LG Display borrows $772 million from LG Electronics
Jeong-Soo Hwang
Mar 28, 2023 (Gmt+09:00)
South Korea's LG Display Co. on Monday said it borrowed 1 trillion won ($772.1 million) from LG Electronics Inc. to “raise the competitiveness of organic light-emitting diode (OLED) and secure operating funds.”
Because the loan is from LG Electronics, the funds are expected to go toward advancing large OLED technology for TVs and boosting OLED competitiveness for electric vehicles equipment. The annual interest rate is 6.06% and the maturity date is March 2026.
LG Display is known to have no plans to use the money for facility investment given its sufficiently large capacity for OLED production at its plant in Guangzhou, China. The company is also seen not to expand its domestic facilities.
The market research company FnGuide said LG Display's consensus operating loss, or the average of brokerage forecasts, in the first quarter of this year was 889.5 billion won.