SEOUL - A government panel on Tuesday greenlighted LG Display Co.'s 5 trillion-won ($4.4 billion) project to build its first large organic light-emitting diode plant in China.
LG Display’s plan to build an organic light-emitting diode plant in China was conditionally approved by the South Korean government after a five-month-long review, giving the green light to the firm amid growing demand for OLED TVs in the global market.
The Ministry of Trade, Industry and Energy said Tuesday it approved LG Display’s OLED plant for televisions in Guangzhou, considering its positive ramifications, including market expansion and job creation at LG Display’s partner companies.
The approval, however, was made on the condition that the display maker increase the use of Korean firms’ materials and equipment; its future investments should be made in Korea; and security should be strengthened to minimize technology and manpower leakage.
LG Display welcomed the decision, saying, “With respect to the delayed approval, we will work hard to provide products in a timely way to clients by shortening the schedule.”
In July, LG Display announced its plan to build a plant for generation 8.5 of its OLED panels for televisions in China in response to growing demand for OLED TVs in the global market. The Korean display maker is currently the sole producer of large OLED panels for televisions globally.
At the end of July, the display firm asked for approval from the Korean government to build a plant in China. A company should obtain permission from the government before building a plant overseas to produce one of the nation’s designated key technologies in order to prevent leaks and protect key industries.
The government belatedly gave the green light to the firm, as it had been unsure whether it was appropriate to build plants in China. Some Korean conglomerates have faced operational setbacks due to political issues.