DBD busts foreign-funded cannabis farm in Krabi

The Department of Business Development (DBD), in collaboration with several agencies, raided a foreign-funded cannabis farm in Krabi province after uncovering the use of Thai nationals as nominees to conceal foreign ownership. The farm, which operates in a popular tourist area, was found to be violating the Foreign Business Act of 1999.

Poonpong Naiyanapakorn, Director-General of the Department of Business Development, stated that on January 21, 2026, he had instructed Deputy Director-General Mom Luang Phuthong Thongyai  to lead a task force to investigate the illegal foreign ownership of a cannabis farm in the Sai Thai sub-district, Mueang Krabi District. The operation was conducted with the provincial governor, Krabi Police, immigration police, tourism police, and other relevant authorities.

The company was registered in March 2023, initially under 100% Thai ownership. However, the shareholder structure was later changed, with an Israeli national becoming a director and shareholder, alongside Thai nationals. The capital was increased from 4 million THB to 6 million THB, with the company stating its purpose as the production, sale, export, and processing of controlled herbs for trade. Financial records for 2026 indicated revenues of 2.39 million THB and net profits of 400,000 THB.

Upon investigation, authorities discovered that the farm had been converted into a cannabis growing facility with controlled lighting, water, and temperature systems. It also offered cannabis products for sale and allowed tourists to consume cannabis on-site. The company was also found to have been selling cannabis through online platforms and delivery services, violating various laws. The Krabi Health Department has temporarily suspended the business's operating license for 60 days.

Poonpong added that the task force had been monitoring the company’s activities for over two months and found that the registration structure was intentionally manipulated. Initially, the company was registered with 100% Thai ownership, but later the structure was changed to 59% foreign ownership, with clear evidence of nominee ownership. Further financial investigations revealed that the company’s lawyer in Krabi had facilitated transactions, with more than 40 million THB circulating through their accounts. The investigation into additional accounts and affiliated companies is ongoing.

On the same day, authorities also arrested four individuals under arrest warrants in connection with the illegal nominee scheme, including individuals who helped facilitate foreign business operations illegally.

Poonpong stated, “The department places great importance on combating nominee businesses as they distort the economic structure and create an unfair advantage for foreign operators. If violations are found, we will coordinate with law enforcement agencies to pursue legal action to the fullest extent and continue to investigate businesses involved in such activities nationwide. We also warn Thai citizens who support foreigners in such illegal activities to cease these actions immediately.”