KT Rides the 'Metaverse One Team'... Competing for Leadership in the 317 Trillion Won Market

Joining Competition with VR·AR Companies to Seize Global Market Leadership
Companies Form Alliances Amid Cost and IP Burdens

[Asia Economy Reporter Cha Min-young] Following the ‘Artificial Intelligence (AI) One Team,’ now comes the ‘Metaverse (3D Virtual World) One Team.’ KT, which has formed alliances with related ICT companies to build ecosystems based on new technologies such as AI and cloud, has joined the metaverse battle.

On the 2nd, KT announced that it has formed a ‘Metaverse One Team’ with companies related to virtual reality (VR), augmented reality (AR), and mixed reality (MR) to create a metaverse ecosystem in South Korea. Nine companies including Dilution, VERNEXT, COASOFT, and WYSIWYG Studios, as well as the Korea Virtual Augmented Reality Industry Association, are participating in the alliance. The participating teams will continue to increase.

KT’s move is part of the competition to take the lead in the global metaverse market. Market research firm Strategy Analytics (SA) estimates that metaverse market sales will reach $280 billion (approximately 317 trillion KRW) by 2025.

For mobile carriers struggling with the absence of 5G content amid their move beyond telecommunications, the metaverse is a promising growth engine. SK Telecom has showcased 5G metaverse cinema, K-pop idol metaverse concerts, and a demonstration of ‘VR Biryong’ inside a large baseball stadium. LG Uplus is producing space VR videos as the inaugural chair company of the global alliance ‘XR Alliance.’

Beyond the mobile telecommunications industry, alliances among companies to secure metaverse technology have also become active across the ICT sector. The ‘Metaverse Alliance,’ led by the Ministry of Science and ICT and launched on the 18th of last month, includes 17 large and small companies such as the three major mobile carriers, Hyundai Motor, Naver Labs, Kakao Entertainment, and CJ ENM.

Companies have chosen cooperation over going it alone not only for synergy but also due to cost burdens. Like AI, the metaverse is an uncertain area without guaranteed convertible future profits. It is also interpreted that securing original IP for metaverse content development has become difficult, especially centered around global online video services (OTT).

Baek Ki-dong, Head of Space, Video, and DX Business at KT Enterprise Division, said, “The metaverse, which connects the virtual and real worlds, is gaining attention as a core industry,” adding, “We will join forces with the companies participating in the Metaverse One Team to expand the metaverse ecosystem, advance technology, and discover new services.”