[New Wave] Another World, The Rise of Metaverse and Regulatory Directions

Seungwoo Son, Professor, Department of Industrial Security, Chung-Ang University

Why is the world so enthusiastic about the Metaverse? As the non-face-to-face environment prolongs, people want to escape from a bleak reality, and the longing for another world of freedom gave birth to the "Metaverse." In the United States, 52% of Generation Z spend more time with friends within the metaverse called "Roblox" than with their real-life friends. In South Korea, virtual spaces are now used not only for graduation ceremonies and performances but even for bank loans. Recently, Zigbang withdrew from its Gangnam headquarters and established its headquarters in the metaverse world, where employees work from home and communicate with each other through avatars called "Bucae." Moreover, companies like SK Telecom and LG Chem are increasingly conducting employee training and recruitment briefings on virtual platforms.

Life-logging metaverses like Naver Zepeto allow users to consume, record their lives, create, and communicate just like in reality, forming communities as residents of the virtual world. Since the virtual world is a reflection of reality, various legal issues may arise. First, as adolescents are the main users, adult males sometimes attempt to approach minors, leading to sexual crimes such as Oding and Grooming. In particular, using deepfake technology to create avatars of famous idols for sexual objectification can result in violations of portrait rights as well as punishments for distributing obscene materials. Additionally, applying virtual convergence technology requires continuous collection of users' eye movement data through HMDs or augmented reality (AR) glasses, or gathering users' location information, which may cause privacy or personal life infringements. Users create and distribute various items and content using the creative tools provided by the metaverse, raising issues about the ownership rights of such content. Furthermore, if users copy or imitate things from the outside world, intellectual property rights infringement problems may also arise.

Recently, digital content traded in the metaverse applies blockchain-based NFT (Non-Fungible Token) technology, which guarantees the originality and uniqueness of digital content. By applying NFT technology, ownership of digital items such as limited-edition Nike sneakers or Gucci accessories within the metaverse can be tracked and authenticated. Current civil law recognizes ownership only for tangible objects, so applying NFT technology can clarify ownership relationships for digital items. Therefore, establishing a new concept of ownership that aligns with this is required to activate digital transactions.

Cyber space tends to be more violent and less guilt-ridden than reality due to its non-face-to-face and anonymous nature, and if actions that start in the virtual world lead to crimes in the real world, they should naturally be punished. However, regulating all activities within the metaverse by the standards of reality is not the best approach. The metaverse is a new market with vast potential for development, but the domestic market is still at a nascent stage. South Korea, with its technological competitiveness and abundant infrastructure, needs to support the new industry until it gains global competitiveness rather than focusing on its negative aspects. It is necessary to set regulatory directions that innovate unnecessary regulations and allow various convergent attempts. To this end, simplifying licensing procedures to promote new technologies and services, and in principle permitting businesses utilizing virtual convergence technology, except in cases where public peace and order are significantly threatened, is required, adopting a "negative regulation" principle.