LG Display will invest 700 billion won in OLED (organic light-emitting diode) new technology facilities.
According to the industry on the 5th, LG Display is reportedly planning to invest in OLED new technology facilities within the idle space of its Paju plant in Gyeonggi Province. LG Display plans to sign a memorandum of understanding for returning to Korea with Gyeonggi Province and Paju City as early as next month.
LG Display was selected as a returning corporation by the Ministry of Trade, Industry and Energy after selling its Guangzhou 8.5-generation liquid crystal display (LCD) plant in China. A returning corporation is defined as a business that receives various subsidies and tax reductions for facility investments when it liquidates, transfers, or downsizes its overseas business sites and establishes or expands its business sites in Korea.
LG Display is expected to receive up to 50 billion won (20 billion won from the national government and 30 billion won from local government) in facility investment subsidies.
Earlier, LG Display signed a contract to transfer its equity in the large LCD panel and module factory in Guangzhou to China TCL's display subsidiary CSOT (China Star) in September last year. The sale price is 2.2466 trillion won, which is higher than initially expected.
LG Display, which is advancing its OLED business, plans to use the funds secured through the sale for facility investment, research and development, and operating expenses to secure competitiveness in the OLED business.