The "2025 Korea Local Era Expo" opened in Ulsan. The Ministry of Trade, Industry and Energy presented a model of mutual prosperity through shared growth with local communities under the theme of "Balanced Growth for Everyone." Professor Park Seong-jin of Pohang University of Science and Technology (POSTECH) presented the efforts of POSTECH's "Change Up Ground" to foster venture startups and the resulting boost to the local economy. Park Seong-wook, team leader at Shinan County Office, shared his approach to linking solar power generation revenue to rural communities at risk of extinction.
ChangeUpGround, a regional venture hub
POSTECH's "Change Up Ground," showcased at the expo, was examined as a case study of how a university-led regional venture hub can broaden the startup ecosystem. When universities with strong educational and research foundations provide startup execution space and networking, startups can secure a continuum of technology validation and commercialization. This holds significant investment implications, as it can alleviate the concentration of startups in the metropolitan area and reduce the outflow of local talent.
From a market perspective, regional hubs offer the advantage of enabling close demand connections with industrial sites. Joint projects with local companies, pilot projects, and customer acquisition accelerate initial sales and reduce technological risk. Investors benefit from decentralized deal sourcing through the early pipelines developed in regional hubs, and access to non-financial resources (infrastructure, test beds) linked to policy support is also expected. However, the success of hubs hinges on sustainable mentoring, follow-up investment connections, and demand alignment with local industries. One-off events are limited in their effectiveness.
Investment Implications of Rural Solar Revenue Models
The announcement by Shinan County Office focuses on connecting solar power generation revenues with local communities to address the issue of rural population decline. This structure, which returns power generation revenues to local communities or reinvests them in living infrastructure, combines stability based on long-term cash flow with social impact. This approach intersects with impact investing and regional development project finance, and is considered a strategy that simultaneously aims to foster energy transition and strengthen regional resilience.
From a financial perspective, predictable power generation and a policy-driven pricing structure are key factors in solar energy. For local projects, collaboration with local administration is essential for permitting, grid connection, and operational management. Price volatility due to regulatory changes poses a major risk. Technically, improved power generation efficiency and digitalized maintenance are key drivers of success, while an operation model involving local residents can enhance the social acceptability of profits. Investors should carefully review the risk-return structure and prioritize alignment with local governance.
The message of this expo is to connect the policy direction of balanced growth with a practical model. University-based venture hubs and regional energy revenue structures offer a foundation for strengthening the startup ecosystem and promoting regional resource circulation, respectively. For startups and investors, the discussions presented in Ulsan offer a path toward mitigating the concentration of capital and talent in the metropolitan area and fostering growth aligned with local demand. Success hinges on regional implementation capabilities, sustainable financing, and performance measurement systems.
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