Krafton Inc. and Naver Z Corp. have teamed up to set up a new metaverse company. The companies’ joint venture is for the metaverse business in North America.

Krafton and Naver Z’s partnership is said to be a huge deal because they are creating a groundbreaking metaverse project called “Migaloo.” Under their JV agreement, they will be developing a new metaverse experience, and both sides agreed to invest KRW48 billion or about $36.5 million, to bring their Web 3.0 project to the region.

The Migaloo platform was revealed to be under development since 2022, and the companies have scheduled its launch before this year ends. Based on the announcement, the “PUBG: Battlegrounds” battle royale game developer will own 85% of the joint venture metaverse company while Naver Z will own the remaining 15%.

The Korea Economic Daily reported that with the total investment, Krafton is expected to pay KRW40.8 billion while Naver Z will shell out KRW7.2 billion. Since last year, the companies have been working on the Migaloo Web 3.0-based metaverse project, and this year, they made the decision to establish a joint venture firm so they can easily facilitate the full-scale development of the project.

While the project has a name already, Krafton and Naver Z have yet to announce the official name of their JV company for the metaverse business in North America. As partners, the former will manage the development of the program and the Blockchain system, while the latter will be in charge of service planning and partnership acquisition.

"After much consideration, we have defined the core services and specific model of the metaverse that we find is attractive and achievable, and we have decided to establish a joint venture," the head of Krafton’s Migaloo project, Park Hyung Chul, said. "As two companies with rich experience in successful global content services have come together, we will surely produce excellent results," he added.

Naver Z’s chief executive officer, Kim Chang Wook, added, "We will continue to grow Migaloo as a new metaverse platform where creators can realize new value in an NFT-based ecosystem based on their creative works."