Korea Risks Losing Trillions in Medical Cannabis Market Due to Outdated Laws (Yonhap)
SEOUL, Oct. 10 (Korea Bizwire) — While much of the world races to unlock the economic and therapeutic potential of medical cannabis, South Korea remains mired in outdated regulations that treat even non-psychoactive compounds as narcotics.
Lawmakers and experts warn that this rigid stance is stifling domestic innovation, draining public healthcare funds, and pushing patients toward unsafe, unregulated alternatives.
According to a new National Assembly report released Friday, the global medical cannabis market is expected to reach 109 trillion won (US$78 billion) by 2027.
The United States, China, and Japan have all eased restrictions to develop new pharmaceuticals and wellness products. Even the United Nations’ narcotics body removed cannabis from its list of controlled substances in 2020, signaling a global policy shift.
Yet South Korea’s laws remain frozen in time. Under the current Narcotics Control Act, both tetrahydrocannabinol (THC), the psychoactive component of cannabis, and cannabidiol (CBD), a non-intoxicating compound proven to have medical benefits, are classified as narcotics.
As a result, Korean companies capable of producing high-purity CBD extracts are barred from manufacturing or selling any products derived from them.
Although the government designated Andong in North Gyeongsang Province as a “hemp regulatory free zone,” the move has done little more than create a facade of reform, as the key prohibitions remain untouched.
Cannabis (image: Public Domain)
“It’s a half-measure,” the report concluded, noting that the technological gap between Korea and advanced economies in the sector continues to widen.
The consequences, critics say, extend far beyond missed economic opportunities. With domestic production banned, Korea relies entirely on imports for approved cannabis-based medicines.
The only legal product available to patients is Epidiolex, a CBD-based epilepsy treatment. While government subsidies have reduced out-of-pocket costs for patients from 20 million to 2 million won annually, the remaining 18 million won per patient is covered by the national health insurance system—an increasingly unsustainable burden.
What frustrates policymakers most is that relief is within reach. Patents for Epidiolex and related formulations have already expired or are nearing expiration, opening the door for Korean pharmaceutical firms to produce affordable generics.
Medical Cannabis Growing Operation in Oakland, California (Image courtesy of Flickr/CCL)
But with CBD still classified as a narcotic, domestic manufacturers are legally barred from even beginning development. Other cannabis-derived therapies used abroad for cancer-related nausea and multiple sclerosis remain out of reach for Korean patients.
Meanwhile, the vacuum has fueled a thriving black market. Some consumers are turning to unverified CBD products purchased through overseas websites, while others are mistakenly using hempseed oil as a supposed cure for conditions like epilepsy or Parkinson’s disease. Experts warn that such misuse can delay proper treatment and cause irreversible harm.
The result, analysts say, is a policy paradox: by clinging to an outdated ban, the government is blocking legitimate research and safe access—while inadvertently driving patients toward dangerous, illegal markets.
All eyes are now on the Ministry of Health and Welfare, which faces mounting pressure to modernize Korea’s drug laws. “Reform is no longer just an industrial issue,” the Assembly report said. “It’s about protecting citizens’ health, reducing financial waste, and catching up with a world that has already moved on.”
M. H. Lee (mhlee@koreabizwire.com)
