The government is launching a significant policy financing initiative to revitalize the display industry amid intense technological competition.
According to industry sources on July 23, the National Growth Fund's proposal for a 1.3 trillion won low-interest loan to LG Display has recently passed its first investment review committee.
This project will combine the National Growth Fund loan with LG Display's own capital of 1.5 trillion won and a private syndicate loan of 200 billion won, totaling 3 trillion won. The support plan is expected to be finalized soon after passing through the fund management review committee.
LG Display plans to focus the substantial funds on expanding its production lines centered on small and medium-sized organic light-emitting diodes (OLEDs).
Previously, LG Display had been accumulating losses due to a low-cost offensive from Chinese LCD (liquid crystal display) products, prompting the company to restructure by phasing out its LCD business and shifting towards OLED technology. However, this transition has led to increased financial burdens due to the need for large-scale investments.
The policy funding aims to further widen the technological gap with China in the display market and solidify market dominance. The government plans to expand the scope of support from the National Growth Fund to include the display sector, which is a key strategic industry alongside artificial intelligence (AI), semiconductors, and renewable energy.
The National Growth Fund has previously provided 750 billion won in long-term funding for the Sinan Wind Power Project and executed a low-interest loan of 2.5 trillion won for the construction of an AI semiconductor cluster at Samsung Electronics' Pyeongtaek Campus.
* This article has been translated by AI.
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