Korea to boost OLED industry

SEOUL, S.KOREA: Korea has already designated OLEDs as one of the next-generation key items. The government now plans to expand tax benefits, tariff cuts and various kinds of administrative support to LG in an attempt to expand the country's footprint in the organic light-emitting diode (OLED) industry.

"Korea's longtime leadership in displays is increasingly challenged as Chinese and Japanese competitors are quickly narrowing the gap with Korean companies with massive investments in displays," said Minister of Trade and Energy Yoon Sang-jick at an event at the JW Marriott Hotel in southern Seoul, Friday. "We need to think how to keep the country competitive in the industry."

Korea Times reports that Yoon referred to China's recent approval for BOE to invest in super-sized OLED displays using advanced 10.5-generation glass-cutting technology and the launch of JOLED in Japan. He told participants that the country plans to offer more financial benefits such as tax exemptions to companies focusing on OLED projects.

"With a combined global share of 42.8 percent, the country is still leading the industry. But the issue is that the market has already been crowded due to weak demand and continued oversupply," said the minister.

Yoon urged closer collaboration between LG Display and Samsung Display to create an OLED ecosystem from components, materials and equipment to finished goods.

However, the minister declined comment when asked whether either LG Display or Samsung Display submitted proposals to the ministry for approval to proceed with plans to build new OLED factories in Korea.

Business not as usual

At the event, LG Display CEO Han Sang-beom, who is also the chairman of the Korea Display Industry Association (KDIA), said the global display leader expects another tough year in 2016.

"As the minister mentioned, Korea's display industry may suffer from profit decline next year due to various external factors. Such factors have yet to be factored in. Yes, the industry needs to get support from the government and companies should focus on finding their next revenue sources, and I believe OLEDs are promising."