North Gyeongsang Province adds 3 regulation-free zones, topping nation with 8 total

North Gyeongsang Province has secured three additional regulation-free special zones, making it the metropolitan local government with the most such zones in the country at eight.

The provincial government held a briefing Thursday afternoon at the provincial office's multipurpose hall to announce the designation of new special zones covering Andong, Pohang and Chilgok-gun, along with plans for their development.

About 150 people attended, including companies participating in the zones and representatives from related agencies.

The three newly designated zones are the Andong Industrial Hemp Regulation-Free Special Zone, the Pohang K-Next-Generation Electric Propulsion Vessel Global Innovation Special Zone and the Chilgok Demand-Customized Modular LSV Global Innovation Special Zone.

The total project cost is 69 billion won ($45.7 million), with the province aiming to secure competitiveness in future industries through infrastructure development and pilot projects.

With the three new additions, North Gyeongsang Province now operates eight regulation-free special zones — the most in the country — joining its existing five: the Pohang Battery Recycling, Andong Industrial Hemp, Gimcheon Smart Green Logistics, Gyeongsan Electric Vehicle Wireless Charging and Uiseong Cell-Cultured Food zones.

The Andong Industrial Hemp Regulation-Free Special Zone aims to develop pharmaceutical raw materials using industrial hemp and to commercialize the medical cannabis industry. Eight companies will invest 29.6 billion won to develop high-value pharmaceutical materials based on minor cannabinoids — including CBG, CBC and CBN — and pursue entry into the global medical cannabis market.

The province was designated the country's first industrial hemp regulation-free special zone in 2020 and has since conducted pilot projects for developing and exporting CBD-based pharmaceutical ingredients. The new designation will allow it to build a full-cycle industrial ecosystem spanning domestic hemp variety development, smart-farm cultivation, raw pharmaceutical production and finished drug manufacturing.

The Pohang K-Next-Generation Electric Propulsion Vessel Global Innovation Special Zone focuses on retrofitting aging government vessels and fishing boats with eco-friendly electric propulsion systems for pilot operations, while establishing related regulatory improvements and certification frameworks. A total of 19.7 billion won will be invested, with plans to pursue AI-based battery safety verification and the development of an international standards certification system.

The zone will also cooperate with leading electric propulsion vessel nations — Iceland, Norway and the Faroe Islands of Denmark — to conduct overseas pilot operations and secure operational data meeting international standards, laying the groundwork for entry into global markets.

The Chilgok Demand-Customized Modular LSV Global Innovation Special Zone aims to foster the low-speed electric vehicle industry by combining modules for various purposes on a single platform. A total of 19.7 billion won will be invested to develop and commercialize customized mobility solutions applicable across tourism, logistics, industry and transportation for people with disabilities.

The zone plans to verify compliance with the US Federal Motor Vehicle Safety Standard 500 (FMVSS500) through joint research with the Clemson University International Center for Automotive Research (CU-ICAR), and to conduct pilot operations in the US market in cooperation with local companies.

Andong Mayor Kwon Gi-chang said the designation would "further strengthen Andong's foundation as a leading city in South Korea's hemp industry, building a full-cycle industrialization base from hemp cultivation to pharmaceutical development." He added that the city would "nurture Andong into a global hub for the medical cannabis industry, backed by world-class quality and safety management infrastructure."

Pohang Mayor Park Yong-seon called the designation "an important starting point for expanding Pohang's secondary battery industry into the eco-friendly marine sector," pledging to "develop the eco-friendly electric propulsion vessel industry as a new growth engine and build Pohang into a future marine mobility hub."

Chilgok-gun Governor Kim Jae-uk said low-speed electric vehicles are "a future industry that will see expanding use across tourism, logistics, welfare and other fields," and vowed to leverage the county's manufacturing base and research infrastructure to make it "a leading hub for the domestic low-speed electric vehicle industry."

North Gyeongsang Governor Lee Cheol-woo said the province would "become the starting point for future industrial innovation in South Korea, centered on hemp-based pharmaceuticals, eco-friendly electric vessels and customized mobility." He added that the results "reflect national recognition of North Gyeongsang's strength and competitiveness even under difficult conditions," and pledged to "do our utmost to create a new milestone for South Korea's era of regional development."