Korea Regional Technology & Innovation Lab EMERGING TECHNOLOGIES CURATION SERIES Issue #3: The Metaverse ACKNOWLEDGEMENTS WB Korea Office Jason Michael Allford (Special Representative) WBG, Information Technology Solutions, Technology and Innovation Lab (ITSTI) Yusuf Karacaoglu (Director and Senior Advisor), Stela Mocan (Manager), Jinhee Park (IT Officer), Loun Lee (IT Officer), Ji Ho Shin (IT Officer) © 2022 The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. 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Korea Regional Technology & Innovation Lab EMERGING TECHNOLOGIES CURATION SERIES Issue #3: The Metaverse Contents Acronyms.................................................................................... 5 Acknowledgements.................................................................... 6 Abstract...................................................................................... 6 I. AN ABC OF THE METAVERSE: A PRIMER.......... 8 II. A FRAMEWORK FOR THE METAVERSE AND ENABLING FACTORS ............................................11 III. ADVANTAGES OF THE METAVERSE IN THE REAL WORLD.............................................14 IV. APPLICATIONS OF THE METAVERSE ............17 V. THE METAVERSE IN KOREA .............................20 Public Sector Initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Private Sector Initiatives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Looking Ahead. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 4 Emerging Technologies Curation Series | The Metaverse in Korea Acronyms AR Augmented Reality ASCVTS Asian Society for Cardiovascular and Thoracic Surgery DAO Decentralized Autonomous Organization DD Digital Development Global Practice ETRI Electronics and Telecommunications Research Institute ETSI European Telecommunications Standards Institute FCI Finance, Competitiveness & Innovation Global Practice ICT Information and Communications Technology IITP Institute for Information communication Technology Planning and evaluation IoT Internet of Things ITSTI Information & Technology Solutions Technology & Innovation Lab KAIST Korea Advanced Institute of Science and Technology KCA Korea Communications Agency KoVRA The Korean VR/AR Industry Association KT Korea Telecom MBC Munhwa Broadcasting Corporation MIST Ministry of Science and Technology MR Mixed Reality NFT Non-fungible Token NIPA National IT Industry Promotion Agency PCFIR Presidential Committee on the Fourth Industrial Revolution POSTECH Pohang University of Science and Technology R&D Research & Development ROK Republic of Korea RAPA Radio Promotion Association SDGs Sustainable Development Goals SPRi Software Policy & Research Institute VPS Virtual Private Server VR Virtual Reality WBG World Bank Group W3C World Wide Web Consortium XR Extended Reality (umbrella term for AR, VR, and MR) KCA Korea Communications Agency 3GPP 3rd Generation Partnership Project 5G 5th Generation mobile network Acronyms 5 ABSTRACT The Metaverse, widely regarded as a successor to today’s internet, is a concept embodying a unified digital world that is tightly connected to the physical world. In the Metaverse, people can interact without physical or geographic constraints and enjoy a compelling sense of social presence. This offers a positive impact on the real world in various areas. In addition, the Metaverse can serve as a globally unified economic system for digital content that enables entities in different countries to interact frictionlessly. The Emerging Technologies Curation Series aims to capture and share Korea’s experience and lessons learned in regard to the exploration and adoption of emerging technologies such as blockchain, AI, edge-computing, IoT, 5G, and so forth. This third issue in the series briefly describes the Metaverse and its potential for solving development challenges, alongside key highlights of Korea’s experience. The issue is the fruit of a collaborative effort by the WB Korea Country Office and the ITS Technology & Innovation Lab. 6 Emerging Technologies Curation Series | The Metaverse in Korea I. AN ABC OF THE METAVERSE: A PRIMER I. An ABC of the Metaverse: A Primer T he Metaverse is nearing ubiquity and causing huge amounts of money to change hands. The global Metaverse market is expected to reach US$280 billion by 2025—in excess of sixfold growth from $46 billion in 2020.1 Many public and private entities are jumping on trends and starting their own explorations. Facebook even changed its name to Meta to align the company with its ambitions to build the Metaverse. Covid-19 lockdowns and prolonged work from home have further heightened interest in the Metaverse. The Metaverse could have a huge impact on the future of work, taking it far beyond the work environment with which we are currently familiar. According to Strategy Analytics,2 200 million units of dedicated AR/VR devices will be installed by 2026. And Statista forecasts a hardware market worth $296.9 billion by 2024,3 which is similar to the size of the current AI market, $327.5 billion.4 These forecasts are already impressive, but the effective market will be that much bigger because the Metaverse consists not only of AR/VR hardware but also the software including virtual worlds and content. With this expectation, the tech industry has recently been focusing on the Metaverse, exploiting core competencies like a virtual workroom for remote collaboration,5 IoT devices,6 AI assistants,7 simulation of factories,8 and user-created content.9 The term “Metaverse” was coined in “Snow Crash”, a 1992 science fiction novel by American author Neal Stephenson. The book is set in a territory, formerly the United States, where the story’s protagonist, named Hiro Protagonist, delivers pizza for the mafia that governs the area. Hiro connects to the Metaverse in his free time. In this 3D universe—where Hiro, our hero, is a top-class hacker—people do various activities via their avatars, from casual conversation to working as a mercenary. 