LG Display Co., the world’s leading manufacturer of large-size organic light-emitting diode (OLED) panels, has announced significant restructuring measures aimed at a financial turnaround. The South Korean company has reduced its stakes in several vendors and initiated further job cuts.
This month, LG Display decreased its holdings in Kosdaq-listed contractors, including YAS Co., Avatec Co., and Wooree E&L Co., according to filings with local financial regulators. The company, which supplies Apple iPhones, had been the second-largest shareholder in these firms since 2009-2011.
In an after-hours trading session on July 19, LG Display sold 250,000 shares of Avatec for 4.1 billion won ($3 million), reducing its stake from 11.23% to 9.63%. Additionally, it sold 1.3 million shares of Wooree, cutting its stake in the LED packaging technology company from 9.87% to 7.34%. The panel maker also unloaded 455,000 shares of YAS between July 17-22, decreasing its stake in the OLED post-processing technology developer from 13.13% to 9.83%.
Earlier in July, LG Display sold 286,000 shares of YAS for 2.4 billion won, 247,000 shares of Avatec for 3.4 billion won, and 1.7 million shares of Wooree for 1.4 billion won.
In addition to these asset sales, LG Display has expanded its voluntary redundancy plan. Initially launched last December for staff aged 40 or older, the scheme now includes manufacturing employees aged 28 or older.
These restructuring efforts are projected to narrow LG Display’s operating loss to 350 billion won this year from a 2.5 trillion won deficit in 2023. Industry sources are optimistic about the company’s outlook, suggesting it may return to profitability next year for the first time in four years, driven by a recovering global OLED sector and the impact of its restructuring measures.
