UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of May 2025

 

 

LG Display Co., Ltd.

(Translation of Registrant’s name into English)

 

 

LG Twin Towers, 128 Yeoui-daero, Yeongdeungpo-gu, Seoul 07336, Republic of Korea

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒   Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submission to furnish a report or other document that the registration foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ☐   No ☒

 

QUARTERLY REPORT

(From January 1, 2025 to March 31, 2025)

THIS IS A TRANSLATION OF THE QUARTERLY REPORT ORIGINALLY PREPARED IN KOREAN AND IS IN SUCH FORM AS REQUIRED BY THE KOREAN FINANCIAL SUPERVISORY COMMISSION.

IN THE TRANSLATION PROCESS, SOME PARTS OF THE REPORT WERE REFORMATTED, REARRANGED OR SUMMARIZED AND CERTAIN NUMBERS WERE ROUNDED FOR THE CONVENIENCE OF READERS. REFERENCES TO “Q1”, “Q2”, “Q3” AND “Q4” OF A FISCAL YEAR ARE REFERENCES TO THE THREE-MONTH PERIODS ENDED MARCH 31, JUNE 30, SEPTEMBER 30 AND DECEMBER 31, RESPECTIVELY, OF SUCH FISCAL YEAR. REFERENCES TO “” ARE REFERENCES TO THE KOREAN WON.

UNLESS EXPRESSLY STATED OTHERWISE, ALL INFORMATION CONTAINED HEREIN IS PRESENTED ON A CONSOLIDATED BASIS IN ACCORDANCE WITH KOREAN INTERNATIONAL FINANCIAL REPORTING STANDARDS, OR K-IFRS, WHICH DIFFER IN CERTAIN RESPECTS FROM GENERALLY ACCEPTED ACCOUNTING PRINCIPLES IN CERTAIN OTHER COUNTRIES, INCLUDING THE UNITED STATES. K-IFRS ALSO DIFFERS IN CERTAIN RESPECTS FROM THE INTERNATIONAL FINANCIAL REPORTING STANDARDS AS ISSUED BY THE INTERNATIONAL ACCOUNTING STANDARDS BOARD. WE HAVE MADE NO ATTEMPT TO IDENTIFY OR QUANTIFY THE IMPACT OF THESE DIFFERENCES IN THIS DOCUMENT.

Contents

 

		1.		Company					3
				A.		Name and contact information			3
				B.		Credit rating			3
				C.		Capitalization			3
				D.		Voting rights			3
				E.		Dividends			4
				F.		Matters relating to Articles of Incorporation			4
		2.		Business					4
				A.		Business overview			4
				B.		Industry			5
				C.		New businesses			8
				D.		Customer-oriented marketing activities			8
		3.		Major Products and Raw Materials					8
				A.		Major products			8
				B.		Average selling price trend of major products			8
				C.		Major raw materials			9
		4.		Production and Equipment					10
				A.		Production capacity and output			10
				B.		Production performance and utilization ratio			10
				C.		Investment plan			10
		5.		Sales					11
				A.		Sales performance			11
				B.		Sales organization and sales route			11
				C.		Sales methods and sales terms			12
				D.		Sales strategy			12
				E.		Major customers			12

 

1

		6.		Purchase Orders				12
		7.		Risk Management and Derivative Contracts				12
				A.		Risk management		12
				B.		Derivative contracts		13
		8.		Major Contracts				14
		9.		Research & Development				15
				A.		Summary of R&D-related expenditures		15
				B.		R&D achievements		15
		10.		Intellectual Property				16
		11.		Environmental and Safety Matters				16
				A.		Business environment management		17
				B.		Product environment management		18
				C.		Safety standards		19
				D.		Green management		20
				E.		Status of sanctions		20
		12.		Financial Information				20
				A.		Financial highlights (Based on consolidated K-IFRS)		20
				B.		Financial highlights (Based on separate K-IFRS)		21
				C.		Consolidated subsidiaries as of March 31, 2025		22
				D.		Status of equity investments in associates as of March 31, 2025		22
		13.		Audit Information				23
				A.		Audit service		23
				B.		Non-audit service		23
		14.		Management’s Discussion and Analysis of Financial Condition and Results of Operations				23
		15.		Board of Directors				23
		16.		Information Regarding Shares				23
				A.		Total number of shares		23
				B.		Shareholder list		23
		17.		Directors and Employees				24
				A.		Directors		24
				B.		Employees		25
		18.		Other Matters				25
				A.		Legal proceedings		25
				B.		Status of collateral pledged to related party		25
				C.		Material events subsequent to the reporting period		25

