LG Display to Invest KRW 1.26 Trillion to Advance OLED Technology – Focus on LTPO 3.0, COE, and RGB 2-Stack at Paju
LG Display has embarked on a major initiative to strengthen its OLED business. On June 17, the company announced that its board of directors had approved a large-scale facility investment plan worth KRW 1.26 trillion (approx. USD 900 million), aimed at enhancing next-generation OLED technologies at its production bases in Paju, South Korea, and Vietnam.
The core of this investment is focused on the Paju plant in Gyeonggi Province and the company’s module plant in Vietnam.
Approximately KRW 700 billion will be invested in Paju, covering upgrades such as LTPO 3.0 technology for smartphones and IT devices, COE (Color on Encapsulation) implementation, enhancements to the RGB 2-stack tandem OLED structure, and additional chamber installations for 4-stack WOLED production.
The Vietnam module facility will receive about KRW 560 billion, primarily to improve module process efficiency and automation capabilities.
As LG Display transitions its Paju panel production lines to LTPO, the company expects a temporary reduction in production capacity. To mitigate this, it will also optimize overall production facilities.
With this facility upgrade, LG Display aims to secure a competitive edge in next-generation IT OLED panels and strengthen its responsiveness to premium mobile and tablet markets.
The investment will be funded through capital raised from the sale of the company’s LCD plant in Guangzhou, China, in 2023 (approx. KRW 2.2466 trillion). LG Display is also registered with the Ministry of Trade, Industry and Energy as a reshoring company, making it eligible for subsidies worth around KRW 50 billion.
An LG Display representative stated, “This investment is not just about expanding facilities but is a strategic move to shift toward high-value OLED products. We aim to strengthen both our technological capabilities and profitability, laying a solid foundation for a return to profitability in 2025.”
Junho Kim, Analyst at UBI Research (alertriot@ubiresearch.com)
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