April 25, 2024

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[THE INVESTOR] A government committee will meet next week to discuss approval for LG Display’s 5 trillion won (US$4.40 billion) investment plans in China, including its first OLED plant overseas, according to industry sources on Oct. 23.

The committee has delayed a decision citing concerns over technology leaks and diplomatic uncertainties between Seoul and Beijing. The third and final meeting is scheduled for Oct. 30. 

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Based on the tentative decision, a separate committee comprised of display experts will review the plans for a final decision by the year-end. When it comes to the nation's key industries such as semiconductor and display, building a new plant overseas should get approved by the government in order to prevent tech leaks.

LG in July announced a 20 trillion won investment plan for OLED production. While much of the spending will go for beefing up mobile OLED production in Korea that is still in its early stage, the firm has also decided to invest 5 trillion won on a larger OLED TV panel facility in China.

The firm had planned to build new OLED TV production lines in Korea but revised the plans largely due to tax benefits in China. It hopes to secure 3.2 trillion won out of the total 5 trillion won as loans from the Chinese government and local financial organizations.

Under the plans, LG is mulling to roll out 65-inch plus OLED panels at its Guangzhou plant possibly from later next year. The plant currently produces 8.5-generation LCD panels. This will be its first OLED panel facility overseas.

“We expect the government to give its approval. This is the right time, and the timing is important for our business,” Lee Jung-han, an LG marketing executive, told reporters at a trade show on Oct. 18. 

By Lee Ji-yoon (jylee@heraldcorp.com)