LG Display to Invest 700 Billion KRW in New OLED Technology Facilities in Paju

After Selling Guangzhou LCD Plant, Shifting Focus to OLED Operations
Investing Secured Funds in New Technology Facilities at Paju Plant
MOU on Investment to Be Signed with Gyeonggi Province and Paju City
Eligible for Up to 50 Billion KRW Subsidy as a National Strategic Technology Reshoring Company

LG Display is reportedly planning to invest approximately 700 billion KRW in new organic light-emitting diode (OLED) technology facilities by utilizing idle land at its Paju plant in Gyeonggi Province.

According to industry sources on June 5, LG Display recently sold its 8.5-generation liquid crystal display (LCD) production facility in Guangzhou, China, and has been designated by the Ministry of Trade, Industry and Energy as a reshoring company. Through this investment, the company aims to strengthen its competitiveness in the OLED business while also reinforcing its domestic manufacturing base.

In September of last year, LG Display transferred its stake in the large-size LCD panel and module plant in Guangzhou to CSOT (China Star), a subsidiary of TCL in China, thereby winding down its local operations. The sale price at that time was 2.2466 trillion KRW, surpassing initial market expectations.

The company has previously announced that the funds secured through the sale will be focused on OLED facility investment, research and development, and operating capital. The current investment in the Paju facility is part of this plan and is expected to contribute to the development of the high value-added display industry in Korea.

LG Display is expected to sign a memorandum of understanding (MOU) as early as next month with Gyeonggi Province and Paju City to attract investment. The scale of investment subsidies will be determined following deliberation by the Ministry of Trade, Industry and Energy.

Under current regulations, reshoring companies in fields classified as national strategic technologies, such as displays, are eligible to receive up to 50 billion KRW in investment subsidies per business site in the Seoul metropolitan area (20 billion KRW from the central government and 30 billion KRW from local governments).