New investment of 3.1 trillion won over 5 years…2,100 new hires
Following Samsung Display, LG Display’s next-generation organic light-emitting diode (OLED)-centered business reorganization plan was approved by the government.
On the 28th, the Ministry of Trade, Industry and Energy approved the business restructuring plans of 23 companies entering new industries such as LG Display at the 28th Business Reorganization Plan Deliberation Committee. If approved as a business reorganization company, government support such as tax reduction or simplification of procedures can be received in accordance with the Corporate Vitalization Promotion Act.
LG Display has received government approval for its business reorganization plan to shift from its existing business, liquid crystal display (LCD) and OLED, to its new business, next-generation OLED. The company plans to develop next-generation OLEDs such as high-definition, low-power, and touch, and to further expand mass production equipment. Plastic OLED that can be bent or folded while maintaining OLED image quality using a flexible plastic substrate instead of a rigid glass substrate is a representative next-generation OLED product. LG Display is also supplying flexible OLED panels to Apple iPhones.
LG Display explained that it was necessary to produce differentiated OLED products that responded to new demands based on large OLED original technology. The company announced that it will lead the global display market by maintaining the technology gap in the next-generation OLED field by promoting new investments and hiring by 2024.
In September, at the 27th Business Reorganization Plan Deliberation Committee, Samsung Display also received government approval for its business restructuring plan centered on the quantum dot (QD) display industry.
Display equipment maker Phil Optics has been approved for a new business, a semiconductor equipment-centered business reorganization plan. Phil Optics plans to develop manufacturing equipment for semiconductor post-processing and package processing based on the process technology secured in the printed circuit board (PCB) and touch screen panel (TSP) fields, and supply it to domestic and overseas mass production lines.
Lens maker Sekonix was approved for a business reorganization plan focusing on lenses for autonomous vehicles. Currently, the smartphone camera lens market, which accounts for 40% of Sekonix’s sales, has stagnated. The company plans to advance into the field of high-definition lenses for autonomous vehicles that monitor the driver’s condition to recognize the driving situation in the front and side of the vehicle or to prevent drowsy driving.
The Ministry of Industry approved the business restructuring plans of all 23 companies this time. These companies plan to invest 3 trillion won in new investment over the next five years and hire 2,100 new employees. The Ministry of Industry approved the restructuring of 57 companies this year. It is the most common since the introduction of the Corporate Vitalization Act in 2016. By industry this year, auto parts companies have the highest number of business reorganization plans, with 22 approvals.
Vice Minister of Industry Park Jin-gyu said, “Based on the reinforced business reorganization system, we will support the restructuring of digital and eco-friendly businesses to promote the Korean version of the 2021 economic policy, and carbon-neutral industrial innovation.”
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