Attachment: 1. Financial Statements in accordance with K-IFRS The name of our company is “EL-GI DISPLAY CHUSIK HOESA,” which shall be “LG Display Co., Ltd.” in English.

 

2

1.

Company

 

A.

Name and contact information

Our principal executive office is located at LG Twin Towers, 128 Yeoui-daero, Yeongdeungpo-gu, Seoul 07336, Republic of Korea, and our telephone number is +82-2-3777-1010. Our website address is http://www.lgdisplay.com.

 

B.

Credit rating

This information is omitted in quarterly reports in accordance with Korean disclosure rules, and we plan to include such information in our semi-annual and annual reports.

 

C.

Capitalization

 

(1)

Change in capital stock (as of March 31, 2025)

(Unit: Won, Shares)

 

Date of Issuance

Method of Issuance

Details of the Shares Issued

Type

Number of Shares

Par value per Share

Offering price per Share

Remarks

March 15, 2024

Paid-in capital increase (share rights offering to existing shareholders)

Common shares

142,184,300

5,000

9,090

Ratio of paid-in capital increase: 39.74%

 

(2)

Convertible bonds (as of March 31, 2025)

We have no outstanding convertible bonds as of March 31, 2025.

 

D.

Voting rights (as of March 31, 2025)

 

Description				Number of shares
A. Total number of shares issued(1):		Common shares(1)			500,000,000
		Preferred shares			—
B. Shares without voting rights:		Common shares			—
		Preferred shares			—
C. Shares subject to restrictions on voting rights pursuant to our articles of incorporation:		Common shares			—
		Preferred shares			—
D. Shares subject to restrictions on voting rights pursuant to regulations:		Common shares			—
		Preferred shares			—
E. Shares with restored voting rights:		Common shares			—
		Preferred shares			—
Total number of issued shares with voting rights (=A – B – C – D + E):		Common shares			500,000,000
		Preferred shares			—

 

(1)	Authorized: 1,000,000,000 shares

 

3

E.

Dividends

 

Dividends

for the three most recent fiscal years

 

Description (unit)				2025 Q1				2024				2023
Par value (Won)					5,000				5,000				5,000
Profit (loss) for the year (million Won)(1)					(262,725	)			(2,562,606	)			(2,733,742	)
Earnings (loss) per share (Won)(2)(3)					(525	)			(5,438	)			(7,177	)
Total cash dividend amount for the period (million Won)					—				—				—
Total stock dividend amount for the period (million Won)					—				—				—
Cash dividend payout ratio (%)(4)					—				—				—
Cash dividend yield (%)(5)		Common shares			—				—				—
		Preferred shares			—				—				—
Stock dividend yield (%)		Common shares			—				—				—
		Preferred shares			—				—				—
Cash dividend per share (Won)		Common shares			—				—				—
		Preferred shares			—				—				—
Stock dividend per share (share)		Common shares			—				—				—
		Preferred shares			—				—				—

 

(1)	Based on profit for the year attributable to the owners of the controlling company.

(2)	Earnings per share is based on par value of 5,000 per share and is calculated by dividing net income by weighted average number of common shares.

(3)

The number of outstanding common shares has increased due to our paid-in capital increase in the first quarter of 2024. The basic earnings (loss) per share and diluted earnings (loss) per share for the years ended December 31, 2023 have been adjusted in consideration of the bonus element in a rights issue to our existing shareholders during the first quarter of 2024.

Historical dividend information

 

Number of consecutive years of dividends(1)				Average Dividend Yield(1)
Interim dividends		Annual dividends			Last 3 years				Last 5 years
—		—			—				0.56

 

(1)	The average dividend yield is calculated using the simple arithmetic average method, including the fiscal years in which no dividend was paid (dividends were paid with respect to fiscal year 2021 only based on the dividend resolution date).

