South Korea is moving forward with a roughly $22 million investment to expand medical cannabinoid research and production, with a focus on compounds beyond cannabidiol (CBD), including cannabigerol (CBG), cannabinol (CBN) and cannabichromene (CBC).
The four-year initiative, running from 2027 through 2030, will be based in Andong, a city in South Korea’s North Gyeongsang Province. Local officials reaffirmed the plan during an October 30 visit by Minister of SMEs and Startups Lee So-young, who met with government representatives and businesses involved in the region’s industrial hemp regulatory free zone.
According to reporting published November 1 by The Herald Business, Andong plans to invest 29.5 billion won, approximately $22.1 million, in new research and demonstration projects designed to expand the country’s domestic production capabilities for medical cannabinoids.
The investment was first announced in July following the government’s approval of an expansion to the existing industrial hemp regulatory free zone. The expanded designation allows researchers and participating businesses to investigate additional cannabinoids under controlled conditions.
Previous work within the zone has primarily focused on CBD, including cultivation, extraction, pharmaceutical ingredient manufacturing and exports. The next phase will broaden those activities to include CBG, CBC and CBN, compounds that occur naturally in marijuana and hemp but generally at lower concentrations than THC or CBD.
Officials intend to establish a production platform specifically designed for these minor cannabinoids, supporting the development of high-purity pharmaceutical ingredients and potential medical applications.
The initiative will also establish an integrated safety management system covering cannabinoid production, processing, storage and disposal. The system is intended to support pharmaceutical manufacturing standards and regulatory oversight throughout the production process.
According to details released when the expansion was approved, the project is expected to receive approximately 14.7 billion won in national government funding, 12.5 billion won from local governments and 2.3 billion won in private investment.
The designated area covers approximately 218,000 square meters across portions of Andong. Participating businesses will build on existing infrastructure involving controlled cultivation, CBD extraction and blockchain-based tracking systems.
The October 30 meeting included approximately 40 representatives of participating businesses and organizations, including Neocan Bio, alongside officials from the national government, provincial administration and Andong City.
The discussions focused on how research conducted under the regulatory exemptions could eventually support broader commercialization and changes to existing restrictions.
Lee said regulatory free zones should function as places where new standards can be developed, rather than simply allowing temporary exemptions from existing regulations.
South Korea has maintained strict marijuana laws, with tightly controlled exceptions for certain medical and scientific purposes. The Andong initiative operates within those restrictions and does not establish a general recreational or commercial marijuana market.
The expanded research program is part of a broader effort to develop pharmaceutical manufacturing capabilities around cannabinoids and other controlled medical substances, with participating officials seeking to position Andong as a center for medical hemp research and production.
