SME Minister: “Overhaul regulations for new industries such as hemp” ... also discusses Narcotics Control Act amendments

[Financial News] Minister of SMEs and Startups Lee So-young has decided to work with relevant ministries, including the Ministry of Food and Drug Safety, to explore ways to rationalize the regulatory framework to support the growth of new industries. Over two days and one night, Lee visited sites across the Gyeongsang region—from university startup scene in Ulsan to manufacturers and a regulatory free zone in Gyeongsangbuk-do, as well as local commercial districts—and listened to the concerns of small and medium-sized enterprises and small business owners.
According to the Ministry of SMEs and Startups (MSS) on the 1st, Lee said at the industrial hemp special zone in Andong, which she visited from the 30th to the 31st of last month as part of her “Field Visit to SMEs and Small Business Owners in the Gyeongsang Region”: “I will examine the cultivation and extraction technologies developed at the Andong Hemp Regulatory Free Zone in Gyeongsangbuk-do, the results of demonstrations of full-cycle safety management, and the need for existing regulations.”
Lee is currently visiting regions across the country on two-day, one-night itineraries as part of her “Into the Field for Two Days and One Night” tour, listening to people on the ground and reflecting their views in policy. This was her second such visit, following one to the Chungcheong region.
Together with Gyeongsangbuk-do Governor Lee Cheol-woo, People Power Party lawmaker Kim Hyung-dong and others, Lee reviewed the results of demonstrations at the hemp special zone and discussed with related companies ways to link regulatory reform with institutionalization.
They discussed in particular the need to amend the Narcotics Control Act, plans to build production infrastructure, including facilities that meet Good Manufacturing Practice (GMP) standards for pharmaceutical manufacturing and quality control, and ways to strengthen support for commercialization.
Lee also visited the Ulsan National Institute of Science and Technology (UNIST), where she met student entrepreneurs and members of student startup clubs and heard their views on ways to foster youth and regional startup ecosystems by leveraging the university’s research capabilities and the industrial base of nearby large corporations.
Lee then visited HanJungNCS Co., Ltd., a manufacturer of cooling systems for LDES in Yeongcheon, Gyeongsangbuk-do, and reviewed how it uses smart factories. The company began as an auto parts manufacturer and later shifted its business to specialize in LDES cooling.
The following day, Lee toured the old downtown commercial district in Yeongju, Gyeongsangbuk-do, to see how local gastronomic, historical and cultural resources are changing the commercial district and consumer patterns. Yeongju was recognized for its potential as a K-gastronomy district, based on its rail network and local foods such as octopus, apples and ginseng, and was selected this year as an MSS Glocal Commercial District. It is promoting commercial district development centered on the “Yeongju Octopus 1955” brand.
Lee stressed, “For potential to translate into real vitality for commercial districts, it is important for local stakeholders—including merchants, entrepreneurs and commercial district planners—to take the lead.”
Lee later attended the opening ceremony of the Korea Grand Festival in Andong, Gyeongsangbuk-do. “I hope it will energize small business owners and traditional market merchants and become a consumption festival enjoyed by everyone,” she said, adding, “I will work to help it grow into a leading global festival.” The event, which began on the 29th of last month and runs through the 15th, is a pan-government consumer event offering various discounts and consumer benefits, with 10 ministries and around 40,000 businesses and other participants, including large corporations and small businesses, taking part.
As she wrapped up her visit to the Gyeongsang region, Lee stressed, “The starting point for government policies on regional startups, manufacturing innovation, regulation of new industries and support for small businesses is the people and businesses affected on the ground. Building on this visit, we will bring about changes that the public and businesses can feel through regulatory improvements and policy feedback.”


[email protected] Kim Hyun-cheol Reporter