Minister of SMEs and Startups Visits Andong Site of 'Gyeongbuk Industrial Hemp Regulatory Free Zone'

Image of Gyeongbuk Industrial Hemp Regulatory Free Zone.

[Asia Economy Yeongnam Reporting Headquarters Reporter Kim Gwiyeol] On the 30th, Lee Cheol-woo, Governor of Gyeongbuk Province, and Lee Young, Minister of the Ministry of SMEs and Startups, visited the Gyeongbuk Bio Industry Research Institute located in Andong to tour the site of the ‘Gyeongbuk Industrial Hemp Regulatory Free Zone’ demonstration project and held a meeting to hear voices from the field.

At the meeting, Park Hyun-je, Director of Yuhan Health Life, said, “Since the designation of the hemp free zone, we have been steadily promoting demonstration projects in the fields of cannabidiol (CBD) manufacturing and prototype development, accumulating research results. We hope that Gyeongbuk Province and the Ministry of SMEs and Startups will play a significant role in helping us leverage these results to gain competitiveness in domestic and international markets.”

Hemp (HEMP) refers to cannabis plants containing less than 0.3% tetrahydrocannabinol (THC), a psychoactive substance, distinguishing it from marijuana which has hallucinogenic effects. It is used as a non-psychoactive industrial material. CBD (Cannabidiol) is the main component of hemp and has effects such as neurostabilization, anti-inflammation, and pain relief.

Minister Lee Young of the Ministry of SMEs and Startups said, “Through on-site communication, we will find answers to activate the regulatory free zone. We will expand commercialization by verifying the safety and efficacy of hemp industrialization and reaching social consensus, developing medical-purpose products and exports, and continuously fostering the domestic hemp industry.”

As of August this year, the hemp free zone covers eight areas including Andong City, spanning approximately 420,000㎡, with 35 companies and institutions participating to promote various demonstration projects for hemp industrialization.

The demonstration projects verify the industrialization potential of hemp while ensuring safety, consisting of three projects: industrial hemp cultivation, raw material pharmaceutical manufacturing and export, and industrial hemp management demonstration.

Recently, the Ministry of Food and Drug Safety announced plans to revise regulations to allow limited use of cannabis-derived medicines.

This change was largely influenced by demonstration projects through the hemp regulatory free zone, public awareness improvement campaigns, and the issue-raising of the need for legal amendments.

The Ministry of Agriculture, Food and Rural Affairs is also preparing for safe hemp industrialization by strengthening inter-agency cooperation through the formation of a hemp industrialization promotion council and conducting research on establishing a “full-cycle safety management system for industrial hemp.”

Recently, Japan has been actively moving to promote medical use and healthy market formation of hemp by holding expert forums led by the Ministry of Health, Labour and Welfare and preparing legal amendment proposals through regulatory review committees based on these discussions.

Governor Lee Cheol-woo said, “We will expand the results of demonstration projects through extension of the free zone period and achieve broad legal amendments for industrialization. We will do our best to establish Gyeongbuk as a hub for Korea’s hemp industrialization, revitalize the regional economy, and contribute to the national economy.”