Korea became the first country in East Asia to legalize medical marijuana. CBD oil in Korea is big news considering the United States has seen a boom in the cannabis market in the past few years once cannabis was legalized. The CBD market in the states is expected to hit $20 billion by 2024. With the success of CBD in the states, many entrepreneurs are eager to cash in on this industry in South Korea. Furthermore, what makes this news so shocking is that South Korea has always been against legalizing marijuana for recreational purposes. However, with this step toward legalizing medical marijuana, it might be possible that marijuana will at some point be legalized in Korea. But first, before marijuana can be legalized, CBD will need to be legalized. This is a much easier process as CBD has been shown to offer many benefits to the human body.
CBD for medical use now legal in Korea
The legalization of recreational marijuana is not coming anytime soon. However, the use of hemp oil or cannabidiol (CBD) is now legal for medical use. In addition, CBD has no hallucinogenic effects. Therefore, the medical community has tested CBD for its efficacy in neurological and brain diseases. The Ministry of Food and Drug Safety (MFDS) will create regulations regarding medical cannabis.
The laws in Korea will be strict regarding CBD. Tetrahydrocannabinol (THC) products will be prohibited. Not all cannabis plants are created equal. Hemp, for example, has very little THC but a large amount of CBD. It is a huge craze in the United States due to its relaxing effects. Scientists are still trying to figure out exactly how CBD affects the body. Some initial studies have shown that CBD can help with a number of different medical conditions.
The Potential CBD Market in East Asia
Early on everything regarding medical marijuana will be controlled by the Korean government. Therefore, the key here is that the cannabis market now has Korea as a target market. With possible other East Asian countries following in Korea’s footsteps.
For Korean startups, this is now the perfect time to plan to start a CBD oil business in Korea. This is because if history has anything to say, CBD products will soon be legalized for the general public in Korea. Those that plan early can reap the benefits.
This is what happened in America. There is CBD in everything from lollipops to lattes. Currently, CBD products are part of what is estimated to be a 1.3 billion dollar industry in the United States. Therefore, it will only be a matter of time before Korea opens CBD to the masses. We will be seeing CBD in more and more Korean products. Where will brands go to get their CBD oils and materials? Which Korean company will be the leader in this industry?
The current state of CBD oil in Korea
This does not mean you can bring CBD oils or products in Seoul. Therefore don’t even think about having them mail it to Korea to help a loved one. The good news is that now people in Korea can go to a hospital and get medical CBD treatment. There have been close to 70 arrests made in Korea in 2018 for smuggling CBD into Korea. Koreans need to get a letter from their doctor explaining their condition and why CBD would be beneficial. Furthermore, the letter then needs to be taken to the Korean Orphan Drug Center for final approval which should not take longer than a week.
If CBD oil gets legalized in Korea, more patients would be able to get affordable cannabis-based treatments at a more reasonable cost. Getting CBD oil from the hospital is 10 times more expensive. At the moment, CBD is not a household name in Korea. Many don’t fully realize the therapeutic and health benefits of CBD. Therefore there is not yet a buzz within the Korean population. However as CBD products become popular in the States, it is only a matter of time before the Korean public starts to become knowledgable about CBD.
Taking Steps to Set up a CBD Business in South Korea
There are many challenges when setting up a CBD business in South Korea. There are many challenges because of the legal landscape in Korea regarding CBD. The first thing a Korean startup needs to do is find a partner in the U.S. This partner has to have CBD that has zero THC. This will be difficult as must hemp contains at least some levels of THC. Finding a partner that produces CBD with no THC should be your first step. If you import CBD only for the Ministry of Food and Drug Safety to find traces of THC in the CBD materials, your business will be over before it starts.
Keep up to date with CBD regulations
Then you need to keep up to date with the CBD regulations in Korea. Understanding your legal obligations and playing it safe will be crucial when setting up your business. The issue is that many of the staff at the Ministry of Food and Drug Safety are not giving interviews and very little information is given to the public. Therefore during this time, it would be wise to set up a marketing campaign around the benefits of CBD. As the Korean public understands the benefits of CBD, the demand will come. This will also attract Korean investors to get the capital you need to start your CBD business in Korea. In addition, keep up to date of new developments as the Korean government moves forward with new regulations regarding CBD.