 

F.

Matters relating to Articles of Incorporation

This information is omitted in quarterly reports in accordance with Korean disclosure rules, and we plan to include such information in our semi-annual and annual reports.

 

2.

Business

 

A.

Business overview

We were incorporated in February 1985 under the laws of the Republic of Korea. LG Electronics and LG Semicon transferred their respective LCD business to us in 1998, and since then, our business has been focused on the research, development, manufacture and sale of products that apply display technologies such as OLED and TFT-LCD. Sorting by major sales product category, television, IT products, mobile and other products, and “auto” products (comprising automotive display products) accounted for 22%, 35%, 34% and 9% of our total sales, respectively, in the first quarter of 2025. Our customers primarily consist of global set makers, and our top ten customers comprised 90% of our total sales revenue in the first quarter of 2025. As a company focused on exports, our overseas sales accounted for approximately 96% of our total sales in the first quarter of 2025. We have overseas sales subsidiaries located in the United States, Germany, Japan, Taiwan, China and Singapore.

We operate key production facilities in Korea, China and Vietnam, and our cumulative annual production capacity for the first quarter of 2025 was approximately 1.4 million glass sheets, as converted into eighth-generation sheets (2200x2500mm). In order to expand our production capacity of differentiated and competitive products such as OLED panels, our total capital expenditures on a cash out basis was around 2.2 trillion in 2024. In 2025, we plan to maintain a similar level of capital expenditures as in 2024, at around the low-to-mid 2 trillion range.

 

4

The major raw materials for display panel production include glass, semiconductors, polarizers, organic matter, backlight units (“BLU”) and printed circuit boards (“PCB”), and the prices of our raw materials may fluctuate as a result of supply and demand in the market as well as changes in our purchase quantity.

The display industry to which we belong is highly affected by the global economic conditions. Given the characteristics of the display business, which requires large-scale investments, display panel prices may fluctuate due to an imbalance between supply and demand, which may affect our profitability. The sales performance of industry players is differentiated by not only the production capacity of each company but also other competitive differences arising from factors including technology, cost structure, product development capability, manufacturing efficiency, quality control and customer relationships, along with the price differentiation incorporating such factors. In addition, given the high proportion of our sales overseas, our sales of display panels are denominated mainly in U.S. dollars whereas our purchases of raw materials are denominated mainly in U.S. dollars, Japanese Yen and Chinese Yuan. Accordingly, our profit margins may be affected by changes in the exchange rates between the currencies. We strive to minimize the risk relating to foreign currency denominated assets, liabilities and operating cash flow due to exchange rate fluctuations.

Our research and development expenses represent approximately 10% of our sales, and we are continually creating customer value through systematic R&D activities for new products and technologies. Leveraging our competitive R&D activities, we are leading the display market by providing differentiated values in display panel products utilizing our OLED and TFT-LCD technologies for various uses including television, IT, mobile products and automobiles.

Consolidated operating results highlights

(Unit: In billions of Won)

 

		2025 Q1				2024				2023
Sales Revenue			6,065				26,615				21,331
Gross Profit			743				2,575				345
Operating Profit (loss)			33				(561	)			(2,510	)
Total Assets			31,988				32,860				35,759
Total Liabilities			24,154				24,787				26,989

 

B.

Industry

 

(1)

Industry characteristics

 

•

From the supply perspective, the display panel industry is technology- and capital-intensive in nature and requires mass production through achieving an economy of scale.

 

•

From the demand perspective, the display panel industry tends to demonstrate a high level of volatility depending on the global macroeconomic conditions, major regional sales events and/or seasonal factors.

 

•

Though the display panel industry is currently facing risks of decreased consumption of related goods in the business-to-consumer sector and reduced investor confidence in the business-to-business sector due to ongoing uncertainty in the global macroeconomic environment, there are continued opportunities in the display market to meet changes in consumer lifestyle and specific consumer needs in the mid- to long-term.

 

•

In the market for television display panels, new opportunities from the growth of the ultra-large TV market are expected to arise with the increase of video content (including over-the-top services) and expanding uses of television (such as playing video games).

