South Korea has designated regulation-free zones in Andong, Pohang, and Chilgok to promote hemp cultivation and new industrial projects [1].
These zones allow the government to bypass traditional restrictions to capture leadership in emerging sectors. By removing regulatory hurdles, the state aims to accelerate the development of medical-grade hemp and advanced transport technologies [1].
In Andong, the focus centers on the production and processing of hemp for medical use, specifically targeting cannabidiol (CBD). The high value of the crop is a primary driver for the industry, with raw dried hemp material valued at 10 million won per kilogram [1].
Ham Jung-yeob, a representative of a pharmaceutical raw material research company, said the hemp being utilized is for medical purposes and contains almost no THC, the component responsible for hallucinations [1].
Beyond agriculture, the regulation-free zones extend to other high-tech sectors in North Gyeongsang Province. Pohang and Chilgok will host projects involving the development of electric ships and low-speed electric cars [1]. These initiatives are designed to ensure the region remains competitive in the global shift toward sustainable transit.
The South Korean government intends for these specific areas to serve as testing grounds where companies can innovate without the immediate burden of national regulations [1]. This approach is expected to attract investment and create specialized jobs in the North Gyeongsang region as these industries scale.
“Raw dried hemp material valued at 10 million won per kilogram”
By creating these regulatory sandboxes, South Korea is attempting to pivot from a highly restrictive legal stance on cannabis toward a biotech-driven economic model. This move signals a strategic shift to treat hemp as a high-value pharmaceutical commodity rather than a controlled substance, while simultaneously diversifying its green-tech portfolio through electric maritime and land transport.
