hype.
However, Seoul wanted to be part of the buildup phase. And many big names in SoKor, such as BTS and LG Electronics, have hopped in to join the bandwagon with new crypto and NFT initiatives.
Dipping into the metaverse is risky because of its volatile nature. Any uncharted and disruptive technology is met with resistance. People will somehow look at the risks more than the opportunities, especially with the increase in scams related to crypto and NFTs in the past few weeks.
Legalities, security, and privacy issues are the common challenges with metaverse investments. However, as South Korea boldly dives into metaverse, more countries will likely follow.
Featured image from Smart Cities World, chart from TradingView.com