LG Display repaid 1 trillion won borrowed from LG Electronics about 10 months early.
According to the Financial Supervisory Service's electronic disclosure system on the 5th, LG Display announced that it has repaid 1 trillion won borrowed from LG Electronics ahead of the maturity date. This repayment was made about 10 months earlier than the originally scheduled repayment date of March 30, 2026.
Earlier, in March 2023, LG Display borrowed 1 trillion won from LG Electronics to strengthen its organic light-emitting diode (OLED) business competitiveness and secure operating funds proactively.
This early repayment is expected to save LG Display hundreds of millions of won in financial expenses and improve its financial structure.
LG Display is repaying high-interest borrowing funds in line with the declining interest rate trends both domestically and internationally while refinancing at lower interest rates.
In particular, it is striving to improve its financial structure and cash flow by adjusting capital expenditures (CAPEX) within cash flow and optimizing working capital.
As a result, total annual interest expenses this year are expected to improve significantly compared to the previous year.
This early repayment is also favorable in terms of securing LG Electronics' financial capacity and financial soundness. In particular, since LG Electronics holds a 36.7% equity stake in LG Display and reflects LG Display's performance in its equity method, the improvement of LG Display's financial structure is expected to positively affect LG Electronics from a medium- to long-term perspective.
Earlier, in February, the international credit rating agency Moody's raised the credit rating outlook for LG Electronics from 'stable' to 'positive,' stating that "as LG Display's financial situation improves, the likelihood of contingent support for LG Display decreases, and improvement in equity method performance is also expected."