LG Display announces $925 mil. investment plan to bolster OLED technology

LG's production plant in Paju / Courtesy of LG Display

LG Display said Tuesday it will invest 1.26 trillion won ($925 million) to strengthen the competitiveness of its organic light-emitting diode (OLED) business, marking the first major corporate investment pledge since the launch of Seoul's new administration.

In a regulatory filing, LG Display said the funds will be allocated to develop advanced OLED technologies as part of its strategy to secure a stronger foothold in the global display market. The investment period will run through June 30, 2027.

The investment, approved at a board meeting earlier in the day, marks the first major investment plan announced by a domestic firm since the launch of the Lee Jae Myung administration on June 4.

The company said the spending forms part of its broad capital expenditure (CAPEX) plan. LG Display added it will continue efforts to improve its financial structure independently of the new investment plan.

To respond proactively to global OLED demand, LG Display plans to allocate most of its investment for its production campus in Paju, north of Seoul. Approximately 700 billion won of the total investment is expected to be concentrated in Paju.

The company said the investment will serve as its first major domestic initiative following the sale of its large-size liquid-crystal display (LCD) plant in Guangzhou, China.

LG Display signed the deal in September to sell its Guangzhou LCD factory to China Star Optoelectronics Technology (CSOT), a subsidiary of China's TCL Group, for 2.25 trillion won.

LG Display is reportedly preparing to sign a memorandum of understanding (MOU) for its planned investment with the Gyeonggi provincial government and the city of Paju as early as next month. State and local subsidies for the project will be finalized following a review by the government.