LG Display, the world’s leading maker of large OLED panels, has announced a major investment of 1.26 trillion won (approximately $925 million) to advance its next-generation OLED technologies.
According to the company, the investment will be used to expand infrastructure and adopt new OLED technologies at two of its key sites. Approximately 700 billion won will be allocated to upgrading production lines at its Paju facility in South Korea, while the remaining 560 billion won will be invested in its OLED module plant in Hai Phong, Vietnam. The project is expected to be completed by the end of June 2027.
The investment confirms earlier speculation about LG Display’s plans to inject significant funds into expanding its small- and medium-sized OLED production in Korea. A large portion of the funding will come from the company’s sale of its LCD plant in Guangzhou, China, to China Star Optoelectronics Technology, a subsidiary of TCL Group. That deal, worth 2.25 trillion won, was finalized last year. LG Display has already used 1 trillion won from the proceeds to reduce debt and is now redirecting the remaining funds to support its OLED strategy.
With this shift, LG Display is looking to catch up to Samsung Display, which currently dominates the small- and mid-sized OLED segment. While LG leads the global market for large OLED panels, mainly used in TVs, Samsung holds a commanding share in the smaller panel category used in smartphones and tablets.
The growing demand for smaller OLED panels across smartphones, laptops, and automotive displays is prompting LG to shift its focus from traditional large screens. These OLED panels offer better energy efficiency and image quality compared to LCDs, making them ideal for emerging applications, including power-intensive AI devices. By investing in next-generation OLED infrastructure, LG Display aims to better meet the evolving needs of global setmakers who increasingly require thinner, high-resolution, and energy-efficient panels.
The company emphasized that this investment decision was made after careful analysis of market trends, customer requirements, and its own production capabilities. The Paju facility will serve as the core site for this expansion, receiving the bulk of the funding to support the development of advanced OLED panels and module technologies. The investment also reflects LG Display’s broader capital expenditure plans aimed at boosting both growth and long-term profitability.
Notably, this is the first major investment by a Korean conglomerate following the inauguration of President Lee Jae Myung’s administration. LG Display’s move is seen as aligning with national efforts to boost domestic innovation and economic growth. The company expects positive spillover effects in Paju and the surrounding region, including increased demand for local suppliers and revitalization of nearby businesses.
A spokesperson said the investment represents a strategic “U-turn,” bringing overseas capital back into Korea to reinforce the country’s display industry leadership.
The company is expected to sign a memorandum of understanding with the Gyeonggi provincial government and the city of Paju as early as next month. Once finalized, the agreement will outline the details of state and local support for the project. While LG Display has not officially confirmed the source of all funding, industry watchers believe part of the capital for this domestic investment came from the recent sale of its Guangzhou LCD plant.
The investment also aligns with the OLED development roadmap demanded by major clients, who are increasingly seeking slimmer, more energy-efficient, and high-resolution displays.
