Home to the world’s largest display manufacturer, Korea has
long been the driving force of
the display industry. Even as
the global display market is experiencing
rapid changes, Korea has maintained its
top position by successfully shifting its
focus from LCD to OLED. As a result,
the country’s market share currently
accounts for over 95 percent of the
emerging OLED market.
Healthy competition and massive investments are attributed to Korea’s success in the industry. The competition between LG Display and Samsung Display, two of the world’s largest display manufactures, accelerated the development of technology and the growth of the industry in Korea. Most notably, in a bid to attract foreign investment, the two companies have established display industrial complexes in Paju and Tangjeong, respectively.
The Paju Display Industrial Complex is
located in the province of Gyeonggi-do.
The sprawling complex provides numerous
benefits and incentives for the 80 display-related companies,
Display. Due to its proximity to the country’s
capital, the complex boasts a highly
talented workforce. In addition, resident
companies have quick access to a variety
of export routes, including major ports
like Incheon Port. Gimpo International
Airport, most notably, is located within a
50km distance from the complex and
National Highway 1 is only a few minutes away.
The complex currently exports over 90 percent of its products, and to make things easier for companies, the Uijeongbu branch office of the Korea
Customs Service is located within the
region. This ultimately reduces the logistics time needed for customs clearance. In
particular, the Paju Dangdong Foreign
Investment Zone, a high-tech industrial
complex exclusively for foreigners, is
located in close proximity to the industrial
Thanks to investments from LG and business-friendly government policies and incentives, the Paju Display Industrial Complex is flourishing. This year, LG Display has unveiled its plans to invest KRW 10 trillion (USD 8.75 billion) mainly on building new plants. The local government also offers support that encourages further development. For example, Gyeonggi-do offers financial support for small and medium businesses, ranging from KRW 200 million (USD 175,000) to KRW 1 billion (USD 875,000) per business. Resident companies can also get a 50 percent property tax exemption for five years.
To the south of the capital is the
Tangjeong Industrial Complex, spear-headed by Samsung Display. As one of
the leading display manufacturing clusters, the complex is responsible for 54
percent of Korea’s display products,
accounting for 27 percent of the total
global display production output.
Within the complex, about 210 resident companies cooperate and collaborate to produce high-tech display parts, materials and finished goods. The Tangjeong Industrial Complex provides plenty of benefits and incentives. Since the 1980s, the local government has supported the complex by constructing the display support center and opening 35 universities in the area to strengthen
research and development.
Samsung Electronics is also actively investing in the complex, building Samsung Display headquarters, the Samsung SDI Cheonan Factory and the Samsung Display Asan Factory. A new production line is set to be constructed and the project is speculated to be worth KRW 16 trillion (USD 14 billion).
Similar to Paju, the complex offers 50 percent tax exemption for property tax and composite land tax for five years from the first day of acquisition. Financial support is provided for small businesses and startups in various forms, including the Innovation Fund, Corporate Rehabilitation Fund and the Management Stabilization Fund. With such spectacular infrastructure and substantial investments, the Tangjeong Industrial Complex is securing its foothold as the world’s pro ducer of high-quality displays.