Korean brokerage companies and asset management companies are paying close attention to the integration of cutting-edge technologies in the new virtual world, and the market expects this emerging industry to drive greater growth.
Metaverse is a compound word of “meta” and “universe”, referring to the virtual world shared by people in the real world. Meta Universe has quickly become a major trend in global enterprises.
Industry observers said on July 6 that two asset management companies headquartered in Seoul, South Korea, have launched the Meta Universe Fund to help investors invest in beneficiary stocks such as Facebook, Apple, Microsoft, Roblox, Naver and Hybe.
KB Asset Management launched Korea’s first Metaspace Fund on June 14. The fund invests in 30-50 stocks listed in South Korea, the United States, China and Japan. The fund’s net asset value is 9.8 billion won (approximately US$8.7 million), and the rate of return is 4.08%.
About two weeks later, Samsung Asset Management also launched the Metaverse Fund, investing in 40-50 global stocks such as Facebook, PayPal, Roblox, Square and Naver. US stocks account for 78% of its investment portfolio, and its net asset value has increased to 10.2 billion won a week after its launch.
In the same month, IBK Securities signed a business agreement with MetaCity Forum to create a blockchain-based meta universe and opened a branch in the virtual world to further provide customers with various financial services through this technology.
With the continuous growth of investor demand, local securities companies have issued reports on the concept stocks of Meta Universe one after another. Individual stocks selected by Kiwoom Securities Naver (up 9.11%), WYSIWYG Studios (13.54%), GiantStep (97.26%) and LG Innotek (8.37%) soared between April and June.
Metaverse related companies have also accelerated the initial public offering (IPO) process. The goal of augmented reality platform company Maxst is to list for the first time this month on Kosdaq, which is dominated by technology stocks. Virtual reality company SKonec Entertainment recently submitted an initial IPO application to the Korea Exchange and will be listed on a secondary exchange sometime in the second half of the year.
The trend of overseas investment by local retail investors in South Korea has recently changed. Until earlier this year, US electric car maker Tesla (Tesla) was the largest foreign stock purchase by investors. But local investors have turned to Roblox and bought stocks with a net worth of US$81.53 million last month. According to data compiled by the Korea Securities Depository, Roblox currently tops the list among the most actively traded foreign stocks.
PricewaterhouseCoopers (PwC), a global consulting firm, predicts that the outlook for the meta-universe-related economy is optimistic. The market size is expected to increase from 50 trillion won last year to 540 trillion won in 2025, and it is expected to reach 1,700 trillion won in 2030.
Other market observers also said that in the long run, the meta-universe market is expected to grow exponentially. According to industry insiders, it coincides with the rapid rise of non-contact culture during the fourth industrial revolution and the new crown virus pandemic, and Metaverse has attracted more and more attention, which is in line with the global trend.
Hi Investment & Securities analyst Lee Sang-heon said, “Under the influence of COVID-19 and the MZ generation (people born between 1980 and 2010), Metaverse will eventually expand its business to all industries and sectors.” Hana Financial Investment researcher Kim Doo-hyeon attributed Roblox’s business to Metaverse’s unlimited applications in various fields.
Lee Hyo-seob, a senior researcher at the Korea Capital Market Institute (Korea Capital Market Institute), pointed out, “Due to the high growth potential of the meta-universe market, there is great demand for investment in companies that provide various services based on virtual reality (VR). It may increase, and the scale of related funds is also expected to increase…Various financial service business models in the virtual world are also expected to be gradually introduced.”
This article is translated from http://www.theinvestor.co.kr/view.php?ud=20210707000290 . If reprinted, please indicate the source.
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