LG Display to merge with OLED affiliate

By Kim Yoo-chul

LG Display is in talks to merge with its organic light-emitting diode (OLED) patent affiliate in the United States to strengthen its OLED patent portfolios in the wake of growing demand for premium OLED TVs.

“LG Display is in discussions to acquire a 100 percent stake of Global OLED Technology (GOT) in the United States, in line with LG Group-wide strategy to promote OLED TVs globally,” LG Display said. “The key issue is how LG Display best fits patents into new OLED TV sets.”

The final decision will come in May or June.

The integration is aimed at cementing the position of OLED as the preferred high-end screen option in the face of reinvigorated alternative large-area technologies like quantum dot-enhanced LCD.

LG is teaming with major TV companies in Japan and China to create an OLED alliance to win the race in the next-generation TV technology competition. LG Display manages LG Group's TV strategy as it is the group's display-making affiliate.

GOT was co-founded by LG Display, LG Electronics, Idemitsu Kosan of Japan and LG Chem with stakes of 33, 32,7, 32,3 and 2 percent, respectively, in 2009, in the United States.

“The plan was approved by board committee,” said an official at the company.

Previously, LG Display acquired the LG Electronics-owned stakes with 56 billion won.

The acquisition of GOT will help LG Display have two OLED patent affiliates in the United States as the world's top display supplier established the United Innovative Technology (UIT) last year, spending 4.3 billion won.

While OLED TVs are still pricey, the LG Group of technology units see OLED TVs remaining in the premium segment, while Samsung Electronics-initiated quantum dot TVs are among many ways to improve the color range in ultra high-definition (UHD) TV sets.

Its CEO, Han Sang-beom, told shareholders that the display panel major will remain competitive in OLED TV technology, expressing optimism that OLED TVs will go into the mainstream in the next few years.