Busy Korean Dipel Reclaims World No.1 with 'Relief'... "Greatly Welcome Expansion of Tax Credit Rate"

Display Industry Association Issues Statement

[Image source=Yonhap News]

[Asia Economy Reporter Moon Chaeseok]

"The display industry warmly welcomes the inclusion of national strategic technologies and the expansion of the tax credit rate for facility investments."

On the 3rd, the Korea Display Industry Association expressed such a welcoming message regarding the government's significant increase in the tax credit rate for facility investments in national strategic technologies.

The association stated, "The industry actively welcomes the policy to include the display industry as a national strategic technology and the announced increase in the tax credit rate for facility investments in national strategic technologies." It added, "Especially, the government's unprecedented investment support measures, announced abruptly for the first time in about 20 years since 2004, are even more welcome in the current situation where competition with China is intensifying."

Benefits can only be received if the display industry is quickly reflected as a national strategic technology. Accordingly, the association emphasized, "We urge the prompt promotion of legislative procedures to include the display industry as a national strategic technology to support companies' swift investments."

The association believes that this expanded investment support policy will enable the industry to accelerate investment decisions for new facility investment plans. For the display industry, where 'timely investment' is vital, there is no better news. Thanks to this, the scale of facility investments is also expected to expand beyond the original plan.

The association expressed optimism, saying, "In particular, new investment decisions, including the world's first 8th-generation OLED (organic light-emitting diode) for IT currently under review by panel companies, are expected to accelerate." It added, "This can be seen as laying the groundwork for our companies to lead even in the IT market, where the OLED share is still only about 4%."

Expansion of facility investments by panel companies is said to be eagerly awaited news by material, component, and equipment companies struggling with new equipment orders and declining demand. Furthermore, given the industry's characteristics, where the localization rate of materials, components, and equipment reaches 65%, the trickle-down effect to small and medium-sized enterprises can also increase accordingly. This is expected to strengthen the domestic industrial ecosystem.

The association stated, "From LCD (liquid crystal display) to mobile and TV OLEDs, the display industry has continuously led the global market through faster facility investments than competing countries." It added, "If the display industry is included as a national strategic technology and the tax credit for facility investments is expanded, it is expected to greatly contribute to national economic growth through export expansion and employment increases."