On December 18, LG Display announced plans to increase its paid-in capital by 1.36 trillion Korean won (equivalent to 7.4256 billion Chinese yuan) to strengthen the competitiveness and growth foundation of its OLED business.

LG Display intends to utilize the financial resources obtained from this capital increase for facility investment funds to expand its small and medium-sized OLED businesses in IT, mobile, and automotive sectors, as well as operational funds to stabilize the production and operation of large, medium, and small-sized OLEDs. Some of the financial resources will be used to repay debts.

30% of the capital increase amount will be allocated to small and medium-sized OLED facility investments. LG Display explained that it aims to prepare for the mass production and supply system of IT OLED production lines next year, and continue facility investments primarily for the construction of cleanrooms and IT infrastructure for the expanded mobile OLED production lines in the second half of this year. Additionally, these funds will be used for the construction of infrastructure related to the expansion of automotive OLED production lines, as well as the introduction of new production equipment such as exposure devices and inspection machines.

40% of the capital increase amount is planned to be used for operational funds, primarily for shipping large, medium, and small-sized OLEDs, expanding the customer base, procuring raw materials to meet new product demands, etc. LG Display expects that "the proportion of OLED business to total sales will increase from 40% in 2022 to 50% in 2023, and exceed 60% in 2024."

LG Display stated, "By 2024, the shipment volume and customer base of large-sized OLEDs will expand, and the mass production of medium-sized IT OLED products will commence, along with an increase in production capacity. This is expected to lead to an increase in the procurement of corresponding raw materials such as ICs."

The number of newly issued shares through the capital increase for shareholders' rights offering is 142.1843 million shares. The capital increase rate is 39.74%. The expected issue price is 9,550 Korean won, with a discount rate of 20%. The final issue price is planned to be determined after the completion of the first and second price calculation procedures on February 29, 2024.

Kim Seong-hyeon, CFO of LG Display, stated that the company will focus on OLED in all business areas and continue to improve performance and enhance business stability trends by strengthening its customer base.