Why members of South Korea’s Gen MZ are buying ‘digital land’ in the metaverse for millions of won

Soaring home prices and income inequality have enticed younger South Koreans into alternative online worlds

Users can buy land in virtual worlds such as Decentraland, and the value of these purchases can increase

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Published: 3:30pm, 8 Sep 2021Updated: 8:29pm, 8 Sep 2021

South Korean engineer Shaun has big plans to develop the parcels of land he has snapped up for millions of won in recent years into long-term money-spinners.

“I’m planning to design my building which is suitable to host K-pop live performances and K-drama screenings,” the 30-year-old investor said. “That can probably lead to a profitable business model in two to three years.”

And construction will not be hampered by any coronavirus pandemic-spurred labour shortages or increased costs. Shaun’s grand project is all in the blockchain-based virtual world Decentraland.

The “metaverse” may be a futuristic prospect for most of the world, but it’s increasingly a reality in South Korea where soaring home prices and income inequality have enticed the so-called Generation MZ, or Gen MZ, into alternative online worlds.

Their digital avatars play games, walk around with friends, host social gatherings, shop and party – and make plans to build cities and profitable businesses.

Shaun, who declined to be identified other than by the name of his Decentraland avatar, has gradually immersed himself in the platform over the past three years.