LG Display expand partner programs
Kim Dong-soo, second from left, head of LG Display’s product purchase division, talks with Daewha Metal Corp. CEO Huh Young, third from left, and other executives as a part of LG Display’s strategy to improve communication between its second-tier local partners, Wednesday. Daewha Metal, located in Paju, near the North-South border, is one of LG’s key OLED component suppliers. / Courtesy of LG Display
By Kim Yoo-chul
LG Display said Wednesday that it will expand its partner-support programs to second-tier local suppliers providing it with OLED components as part of a strategy to increase the business.
Because OLEDs (organic light-emitting diode) are more efficient than LCDs in terms of picture quality, energy consumption and cost, LG Group’s display affiliate is heavily betting on them as a key revenue channel.
The world’s largest display producer reported that its CEO Han Sang-beom visited Osung Display, one of its suppliers and discussed ways to improve communication between the two companies.
Also, the head of the product purchase division, Kim Dong-soo, held meetings with executives at Daewha Metal Corp., another secondary partner located in Paju, near the North-South border, where LG Display’s key display complex is housed, to make the partnership more efficient.
“The purpose of the meeting at Daewha was aimed at checking key issues in line with LG Display’s efforts for balanced growth with small- and medium-sized enterprises (SMEs) in new businesses that we’ve identified, such as OLED,” Jacquelyn Park, a spokeswoman for LG, said.
Park added that the meetings with Daewha were intensive as key executives at Heesung Electronics, a first-tier supplier, were also in attendance.
“Close collaboration between local partners is important to operate LG Display’s OLED-related businesses smoothly. LG aims to create an OLED ecosystem for parts and finished products with suppliers,” the spokeswoman said.
Over the last few years, LG Display has been providing financial and administrative support for local partners. Also, the company is sharing some of its patents with them to help its suppliers improve competiveness.
The company was named the “best performer” in 2014 in an index by the government to evaluate efforts by companies for shared growth.