Jung Ho-young, CEO of LG Display, expressed his intention to increase the proportion of order-based business sales, currently at the low 40% range, to around 70% within the next 2 to 3 years.
In a shareholder letter sent to LG Display shareholders on the 21st, CEO Jung stated, “For sustainable growth and stable profit generation, it is essential to make proactive and strategic choices in focused areas and to have core competencies that can support these choices. Based on this recognition, we have been concentrating on ‘business structure advancement,’ and we will accelerate this further going forward.”
He continued, “Based on differentiated competitiveness, we are expanding the ‘order-based’ business, which can stably manage volume and pricing through close collaboration with strategic customers. The sales proportion of the order-based business, which was around 11% in 2019, has expanded to the low 40% range this year, and we are targeting around 70% within the next 2 to 3 years,” he emphasized.
He also stated, “We will reorganize the operating system of the ‘supply-demand’ business, which is sensitive to market changes, strengthen our position in the premium TV market within the large OLED business sector, and promote the ‘market-creating’ business centered on transparent and gaming displays to secure future growth engines.”
At the 38th regular shareholders’ meeting held this morning at the LG Display Learning Center in Paju, Gyeonggi-do, after audit reports, business reports, internal accounting control system operation status reports, and reports on internal transactions with related parties, four agenda items were approved as originally proposed: approval of the 2022 financial statements, appointment of directors, appointment of audit committee members, and approval of the director remuneration limit.
CEO Jung, currently serving as LG Display’s representative director, was reappointed as an inside director. Professor Oh Jung-seok of Seoul National University’s College of Business Administration and Professor Park Sang-hee of KAIST’s Department of Materials Science and Engineering were newly appointed as outside directors.
Outside Director Oh is a management expert who has served as vice president of the Korean Operations Research and Management Science Society and as associate dean of planning at Seoul National University’s College of Business Administration, and will provide advisory roles across overall management. Outside Director Park is an expert in the display field, having served as a SID distinguished member and president of the Korean Information Display Society, and plans to take on advisory roles in technology areas such as R&D. The director remuneration limit was reduced by 1.5 billion KRW from the previous year to 4.5 billion KRW, considering the expected expenditure based on changes in management performance in 2023.
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