Haeundae Land Prices Soar 120 Times in 5 Months... Koreans Investing in Virtual Real Estate

Earth2 view divided into 10㎡ tiles based on Google Earth. Photo by Earth2 official website capture

[Asia Economy Reporter Kim Soyoung] Following the cryptocurrency craze, a 'virtual real estate' platform is now emerging. The leading virtual real estate platform currently is a metaverse game called 'Earth2.' Metaverse is a compound word combining Meta, meaning artificial or abstract, and Universe, meaning world, referring to a three-dimensional virtual world.

Last November, Shane Isaacs, a developer from Australia, created a virtual Earth of the same size as the real Earth based on Google's 3D map 'Google Earth,' dividing the land into 10㎡ units that can be freely bought and sold. The currency used for transactions is not virtual currency but actual US dollars, and payments can be made via bank transfer, credit card, or PayPal (easy payment).

According to the Earth2 homepage, as of the 10th, the net asset value of Korean users is $4,462,428 (approximately 4.97382 billion KRW), ranking third among global users. Stateless users have the highest net asset value at $8,426,248 (9.43149 billion KRW), followed by US users with $7,059,537 (7.9173 billion KRW).

Earth2 is a platform recreated based on Google Earth maps, dividing the virtual Earth into 10x10 cm, that is, 10㎡ tiles, which can be freely bought and sold. Famous tourist sites such as the Pyramids and the Eiffel Tower, as well as major buildings like the Blue House and the National Assembly, can also be purchased. When the game service first opened, all land prices were $0.1 per 10㎡, but as users flocked, land prices skyrocketed. Now, some tiles are priced over $100 each.

Land prices in the Jamwon-dong area of Seocho-gu, Seoul, traded on Earth2 as of the 31st. Photo by Earth2 Official Website Capture

As of the 10th, the Manhattan area in New York, USA, recorded $57.3 per 10㎡ (about 63,945 KRW). The situation in South Korea is similar. The Jamwon-dong area in Seocho-gu, Seoul, is $20.08 per 10㎡ (about 22,410 KRW), and the Marine City area in Haeundae-gu, Busan, is $20.075 (about 22,400 KRW). The land price in Haeundae surged 120 times in five months, from $0.166 per 10㎡ in December last year to $20.075. However, the rate of land price increase is at the level of the recent virtual currency investment frenzy.

The game developer states, "You can sell land to other game users and make a profit from price differences." In fact, money earned through user-to-user transactions can be withdrawn and cashed via an account linked to PayPal. However, the cashing process is relatively cumbersome, requiring sending emails to Earth2 operators, and since the asset has no intrinsic value, there is a risk that it could crash at any time.