my timesThe Korea Times
  1. Business
  2. Companies

LG Display sets up joint venture in China

Listen
By Kim Yoo-chul
  • Published KST
  • Updated KST

By Kim Yoo-chul

Staff reporter

LG Display, the world's No. 2 manufacturer of LCD panels, is setting up a joint venture in China at a time when LG and Samsung are vying to establish a big display factory there.

The joint venture between the firm and iriver is also part of LG Display's chief executive Kwon Young-soo's efforts to pay more attention to finished products.

Analysts and LG Display officials say this was aimed at diversifying the company's cash sources.

``In addition to the LCD business, we are showing more focus on finished consumer electronics products. Driven by the chief executive, we will seek more earnings drivers,'' spokesman Kim Jun-kyu said, Monday.

The remarks came after the Korean manufacturer agreed with MP3 player maker iriver to set up a $5 million e-book joint venture in China.

LG Display will provide e-book displays such as electronic paper displays, or EPD, while iriver is tasked in charge of product design and platform development.

LG will own 51 percent of the joint venture - L&I Electric Technology - with iriver holding the rest.

Production will start from September this year at iriver's existing Dongguan e-book plant in China and be increased to 1 million by 2011, LG said in a press release.

``New types of display-embedded products will be produced by the venture depending on the market situation,'' Kim said.

LG's steady focus on China is expected to raise its chance to win final approval from Beijing to build an advanced panel line there.

Samsung and LG are still waiting for the green-light from China for this. Sources say LG Display is close to winning the bid, as Beijing has given more credit to LG's efforts to strengthen its China business.

Sources said the agreement with iriver isn't necessarily separate from LG Display's effort to curry favor with China.

``The e-book business would be secondary for LG. The firm hopes to strengthen its finished products businesses,'' an industry executive said.

The global e-book market is expected to double in size annually to reach $1.2 billion in 2011 from an estimated $350 million this year, according to market research firm DisplaySearch.