A region cannot be considered truly prosperous simply by having many companies; a perspective of "area-wide" urban development, including infrastructure development and increasing the interacting population, is essential.Therefore, leveraging the expertise in regional co-creation that the Group has pioneered, we are focusing on "urban development" such as "tourism," "area-wide revitalization," and "infrastructure development."
Since the establishment of YMFG ZONE Planning (hereinafter "YM-ZOP") in 2015 to handle regional revitalization consulting, the Group has been a pioneer among regional financial institutions in regional co-creation projects.For several years, we have taken on the challenge of visualizing non-financial initiatives that cannot be measured by sales alone and demonstrating their relationship to financial value.
As a result, in collaboration with Professor Yanagi of Waseda University, ABeam Consulting, and Yamaguchi University (with whom we have a comprehensive partnership agreement), we have developed an original calculation logic—the first of its kind for a regional bank.
The calculation model incorporates "Impact Weighted Accounts" methods, which calculate the impact a company has on society and the environment. Based on the Group's proposals, it quantitatively calculates the impact that projects co-created with the region have had on that region.
Using this model to convert the effects of the Group's past projects into monetary value, the "Sanyo-Onoda City LABV Project" totaled 8.7 billion yen and the "Nagato Yumoto Onsen Revitalization Project" totaled 1.3 billion yen, resulting in a total impact of 10 billion yen (as of fiscal 2024).
We aim to generate a cumulative economic impact on the region of 30 billion yen by fiscal 2029 and 1,000 billion yen by fiscal 2034.
As for the specific calculation method, regional revitalization projects are measured by dividing them into four elements along a timeline.In the planning stage, we calculate the value of unpaid activities voluntarily performed by each entity toward project realization (Empowerment Value). In the project formation stage, we calculate the effects of site visits and increases in tourists (Promotion Effect).For effects after commercialization, we calculate the impact centered on land prices (Regional Value Improvement Effect) and the impact of business clusters in the vicinity (Regional Economic Revitalization Effect). The sum of these four elements is calculated as the "Economic Impact on the Region."
We work to maintain and develop important tourism resources in the region, enhancing their appeal by promoting economic circulation and contributing to sustainable urban development.
In Nagato Yumoto Onsen, a hot spring town in Yamaguchi Prefecture with approximately 600 years of history, the long-established inn "Rokkaku-do" faced business succession challenges.The Group utilized the "Nagato Yumoto Onsen Urban Development Fund Investment Limited Partnership" to co-invest with Staple Co., Ltd. (Onomichi City, Hiroshima Prefecture) in SOIL Nagatoyumoto Co., Ltd., successfully achieving the business succession of "Rokkaku-do."
This project was realized through the collaboration of three Group companies (The Yamaguchi Bank, YM-ZOP, and YMFG Capital). By maximizing the knowledge and resources cultivated to date, the Group worked as one on this urban development project starting with the revitalization of the hot spring inn.
In March 2025, the facility opened as "SOIL Nagatoyumoto," a complex featuring guest rooms, a sauna, a restaurant, and an activity center. Based on the concept of an "inn connected to the hot spring town," it aims to create opportunities for connection and interaction with the streets, natural environment, and local people of Nagato Yumoto Onsen, rather than being self-contained.
※ the complex facility "SOIL Nagatoyumoto"
To solve regional social issues, the public and private sectors collaborate to find solutions that meet regional needs and aim for the realization of a better society.
PPP (Public-Private Partnership) and PFI (Private Finance Initiative) are methods of public-private collaboration that utilize private sector funds and expertise in the provision of public facilities and services.
YM-ZOP is certified by the Ministry of Land, Infrastructure, Transport and Tourism as a PPP Partner. Since 2018, through the operation of PPP/PFI regional cooperation platforms in the three regions of Yamaguchi, Hiroshima, and Kitakyushu, it has promoted public-private partnership projects for the development and operation of public facilities, contributing to the resolution of regional issues.
Since 2020, we have built a more specialized support system, such as being commissioned to operate regional block platforms established by the Ministry of Land, Infrastructure, Transport and Tourism. This fiscal year, our operation target has become nationwide, and we plan to provide information and promote awareness of public-private partnerships to local governments across the country.
Furthermore, to address challenges such as aging infrastructure and labor shortages, we have launched the "Infrastructure PPP Study Group" to share information and work toward solving problems with local governments and private businesses. We also utilize systems such as "Water PPP," promoted by the Ministry of Land, Infrastructure, Transport and Tourism to integrate the management and renewal of water and sewage facilities, supporting local governments in their introduction and system building to push forward public-private partnerships and project formation.
To promote regional revitalization using Social Impact Bonds (hereinafter "SIB"), which are gaining attention as a new public-private partnership method, the Group concluded a comprehensive partnership agreement regarding SIB with Dream Incubator Inc. (hereinafter "DI") in October 2021. In September 2022, we signed an investment agreement with Japan's largest SIB fund operated by DI.Furthermore, with YM-ZOP as the operator, we established the "SIB Study Group" in October 2022, the first of its kind for a regional financial institution.
The group aims to contribute to specific project formation through the acquisition of SIB project expertise and information exchange among local governments, and regularly holds study sessions including case studies.
In December 2022, we concluded a partnership agreement for research and study toward SIB utilization with Fukuyama City, Hiroshima Prefecture, and DI. In July 2025, Yamaguchi City, a member of the SIB Study Group, began a public call for "Consulting Services Related to the Yamaguchi City Zutto Genki PFS Project," and Mine City was selected for a "FY2025 Support Project for Project Formation Regarding Outcome-Linked Private Commissioning Contracts by Local Governments," showing the expansion of these efforts across the region.
Based on regional issues, we engage in public-private urban development aimed at generating vitality and increasing the related and interacting populations, rather than simply rebuilding facilities.
LABV (Local Asset Backed Vehicle) is a method of promoting public-private partnership projects through a joint venture composed of in-kind contributions of land owned by a local government and capital contributions from private businesses.
In Sanyo-Onoda City, Yamaguchi Prefecture, to address regional issues such as aging facilities and the creation of community vibrancy, the Group, led by YM-ZOP, proceeded with an urban development project to develop multiple city-owned lands in a linked manner following a proposal from YMFG to the city in 2018.In April 2024, the core complex "A-SQUARE" opened. This attracted restaurants to the surrounding area, and the benchmark land price became one of the few rising points in the prefecture, with the economic impact calculated at 8.7 billion yen.
This project using LABV was the first initiative of its kind in Japan. In February 2023, it received the "Director-General of the Cabinet Office Promotion Bureau for Regional Revitalization Award," the highest award in the "2022 Case Studies of Public-Private Partnership Initiatives for Achieving Regional Revitalization SDGs." Furthermore, in March of the same year, it was honored by the Minister of State for Special Missions (Regional Revitalization) in the "Characteristic Case Studies of Financial Institutions Contributing to Regional Revitalization."
山陽小野田市におけるLABV構造
※ the complex facility "A-SQUARE"