1 Theo. “The Explosion of Metaverse Venture Capital.” Medium. August 14, 2021. https://medium.com/@theo/the-explo- sion-of-metaverse-venture-capital-2dea06668c17. 2 Macqueen, David. “VR Headset Forecast by Device Type 2014–2026.” Strategy Analytics. June 7, 2021. https://www.strategyanalytics. com/access-services/media-and-services/virtual-and-augmented-reality/market-data/report-detail/vr-headset-forecast-by-device-type- 2014-2026-june-2021-publication; Macqueen, David. “Dedicated AR Device Forecast by Price Tier 2013–2026.” Strategy Analytics. April 28, 2021. https://www.strategyanalytics.com/access-services/media-and-services/virtual-and-augmented-reality/market-data/report- detail/dedicated-ar-device-forecast-by-price-tier-2013-2026-apr-2021-publication. 3 Alsop, Thomas. “Augmented reality (AR) and virtual reality (VR) market size worldwide from 2016 to 2020.” Statista. Mar 1, 2021. https://www.statista.com/statistics/591181/global-augmented-virtual-reality-market-size/. 4 Liu, Shanhong. “Artificial intelligence (AI) market revenues worldwide in 2020 and forecasts for 2021 and 2024.” Statista. Apr 22, 2021. https://www.statista.com/statistics/694638/worldwide-cognitive-and-artificial-intelligence-revenues/. 5 Stein, Scott. “Facebook goes Meta: What is the metaverse and why is Big Tech obsessed?” CNET. Oct 28, 2021. https://www.cnet.com/ tech/computing/facebook-goes-meta-what-is-the-metaverse-and-why-is-big-tech-obsessed. Newton, Casey. “Mark In The Metaverse.” The Verge. Jul 22, 2021. https://www.theverge.com/22588022/mark-zuckerberg-facebook-ceo-metaverse-interview. 6 Ball, Matthew. “The Metaverse: What It Is, Where to Find it, Who Will Build It, and Fortnite.” MattewBall.vc (blog). Jan 13, 2020. https://www.matthewball.vc/all/themetaverse. 7 Ibid. 8 Caulfield, Brian. “What Is the Metaverse?” Nvidia (blog). Aug 10, 2021. https://blogs.nvidia.com/blog/2021/08/10/what-is-the- metaverse/. 9 La Monica, Paul R. “Roblox wants to rule the metaverse.” CNN Business. Aug 16, 2021. https://edition.cnn.com/2021/08/16/investing/ roblox-stock-earnings/index.html. 8 Emerging Technologies Curation Series | The Metaverse in Korea As in effect predicted by that book, the Metaverse is a shared virtual world collectively created by several services and platforms that are interoperable and seamlessly connected. In the Metaverse, people can go anywhere with their own avatar, which is not tied to one app or platform but enjoys content created by other users or groups, sometimes in 3D with virtual reality devices, sometimes in 2D with flat screen, and sometimes in augmented reality with smartphones. The Metaverse should be understood as a successor to the current Internet. The Metaverse is not merely a virtual world or a video game, rather it is the connected status of the spaces that underpin the relevant activity. We do not regard social media, an app store, or an e-commerce service as constituting the Internet. By the same token, it would be misleading to describe the Metaverse as subsisting in just one of its component elements. Because the Metaverse concept is continuously evolving, it tends to elude pithy or rigorously circumscribed definition. However, the following common characteristics are frequently invoked.10 • Avatar: Participants will have an avatar representing their identity. One avatar for every connected space is desirable for the highest level of interoperability. • Continuously operating world: The Metaverse exists consistently and persistently, and therefore never needs to be paused or reset by the operator. • Unlimited concurrent users: There will be no limit to the number of users connected to the Metaverse and interacting with each other at the same time. • Sense of presence: Users will participate jointly in specific events or activities despite living far apart physically. • Fully functioning economy: There will be an economic system by which users can create value and trade with other participants. • High interoperability: Services comprising the Metaverse will be fully interoperable so that participants can go wherever they wish and bring their assets with them. • Content from contributors: Any individual or company can create content such as activities, events, or buildings that provide an experience. • Decentralization: The Metaverse will be operated by many different players in a decentralized way, not by a single entity. There are movements to build common protocols and standards to achieve interoperability within the Metaverse, just as the World Wide Web Consortium (W3C) did for the Internet. Industry-leading companies and researchers formed the XR Association to define and promote standards that can bolster the growth of the XR industry (X for eXtended: that is, virtual, augmented, and mixed reality). Furthermore, the Open Metaverse Interoperability Group is focusing on designing and promoting protocols that can bridge virtual worlds. Its promise and ramifications notwithstanding, the Metaverse cannot be described as a novel concept that emerged from nowhere to burst unexpectedly upon the scene. On the contrary, it is in some ways an outgrowth of the Internet, and clearly the Metaverse overlaps the Internet in many ways. There are several applications that already incorporate typical characteristics of the Metaverse, which will gradually enhance and replace the current Internet. However, the future of the Metaverse might diverge from what we are currently expecting—in the same way, not so very long ago, most of us regarded the Internet as no more than a protocol for the transmission and receipt of email. 