Just one month after announcing an investment of USD 185 million in metaverse-related initiatives, the South Korean government recently announced an additional USD 51 million in funding to strengthen the country’s leading position in the metaverse sector.

The Ministry of Science and ICT revealed that it will invest in a fund designed to support the nation’s metaverse initiatives. The South Korean government will contribute KRW 24 billion (approximately USD 18.1 million) to establish a metaverse development fund with a total size exceeding KRW 40 billion (approximately USD 30.2 million). This metaverse fund will help facilitate mergers and acquisitions among companies operating in different metaverse ecosystems.

The second initiative focuses on creating 13 concrete development plans that apply the metaverse across various integrated fields, including technology, regional projects, the public sector, and industry. The South Korean government has allocated USD 21 million to accomplish this second objective.

Aware of the inherent investment risks in the metaverse industry and acknowledging the challenges domestic players face in raising private capital, the South Korean government will actively support local enterprises in their metaverse development efforts beyond just facilitating M&A activities. In this regard, Oh Yong-soo, a software policy official at the Ministry of Science and ICT, stated: “Due to worsening economic conditions both domestically and globally, private venture investments have dried up. Government support is needed now more than ever—it’s time to take action.”

Since last year, the South Korean government has been taking proactive steps, investing millions of dollars into metaverse companies to foster the growth of the country’s metaverse market. According to the Ministry of Science and ICT, South Korea is among the first countries in the world to make direct investments in the metaverse.