The government will provide approximately KRW 900 billion in policy financing to secure display competitiveness and invest KRW 211.5 billion in creating new OLED markets and R&D for small and medium-sized businesses.

On the 18th, the Ministry of Trade, Industry and Energy held a meeting with companies to discuss investment in the display industry and resolution of difficulties, chaired by First Vice Minister Jang Young-jin.

The meeting was attended by executives from LG Display and Samsung Display, as well as presidents of small and medium-sized enterprises such as Dongjin Semichem, AP Systems, and MKP, as well as the president of the Korea Electronics Technology Institute and the vice president of the Korea Display Industry Association, who are supporters.

Companies attending the meeting raised various suggestions, including the designation of display-specialized complexes and expansion of tax benefits, policy financing support to promote new investment, and expansion of government R&D for small and medium-sized enterprises.

Panel companies said they hope to expedite the designation of advanced strategic industry detailed technologies and specialized complexes so that they can further secure next-generation display competitiveness, and that the national strategic technology legislative process can be completed quickly.

Small and medium-sized enterprises emphasized that small and medium-sized enterprises (SMEs) technologies should be included in national strategic technologies in addition to panel technologies, and requested preemptive government support, such as expanded SME R&D and policy financing.

Accordingly, Vice Minister of Trade, Industry and Energy Jang Young-jin said, “Recent domestic and international conditions have made it difficult for companies to survive with their own capabilities. He said, “This is a difficult situation,” and “the government and the private sector must work together as a team to respond.”

He continued, “To support the proactive investment and innovation efforts of display companies, the government designated displays as a cutting-edge industry and established a dedicated display organization within the Ministry of Trade, Industry and Energy.”

He also said, "We will expedite the designation of detailed technologies for advanced strategic industries and actively review applications from the display industry for designation as specialized complexes, taking into account comprehensive consideration of designation requirements under the 'National Advanced Strategic Industry Special Act.'"

Regarding the suggestions of small and medium-sized enterprises, he said, “We will actively persuade the relevant ministries to include small and medium-sized enterprises technologies in national strategic technologies,” and “Through consultations with the Financial Services Commission, we will provide policy financing of approximately 900 billion won to the display sector, and invest 211.5 billion won this year in OLED new market creation demonstration R&D and small and medium-sized enterprises R&D, to secure industrial competitiveness.”

Meanwhile, in 2022, the display industry recorded exports of $21.1 billion, a 1.1% decrease year-on-year, as global demand declined following the end of the COVID-19 pandemic. Private investment focused on expanding the operating rates of existing production lines rather than new investments.

This year, the market for high-value-added OLED products is expected to increase by 1.5% to $21.5 billion, expanding from mobile to IT, transparent OLED, and automotive displays.

Private investment is expected to expand beyond the 6th generation to the 8th generation, as demand for OLEDs in IT products is expected to increase.