Andong-si Begins Demonstration for Manufacturing and Exporting Active Pharmaceutical Ingredients in Hemp Regulatory Free Zone

One-Stop Process Possible from Hemp Raw Material Production to Non-Psychoactive Component (CBD) Extraction and Prototype Development

On June 10th, at the Gyeongbuk Bio Industry Research Institute in Andong, Gyeongbuk, a commemorative photo was taken during the "Gyeongbuk Industrial Hemp Regulatory Free Zone On-site Meeting" with Lee Cheol-woo, Governor of Gyeongbuk Province; Han Jin-gwan, Director of Gyeongbuk Bio Industry Research Institute; Kwon Chil-seung, Minister of SMEs and Startups; Kwon Young-jin, Mayor of Daegu; Kim Hyung-dong, Member of the National Assembly from the People Power Party; Ha Dae-seong, Vice Governor of Gyeongsangbuk-do; and Park Sung-soo, Vice Mayor of Andong. [Photo by Yonhap News]

[Asia Economy Yeongnam Reporting Headquarters Reporter Dongguk Lee] Andong City officially commenced the final demonstration project of the 'Gyeongbuk Industrial Hemp (HEMP) Regulatory Free Zone' business on the 10th, focusing on the 'Active Pharmaceutical Ingredient Manufacturing and Export Demonstration' task.

Following the industrial hemp cultivation demonstration and hemp management demonstration that began on April 30, this project has also started with approval from the Ministry of SMEs and Startups, making it possible to pursue a one-stop process from hemp raw material production to non-psychoactive component (CBD) extraction, refinement, and medical-purpose prototype development.

Currently, 1 kg of hemp raw material with less than 0.3% THC (tetrahydrocannabinol), cultivated in ▲modular containers ▲vinyl greenhouses ▲panel-type smart farms, is awaiting demonstration.

Starting with this commencement, approximately 18 tons of raw material will be stably supplied during the demonstration period, and about 48 kg of CBD (cannabidiol) will be produced to support the active pharmaceutical ingredient manufacturing and export demonstration.

An Andong City official stated, "The Industrial Hemp Regulatory Free Zone is the first domestic attempt to verify the medical use potential of hemp, officially starting the demonstration from hemp cultivation to active pharmaceutical ingredient manufacturing," adding, "This demonstration commencement completes the final piece of the Free Zone project."

He continued, "As we are venturing into uncharted territory, we will minimize trial and error through thorough preparation and actively support its growth as a regional strategic industry."

Meanwhile, the Gyeongbuk Industrial Hemp Regulatory Free Zone is a project to create a high value-added industry based on CBD materials and foster upstream and downstream industries by utilizing hemp, which is currently unusable due to regulations, in the areas of Imha-myeon and Pungsan-eup in Andong City.

Participants include the Gyeongbuk Bio Industry Research Institute, Kolmar Korea, Yuhan Health Care, and Kyochon F&B, with a total investment of approximately 38 billion KRW over two years until November 2022 (22.3 billion KRW from the national government, 12.2 billion KRW from local government, and 3.4 billion KRW from private capital).