LG Display has accelerated the improvement of its financial structure by repaying 1 trillion won borrowed from LG Electronics ahead of maturity.
On June 5, LG Display announced through the Financial Supervisory Service's electronic disclosure system that it had made an early repayment of the 1 trillion won loan from LG Electronics. The funds were originally borrowed in March 2023 as a long-term loan to strengthen the competitiveness of the organic light-emitting diode (OLED) business and to secure operating capital. The original maturity date was set for March 30, 2026.
This repayment, which was made with about 10 months remaining until maturity, is expected to result in financial cost savings amounting to several tens of billions of won. It is also anticipated to have a positive impact on the company's overall financial structure.
LG Display has been consistently repaying high-interest loans and refinancing with low-interest borrowings in response to the recent downward trend in interest rates. In addition, the company is enhancing its financial stability by adjusting capital expenditures (CAPEX) within the scope of cash flow and simultaneously improving working capital efficiency.
The company stated that, thanks to these efforts, its quarterly performance continues to improve, and it expects its annual interest expenses this year to decrease significantly compared to the previous year.
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