Seoul: LG Display Co., a global leading manufacturer of display panels, announced a significant net loss in the fourth quarter of last year, attributing it to the weakened Korean won. The company revealed a net loss of 839.1 billion won (US$584.6 million) for the October-December period, a sharp fall from a net profit of 50.5 billion won recorded in the same period the previous year.
According to Yonhap News Agency, LG Display's fourth-quarter operating income decreased by 36.9 percent year-over-year to 83.1 billion won, while revenue saw a 5.9 percent increase, reaching 7.83 trillion won. The reported operating profit was also noted to be 55 percent lower than the average estimate from a survey conducted by Yonhap Infomax, the financial data arm of Yonhap News Agency.
The depreciation of the Korean won was cited by the company as the primary reason for the net loss. The weakening of the currency significantly increased the valuation of LG Display's foreign currency-denominated debts during the quarter. The South Korean won experienced a pronounced decline against the U.S. dollar in December, a situation exacerbated by political instability following President Yoon Suk Yeol's brief imposition of martial law.
Despite these challenges, the company experienced strong sales of premium organic light-emitting diode (OLED) panels, which contributed to the revenue increase in the fourth quarter. LG Display stated, "We are focusing on continuously improving our business structure around OLED technology and enhancing profitability through rigorous cost innovation initiatives."
For the full year of 2024, LG Display posted a net loss of 2.4 trillion won, a slight improvement from a net deficit of 2.6 trillion won the year before. The company's annual operating loss was reduced to 560.6 billion won from 2.51 trillion won, and sales rose by 24.8 percent, totaling 26.61 trillion won.