LG Display vows to grow OLEDs as growth engine

Models pose with consumer gadgets using LG Display-manufactured OLED displays during a news conference in the NineTree Convention Center, Seoul, Tuesday. / Courtesy of LG Display

By Kim Yoo-chul

LG Display pledged to dominate the global display market Tuesday by solidifying its leadership in the organic light-emitting diode (OLED) products sector.

It said the time has come for a shift of focus to OLED displays from conventional liquid crystal display (LCD) products.

Yeo Sang-deok, president of LG Display’s OLED business, said the company will nurture its OLED business as a new engine for the nation’s economic growth.

“OLEDs will become the next growth engine, helping Korea extend its leadership in the global display industry,” Yeo said at a press conference. “You need to have the next things that will replace LCDs, as LCDs are already being commoditized hit by the rise of Chinese firms. And OLED is the very next thing.”

OLED panels are considered the next-generation displays as they do not use bulky backlight, making them slimmer and much brighter than LCD panels.

Still, OLEDs are more expensive than LCDs, and also LG's chief local rival Samsung Display is enhancing the picture quality on LCD-based panels such as those with quantum dot and UHD technologies.

Yeo said LG is aware of the price issues to create further demand for OLED panels.

However, he said it is ready to resolve the issues as it's been teaming up with local suppliers and materials providers to cut the costs of OLED panels.

He urged Samsung Display and Samsung Electronics to join the so-called “OLED alliance” to, together, push the industry to the next level.

“If Samsung asks us for collaboration in OLEDs, then we will positively respond as LG Display needs big players such as Samsung to construct a new ecosystem in the industry,” Yeo told reporters.

Samsung Group's technology affiliates earlier agreed with their LG counterparts to end legal disputes in consumer electronics and displays in which they had been involved.

However, it's unclear whether Samsung will collaborate with LG in large-sized OLEDs.

Samsung is still negative about the profitability of OLED TV panels in the near future.

LG Display and Samsung Display have long dominated the global display industry. But they are facing growing challenges from Chinese rivals.

That is why LG Display is putting a greater focus on OLED products. “In OLED technology, LG Display is at least five years ahead of Chinese companies,” the executive said.

Yeo said LG Display will boost the production of its large-sized OLED panels from July as the production yields of OLED TV panels reached more than 80 percent.

To a question over its business roadmap beyond OLED panels, Yeo has identified rollable, transparent and commercial displays as its next priorities.

“Yes, Samsung has advantages in the small-sized OLED business. But we will also invest more in that segment, if necessary,” Yeo said.