On June 17, LG Display announced that it will invest 1.2 trillion won to strengthen its competitiveness in organic light-emitting diode (OLED) technology and to reinforce its growth foundation. This is the first large-scale investment plan worth over a trillion won by a Korean company since the inauguration of the Lee Jaemyung administration.
On this day, LG Display disclosed that its board of directors had resolved to invest 1.26 trillion won in new OLED technologies. This decision was made to enhance the company's differentiated technological competitiveness in OLEDs and to secure leadership in the display market. The investment period is set until June 30, 2027, which is approximately two years.
This investment is part of LG Display's mid- to long-term capital expenditure (CAPEX) plan. Separately from this investment, the company also plans to continue efforts to improve its financial structure.
LG Display also explained, "We plan to focus facility investments related to next-generation OLED technologies mainly at the Paju plant." The aim is to proactively respond to the steadily increasing global demand for OLEDs in the display market.
According to market research firm Omdia, the global LCD market reached $78.94304 billion (about 112 trillion won) last year and is projected to grow at an average annual rate of only about 1% through 2028. In contrast, the OLED market, which was $53.31057 billion (about 76 trillion won) last year, is expected to grow by 5% annually over the same period, reaching $68.675 billion (about 100 trillion won) in 2028, indicating robust growth.
In response, LG Display's strategy is to focus investment on developing premium products in order to continuously deliver differentiated customer value in the growing OLED market and to widen the gap with competitors. In particular, the company is concentrating on building panel and module infrastructure equipped with next-generation premium OLED technologies. This approach is based on the assessment that demand for high-performance premium OLEDs is increasing as technology evolves.
LG Display expects this investment to have a positive impact on the local economy in Gyeonggi Province, including Paju. The OLED new technology investment is the first to be carried out in Korea after the sale of the Guangzhou LCD plant in China, and the company believes it will also contribute to the national economic recovery. Indirect economic effects are also anticipated due to linkages with small and medium-sized partner companies. There is potential for a positive impact on revitalizing local commercial districts as well.
Previously, LG Display CEO Jeong Cheoldong stated, "If last year was about laying the groundwork for a turnaround, this year will be a year of taking a leap forward. We will do our utmost to discover and develop differentiated technologies and products unique to LG Display in advance, provide customer value, and lead the market."
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