6 days ago
LG Display to invest W1.26tr in OLED push for growth
LG Display said Tuesday it would invest 1.26 trillion won ($926 million) to bolster its organic light-emitting diode technology competitiveness and strengthen its long-term growth foundation.
This marks the first trillion-won scale investment plan officially unveiled by a domestic company since the launch of President Lee Jae Myung's administration.
The decision, approved at a board meeting, reflects the display maker's commitment to enhancing its differentiated technological edge and securing leadership in the global display market.
The investment, spanning through June 30, 2027, forms part of the company's mid-to-long-term capital expenditure plan.
LG Display said it will continue efforts to improve its financial structure alongside the new spending initiative.
A significant portion of the funds will be allocated to its Paju plant, focusing on next-generation OLED technology and production facilities.
The move is aimed at proactively responding to the growing global demand for OLED displays.
According to market tracker Omdia, the global LCD market, valued at $78.9 billion last year, is projected to see a sluggish average annual growth of around 1 percent through 2028.
In contrast, the OLED market is expected to grow at an average annual rate of 5 percent over the same period, from $53.3 billion last year to nearly $68.7 billion by 2028.
The company aims to build infrastructure for panels and modules equipped with next-generation premium OLED technologies.
The decision, made after a thorough assessment of technological readiness, development capacity, mass production systems and market demand, is expected to serve as a dual engine for future growth and profitability.
In addition to boosting its competitiveness, the investment is anticipated to bring positive ripple effects to the regional economy in Gyeonggi Province, especially in Paju where most of the spending will be concentrated.
This marks LG Display's first major domestic investment since selling its LCD plant in Guangzhou, China, and is seen as a potential contributor to the national economic recovery.
The plan is also expected to generate indirect economic benefits through collaboration with small and medium-sized partner firms, while revitalizing local commercial districts.
'Our focus last year was on laying the groundwork for a turnaround. This year, we are committed to leaping forward,' CEO Jeong Cheol-dong said.
'We will continue to lead the market by proactively developing LG Display's unique technologies and products that deliver customer value,' he added.
