LG Display received 2.2466 trillion won (about 11.3 billion yuan) from the sale of its large liquid crystal display (LCD) factory in Guangzhou. The company plans to invest the funds in the organic light-emitting diode (OLED) business.

On April 11, LG Display announced that it had reached a final agreement with CSOT, a subsidiary of China's TCL, to sell its large LCD panel and module factory in Guangzhou for 2.2466 trillion won. The final sale amount was about 200 billion won higher than the 2.256 trillion won announced when the contract was signed in September last year, mainly due to the reflection of last year's business results and the exchange rate from 187.56 won to 200.82 won per RMB. The sale proceeds are scheduled to be paid within the year.

The factory has been officially handed over to CSOT, which named it "T11" and acquired 80% of the shares of the Guangzhou factory held by LG Display and 20% of the shares held by the Guangzhou local government, thus achieving 100% control.

LG's factory in Guangzhou

At this point, South Korea's large-scale LCD industry has come to an end. After LG Display stopped domestic LCD panel production at the end of 2022, it sold its last large-scale LCD production base, the Guangzhou factory. Previously, Samsung Display had sold its Suzhou LCD factory to CSOT in 2021.

LG Display plans to use the funds for facility investment, R&D and operating expenses of its OLED business to enhance its competitiveness in the OLED field.