The moment CBD is legalized for the general public, it is important to start offline initially. It will be difficult to sell CBD products on major Korean online eCommerce platforms like Coupang and G-Market. Also will be difficult to advertise using social media. CBD promotion on Facebook, Twitter, and Instagram can potential get you banned. Therefore focus on creating your own eCommerce site for your CBD oils as well as having a CBD brick and mortar store. Building a site and building the store could take months so it is important to get started early before the laws are set. Yes, this is a risk but those that take risks reap the benefits.
The three main industries that will be looking for CBD to incorporate into their existing products will be:
- Korean Food Industry – Baked Goods, Candies, Drinks, and Snacks in Korea that incorporate CBD will be able to find a niche audience in the beginning.
- Vaping Industry in Korea – This will be a smaller market but with all the Vape stores popping up in Seoul, CBD oils will be one of the top sellers here.
- K-Beauty Industry – This industry will have the biggest potential. K-Beauty products such as gels, creams, and sprays with CBD will be able to be applied directly to the skin. There are many global skincare companies finding great success with their CBD beauty products. K-Beauty which is the leader in the global skincare industry will be eager to incorporate CBD into their future lines.
First CBD Business Launched by Kolmar Pharma
Kolmar Pharma will be the first company in Korea to supply CBD to cosmetic manufacturing companies in Korea. They will work with The Greenery, a US supplier of cannabis oil after signing an exclusive contract. Therefore, the CBD materials will be given to Kolmar Pharma who will then examine and supply the cosmetic manufacturers in Korea. Current law in Korea allows importing CBD materials extracted from hemp seeds, stems, and roots that do not contain any THC. Therefore it is our opinion that Kolmar Pharma is in touch with the Ministry of Food and Drug Safety who is making sure the CBD is tested. Or Kolmar Pharma is using a third-party lab testing company to validate the quality of the product. Remember CBD needs to have zero THC and needs the approval of the Ministry.
“CBD cosmetic products will be manufactured from this year after receiving approval from the ministry of food and drug safety. It will be very effective for treating psoriasis by shortening the healing period,” said the CEO of The Greenery, Lee Jae-yeol.
Why CBD is perfect for Startups in Korea
While it might seem like big companies like Kolmar Pharma will dominate the CBD space in Korea, that is not necessarily the case. The cannabis industry is a very fast-growing industry and CBD is just one of the quickest growing sectors in that industry. For many companies in Korea that want to incorporate CBD into their products will not find it easy to work with big companies like Kolmar Pharma. The competition will arise and with a fast-paced industry like CBD, a startup is primed to become the leader in the industry. Startups in Korea are able to move quickly and adapt while at the same time being able to innovate. A combination of creativity and due diligence will set your startup for great success in the CBD industry in Korea.
Frequently Asked Questions Regarding Medical Cannabis in Korea
What kind of cannabis-based drugs will be allowed in Korea for medical purposes?
For those suffering from epilepsy, they will be prescribed Epidolex. Those suffering from multiple sclerosis, they will be prescribed Sativex. For those having issues with nausea and vomiting because of cancer treatments of the AID virus will be prescribed Cesamet and Marinol.
Can companies produce medical cannabis in Korea?
No. Korea is not allowed to manufacture cannabis-based drugs.
Can Companies in Korea import CBD Oil?
No. However they can import CBD materials extracted from hemp seeds, stems, and roots that do not contain any THC.
How do I qualify for medical cannabis in Korea?
Step 1: Get a medical diagnosis from a doctor for cannabis-based drugs.
Step 2: Fill out an application for medical cannabis. In addition, the application will ask for the diagnosis from the doctor, a letter from the doctor, and full medical records.
Step 3: Send the application to the Ministry of Food and Drug Safety via fax, mail, or online.
Step 4: If approved the Korean Orphan Drug Center will import the requested drug into South Korea.
Could more cannabis drugs be added to the list of 4?
Yes, a representative from the Ministry of Food and Drug Safety stated that there is room for expansion. Therefore, there is no final list.
Which Hospital in Korea offers medical cannabis?
The only way to get cannabis medicine is to pick it up personally at the Orphan Drug Center in Seoul. They will not mail it to you.
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