Ministry of Industry Meets Display Industry to Hear Challenges

On the 18th, Vice Minister Jang Young-jin Hosts On-site Real Economy Inspection Meeting
Executives from Samsung and LG Display Attend
Request for Designation of Display Specialized Complex and Expansion of Tax Benefits

[Asia Economy Reporter Han Yeju] The government will directly meet with the display industry, a core advanced industry in South Korea that has recently faced many challenges due to global competition, to listen to their difficulties.

The Ministry of Trade, Industry and Energy announced on the 18th that it will hold a meeting for companies to discuss investment and resolve difficulties in the display industry, chaired by First Vice Minister Jang Young-jin at the Korea Chamber of Commerce and Industry in Seoul.

Executives from LG Display and Samsung Display, presidents of materials, parts, and equipment companies such as Dongjin Semichem, AP System, and MKP, as well as representatives from support organizations including the President of the Korea Electronics Technology Institute and the Vice Chairman of the Korea Display Industry Association, will attend the meeting. They will share plans for export and investment support in the display industry and discuss various measures to expand private companies’ facility investments and exports.

Last year, the display industry recorded exports of $21.1 billion, down 1.1% from the previous year, as the COVID-19 special demand ended and global demand decreased. Private investment focused more on expanding the operating rate of existing production lines rather than new investments. This year, the high value-added organic light-emitting diode (OLED) product market is expected to grow 1.5% to $21.5 billion, expanding from mobile to IT, transparent OLED, and automotive displays. Private investment is expected to increase not only in 6th generation but also in 8th generation facilities due to rising OLED demand for IT products.

LG Display stretchable display. [Photo by LG Display]

The companies attending the meeting plan to raise various requests, including the designation of display-specialized complexes and expansion of tax benefits, policy financial support to promote new investments, and expansion of government research and development (R&D) for materials, parts, and equipment.

Panel companies hope that advanced strategic industry detailed technologies and the designation of specialized complexes will be expedited so they can further strive to secure next-generation display competitiveness, and they expect the legislative process for national strategic technologies to be completed promptly. Materials, parts, and equipment companies are likely to request that, in addition to panel technologies, materials, parts, and equipment technologies be included in national strategic technologies, along with expanded government proactive support such as R&D and policy financial funding.

Vice Minister Jang Young-jin of the Ministry of Trade, Industry and Energy said, "Recent domestic and international conditions have made survival difficult with corporate capabilities alone, so the government and private sector must respond as one team." He added, "To support the proactive investment and innovation efforts of display companies, the government has designated display as an advanced industry and established a dedicated display organization within the ministry." He emphasized, "We will speed up the designation of detailed technologies for advanced strategic industries and actively consider the designation requirements under the 'National Advanced Strategic Industry Special Act' when the display industry applies for specialized complex designation."

Regarding materials, parts, and equipment companies, he explained, "We will actively persuade related ministries to include materials, parts, and equipment technologies in national strategic technologies. Through consultations with the Financial Services Commission, we will provide about 900 billion KRW in policy financial funds to the display sector and invest 211.5 billion KRW this year in OLED new market creation demonstration R&D and materials, parts, and equipment R&D to strengthen industrial competitiveness."

Furthermore, Vice Minister Jang urged, "This year, the slowdown in global economic growth and increased global uncertainties will exacerbate difficulties in the real economy and burden our exports. I ask the industry to unite their efforts to actively foster OLED and high value-added new products so that display exports can be revitalized."

Meanwhile, the Ministry of Trade, Industry and Energy plans to continue weekly on-site inspections of the real economy targeting industries with significant export, investment, and future growth significance such as bio, semiconductors, and secondary batteries, starting with this display industry company meeting.