10 Ball, “The Metaverse”; Newton, “Mark in The Metaverse”. I. An ABC of the Metaverse:A Primer 9 II. A FRAMEWORK FOR THE METAVERSE AND ENABLING FACTORS 10 Emerging Technologies Curation Series | The Metaverse in Korea II. A Framework for the Metaverse and Enabling Factors I f the Metaverse is to develop further, various factors must coalesce. Not only does it require hardware such as physical Metaverse devices, a network, and computing power, but also critical software and human input (see Figure 1 below). Ecosystems, technologies, experiences, and behaviors should all be interconnected and polymorphously interactive to support the development and the operation of the Metaverse. Hardware Factors: • Physical Hardware Technologies: Physical Hardware technologies and devices related to the Metaverse enable users to access and interact with Metaverse. For example, Facebook’s Oculus, Microsoft’s HoloLens, or Apple’s Object capture can transplant users to the virtual environment. • Network/Internet: The huge amount of data encompassed by the Metaverse environment should be streamed without any interruptions. High bandwidth, low latency and a reliable network are the key enablers. • Computing Power: Metaverse experiences need persistent computing power. To integrate distinct sources of computing power by platform, it is important to choose the right approach. Software Factors: • Tools and standards: Underlying tools and protocols are important components for Metaverse operation. Open shared standards are vital to allow the industry and users to align today’s world to the next era of global network computing.11 • Virtual Platforms: Enabling virtual platforms for personal and commercial inter- actions are a core part of the Metaverse. This provides the opportunity for users to operate and simulate the environment. • Content/Service: There is great potential for new fields and types of content and services to leverage the Metaverse. The proliferation of compelling content and efficient services will further accelerate development of the Metaverse. 11 Hackl, Cathy. “Fundamental Considerations in Building the Metaverse.” Forbes Magazine. September 11, 2021. https://www.forbes. com/sites/cathyhackl/2021/08/22/fundamental-considerations-in-building-the-metaverse/?sh=791513957663. II. A Framework for the Metaverse and Enabling Factors 11 FIGURE 1 Metaverse Enabling Factors Real-time connections with high bandwidth, sustainable network Physical Hardware Computing Power technologies and Enough Computing Network devices related to power to support Metaverse Metaverse Hardware Computing Power HA R DWA R E FA CTOR S B US I N E S S CON SU M ER B E H AVI O R B EHAVI OR SOF TWA R E FA CTOR S Tools and Standards Design/creation of Underlying Tools and Standarts Content content and service protocols for Service Metaverse operation Virtual Platforms Enabling Virtual Platforms to operate simulations & environment 12 Emerging Technologies Curation Series | The Metaverse in Korea III. ADVANTAGES OF THE METAVERSE IN THE REAL WORLD II. A Framework for the Metaverse and Enabling Factors 13 III. Advantages of the Metaverse in the Real World I f the Metaverse has an economic system closely connected to the physical world, it means that a shared worldwide economic system is in place. This can be a new source of revenue for enterprises and individuals in the developing world. Examples can already be adduced of people in the developing world who have earned real money using digital assets. In 2019, 1.8 million Venezuelan people were relying on RuneScape, an online role-playing game, to earn their daily expenses by gathering the RuneScape’s currency in the game and selling to other players.12 The players earned more than $100 via the game every month, at a time when the average monthly salary was less than $5. This trend of making a profit from the digital world will accelerate, through increased sales to users in developed countries of digital assets or content created in developing countries. This is comparable to Taobao Village,13 which came about through the emergence of e-commerce, but with digital content. It could be applied as a digitalized version of a one-village-one-product rural economy development approach. Furthermore, the marketplace for digital assets is fundamentally changing with blockchains and non-fungible tokens (NFT). For some years, growth of the digital asset market was hampered by the difficulty of establishing the property rights to assets such as images on the Internet. However, people can now verify ownership using the transaction records of NFTs on blockchain. Moreover, the programmability of blockchain allows for a new type of transaction, for example, automatically paying a royalty to the original creator when the asset is resold. These new technologies can strengthen the link between the real world and the digital world and accelerate the advent of the Metaverse. OECD reported that the pandemic-related school closures in early 2020 could result in 1.5 percent lower annual GDP for the remainder of the century.14 By contrast, according to the World Bank Education Global Practice, virtual reality training was more effective than traditional training to develop technical, practical, and socioemotional skills.15 For governments seeking to mitigate the loss of education opportunities with e-learning, education programs using virtual reality could offer a significant part of the solution. The Metaverse can provide content to its users in a frictionless manner that could be used to raise awareness on social issues with a comparatively low entry barrier.16 Reporters Without 12 Dubrowski, Doug, Sven Peterson and Hayden Gilmore. “Playing for Their Lives: How a 2001 Video Game Is Feeding Venezuela.” The National Interest. Mar 26, 2019. https://nationalinterest.org/feature/playing-their-lives-how-2001-video-game-feeding-vene- zuela-49187. Ombler, Mat. “How RuneScape is helping Venezuelans survive.” Polygon. Mar 27, 2020. https://www.polygon.com/ features/2020/5/27/21265613/runescape-is-helping-venezuelans-survive. 