Seoul: LG Display Co. announced a significant investment of 1.26 trillion won (US$925 million) aimed at enhancing its organic light-emitting diode (OLED) business. This marks the first substantial corporate investment initiative since Seoul's new administration took office.
According to Yonhap News Agency, the investment is intended to develop advanced OLED technologies to strengthen LG Display's position in the global display market. The investment period is set to continue until June 30, 2027. This plan, approved during a board meeting, is the first major domestic investment announced since the Lee Jae Myung administration began on June 4.
The company stated that this funding is part of its comprehensive capital expenditure (CAPEX) plan. LG Display also mentioned that it will maintain efforts to enhance its financial structure, independent of the new investment plan.
To meet the increasing global demand for OLED, LG Display plans to allocate a significant portion of the investment to its production campus located in Paju, north of Seoul. Approximately 700 billion won of the total investment will be focused on this location.
The investment initiative follows the recent sale of LG Display's large-size liquid-crystal display (LCD) plant in Guangzhou, China. The company finalized a deal in September to sell the factory to China Star Optoelectronics Technology (CSOT), a subsidiary of China's TCL Group, for 2.25 trillion won.
LG Display is in the process of preparing a memorandum of understanding (MOU) for the planned investment with the Gyeonggi provincial government and the city of Paju. The specifics of state and local subsidies for the project will be determined following a government review.