LG Display Returns to Profit After 4 Years... "Business Structure Transformed with OLED" (Comprehensive)

Operating Profit Reaches 517 Billion Won in 2023
OLED Accounts for Record-High 61% of Sales
Capital Expenditures to Exceed 2 Trillion Won This Year

LG Display has successfully returned to annual profitability for the first time in four years, driven by a restructuring of its business model centered around organic light-emitting diode (OLED) technology. The company plans to further solidify its profit structure this year through capital expenditures in the 2 trillion won range.

On January 28, LG Display announced that it posted annual revenue of 25.8101 trillion won and an operating profit of 517 billion won last year. After reducing its losses by about 2 trillion won year-on-year in 2024, the company achieved an additional improvement of approximately 1 trillion won last year, marking its first annual profit since 2021. Earnings before interest, taxes, depreciation, and amortization (EBITDA) reached 4.8711 trillion won, with a margin of 19%, demonstrating solid fundamentals.

The return to profitability is attributed to the business restructuring focused on OLED and cost innovation. OLED products accounted for 61% of total sales, the highest proportion ever. This share has steadily increased from 32% in 2020, to 40% in 2022, and 55% in 2024. In particular, the transition to OLED accelerated following the termination of large-scale liquid crystal display (LCD) operations in 2025. By product category, annual revenue breakdown was 37% from IT panels, 36% from mobile and other panels, 19% from TV panels, and 8% from automotive panels.

This year, LG Display aims to establish a stable profit structure by continuously innovating its technology and cost competitiveness based on AX (AI transformation), while also strengthening operational efficiency. In the small and medium-sized business segment, the company plans to efficiently leverage enhanced technological and production capabilities in the mobile sector to meet new demand. In the IT segment, it will continue to reduce low-profit products and innovate cost structures, while focusing on differentiating premium products.

For the large-sized business, LG Display will expand its high-end lineup by introducing new OLED TV panels equipped with 'Primary RGB Tandem 2.0 technology' and the world's first 27-inch gaming OLED panel featuring a 720Hz ultra-high refresh rate. The automotive business will also maintain its global leadership position with a differentiated product portfolio.

Kim Sunghyun, Chief Financial Officer of LG Display, stated, "Despite continued external uncertainties last year, we achieved an annual profit turnaround by focusing on business structure advancement and operational efficiency. This year, we will continue to focus on transforming into a technology-driven company and building a sustainable profit structure to further expand our achievements."

LG Display has set its capital expenditure (CAPEX) for this year at slightly over 2 trillion won, up from the mid-1 trillion won range last year. The company plans to continue making essential investments, focusing on future readiness and further advancement of its OLED business.

However, the company took a cautious stance regarding new investments in '8.6th generation IT OLED.' During the conference call, LG Display stated, "There is still insufficient visibility of demand to justify investment in the 8.6th generation, and uncertainties in the internal and external environment regarding demand remain high. We plan to monitor market conditions further before making any investment decisions."

Last year’s fourth-quarter results also reflected one-off expenses aimed at strengthening future profitability. These included voluntary retirement costs for domestic and overseas workforce restructuring (around 90 billion won) and various expenses related to upgrading the product portfolio, totaling about 300 billion won.