LG Display will make a proactive investment of 3 trillion won (approximately $2.3 billion) to enhance its next-generation OLED (organic light-emitting diode) technology and infrastructure. Despite high interest rates and a global economic slowdown, the company aims to expand its technological edge through this significant funding.
On July 30, LG Display announced that it has been selected as a support company for the 'OLED Technological Edge Acquisition' under the second phase of the National Growth Fund's mega project, securing 1.5 trillion won in long-term, low-interest funding. The company will add another 1.5 trillion won from its own resources, bringing the total investment to 3 trillion won.
This substantial funding will focus on acquiring high-value new technologies rather than merely expanding production capacity. The strategy aims to solidify a profit structure centered on premium technology in response to the low-cost product onslaught from Chinese competitors.
The government is also stepping in to protect the display industry, a key sector in the national advanced strategic industries, and to safeguard the South Korean technology ecosystem. This support goes beyond simple financial assistance for companies; it serves as a systemic foundation to protect the domestic display ecosystem and maintain national future competitiveness.
The investment is expected to contribute to revitalizing the regional economy and industrial ecosystem. Job creation in areas like Paju, where the investment will take place, along with collaborative growth with domestic materials, parts, and equipment suppliers, is anticipated to enhance the overall competitiveness of the South Korean display industry.
LG Display stated, "We have a strong commitment to maintaining global leadership in OLED technology through this technological edge. We will efficiently utilize the secured resources to drive the development of the display industry."
* This article has been translated by AI.
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