LGD accelerates the sale of its Guangzhou LCD plant to fully shift to OLED

According to media reports, LG is accelerating the sale of Guangzhou LCD factory, the price is about 2 trillion won (about 10.54 billion yuan).

As LG Display's first overseas production base, the Guangzhou LCD plant has been one of the company's key assets since it began production in 2014.

However, with the intensification of competition in the LCD panel market in recent years and the rapid improvement of the technical strength of local Chinese manufacturers, the profitability of the plant has been seriously challenged.

As a result, LG Display decided to sell the plant to reduce financial pressure and focus on the more competitive OLED panel market.

The sale price is as high as 2 trillion won (about 10.54 billion yuan), which shows the importance LG Display attaches to the plant. However, since the technology used in the plant has been designated as a "national core technology" by the Korean government, the sale process must be approved by the government.

According to South Korea's Industrial Technology Prevention and Protection Act, matters involving the export of national core technologies and overseas mergers and acquisitions by holding institutions must be reviewed by the Industrial Technology Protection Committee under the Ministry of Trade, Industry and Energy.

Before selling the Guangzhou LCD plant, LG Display had voluntarily requested a review by the South Korean government to save time in administrative procedures.

It is worth noting that LG Display also has an OLED production line in Guangzhou, which is its current main product production base.

Compared with LCD panels, OLED panels have higher technical content and broader market prospects. Therefore, although LG Display sold its LCD factory, its layout and investment in the OLED field have not been affected.