South Korea to Create a National Metaverse

[TL;DR]

On the 28th of February, the South Korean government pledged its support and commitment to developing a national metaverse through its Ministry of Science and ICT. Minister Hyesuk Lim made this known at the 2022 Digital Content Integration Business Briefing.

According to the Minister, the government is committing 223.7 billion Won or $187 million to develop the national Metaverse. In a translated statement by the MInistry, the government was investing in "the development of the expanded virtual world, development of core technologies in the virtual world, and the growth of digital growth companies."


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The ministry gave a breakdown of all their targets with the national metaverse project. Part of the plans for the Metaverse includes the development of virtual /augmented reality devices' core technology. The development of hologram technology and a legal system for the virtual world are also crucial parts of South Korea's national Metaverse plans.

Before South Korea’s National Metaverse

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The term Metaverse jumped in search popularity when Facebook announced the renaming of their company to Meta in late 2021. However, the term "metaverse" was adopted from a 1992 novel by Neal Stephenson, "Snow Crash." Different companies worldwide offered virtual world services, and gamers were already familiar with the term and concept before Facebook's announcement. Before Facebook's rebranding, South Korea was already experiencing a metaverse revolution, as South Koreans led by the "Generation MZ" were exploring the possibilities of the virtual world.

South Korea is the world's fourth-largest gaming market and plans to become the 5th largest metaverse market by 2026. One of South Korea's biggest export is its gaming market, with revenue exceeding $7.5 billion as of 2020. In January 2021, the Ministry of Science and ICT announced a $7.5 billion fund for digital technologies, including metaverse and cloud services. However, different South Korean companies explored the Metaverse before the government's resolve. Many young South Koreans are in love with the idea of a virtual world where they can craft a separate reality from their physical experiences.

One of South Korea's tech giants, Naver Z, launched a metaverse called Zepeto in 2018. The Metaverse platform hit 300 million users when filing this report, with South Korea accounting for 15 million users. Zepeto's success can be linked to its collaborations with Christian Dior, Gucci, Nike, and Ralph Lauren. In line with the metaverse culture in South Korea, the leading Korean game company Nexon Co. announced they would launch multiplayer online role-playing games (MMORPG) similar to Minecraft. Another gaming company Netmarble announced the launch of Metaverse Entertainment to offer a virtual reality platform and metaverse related content.

Even the K-Pop industry is warming up to the metaverse revolution. Vespa, one of the popular K-Pop girl groups, generated a lot of buzz with their unique creation of alter egos in the Metaverse. The worldwide K-Pop sensation BTS also explored the Metaverse when they launched their hit single "Dynamite" on Fortnite in 2020. In October 2020, YG Entertainment and Big Hit Entertainment announced their investment of $10.4 million into Zepeto.


Big South Korean technology companies are also keying into the national metaverse revolution. In mid-2021, SK Telecom, one leading telecommunications company, announced the launch of a Metaverse platform called "Ifland." According to the company's statement, they plan to "create new opportunities for users to build new careers in the Metaverse."

Samsung, one of South Korea's biggest export, also hinted that the company was planning to make a comeback from its hiatus in creating VR devices. According to the CEO, Han Jong-hee, metaverse-related devices had become a trend they could no longer overlook. The giant manufacturer was initially in business with Occulus VR and developed Samsung's Gear VR headset lineup. Circa 2019, Facebook discontinued the partnership.

Apart from the corporate bodies, the governments in South Korea are also stepping up. In November 2021, the Seoul Metropolitan Government announced plans to develop a metaverse to be called Metaverse Seoul. The virtual world is part of the Seoul Vision 2030 plan to make the city a global leader. According to a news report (https://www.euronews.com/next/2021/11/10/seoul-to-become-the-first-city-to-enter-the-metaverse-what-will-it-look-like), Seoul plans to host the Seoul Lantern Festival in the Metaverse in 2023. Another province, North Gyeongsang Province, announced plans for a provincial metaverse for 10 million people by 2026. The region's governor also announced the creation of a Metaverse alliance comprised of 50 companies and 40 universities.

In line with the Digital New Deal plan of the Korean government, 500 Korean firms have joined the Metaverse alliance, which was aimed at setting up the Metaverse ecosystem. As part of the plans in the Digital New Deal, the Ministry of Science and ICT announced they were going to spend KRW 223.7 billion to create South Korea's national Metaverse.

Does South Korea Have The Technology?

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Part of the steps highlighted by the Minister of Science and ICT for creating the metaverse ecosystem is the establishment of a virtual world academy with KRW 4.6 billion. There will be training for young developers and creators with technical abilities for the Metaverse in the academy. Technology has also been one of South Korea's biggest export, with manufacturing giants Samsung, Hyundai, and LG, some of the country's largest companies.

Being one of the world's leaders in 5G technology, South Korea is projecting towards being a global leader in virtual reality. With the amount of investment put into the project and South Korea's technological pedigree, it is safe to say the country has the capacity. Apart from the Metaverse ecosystem, the government will spend about $11 billion on the Digital New Deal before the end of 2022.



Author: Gate.io Observer: M. Olatunji
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