LG Display is making a bet on strengthening its technological competitiveness to counter a low-priced supply offensive from China. LG Display said on Wednesday it raised 1.5 trillion won in long-term, low-interest funding after being selected as a support company for securing an “overwhelming OLED gap” under the National Growth Fund’s “second megaproject”. The company will add 1.5 trillion won of its own funds, investing a total of 3 trillion won to develop next-generation OLED technologies and build production infrastructure.

By using state policy financing, it lowered financing costs from large-scale fundraising while creating conditions to focus on technological innovation. The secured funds will be concentrated on building facilities needed for differentiated OLED technologies, including lower power consumption and reduced thickness. The investment direction puts emphasis on a qualitative shift in the technology structure rather than expanding output.

In the global display market, LCD’s share of sales is shrinking while OLED continues to grow, bringing a so-called “golden cross” close. In this situation, LG Display has led the market with Tandem OLED and low-temperature polycrystalline oxide (LTPO) technologies since it first introduced OLED TVs in 2013. As OLED adoption expands into areas including TVs, IT and automotive use, expectations are emerging that it will present an opportunity for South Korean companies with technological capabilities.

An LG Display official said, “This 3 trillion won investment shows a strong determination to protect OLED technology sovereignty, which is at the core of K-display, through an overwhelming technology gap.” The official added, “By executing the secured funds efficiently, we will build differentiated product and technology competitiveness and fully play the role of a driving force leading the development of South Korea’s advanced strategic industries.”