13 Luo, Xubei. “In China’s Taobao villages, e-commerce is one way to bring new jobs and business opportunities to rural areas.” World Bank Blogs. Nov 22, 2018. https://blogs.worldbank.org/eastasiapacific/china-s-taobao-villages-e-commerce-one-way-bring-new-jobs- and-business-opportunities-rural-areas. 14 Hanushek, Eric A. and Ludger Woessmann. “The Economic Impacts of Learning Losses.” OECD Education Working Papers. Sep 10, 2020. 15 Angel-Urdinola, Diego F., Catalina Castillo-Castro and Angela Hoyos. “Meta-Analysis Assessing the Effects of Virtual Reality Training on Student Learning and Skills Development.” World Bank Group Policy Research Working Paper. Mar 2021. “Can Virtual Reality simulators develop students’ skills?” World Bank Blogs. Apr 27, 2021. https://blogs.worldbank.org/developmenttalk/can-virtual-reality-simula- tors-develop-students-skills. 16 Holt, Kris. “Minecraft mod fosters a collaborative effort against climate change.” Engadget. Aug 27, 2018. https://www.engadget. com/2018-08-27-minecraft-climate-change-mod-globalwarming.html. 14 Emerging Technologies Curation Series | The Metaverse in Korea Borders built a digital library, “The Uncensored Library”, within the online game Minecraft and through it shared works that had been censored in the real world.17 Also, people can work together more efficiently18 in a virtual workplace without physical barriers: this provides a more flexible and widened job market. Workers in rural areas can work at companies in a metropolitan area without the burden of high living costs. With the Metaverse many industries can take on a new form. FIGURE 2 Possible Changes for Industries using the Metaverse SECTORS Production & Education Collaboration & Customer Commerce Social Activites interaction CURRENT Significant Education that Physical presence Companies need WORLD physical resources requires physical during the conver- to open branch are required interaction is very sation is important offices physically during the difficult to provide to convey and to meet the production cycle at a distance understand customer’s need in from resource the contextual each regions aggregation, meaning manufacturing to transporting METAVERSE No need Education can People can have Customers can visit for physical be provided to better sense of the branch office production and a certain level presence that feeling the same the product can even at a remote helps them to sense of physical be sent as a digital location with understand service window in asset pseudophysical underlying context the Metaverse experience in the in the Metaverse Metaverse There is growing recognition of the opportunities and potential advantages ushered in by the Metaverse (see Figure 2 above). The world— both developing and developed countries—is changing with the Metaverse and affected by its applications. Like the new iteration of the Internet, the Metaverse will have massive implications for society. 17 Reporters Without Borders. “RSF opens “The Uncensored Library” – The digital home of Press Freedom within a global computer game.” Reporters Without Borders. Mar 11, 2020. https://rsf.org/en/news/rsf-opens-uncensored-library-digital-home-press-free- dom-within-global-computer-game. 18 Heath, Alex. “Inside Facebook’s Metaverse for Work.” The Verge. Aug 19, 2021. https://www.theverge.com/2021/8/19/22629942/ facebook-workrooms-horizon-oculus-vr. III. Advantages of the Metaverse in the Real World 15 IV. APPLICATIONS OF THE METAVERSE 16 Emerging Technologies Curation Series | The Metaverse in Korea IV. Applications of the Metaverse T he Metaverse possesses significant potential to make a positive impact on the real world. It is affecting the users and ecosystems of many sectors such as health, education, culture, public administration, politics, business management, marketing, as well as the cultural and humanitarian spheres. According to a paper entitled ‘Metaverse for Social Good: A University Campus Prototype’, the Metaverse can exert the most significant positive impacts in terms of accessibility, diversity, equality, and humanitarian action. The application of the Metaverse to social good promises to be highly beneficial to society.19 TABLE 1: Use of the Metaverse20 AREA KEY HIGHLIGHTS Business • Conducting corporate executive meetings and in-house training for Management employees Culture / • Ubisoft reconstructed the Notre Dame de Paris as a digital 3D model in Humanitarian Assassin’s Creed Unity, which will be utilized to support its reconstruction • National Architects & Cthuwork have made efforts to reconstruct Chinese cultural relics as 3D voxel models in Minecraft, and famous paintings such as Qingming Shanghe Tu (Along the River During the Qingming Festival) Event • University entrance ceremony and festival • UC Berkeley held graduation ceremony on Minecraft • Held a non-face-to-face college entrance exam • American hip hop artist Travis Scott held a concert in April on ‘Fortnite’ • A high school in Quebec, Canada replaced its field trip with the Metaverse. When their field trip to Greece was cancelled due to COVID-19, students all went on the action game ‘Assassin’s Creed Odyssey’ and explored ancient Greece 19 Duan, Haihan, Jiaye Li, Sizheng Fan, Zhonghao Lin, Xiao Wu, and Wei Cai. “Metaverse for Social Good: A University Campus Prototype.” arXiv.org, August 20, 2021. https://arxiv.org/abs/2108.08985. 