[Edaily Reporter SOYEON KIM ] LG Display posted an operating loss of 107.7 billion won in the second quarter of this year. The company recorded a loss in the second quarter due to one-time costs of approximately 240 billion won related to a voluntary retirement program. However, on a first-half basis, the company achieved a profit for the first time in five years since 2021. Although the company has chronically posted operating losses in the second quarter every year, it returned to profitability in the first half of this year due to cost reductions, the optimization of its business structure centered on organic light-emitting diodes (OLEDs), and favorable won-dollar exchange rate effects. Having successfully returned to an annual profit last year, LG Display plans to continue improving its annual performance this year as well.

LG Display announced on the 22nd that its consolidated operating loss for the second quarter of this year was 107.7 billion won, marking a narrowing of the loss compared to the same period last year (-116.0 billion won). Revenue stood at 5.6121 trillion won, a 0.4% increase year-over-year.

On a first-half basis, the company posted a profit for the first time in five years. LG Display recorded cumulative consolidated revenue of 11.1461 trillion won and operating profit of 39 billion won for the first half of this year. Compared to the same period last year (revenue of 11.6523 trillion won and an operating loss of 82.6 billion won), the company shifted to an operating profit. The company assessed this as a meaningful achievement, marking a break from its chronic second-quarter losses.

During the earnings conference call held that day, Kim Seong-hyun, Chief Financial Officer (CFO) of LG Display, stated, “One of our company’s challenges over the past four years has been the chronic second-quarter losses,” adding, “Excluding one-time expenses, our second-quarter profitability remained in the black. Breaking free from the second-quarter deficit is a meaningful achievement.”

Typically, in the display industry, the first half of the year is an off-season when demand slows as finished-product manufacturers adjust component inventories ahead of new product launches in the second half. Additionally, this year saw one-time costs of approximately 240 billion won due to a voluntary retirement program implemented to improve workforce efficiency in the second quarter.

LG Display plans to strengthen its business competitiveness in the second half of the year by securing leading-edge technology and advancing technology-driven cost innovation. In particular, the company aims to maximize efficiency across the entire process—from development to manufacturing and production—through AX (Artificial Intelligence Transformation)-centered technological innovation that goes beyond mere cost reduction. Through this, the company intends to fundamentally improve its business structure and continue growth based on differentiated customer value.

In the small- and medium-sized panel business, the company will focus its capabilities on technologies that provide a distinctive competitive advantage to strengthen competitiveness, particularly in high-end products. In the large-size business, the company will solidify its leadership in the premium market and expand its performance based on a product lineup that combines differentiated technology with cost competitiveness. In particular, in line with the trend in the monitor market—where the shift from liquid crystal displays (LCDs) to OLEDs is accelerating—the company plans to strengthen its lineup of high-value-added products, such as gaming OLED monitors, and increase shipment volumes. As the growth of the gaming monitor market is expanding to a significant level, the company intends to focus its efforts on this segment.

However, rising prices of raw materials, including semiconductor chips, are a factor increasing uncertainty in the second half of the year. This is because “chip inflation” could lead to a decline in demand due to price increases for finished products. CFO Kim stated, “Macroeconomic issues, such as rising semiconductor costs and rising raw material prices due to geopolitical issues, remain unresolved in the second half of the year.”

The company plans to respond to intensifying competition from Greater China-based display manufacturers by differentiating itself through technology in high-end products and expanding its mid-to-low-end OLED lineup. A company official said, “Competition in the high-end segment is intensifying as competitors in Greater China are running aggressive promotions for products like Mini LED,” adding, “We are actively leveraging our technological differentiation—a strength derived from our white OLED technology. We also plan to expand our mid-to-low-end OLED lineup.”

Capital expenditures (CAPEX) for this year are expected to be in the mid-to-high 2 trillion won range. This represents a significant increase from last year’s level of around the mid-1 trillion won range. The company stated that it will determine its investment strategy by considering future competitiveness and its financial situation.