Invest Korea

Korea is not only leading in the global display market, but also in the next-generation technology by continuing its efforts to develop new technologies. Korea developed some of the world’s first innovative technologies, such as the world’s first smartphone OLED in 2006, the world’s first TV OLED in 2011, and the world’s first foldable OLED in 2019. Korea’s OLED production technology is three to five years ahead of its competitors.

The Korean display industry consists of 376 equipment companies that can produce panels, such as Samsung Display and LG Display, and 681 materials and parts companies that can be used in the manufacturing process. The total production of the Korean display industry is KRW 67.8 trillion, which is composed of KRW 54.5 trillion (80%) of panels, KRW 7.1 trillion (10.5%) of materials and parts, and KRW 6.2 trillion (9.1%) of equipment. The total number of employees amounts to 88,000, including 51,000 for panels, 23,000 for material and parts, and 14,000 for equipment. As the Korean display industry has recently switched from LCD to OLED, employment in the OLED field is rising. Products are exported mainly to Vietnam and China, where display module, TV, and mobile phone factories are located. Exports to Vietnam accounts for 53% and exports to China accounts for 38%.

Dongwoo Fine Chem entered Korea in 1991 based on Japan's Sumitomo’s chemical technology and supplied key materials, such as photoresist and touch sensor panels, to Korean display companies. It has three plants in Pyeongtaek, Iksan, and Samgi and research centers in Pyeongtaek and Iksan, developing next-generation chemicals, such as flexible materials. It recorded KRW 2.47 trillion of sales and hired 2,700 employees in 2020.

Corning Precision Materials was established in Korea as a joint venture between Samsung and Corning in 1995 and supplied glass, a key material for LCD production, to Korean companies. After producing the first product at the Gumi plant in 1996, the Cheonan plant was completed in 2002. LCD glass products produced in Korean plants are exported to China, and the export amount has been continuously increasing. In 2020, the company recorded approximately KRW 1.44 trillion in sales and hired 2,500 employees.

The Korean government is providing various types of support, including a tax credit for R&D expenses in the display field and for facility investment. Investment in R&D and facilities related to seven designated technologies and facilities, including AMOLED, micro LED, and QD (Quantum Dot), will receive a tax credit. As related materials, parts, and equipment as well as panels are subject to the tax credit, many small and medium-sized enterprises are utilizing this system.

The Korean government is operating a quota tariff system to strengthen industrial competitiveness and facilitate the supply and demand of goods. The quota tariff is a flexible tariff system that can be applied temporarily by reducing the rate within the range of 40%p to the basic tariff rate for price stability and smooth supply and demand. Items subject to tariff quota are selected through a demand survey every six months or one year. The display industry is also receiving quota tariff support for manufacturing equipment, materials, and parts necessary for panel production.

Korea's display panel production regions were centered in Giheung, Cheonan, and Gumi from 1995 to 2004, but new clusters were formed around Chungnam, where Samsung Display is located, and Paju, where LG Display is located, in the process of expanding the production line.
As Samsung Display and LG Display built new lines in Paju, Gyeonggi-do and Tangjeong, Chungcheongnam-do, respectively, clusters of LCD and OLED parts and material companies have been built around the two regions.

LG Display is located in the Paju Display Cluster. LG Display produces LCD and OLED panels for large-sized TVs. It operates 7th and 8th generation factories, OLED production lines, and module factories. As it is located close to ports and airports, more than 90% of products can be exported and convenient transportation networks are established.

The Uijeongbu office of Seoul Customs is located in the Paju Display Industrial Complex, reducing the import customs clearance time to less than 30 minutes and saving time and the import/export customs clearance process. It is possible to supply high-quality manpower from universities in the metropolitan area, as it is adjacent to the metropolitan area. The supply of local manpower is also smooth through agreements with nearby universities and designation of specialized high schools.

A number of materials, parts, and equipment companies are located in Chungcheongnam-do, with Samsung Display at the center. The province is a leading region in the display field, producing more than 50% of displays in the domestic industry and more than 25% in the global display industry. The province has excellent R&D capabilities, including a display support center supported by the local governments, and 35 universities that started to open in the areas surrounding Asan and Tangjeong from the 1980s. Since KTX stations are located in the province, it is possible to move quickly to different regions, such as Seoul, Busan, and Gwangju. Its close location to the Pyeongtaek Port, 30km away from the port, helps reduce logistics costs.