20 정준화. “메타버스(metaverse)의 현황과 향후 과제.” 국회입법조사처. https://www.nars.go.kr/report/view.do?cmsCode=C- M0018&brdSeq=35690. IV. Applications of the Metaverse 17 AREA KEY HIGHLIGHTS Marketing • Cyber branch opening and operation • New product promotion and virtual experience services • Stanford University exhibited its posters in Second Life Politics • Provision of space for election candidates • Animal Crossing held a presidential campaign for Joe Biden • Decentraland, where there is a Decentralized Autonomous Organization (DAO) allowing users to propose and vote on policies to determine how the world behaves • Axie Infinity introducing a decentralized organization mechanism, whereby Axie Infinity Shards holders can stake their tokens through a staking dashboard and participate in governance votes Public Admin- • Operation of a citizen-participating virtual policy forum istration • Providing information on various administrative services Real Estate/ • Virtual model house Construction • Introduction of property Health21 • Medical simulation training • Simulating Surgery22 • Asian Society for Cardiovascular and Thoracic Surgery (ASCVTS) provided lung cancer surgery training through a Metaverse platform at an online conference23 Education24 • Enabling talented educators from anywhere to lead— equipping them with tools for their creativity—and draw upon everything that has been learned from games to make the experience more fun and interesting • A notable attempt by a Korean educational institution, Soonchunhyang University—with SKT—to implement the Metaverse was its ‘Metaverse Matriculation Ceremony’ • UNICEF is introducing an Augmented and Virtual Reality (AVR) education solution in Viet Nam’s remote mountainous provinces where it is difficult for teachers to access STEM Training 21 Kim, Hye-in. “Metaverse Can Help Overcome Challenges of Medical Training.” KBR. July 09, 2021. http://www.koreabiomed.com/news/ articleView.html?idxno=11602. 22 Ibid. 23 Song, Soo-youn, “Metaverse in Operating Room Is Changing Medicine Rapidly,” KBR, June 25, 2021, https://www.koreabiomed.com/ news/articleView.html?idxno=11477. 24 Radoff, Jon. “The Experiences of the Metaverse.” Medium. June 03, 2021. https://medium.com/building-the-metaverse/the-experienc- es-of-the-metaverse-2126a7899020. 18 Emerging Technologies Curation Series | The Metaverse in Korea V. THE METAVERSE IN KOREA IV. Applications of the Metaverse 19 V. The Metaverse in Korea PUBLIC SECTOR INITIATIVES The Korean government began to provide policy support for VR technology development and industry promotion in the ‘Nine National Strategies’ developed in 2016. Since then, the government has proposed several plans for technology development such as the ‘5G+ Strategic Action Plan’ and ‘The Pan-Governmental Five-Year Plan to Foster the Realistic Content Industry’, ‘Content Industry Revitalization Action Plan’, and ‘Virtual/Augmented Reality Preemptive Regulatory Innovation Roadmap’.25 In 2020, the government announced plans for a multi-trillion won ‘new deal’ stimulus package including the ‘green new deal’ and the ‘digital new deal’ which will target digital technologies including AI, blockchain, edge-computing and XR. The new deal aims to tackle the Korean economic crisis triggered by COVID-19 while laying the groundwork for long-term prosperity.26 The digital new deal focuses on XR development including the creation of realistic content and the development of virtual convergence services in transport and urban areas.27 In December 2020, an XR-based “Virtual Convergence Economy Development Strategy” was announced that reflected the demand for XR in all areas of the economy and industry in response to the existing content industry promotion policy.28 The virtual convergence economy was defined as a concept in which space for economic activity (work, leisure, communication) is extended from reality to virtual convergence space using XR to create new experiences and economic values. This policy seeks to develop a private-led virtual convergence economy, which could catalyze the successful implementation of the ‘Korean New Deal’.29 The Ministry of Science and ICT has formed the Metaverse Alliance with XR-related companies and organizations to uncover and meet the needs of the Metaverse industry. The Metaverse Alliance was started as a follow-up to the “Virtual Convergence Economy Development Strategy,” and aimed to create a venue for Metaverse-related devices, networks, platforms, and content companies to discuss mutual cooperation to stimulate development of the Metaverse ecosystem. The Metaverse Alliance will be in charge of sharing technology trends, reviewing reforms of the legal system, and exploring and planning the Metaverse platform through collaboration between companies. The Ministry of Science and ICT has also established the ‘Metaverse Hub’ in Pangyo as a space for nurturing Metaverse companies and developers. Through this hub, the government seeks to select strategic areas with high Metaverse application effects to support production, testing, and demonstration of virtual convergence services, and select and support start-ups and professional talent to lead the Metaverse industry. 25 한상열, 방문영. “글로벌 XR 정책 동향 및 시사점 - SPRi.” SPRi 소프트웨어정책연구소. https://spri.kr/posts/view/23128?code=industry_ trend; 정준화. “메타버스(metaverse)의 현황과 향후 과제.” 국회입법조사처. https://www.nars.go.kr/report/view.do?cmsCode=C- M0018&brdSeq=35690. 26 Ledger Insights. 2020. “IMF Synthesizes Current Research on Central Bank Digital Currencies.” Ledger Insights—Enterprise Blockchain. July 16, 2020. https://www.ledgerinsights.com/imf-synthesizes-current-research-central-bank-digital-currencies-cbdc/. 