LG Display raises $971 mil. to boost investment in OLED

A model poses with a laptop equipped with LG Display’s foldable OLED, Sept. 24, 2023. Courtesy of LG Display

LG Display will raise a total of 1.2925 trillion won ($971 million) through a paid-in capital increase, adding that it will invest this capital in its OLED business to meet the growing demand for advanced display products, the company said Monday.

The display company said it will issue around 142 million new shares at 9,090 won per share. It will allocate 482.9 billion won for operating funds, 415.9 billion won for facility funds and 393.6 billion won for debt repayment funds.

The display maker decided last December to carry out the large-scale paid-in capital increase to enhance the competitiveness and growth of its OLED business, which requires heavy investment for developing technology and setting up facilities.

Under its OLED business expansion strategy, the company plans to expand its large OLED shipment volume by 20 percent compared to last year, strengthen its position in the premium TV market centered on large and ultra-large OLED TVs and improve profitability. In the small and medium-sized OLED sector, the goal is to keep expanding orders from a global IT device maker client.

"The company is increasing the proportion of OLED products in all business areas, ranging from large, medium and small. From 2024, the large-scale area is expected to expand its customer base, and the medium-scale area plans to start mass production of OLED products for IT devices. In the small area, we expect the shipment volume to increase based on the expanded production capacity in 2023," the company said.

“As the amount of raw material purchases is expected to increase significantly, we plan to use 622.2 billion won of the funds raised through this capital increase for the purchase of raw materials to expand the number of OLED customers and respond to new products."

LG Display, once the dominant player in LCDs, has been refocusing its efforts on OLEDs, particularly small and medium-sized OLEDs used for smartphones and tablet PCs, due to a strong offensive by Chinese companies which can offer lower prices for their devices.

The company posted an operating profit of 131.7 billion won in the fourth quarter of 2023, ending seven quarters of operating losses. This was possible as it streamlined its business structure and increased the proportion of OLED products in its overall display business.