The New University for Regional Innovation (NURI) is one of the South Korean Ministry of Education and Human Resources Development's key projects supporting regional universities. NURI aims to develop areas of specialization in regional universities and link universities to local industries. In 2004, the South Korean government pledged to invest 1.24 trillion Korean won (approximately US$1.24 billion) in the project over a 5-year period. This study examines the NURI policy and implementation process from the bottom-up perspectives discovered during semistructured interviews with key stakeholders. The results indicate an overall consensus that NURI has contributed to the improvement of education in regional universities. Yet, skepticism lingers concerning the potential for the program to achieve structural reform. This study suggests there is an urgent need for a comprehensive central intervention that can deliver structural reforms and balanced development. (Contains 1 figure and 3 tables.)