Startups Lead New Regional Revitalization Model: Joint Investment and Profit Sharing Expands

## Local Extinction, Startups' Innovative Solution: Reviving Regions Through Private Sector-Led Win-Win Investment In response to the chronic crisis of local extinction in Korean society, startups are pioneering new solutions with a private sector-led, mutually beneficial model. The core idea is to move away from relying on public funds and instead build a sustainable ecosystem where local residents directly invest and share profits. Regions that had been suffering from the triple threat of increasing idle real estate, population decline, and industrial gaps are now fostering new hope by restoring people-centered ecosystems through the innovative approaches of these startups. **Lucentblock: Building a Virtuous Cycle Through Local Resident Participation in Real Estate Investment** Fintech startup Lucentblock introduces an innovative model through its fractional real estate investment platform 'SOYU', where local residents directly invest in local real estate and share the profits. Its third asset, 'Daejeon Startup Space', led to a successful sale with high returns, and 60% of the total investment came from Daejeon citizens, earning it recognition as a model case for regional mutual growth. The collaborative project with Hana Bank, 'Daejeon Hana Startup Park', is also on a successful path, boosting the appeal of local investment with high dividend yields. Lucentblock plans to expand local resident participation in all processes, from investment to operation to sale, to foster true mutual growth. **BLANK: Countering Local Extinction Through Regeneration of Idle Spaces** BLANK, a specialist in space regeneration, responds to local extinction by transforming idle spaces into community hubs. Following 'Gongjip' in Seoul, it remodels neglected empty houses into 'Idle Houses' in 7 provincial cities including Yeongju, Andong, and Namhae, attracting urban dwellers seeking 'workcations' or relocation to rural areas. By collaborating with local construction and interior firms, it also contributes to local economic revitalization, symbolizing new possibilities for the region beyond mere physical environmental improvements. **Mangrove: Proposing New Lifestyles and Regional Revitalization Through Co-living** MGRV's co-living community 'Mangrove' proposes new lifestyles through 'Live', 'Stay', and 'Work&Stay' options, leading to regional revitalization. Notably, 'Mangrove Jeju City', which renovated a 1980s tourist hotel, significantly contributes to the revitalization of Jeju's old downtown by recycling aging assets and absorbing workcation demand. It operates in 6 locations including Seoul, Goseong in Gangwon, and Jeju, providing services that reflect the unique characteristics of each region. **Key to Success: Local Resident Participation and Sustainability** The common thread among these startup models is 'local resident participation' and 'sustainability'. The key is to foster long-term development through a people-centered virtuous cycle, rather than unilateral development. While the government is also focusing on private sector-led regeneration and expanding policy support, challenges remain, such as securing initial capital, developing customized models, and refining legal systems. Nevertheless, contemporary trends like changing values among the MZ generation and the spread of remote work are increasing the success potential of these private sector-led models. A sustainable model where local real estate and population create a virtuous cycle is expected to establish itself as a new paradigm for Korean-style regional regeneration.