Article at a Glance

In response to the looming crisis of regional extinction, government-led local revitalization projects that have injected massive budgets have failed to produce tangible results. Against this backdrop, the “STAXX Project,” which aims to reinvigorate the Yeongju region by fostering a social venture ecosystem through public-private collaboration, is drawing attention. The business strategy of the STAXX Project is as follows.

1. Discover and nurture companies that either utilize resources from the Yeongju region or operate business models that address local issues, thereby creating an ecosystem in which corporate growth and regional development generate synergy.

2. Establish a regional investment fund financed by local governments and related entities to serve as seed money for the growth of the nurtured companies while laying the foundation for the expansion of the local startup ecosystem.

3. Create a youth networking space composed of anchor stores appealing to Millennials and Generation Z, shared offices, and business-stay facilities. Using this as a hub, build a community where employees of nurtured companies, local youth and entrepreneurs, and residents can interact, infusing vitality into the region.

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Local regions are disappearing. According to data released by the Korea Employment Information Service in February 2023, out of 228 cities, counties, and districts nationwide, 118 areas (52%) were classified as at risk of extinction and 51 areas (22%) as highly at risk. In other words, more than half of all local regions are facing extinction.1 1According to the Korea Employment Information Service, the “Local Extinction Risk Index” is calculated by dividing the population of women aged 20 to 39 by the population aged 65 and older. A region with an index between 1.0 and 1.5 is classified as normal, below 0.5 as at risk of extinction, and below 0.2 as highly at risk of extinction. 닫기 The pace of decline is even more alarming. In 2010, there were no areas classified as highly at risk of extinction, but by 2020 that number had risen to 22, and by March 2023 it had more than doubled to 51. In North Gyeongsang Province, South Jeolla Province, North Jeolla Province, Gangwon Province, and South Chungcheong Province, over 80% of local municipalities fall under the extinction-risk category.

Yeongju, a city nestled at the foot of Mount Sobaek in North Gyeongsang Province, is among them. Over the past decade, Yeongju’s population has declined by 7.8%, and in 2020 it was officially classified as an extinction-risk area. As of the end of 2022, the city’s population stood at 100,749, putting it on the verge of dropping below the 100,000 mark. Population decline has accelerated the city’s deterioration. Of Yeongju’s 19 administrative divisions (towns, townships, and neighborhoods), 17 are designated as declining areas. Outmigration now exceeds the rate of natural population decrease, creating a vicious cycle in which depopulation leads to urban decline, which in turn triggers further population loss.

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