27 한상열, 방문영. “글로벌 XR 정책 동향 및 시사점 - SPRi.” SPRi 소프트웨어정책연구소. https://spri.kr/posts/view/23128?code=industry_ trend. 28 정준화. “메타버스(metaverse)의 현황과 향후 과제.” 국회입법조사처. https://www.nars.go.kr/report/view.do?cmsCode=C- M0018&brdSeq=35690. 29 한상열, 방문영. “글로벌 XR 정책 동향 및 시사점- SPRi.” SPRi 소프트웨어정책연구소. https://spri.kr/posts/view/23128?code=industry_trend. 20 Emerging Technologies Curation Series | The Metaverse in Korea TABLE 2 Key National Policy NAME OF POLICY YEAR KEY HIGHLIGHTS Nine National 2016 • Fund investment: Create a dedicated fund, expand tax Strategies deductions for new industry R&D investments • Infrastructure establishment: Virtual augmented reality ecosystem such as virtual reality cluster creation • Industry development: Promotion of five leading virtual reality industries 5G+ Strategic 2019 • VR/AR device: Secure core technology and build test bed Action Plan • Realistic content: Production support, demonstration support, infrastructure construction, commercialization support Pan-Government 2019 • Fund investment: Investment goal of Article 1.3 applicable Five-Year Promotion to relevant ministries, with regard to fund formation and Plan to Foster operation the Realistic • Securing expertise: Nurturing specialized companies and Content Industry talent, developing core VR/AR technologies • Infrastructure construction: Establishment and operation of Asia’s largest immersive content production infrastructure Content Industry 2020 • Demand Generation: Promotion of large-scale projects Revitalization related to defense, culture, and education industries Action Plan • Infrastructure construction: Immersive content production and test infrastructure construction and operation • Industry development: Venture growth support fund creation, improved regulation and talent cultivation; roadmap for preemptive regulatory innovation in VR/AR field • Identifying regulatory issues according to service diffusion scenarios • Distinguish between explicit regulation, transitional regulation, and unclear regulation and promote improvement Virtual Convergence 2020 • Full use of XR from industrial sites to solve social problems Economy • Early expansion of the core base for the advancement and Development diffusion of XR Strategy • Support for global competitiveness of XR companies, which are key players in the spread of XR in all fields Source: SPRi (2020)30 30 Ibid. V. The Metaverse in Korea 21 TABLE 3 Think-Tanks & Associations: Key Members of the Metaverse Alliance NAME TYPE The National IT Industry Promotion Agency (NIPA) Government Think-tank Electronics and Telecommunications Research Institute (ETRI) Government Think-tank The Institute for Information communication Technology Government Think-tank Planning and evaluation (IITP) Korea Communications Agency (KCA) Government Think-tank RAPA (Radio Promotion Association) Industry Association KoVRA (The Korean VR/AR Industry Association) Industry Association MOIBA (Korea Mobile Internet Business Association): Industry Association SPRi (Software Policy & Research Institute) Industry Association PRIVATE SECTOR INITIATIVES Multinational corporations and start-ups have embarked on developing Metaverse protocols and solutions to facilitate enterprise adoption and digital transformation. The Metaverse Alliance is comprised of private companies such as Naver, Hyundai Motor, SK telecom.31 Entertainment & Media • CJ ENM Entertainment held an online recruitment briefing session on ‘Recruiting Concert’ using the Metaverse platform.32 • CJ OliveNetworks participated in the Metaverse pilot service for the digital environment of Seoul Metropolitan Government. CJ OliveNetworks will implement the Metaverse conference room. The Seoul Metaverse meeting room is a virtual space where avatar officials communicate, and the meeting room and avatar are implemented in 3D with a realistic feel, enabling lively meetings. For public events, citizens can also participate as avatars. In addition, it is possible to conduct a meeting while reviewing immersive materials with new technologies such as VR images and 3D objects. Through this, new technologies such as a bird’s eye view of buildings and city planning can be applied to housing, urban planning, and cultural tourism (with high utilization).33 • Cheil Worldwide sets out to digitally restore Gungisi (a Joseon dynasty armory) that disappeared after its abolition in 1884. By using augmented reality and 31 S, Sakshi K. “South Korea Is Now a Key Player in VR with the ‘metaverse’ Launch.” The Global Economics. July 23, 2021. https://www. theglobaleconomics.com/south-korea-is-now-a-key-player-in-vr-with-the-metaverse-launch/. 32 CJ ENM. “CJ ENM 엔터테인먼트 부문, 콘서트/컨벤션 형태의 메타버스 채용설명회 리크루콘 개최한다.” 채널CJ. September 27, 2021. https://cjnews.cj.net/cj-enm-엔터테인먼트-부문-콘서트-컨벤션-형태의-메타버/. 33 CJ올리브네트웍스. “CJ올리브네트웍스, 서울시 메타버스 시범서비스 참여.” 채널CJ. September 23, 2021. https://cjnews.cj.net/cj올리 브네트웍스-서울시-메타버스-시범서비스-참여/. 