Someone earlier did post about Project Moon getting funded by taxes and deleting it because it's "misinformation" but I want to make a post to clarify with sources.

The "issue" seems to be that PM is getting funded by "blood money" taxes, or through means that are questionable or illegal which is not the case at all. The use of the word blood money in this case was a difference in phrasing with "blood money" having different connotations in English. They applied for funding in 2021 and receives support from Devsisters Ventures which not only supports start-up gaming companies, but of healthcare and mobile companies (you can look at the link to see the full list of different companies they support/fund). It's this specific venture that was funded by tax money, specifically of the province of Gyeonggi-do (the source tweet is from a youth union in that province).

The issue here, and the one they're bringing up investigations into, is that due to being partly funded by taxes, the companies Devsisters Ventures fund need to comply with employee protection regulations, which PM broke with this notice of dismissal and illegal "reasons" to do so. This isn't merely conjecture by the way, it's been criticized in Korean news outlets over and over and over and over including both the MBC and the MBN, both major media broadcasting conglomerates. By not following these regulations, PM could have this funding cut off entirely. You can read/machine translate this statement and investigation from the Chairman of that Union/Member of the Gyeonggi Labor Rights Protection Committee.

But if you don't want to, I'm only linking it as a source regardless so I'll summarize: investors generally want to seem socially conscious enough to fund companies that comply with ESG, with, as I've mentioned, PM's current situation completely failing that. Because of this, there will be pressure from said union and the people of that province and how their taxes are being used to fund a "black" or bad company. Whether it leads to actual withdrawing of funds or not, or whether this pressure will force Devsisters themselves to cut off their support, know that it is another issue that is brewing here.

tl;dr Them being funded by taxes isn't the issue, it's that them being funded by taxes makes them way more susceptible to public outcry and loss of funding for doing something so wildly illegal.