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LG Display to invest $922 million in next-generation OLED technology

Published: 17 Jun. 2025, 18:57 Updated: 17 Jun. 2025, 23:39

LG Display's manufacturing site in Paju, Gyeonggi [LG DISPLAY]

LG Display will invest 1.26 trillion won ($922 million) in next-generation organic light-emitting diode (OLED) technology, marking the first large-scale domestic investment announced by a major conglomerate under President Lee Jae Myung.

The company’s board approved the plan on Tuesday, with about 700 billion won reportedly to be allocated to expanding infrastructure at its production site in Paju, Gyeonggi, over the next two years, through June 2027.

“We made this decision to enhance our competitiveness in OLED technology and secure leadership in the global display market,” a company spokesperson said.

The announcement comes just days after a meeting between President Lee and the heads of Korea’s five largest conglomerates, including LG Group Chairman Koo Kwang-mo, held at the presidential office in Yongsan, central Seoul, on Friday.

It echoes a tradition from past administrations in which major business groups unveiled investment or hiring plans shortly after similar high-level meetings. LG is the first to step forward this time.

President Lee Jae Myung shakes hands with LG Group Chairman Koo Kwang-mo at a meeting with major conglomerate and business organization heads at the presidential office in Yongsan, central Seoul, on June 13. [JOINT PRESS CORPS]

From China to home

LG Display last year agreed to sell its large liquid crystal display (LCD) factory in Guangzhou to China Star Optoelectronics Technology, a subsidiary of Chinese electronics giant TCL Technology. The deal is worth 2.25 trillion won.

Earlier this month, the company repaid 1 trillion won in loans from LG Electronics using part of the proceeds. The remainder will partially fund the new OLED investment in Korea.

The company expects the investment to generate spillover effects in Paju and the broader Gyeonggi region, not only through direct infrastructure spending but also by boosting local small- and medium-sized suppliers and revitalizing neighborhood businesses.

“This is a rare case of an overseas factory sale being followed by reinvestment in Korea — a ‘U-turn’ that we believe will contribute to the national economic recovery,” said an LG official.

An LED scoreboard is installed by LG Electronics at Fenway Park, home of the Boston Red Sox. [LG ELECTRONICS]

OLED leadership

LG Display plans to double down on premium OLED products and move away from legacy LCD lines where it faces stagnant growth.

OLED panels are known for superior image quality, slimmer design and lower power consumption than LCDs. They are also bendable or foldable, making them well-suited for next-generation devices.

According to market research firm Omdia, the global OLED market is expected to grow at an average annual rate of 5 percent through 2028, reaching nearly $69 billion, compared to only 1 percent growth forecast for LCDs.

OLED accounted for a record 55 percent of LG Display’s total revenue last year.

The company will concentrate its investment in building new infrastructure for advanced OLED panels and modules at its Paju site. The goal is to stay ahead of the increasing demand for high-end OLED panels worldwide.

Meanwhile, LG is also taking legal steps to protect its intellectual property. On Friday, it filed a patent infringement lawsuit against Chinese panel maker Tianma in the U.S. District Court for the Eastern District of Texas.

“The dual-track strategy of investing in technology and defending patents signals LG’s intent to maintain its edge through both offense and defense,” an industry insider said.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY PARK HAE-LEE [[email protected]]