22 Emerging Technologies Curation Series | The Metaverse in Korea virtual reality technology, it is planned to restore Gungisi in virtual reality and recreate it as a space that people can visit as if they were physically in it.34 • Hybe Entertainment tries to issue NFTs for their artists such as BTS (the boy band). It was reported that their issuance will be arranged in collaboration with Dunamu, the operator of the cryptocurrency exchange ‘Upbit’.35 • JYP Entertainment announced that it planned to develop the K-pop-based NFT platform business in partnership with Dunamu in 2021. JYP entertainment signed a strategic business alliance with Dunamu to develop, provide and operate the platform including production, distribution, and trading of NFT-linked digital goods.36 • MBC presented an entertainment program using the Metaverse platform. The key feature is that viewers participate in real-time voting while listening through the Metaverse.37 • Naver (the tech giant Naver Corp) in 2018 launched the mobile-based Metaverse platform Zepeto, which by February 2021 had more than 200 million users globally.38 Zepeto is a virtual world based on 3D avatars within which various community activities such as games, parties, and concerts are possible with virtual friends. Users make fashion items through Zepeto Studio, create their own maps, get people to visit, and earn money through advertisements.39 • SM Entertainment girl group Aespa consists of four real members and four avatars who reflect their worldview. The Aespa avatars also sing, dance, and conducts interviews.40 SM Entertainment teamed up with KAIST University, to conduct joint research on digital avatars for virtual concerts in an effort to boost the development of Metaverse technology. SM is planning to use its SM Culture Universe content and display it in the Metaverse service.41 Finance • Kookmin Bank is planning to establish a virtual branch. Kookmin Bank Financial Town has been opened on the Metaverse platform ‘Gather’ and a test bed is being conducted to open a branch where customer consultation is possible. In addition, Kookmin Bank is also preparing a virtual finance experience center using the Roblox platform or virtual reality devices.42 34 원호섭. “제일기획, 메타버스로 조선시대 궁궐 복원한다.” 매일경제. July 06, 2021. https://www.mk.co.kr/news/business/ view/2021/07/652685 35 장형태,조유미. “하이브·두나무 주식 맞교환... BTS 기념품 NFT 만든다.” 조선일보. Accessed November 22, 2021. https://www.chosun. com/economy/tech_it/2021/10/27/XMV4KMV6SZFDTOZFAPYTZXSWQI/. 36 윤기백. “JYP 이어 하이브도 NFT 진출 선언... 왜? 이데일리. November 04, 2021. Accessed November 22, 2021. https://www.edaily. co.kr/news/read?newsId=01121766629242440&mediaCodeNo=258. 37 김평화. “SKT, MBC와 손잡고 메타버스 방청 예능 프로 선봬.” IT조선 > 기술 > 로봇·드론·VR. September 24, 2021. http://it.chosun.com/ site/data/html_dir/2021/09/24/2021092400669.html. 38 Chae, Yun-Hwan. “Tech Companies bolster ‘metaverse’ projects amid pandemic.” Yonhap News Agency. August 19, 2021. https:// en.yna.co.kr/view/AEN20210521007800320. 39 서민지. “[아주 쉬운 뉴스 Q&A] 유통가 몰리는 메타버스, 정부 규제사항은 없나요?” 아주경제. August 19, 2021. https://www.ajunews. com/view/20210819152730134. 40 전유진. “[피할 수 없는 흐름, 메타버스] ③ 마케팅 활용 사례 및 확장 가능성.” 월드투데이. June 09, 2021. https://www.iworldtoday. com/news/articleView.html?idxno=402122 41 Yonhap. “KAIST Teams up with SM Entertainment for Metaverse Research.” The Korea Herald. June 24, 2021. http://www.koreaherald. com/view.php?ud=20210624000317. 42 박관훈. “은행·보험 등 금융권에 메타버스 바람...고객 상담부터 채용 설명까지 가상현실로.” 소비자가 만드는 신문. September 23, 2021. https://www.consumernews.co.kr/news/articleView.html?idxno=635728. V. The Metaverse in Korea 23 • Shinhan Bank prepared a Metaverse space within its own platform. Previously, Shinhan SOL Baseball Park was introduced to support the Tokyo 2020 Olympic baseball team. This is a space where fans can communicate and support baseball on the Metaverse (as only limited numbers of spectators can attend the physical game).43 Mobility • Hyundai Motor is applying the Metaverse to its test drives. Users can drive a vehicle in the virtual world or experience the future of mobility today, such as urban air traffic (urban air mobility: UAM), purpose-based mobility (purpose-built vehicles: PBV), and robotics, through Metaverse content. Telecommunication • LG U+ established the Global XR Content Telco Alliance in September 2020: the first-ever international 5G extended reality (XR) partnership.44 As the first inter- national 5G extended reality partnership, the alliance aims to produce unique virtual and augmented reality content. • Korea Telecom Corp (KT) teamed up with local virtual reality (VR) content and visual effects companies to develop Metaverse services in a move to boost its efforts in virtual platforms.45 KT also opened the Suwon KT Wiz Park in Metaverse platform Zepeto.46 • Munhwa Broadcasting Corporation (MBC) in collaboration with SK Telecom broadcast the program linked to the Metaverse “Dermatel”. It was the first domestic broadcast to link broadcasting and the Metaverse in real time.47 • SK Telecom ( the country’s largest wireless carrier) launched the Metaverse Platform and planning to develop “Ifland” into a global platform in roughly 80 countries by the end of 2021.48 Gaming • Gamevil is incorporating blockchain technology into its gaming infrastructure and is actively discussing with the cryptocurrency exchange developing block- chain-based games and an exchange for NFTs. Also, Gamevil and Com2uS have signed a memorandum of understanding with the Korean blockchain platform Terraform Labs to build out a blockchain gaming platform.49 43 박관훈. “은행·보험 등 금융권에 메타버스 바람...고객 상담부터 채용 설명까지 가상현실로.” 소비자가 만드는 신문. September 23, 2021. https://www.consumernews.co.kr/news/articleView.html?idxno=635728. 44 James Jung. “LG Uplus Strengthens Metaverse Leadership with New VR Content.” KoreaTech Today - Korea’s Leading Tech and Startup Media Platform. May 17, 2021. https://www.koreatechtoday.com/lg-uplus-strengthens-metaverse-leadership-with-new-vr-content/. 45 Yonhap. “KT Teams up with VR, Content Developers in ‘Metaverse’ Tech.” The Korea Herald. June 2, 2021. http://www.koreaherald. com/view.php?ud=20210602000173. 46 By and Korea Bizwire. “KT Opens Baseball Stadium in Zepeto Metaverse.” Be Korea-savvy. June 24, 2021. http://koreabizwire.com/ kt-opens-baseball-stadium-in-zepeto-metaverse/192910. 47 김평화. “Skt, MBC와 손잡고 메타버스 방청 예능 프로 선봬.” IT조선. September 24, 2021. http://it.chosun.com/site/data/html_ dir/2021/09/24/2021092400669.html. 48 Chae, Yun-Hwan. “SK Telecom’s Metaverse Platform to Go Global.” Yonhap News Agency. August 19, 2021. https://en.yna.co.kr/view/ AEN20210819005600320. 