[Special Stock] Pungwon Precision Secures FMM Mass Production Funds... Expected Dark Horse to Shake the Global Monopoly Market

Pungwon Precision is showing strong performance. The news that the company is making facility investments to begin mass production of key components in the organic light-emitting diode (OLED) manufacturing process, which Japan has monopolized, appears to be influencing its stock price.

At 10:01 AM on the 27th, Pungwon Precision was trading at 17,140 KRW, up 12.1% from the previous day.

Recently, Pungwon Precision raised 20 billion KRW by issuing convertible bonds (CB). Investors included AOA-Hi D’Artagnan Investment Association No. 1 and Samsung Venture Investment Corporation (SVIC) 59th New Technology Business Investment Association.

Pungwon Precision aims to mass-produce fine metal masks (FMM) used in the 6th generation OLED manufacturing process. FMMs are metal masks used for red (R), green (G), and blue (B) OLED deposition. Currently, the global OLED FMM market is virtually monopolized by Japan’s Dainippon Printing (DNP).

Samsung Display has supported Pungwon Precision with expert personnel and development costs to help develop FMM. If Pungwon Precision replaces DNP’s FMM, Samsung Display expects to reduce cost burdens by up to about 30%. DNP’s operating profit margin is as high as 40-50%, reflecting the high profitability of FMM. If Pungwon Precision begins mass production of FMM, it may also supply global clients including Apple. Pungwon Precision aims to deliver 6th generation OLED FMM to BOE in 2027 and CSOT in 2028. Samsung Display stated, “At present, we are not considering using it in mass-produced products.” Industry insiders believe there are many challenges to overcome from developing FMM technology to mass production and signing supply contracts. The technology itself is highly difficult, and DNP, which holds a monopoly, can counter in various ways such as price reductions. Samsung Display sees vendor diversification as advantageous for securing a stable supply chain. The emergence of a latecomer could induce price competition and have a positive effect on cost reduction.