LGD denies China's request for technical transfer Guangzhou LED panel factory will be conditional through in July

Previously, there was a report from the Korean media that the Chinese government requested LGD technology from South Korea to transfer Chinese manufacturers to allow LGD to build an OLED panel factory in Guangzhou. According to the Korean media's "Korea Times" report, the Chinese government will agree to the investment case in July 2018.

The report pointed out that the reason why the Chinese government will agree to LGD's plan to build an OLED large-scale panel factory in Guangzhou in July is that LGD and the Chinese government have reached an agreement on the key issues that the two sides are interested in. In fact, in the past, the Chinese government has been hoping to improve the manufacturing technology of Chinese related companies through the close cooperation between LGD and Chinese companies. Therefore, the Chinese government's plan to agree to LGD's construction of an OLED large panel factory in Guangzhou this time is a conditional review.

Previously, the Korean media reported that the Chinese government approved the LGD Guangzhou joint venture factory as a bargaining chip and proposed three major conditions for approval. The first is to transfer OLED manufacturing technology to Chinese manufacturers, the second is to build OLED R&D centers in China, and the third is to purchase relevant component materials from LGD. South Korean media commented that in order to protect China's industry, China is offering "repression" measures to Korean companies. In this regard, it is difficult for LGD to agree to the conditions proposed by the Chinese government. For such a message, "Korea Times" quoted a LGD spokesperson as saying that the Chinese government has never made such a technology transfer request. The delay in the plan is entirely a matter of procedural review and has nothing to do with the content of the agreement.

LGD originally planned to invest 7.4 trillion won (about 44 billion yuan) to build an 8.5-generation OLED joint venture plant in Guangzhou. The registered capital of the joint venture factory is approximately RMB 15.7 billion, and LGD holds 70% of the shares. The joint venture partner of the Chinese company, Guangzhou Kaide Technology, holds a 30% stake. The construction period is expected to start in August 2017 and be completed in the second half of 2019. At present, LGD has invested hundreds of billions of won in this project. However, in September 2017, the plan changed. Dissatisfied with China's disposal of "Sade" and worried about the outflow of advanced technology, the South Korean government intends to block LGD's Chinese investment case and recommend LGD to invest in South Korea.

The event was transferred on December 26, 2017. The Korean government has proposed three conditions to conditionally approve LGD to invest in the 8.5-generation OLED panel production line in Guangzhou. First, increase the “domestic” ratio of materials and equipment. Second, to develop a security policy to prevent technology outflows. Third, a new generation of large-scale OLED technology needs to be researched and developed in Korea, and related equipment needs to be produced in Korea. It has started LGD's plan to build a large panel factory in Guangzhou, China.

At present, LDG's market share of large OLED panels in the world is almost exclusive. In the future, after the completion of the Guangzhou OLED factory, it will reduce manufacturing costs and gain more benefits in high-end OLED TVs.

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