In response to China's advancements in organic light-emitting diode (OLED) technology, the South Korean government will invest 368.9 billion won ($368.9 million) to establish a national research and development facility. This initiative aims to strengthen the competitiveness of the domestic display industry as Samsung Display and LG Display make significant investments in production facilities and next-generation technologies.
According to the Ministry of Trade, Industry and Energy, the 'Advanced Display National Research Platform Project' passed its preliminary feasibility study on November 5. The government plans to invest a total of 368.87 billion won, including 278.9 billion won in national funds, from 2027 to 2033. A research institute for advanced displays will be established in Asan, focusing on 20 key technology development projects.
The government's push to expand research capabilities comes amid increasing competition from China. According to the Korea Display Industry Association, Samsung Display and LG Display held a combined market share of 64.0% in the global small and medium-sized OLED market last year, down from 85.5% in 2020. However, this marks an increase from 62.3% in 2024, indicating a rebound in competition.
Domestic companies are also ramping up investments to maintain their technological edge. Samsung Display is investing 4.1 trillion won to establish an 8.6-generation OLED production line in Asan, aiming to expand the OLED market beyond smartphones to include laptops and tablets. LG Display announced a plan in July to invest a total of 3 trillion won, combining 1.5 trillion won from the National Growth Fund with its own resources.
This national research platform will focus on technology development and commercialization for small and medium-sized enterprises, unlike the large-scale investments in production lines by major corporations. It will support companies that struggle to secure their own research facilities by providing access to shared research facilities for panel design, production, and verification.
The government plans to link the new research institute in Asan with existing facilities, such as the Cheonan Display Innovation Process Center, aiming to reduce prototype verification time from six months to one month. This initiative seeks to lower development costs and timelines, accelerating the commercialization of new materials and process technologies.
The research scope will expand from improving existing OLED performance to developing future display technologies. This includes ultra-high-resolution panels for extended reality (XR), sensor-integrated displays that detect biological signals, and flexible panels suitable for humanoid robot skin. Next-generation nano LED technology, which is expected to follow OLED in the market, will also be a focus of research.
The key challenge will be translating research and development outcomes into mass production. The integration of new technologies from domestic partners with the production capabilities of Samsung Display and LG Display will be crucial for enhancing overall industry competitiveness. As research facilities and technology development continue until 2033, achieving commercialization results in line with the pace of Chinese companies' technological advancements remains a significant task.
* This article has been translated by AI.
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