[Comprehensive] "Seize the 317 Trillion Market Lead" Telecom 3 Companies and Hyundai Motor Launch 'Metaverse K-Alliance'

[Asia Economy Reporter Seulgina Jo] The so-called ‘Metaverse (3D virtual world) K-Alliance,’ led by Korea’s three major mobile carriers, Hyundai Motor Company, Naver Labs, Kakao Entertainment, and other domestic companies, has been launched. This move aims to secure Korea’s leadership in the global metaverse market, which is expected to generate related revenues of $280 billion (approximately 317 trillion KRW) by 2025. The decision by each company was also influenced by the recognition that the ‘metaverse economy,’ where people enjoy and consume within virtual worlds, has become an unstoppable trend.

◇ From the Three Mobile Carriers to Automotive, Medical, and Media Companies

On the morning of the 18th, the Ministry of Science and ICT held the launch ceremony of the ‘Metaverse Alliance’ at the Pangyo ICT-Culture Convergence Center, consisting of 17 domestic companies, related organizations, and associations. The Metaverse Alliance is a public-private cooperative system aimed at developing the metaverse industry ecosystem based on extended reality (XR), including augmented reality (AR) and virtual reality (VR).

The alliance includes 17 companies such as the three mobile carriers SK Telecom, KT, and LG Uplus, as well as Hyundai Motor Company, Naver Labs, Kakao Entertainment, CJ ENM, Bundang Seoul National University Hospital, Lotte World, Maxst, VRTCT, and Raontech. It also features ICT platform companies and device manufacturers supporting XR services, as well as medical institutions and media industries. Eight related organizations and associations, including the National IT Industry Promotion Agency (NIPA) and the Electronics and Telecommunications Research Institute (ETRI), are also participating.

The metaverse, encompassing both reality and virtuality, has recently become a symbolic theme of the COVID-19 era, fueled by the popularity of the gaming platform ‘Roblox,’ which has about 40 million daily active users. The metaverse era is accelerating as individuals represented by avatars in virtual spaces engage in hobbies, work, and even economic activities such as earning and spending money.

SK Telecom is conducting the 2021 Soonchunhyang University freshman entrance ceremony in a metaverse space through its 'JumpVR' platform.
[Image source=Yonhap News]

Amid this, the newly launched alliance will serve as a platform for mutual cooperation to revitalize the ecosystem by sharing recent technological trends, improving legal systems, identifying regulations, and planning projects through collaboration among companies.

The Ministry of Science and ICT is focusing on supporting the construction of an open metaverse platform where various companies can participate, accumulate and utilize data, and develop new services. Alongside this, to foster companies in new metaverse industries and support production and demonstration infrastructure, the current ICT-Culture Convergence Center will be reorganized into a ‘Metaverse Hub,’ and related support will be intensified. Cho Kyung-sik, the 2nd Vice Minister of the Ministry of Science and ICT, said, “The metaverse is the next-generation platform revolution following the internet and mobile. The launch of the private-sector-led Metaverse Alliance is significant and will serve as a focal point for cooperation.”

◇ "Innovation Across All Areas of Industry and Society"

Domestic and international companies regard the metaverse as the next-generation computing platform following mobile. Especially as new technologies such as virtual currency, Internet of Things (IoT), cloud, and smart health connect within the metaverse, it is expected that another new market will be formed. However, compared to global companies like Google and Microsoft (MS), which have already entered the market early with massive financial and technological power, domestic companies inevitably lag behind. This is why a national-level alliance was necessary.

Zepeto

Among domestic companies, Naver is currently leading the metaverse transition. Naver Z’s metaverse platform Zepeto, featuring 3D avatars, has surpassed 200 million cumulative users. Additionally, Naver Labs and Naver Cloud are leading the transition to the metaverse era by implementing a ‘mirror world’ using aerial photography and artificial intelligence (AI), not just a simple virtual space. This is the concept of a digital twin that simulates cities in the metaverse rather than just a virtual space.

SK Telecom, which attracted attention earlier this year with metaverse entrance ceremonies and recruitment briefings, is recently pushing forward the ‘K-pop Metaverse Project’ featuring rising K-pop stars, producing high-quality content. LG Uplus is also leading ecosystem construction by spearheading the launch of the world’s first 5G content alliance, the ‘XR Alliance,’ which includes Qualcomm and Verizon.

The Software Policy Research Institute stated, “The metaverse has scalability without spatial and temporal constraints and high accessibility to users in their teens and twenties, who are future potential customers. It is expected to create innovation across all areas of industry and society, which is why domestic and international companies are paying attention.” According to market research firm Strategy Analytics (SA), the metaverse market is expected to grow rapidly from this year, with related revenues reaching $280 billion by 2025. PwC forecasts that by 2030, the AR market will grow to $1.0924 trillion, and the VR market to $450.5 billion.