LG Display Opens Voluntary Retirement for Production Workers... 'Urgent Need for Structural Reform'

Paju and Gumi Factory Production Line Production Workers Voluntary Retirement
Targeting Employees Aged 40 and Over... Applications Accepted from the 5th
Jung Cheol-dong "Performance Turnaround is Top Priority"

LG Display is implementing voluntary retirement for production workers. It is interpreted that the newly appointed CEO, Jeong Cheol-dong, is pursuing workforce optimization to improve profitability and restructure the business around organic light-emitting diode (OLED) technology.

According to industry sources, on the 5th, LG Display notified employees that it is accepting voluntary retirement applications from production line workers at its Paju plant in Gyeonggi and Gumi plant in Gyeongbuk. This applies to production workers aged 40 and above with long tenure. After receiving applications, the company plans to finalize the eligible candidates and complete all procedures within this month.

Voluntary retirees will receive severance pay equivalent to 36 months' salary and educational support for their children. The scale of the voluntary retirement has not been disclosed.

LG Display Paju Plant view. [Photo by LG Display]

LG Display is conducting voluntary retirement as part of workforce adjustments arising from shifting its business focus to OLED after winding down its liquid crystal display (LCD) operations. At the end of last year, it ceased operations of the Paju TV LCD plant, and this year, it closed the Gumi IT (Information Technology) LCD plant.

CEO Jeong, who stated at his inauguration that "turning around performance is an urgent priority," appears to have initiated a high-intensity restructuring from the start of his tenure to transform the business structure and enhance production efficiency.

In an email message to employees on June 1, CEO Jeong said, "We will strongly drive cost innovation across the business, strengthen corporate competitiveness in quality, price, and delivery, and build a solid company."

LG Display has posted losses for six consecutive quarters since the second quarter of last year.