▲LG Display Paju factory. (Photo courtesy of LG Display)
LG Display decided to borrow 1 trillion won in operating funds from LG Electronics.
On the 27th, LG Display announced that it had decided to borrow 1 trillion won in long-term to strengthen the competitiveness of its OLED (organic light emitting diode) business and secure operating funds. The borrowing period is three years from the 30th of this month to March 30, 2026, and the interest rate during this period is 6.06% per annum, with a two-year grace period and one-year installment repayment condition.
It is analyzed that such borrowing is to prepare self-rescue measures amid the continuing deficit. LG Display recorded an operating loss of more than 2 trillion won last year while continuing its sluggishness, such as withdrawing from the domestic TV LCD business. The size of the deficit has also increased for three consecutive quarters. The stock market predicts that it will record an operating loss of more than 1.3 trillion won this year as well.
Regarding the borrowing, LG Display explained, “It is to strengthen the competitiveness of the OLED business while stably operating the business and establishing a foundation for future growth.”
LG Display plans to focus on recovering its financial soundness and continue to expand its share in the world-class premium TV market. In particular, it is strengthening its competitiveness in small and medium-sized OLED panels. In 2021, it announced that it would invest 3.3 trillion won in small and medium-sized OLED production facilities by next year.