Chinese momentum looms over Korea’s muted Display Day event

China’s largest display company BOE’s exhibition booth at the U.S. Infocom show in July [SCREEN CAPTURE]

 
Korea’s standing in the global display market is weakening as Chinese companies rapidly expand their share — even in OLED, where Korea, at least for now, still holds the lead. Industry voices are calling for stronger government support before Korea loses its competitive edge in this last stronghold.
 
The mood in the industry was more somber than celebratory on Display Day — an event first established in 2006 to commemorate Korea surpassing $10 billion in annual display panel exports — held at Lotte Hotel World in Jamsil, southern Seoul this past Friday.
 
 
Nearly two decades later, Korea still exports $18.7 billion worth of display panels a year, but its market dominance is in decline.
 
China accounted for 54.6 percent of the global display market by country in the first quarter, while Korea came in second at 30.6 percent, according to research and consulting firm Omdia,
 
“If Korea, once the global leader, sees its market share fall below 30 percent, we’ll be in serious trouble,” said an industry insider. “China is advancing by the day, and we’re helplessly losing ground.”
 
 
China’s fast rise
 
In the second quarter, while LG Display posted an operating loss margin of 2 percent, China’s BOE reported a 4 percent operating profit margin, and Tianma reported 2 percent.
 
BOE in particular has posted nine consecutive quarters of profit, having been the first to return to the black during a prolonged downturn in the display market from 2022 to 2024.
 
“Chinese companies maintained their pricing even during periods of oversupply, which allowed them to recover profitability quickly,” said Park Jin-han, a director at Omdia. “That revenue was then funneled into next-generation technology investments, intensifying the threat to Korea.”
 
At its Global Innovation Partner Conference on Sept. 11, BOE said it had invested 40 billion yuan ($5.6 billion) in research and development over the past three years and would invest an additional 50 billion yuan over the next three.
 
The effect of China’s R & D investments is already being felt in OLED. Omdia projects that China’s share of global OLED production capacity will grow from 30 percent this year to 42 percent by 2030.
 
Korea’s share is expected to decline from 69 percent to 58 percent over the same period. For OLED panels used in mobile PCs, China is forecast to overtake Korea by 2027.
 

Lee Chung, CEO of Samsung Display, speaks to reporters at the 16th Display Day at Lotte Hotel World in Jamsil, southern Seoul on Sept. 26. [SAMSUNG DISPLAY]

 
 
Calls for reforms and protections
 
In response to China’s push, industry experts are calling for more policy support from the Korean government. At a policy forum hosted by the Korea Display Industry Association at the National Assembly on Tuesday, industry, academic and government figures discussed how to bolster Korea’s competitiveness.
 
The most frequent demand was for revisions to the current tax credit system. Under Korea’s Restriction of Special Taxation Act, companies can deduct a portion of R & D and work force development costs from corporate taxes. If the company posts a loss or falls under the minimum tax rule, the unused portion can be carried forward for up to 10 years.
 
Park Jun-young, executive vice president of Samsung Display, said it can take over 15 years to recoup investments in next-generation production lines.
 
“To support continued investment, the carryforward period should be extended to over 20 years, as it is in the United States or Germany,” Park added.
 
“If a system is introduced that allows direct refunds or transfers to third parties, companies will become more competitive,” said Lee Han-koo, managing director at LG Display.
 
Calls were also made for stronger penalties for technology leaks.
 
 
 
“There were 21 cases of display technology leaks over the past five years, and the damage is growing,” Park said. “Leaking technology undermines our foundations. We urgently need stricter penalties and stronger protections.”
 
 
 
 

Jeong Chul-dong, CEO of LG Display, speaks to reporters at the 16th Display Day at Lotte Hotel World in Jamsil, southern Seoul on Sept. 26. [LG DISPLAY]

 
 
 
At the Display Day event, company leaders made similar appeals to 
 
Lee Chung, CEO of Samsung Display and chair of the Korea Display Industry Association, told reporters, “What companies want most is consistency in tax benefits,” adding that the extension of the carryforward period is essential. 
 
“Even one technology leak can cause massive losses. We hope the government provides more concrete support,” he said.
 
“We expect to see better performance in the second half the year,” said Jeong Chul-dong, CEO of LG Display. “We are also reviewing multiple investment opportunities and ways to better utilize existing infrastructure.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY PARK HAE-LEE [[email protected]]