A group of blockchain venture capital firms agreed to invest $100 million over three years to establish a blockchain ecosystem in South Korea's second-largest city, Busan.

EOS Network Foundation, OKX Blockdream Ventures, AlphaNonce and others signed a memorandum of understanding to invest in blockchain companies in the city and attract top talent from around the world. Busan will aim to provide a favorable administrative regime to enable investments to run smoothly.

Since being approved as a "regulation-free blockchain zone" by the South Korean government in 2019, Busan has been pushing itself as a blockchain hub and entered into several partnerships with firms in the industry. It has signed agreements with some of the world's largest crypto exchanges including Binance, FTX and Huobi to help develop the blockchain infrastructure, with some intending to establish presences there in the near future.

Earlier this week, Busan signed a similar agreement with crypto exchange Gate.io to develop blockchain infrastructure, including the operation and distribution of a local stablecoin, as well as with Crypto.com.

Read more: South Korean Regulator Plans to Look at Stablecoins' Role in Money Laundering: Report