Gyeongbuk-Andong Hemp Special Zone Invested 46.4 Billion Won but Faces 'Effectiveness Controversy'

No Export Performance Due to Lack of GMP Facilities
Son Gwangyoung City Council Member: "Urgent Need for Project Improvement"

Son Gwang-young, a member of the Andong City Council in Gyeongbuk (representing Taehwa, Pyeonghwa, and Angi), strongly criticized the operation status of the Gyeongbuk-Andong Industrial Hemp Regulatory Free Zone project.

At the 5th plenary session of the 255th extraordinary meeting held on the 28th of last month, Councilor Son raised concerns about the effectiveness, stating that despite an investment of 46.4 billion KRW over four years, the production of CBD (cannabidiol) amounted to only 61 kg.

A view of Andong City Council in Gyeongbuk./Photo by Byeonggeon Kwon

Councilor Son pointed out, “From 2021 to 2024, the CBD isolate produced in the free zone was 61.95 kg, which is far below the original plan targeting an annual production of 100 kg,” adding, “The project budget also increased from the initial 38 billion KRW to over 46.4 billion KRW, but the results did not meet expectations.”

He particularly identified major issues such as ▲ inconsistent production targets ▲ inappropriate selection of free zone operators ▲ lack of clear performance indicators, emphasizing, “For the free zone project to achieve tangible results, performance goals must be clearly set and effectively communicated to the operators.”

Questions were also raised regarding the economic ripple effects.

According to the Gyeongbuk Free Zone operation performance report, the project was analyzed to have generated approximately 888.9 billion KRW in production inducement effects and 6,952 jobs; however, it was pointed out that no concrete verification of these figures has been conducted.

The complete absence of overseas exports of CBD raw pharmaceutical materials also came under scrutiny.

Councilor Son criticized strongly, saying, “GMP (Good Manufacturing Practice) facilities are essential for exporting CBD raw pharmaceutical materials, but there are no related facilities within the free zone,” and added, “Planning exports without GMP facilities represents a structural failure in project management.”

He proposed improvement measures such as ▲ setting clear performance goals ▲ supporting the establishment of GMP facilities ▲ conducting practical verification of economic effects ▲ strengthening operator management, stating, “For Andong to establish itself as the center of the industrial hemp industry, thorough project management and tangible results are essential.”

Councilor Son concluded, “It is necessary to prepare thorough measures so that Andong becomes not just a site for demonstration experiments but a substantial hub for the hemp industry,” and expressed hope that “future free zone projects will be operated more transparently and systematically through careful review and improvements.”