"We Need Our Own Moat"
Emphasis on Technological Innovation
LG Display Signals Rebound with Return to Annual Profit
Growing Share of High Value-Added OLEDs and New Business Success
LG Display, which had been struggling for some time due to the rapid contraction of the market and weakening demand, is now seeking a turnaround. As the proportion of high value-added products such as organic light-emitting diodes (OLEDs) increases and new businesses such as automotive displays begin to show tangible results, the company is on the verge of returning to an annual profit for the first time in four years. Chuldong Jung, CEO and President of LG Display, stated that "the likelihood of an annual profit has increased," and emphasized the need to enhance competitiveness based on technological leadership.
Jung Cheoldong, President of LG Display, held a town hall meeting titled "CEO On Air" on the 31st of last month in Paju, Gyeonggi Province, sharing the third quarter business performance and strategies to strengthen business competitiveness with the employees. LG Display
According to LG Display on November 5, Chuldong Jung held a town hall meeting called "CEO On Air" on October 31 in Paju, Gyeonggi Province, where he shared the third-quarter business performance and strategies to strengthen business competitiveness.
Chuldong Jung introduced achievements in quality, safety, cost innovation, and customer satisfaction, emphasizing, "We need our own 'moat' that gives us a competitive edge and is difficult to imitate." The term "moat" refers to a pond that was designed outside a fortress in the past to prevent enemy invasions. The deeper and wider the pond, the harder it was for enemies to breach, and Jung's message is interpreted as a call to secure an unassailable market advantage through profound innovation and change.
He presented five key words: ▲T (Technology·technological leadership), ▲C (Cost·profit structure), ▲Q (Quality), ▲D (Delivery·supply stability), and ▲R (Relationship·customer partnership). He said, "Q, D, and R are the basic qualities of a company, and based on these, we must enhance our T and C competitiveness." The intention is to raise technological completeness through AI transformation (AX) and secure cost competitiveness to ensure stable profits.
Jung's communication efforts are seen as reflecting LG Display's determination as it approaches an annual profit for the first time in four years. The company's efforts to accelerate its transition to an OLED-centric business structure, innovate costs, and enhance operational efficiency are yielding results. Although LG Display recently recorded annual operating losses exceeding 2 trillion won, it reduced its losses to 561 billion won last year. In the third quarter of this year, the company posted an operating profit of 431 billion won, signaling a rebound.
In particular, the sales proportion of high value-added OLED products, spanning automotive and IT (information technology) product lines, grew significantly from 55% in the first quarter of this year to 65% in the third quarter, contributing to the improvement of the company's sales structure.
It is analyzed that profitability is recovering rapidly as the supply of small- and medium-sized panels to global big tech companies such as Apple expands, and orders for premium automotive displays increase.
Chuldong Jung said, "The market is still undergoing innovation, so maintaining the status quo is equivalent to falling behind," encouraging the team by saying, "Let us not settle for the present, but run fiercely and twice as fast as others." He added, "Let us not rest on today's achievements, but create innovation and change with the mindset that 'I am the one who creates LG Display's competitive advantage.'"
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