Regional Co-prosperity
Overview
Regional co-prosperity (지역과 상생) is a concept in which businesses, public institutions, local governments, and local residents cooperate to revitalize the local economy, create social value, and promote cultural development. It goes beyond simple donations or charity, representing a sustainable development model that leverages the unique resources and capabilities of a region. Recently, it has gained attention as a key strategy for ESG management and responding to the crisis of local extinction.
Main Content
1. Background and Necessity of Regional Co-prosperity
- Crisis of Local Extinction: The local economy is stagnating due to population decline from low birth rates and aging, as well as the intensifying concentration in the Seoul Capital Area. Consequently, strengthening regional self-sufficiency has emerged as an urgent task.
- Spread of ESG Management: As corporate social responsibility is emphasized, cooperation with local communities has become an essential element in the environmental (E), social (S), and governance (G) aspects.
- Government Policy: The government has made 'balanced regional development' and 'region-led innovation' national agenda items, encouraging cooperative co-prosperity between local governments and businesses.
2. Major Co-prosperity Models
- Business-Local Community Cooperation: Large corporations establish local supply chains or collaborate technologically with local SMEs to create jobs and stimulate the economy. Example: POSCO's 'Pohang Regional Co-prosperity Cooperation' project.
- Public-Private Partnership: Local governments and businesses jointly foster region-specific industries or support social enterprises. Example: The creation of a 'Hydrogen Mobility Cluster' by Jeollabuk-do and Hyundai Motor Company.
- Resident Participation Type: Residents directly participate in project planning and operation to create profit models using local resources. Example: Village enterprises, cooperative-type local food systems.
- Culture and Tourism Co-prosperity: Developing tourism products using local historical and cultural resources and supporting local artists to enhance regional brand value. Example: Revitalization of local tourism in Gangwon-do after the 'Pyeongchang Olympics'.
3. Success Cases
- Seoul Metropolitan Government's 'Co-prosperity Cooperation Fund': Large and small businesses jointly contribute to support local small business owners, youth startups, and the social economy. As of 2024, over 150 billion KRW has been accumulated.
- Gyeongsangbuk-do's 'Regional Co-prosperity Platform': Utilizes digital technology to integrate direct trading of local agricultural and fishery products, tourism information provision, and job matching. Over 200 companies participate, with transaction volume exceeding 50 billion KRW.
- Japan's 'Regional Revitalization Cooperation Team' Case: Young people who moved from cities to rural areas create businesses using local resources. Similar models are being introduced in Korea.
4. Challenges and Limitations
- Lack of Sustainability: There is a risk of focusing on short-term performance or devolving into a tool for corporate image enhancement.
- Low Resident Participation: Often, a top-down approach rather than bottom-up decision-making leads to insufficient substantive participation by residents.
- Fiscal Independence Issues: The continuity of projects depends on the financial conditions of local governments.
- Conflict Management: A systematic mechanism is needed to resolve conflicts of interest between businesses and local residents (e.g., factory establishment, environmental issues).
Latest Trends
As of 2024-2025, regional co-prosperity is undergoing the following changes:
- Accelerated Digital Transformation: Region-customized co-prosperity models using AI and big data are emerging. Examples: Smart farms, region-based O2O platforms.
- Linkage with Carbon Neutrality: Co-prosperity projects linked to local energy independence (e.g., renewable energy cooperatives) are expanding.
- Youth Influx Policies: Support packages for housing, jobs, and education for regional settlement are being strengthened. Introduction of 'region-specific visas'.
- Legal Institutionalization: Along with discussions on enacting a 'Regional Co-prosperity Act', there is a trend toward mandating co-prosperity cooperation through local government ordinances.
- Global Cooperation: With the spread of K-culture, cases of overseas expansion of local cultural content (e.g., K-food, local festivals) are increasing.
Related Topics
- [[ESG Management]]
- [[Local Extinction]]
- [[Social Economy]]
- [[Balanced Regional Development]]
- [[Local Creators]]
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