49 Kim, Lee Moon-jong & ARam. “Com2uS: Taking the Plunge into the Metaverse.” Businesskorea, November 12, 2021. http://www. businesskorea.co.kr/news/articleView.html?idxno=81056. 24 Emerging Technologies Curation Series | The Metaverse in Korea • NCSoft published the Metaverse-based game “Blade & Soul 2” and launched the K-Pop Platform “The Universe” simultaneously in 134 countries. This universe, which uses NCsoft’s AI and motion capture technology, made it possible to communicate with fans and stars in a virtual space.50 • Nexon is launching new Metaverse content using its popular online game Maplestory IP. The company also has 12 new games already in development, including the new Metaverse platform MOD.51 • Wemade and KaKao Games have pledged to roll out new gaming business in the Metaverse involving non-fungible tokens (NFTs), with the release of a game by 2022.52 Platform & User Interface • Maxst is an AR development platform company and provider of commercialized virtual private server (VPS) technology, which helps to realize a reality-based Metaverse in combination with AR and AI technologies.53 • Virnect shows the technological power of AR. Virnect aims to improve safety and work efficiency by developing and commercializing AR technology for the industrial field.54 • Raontech develops a VR/AR optical module that applies advanced technology in support of the Metaverse experience.55 Health • Seoul National University Hospital built a Metaverse platform in a smart operating room at its Bundang facility. The Asian Society for Cardiovascular and Thoracic Surgery (ASCVTS) provided lung cancer surgery training through a Metaverse platform at an online conference.56 • New Base is a disaster training solution development Social Venture and introduced a new application called ‘ViewLabo Plus’ for medical simulation. The app allows prospective nurses to traat and communicate with digital patients in a virtual intensive care unit.57 50 “‘가상공간서 아바타 공연 관람’... It-엔터 콘텐츠 융합 본격화.” www.donga.com, February 3, 2021. https://www.donga.com/news/Economy/ article/all/20210203/105269878/1. 51 Altay, Omer. “Nexon Showcases 12 New Games in Development Including New Metaverse Platform ‘Mod’.” MMOs.com, August 5, 2021. https://mmos.com/news/nexon-showcases-12-new-games-in-development-including-metaverse-platform-mod. 52 “Kakao Games, Wemade in Hot Earnings Streak to Go Global and Explore beyond Mainstay.” Maeil Business News Korea. Accessed November 22, 2021. https://pulsenews.co.kr/view.php?year=2021&no=1047272. 53 Kang, Kyeong-keun. “Maxst: Metaverse Platform Provider.” Businesskorea. July 12, 2021. http://www.businesskorea.co.kr/news/ articleView.html?idxno=71598. 54 VIRNECT. Accessed October 14, 2021. https://virnect.com/. 55 Kwon, Dong-jun. “Raontech Develops VR·AR Optical Module... ‘Applying Lcos-Based Full HD Micro Display.’” ETNEWS. August 23, 2021. https://english.etnews.com/20210823200002. 56 Song, Soo-youn. “Metaverse in Operating Room Is Changing Medicine Rapidly.” KBR. June 25, 2021. https://www.koreabiomed.com/ news/articleView.html?idxno=11477. 57 이민하. “‘메타버스’에 펼쳐진 재난·응급현장…의료교육 사각지대 없앤다.” 머니투데이. March 22, 2021. https://news.mt.co.kr/ mtview.php?no=2021032112364890281. V. The Metaverse in Korea 25 Academia • Korea Advanced Institute of Science and Technology (KAIST), where its Global Strategy Institute hosted an international online forum of global experts with the theme “Digital Big Bang, Metaverse Technology” to discuss innovative Metaverse technology and its social impact.58 KAIST is also planning to open ‘Kenya-KAIST campus’ by September 2023 and introduce the Metaverse for its immersive learning program.59 • Korea National University of Arts & Pohang University of Science and Technology (POSTECH). The two universities announced joint work on building Metaverse content based on AI and XR technologies, and an education program focused on Metaverse R&D using the platform.60 • Seoul National University & Kyung Hee University. Medical schools of both are using AR/VR technology for anatomy lectures.61 • Yonsei University is using VR content for their biology experiment class.62 58 방은주. “KAIST, 국내외 전문가 초청 메타버스 국제포럼 8일 개최.” ZDNet Korea. September 5, 2021. https://zdnet.co.kr/ view/?no=20210905231211. .” Times Higher Education. May 10, 2021. https://www.timeshigheredu- 59 Lee, Kwang Hyung. “The Educational ‘Metaverse’ Is Coming​ cation.com/campus/educational-metaverse-coming 60 박지현. “한예종, 포스텍과 ‘인공지능 및 증가상현실 기반 콘텐츠 메타버스’ 구축.” 파이낸셜뉴스. June 4, 2021. https://www.fnnews. com/news/202106041118574759. 61 백두산. “[대학 INSIGHT] 메타버스, ‘새로운 기준이 되다’.” 월간 대학저널. September 1, 2021. https://www.dhnews.co.kr/news/ articleView.html?idxno=144481 62 Ibid. 26 Emerging Technologies Curation Series | The Metaverse in Korea LOOKING AHEAD This note is an initial articulation of views on the Metaverse and trends within it. It addresses the Metaverse technology, framework and its application to the real world. By offering a snapshot of the current Metaverse ecosystem in Korea, the document aims to share insights and in so doing indicate ways that the Metaverse could help to solve development challenges. Beyond this effort to navigate the Metaverse landscape, there are still many outstanding questions. This will require ongoing research and analysis, from the public and private sectors alike. We envision active discussion in respect to legal implications and policy; data and identity protection policy should follow accordingly. Priority areas will be explored further, and we hope to cover these questions in future work. V. The Metaverse in Korea 27 January 2022