 

•

In the market for traditional IT products such as notebook and desktop monitors, growth opportunities for new offerings such as gaming products, portable products and AI-integrated technology are expected to increase driven by lifestyle changes.

 

5

•

The growth in the market for smartphone products continues to be concentrated around high value-added products using plastic OLED display panels that offer superior performance through diversification of form factors, low-power consumption and high resolution, in light of the increased use of smartphones for mobile contents and gaming purposes.

 

•

In the market for automotive display panels, display panels are increasingly being used in light of the expanded adoption of in-vehicle infotainment systems, and the market is continuing to demonstrate qualitative growth as the demand for larger and higher-resolution display panels continue to increase.

 

•

As the market for LCD panel-based products has reached a maturity stage, the growing adoption of OLED panels across various segments, driven by their differentiated advantages, is expected to create new opportunities.

 

(2)

Growth Potential

The display panel industry is expected to continue to grow, as the essential role of display products as a key device for information and communication in daily lives of individuals as well as for industrial purposes becomes more pronounced. We are strengthening our business competitiveness based on customer value and developing new markets under our strategic plan to transition our business to center around OLED, which has a strong growth potential within the display panel industry. With respect to large-sized display panels, we are focusing on expanding the OLED market through differentiated products and technology, such as META technology, which offers high-resolution and high-luminance, as well as strengthening business with new customers. We are also leading the expansion into new product areas, such as gaming display panels. In the medium-sized display panel business, we are increasing the proportion of premium products such as high resolution and wide screen products based on IPS and Oxide technologies, and we are also increasing the use of OLED panels in IT products to improve power consumption and provide differentiated form factors. In the small-sized display panel business, we have secured high value-added and differentiated technology and stable operating capabilities for 6th generation plastic OLED smartphone displays, while also expanding our customer base in the automotive display panels business by providing optimized display solutions featuring high resolution, high refresh rates and high luminance, based on a diverse portfolio of premium products including plastic OLED, advanced thin OLED and LTPS LCD panels. We are also in the process of proactively preparing the technology to respond to new market opportunities for ultra-small-sized displays, including those in relation to augmented reality and virtual reality uses.

 

(3)

Cyclicality

 

•

The display panel business is characterized by being highly cyclical and sensitive to fluctuations in the general economy. The industry may experience volatility caused by imbalances between supply and demand due to changes in capital expenditure levels and adjustments in production utilization rates within the industry.

 

•

Macroeconomic factors and other causes of business cycles can affect demand for display panels. Accordingly, if supply exceeds demand, average selling prices of display panels may decrease. Conversely, if market demand outpaces supply, average selling prices may increase.

 

(4)

Market conditions

 

•

Most display panel manufacturers are located in Asia as set forth below. Chinese panel manufacturers are expanding their dominance in the TFT-LCD sector through aggressive investments in, and acquisitions of, production facilities. In response, Korean panel manufacturers are continuing their efforts to maintain their market leadership and differentiate themselves by transitioning their business focus to OLED products and enhancing their TFT-LCD technology.

 

6

a.

Korea: LG Display, Samsung Display, etc.

 

b.

Taiwan: AU Optronics, Innolux, etc.

 

c.

Japan: Japan Display, Sharp, etc.

 

d.

China: BOE, CSOT, HKC, etc.

 

•

Our worldwide market share of large-sized display panels (i.e., panels that are 9 inches or larger) based on revenue is as follows:

 

		2025 Q1		2024		2023
Panels for Televisions(1)(2)		11.6%		14.1%		12.5%
Panels for IT Products(1)		15.7%		19.1%		18.6%
Total(1)		12.9%		15.7%		14.6%

 

(1)	Source: Large Area Display Market Tracker (OMDIA). Data for 2025 Q1 are based on OMDIA’s estimates, as actual results for 2025 Q1 have not yet been made available as of the date of this report.

(2)	Includes panels for public displays.

 

(5)

Competitiveness and competitive advantages

 

•

Our ability to compete successfully depends on factors both within and outside our control, including the development of new and premium products through technological advances, timely investments that achieve profitability, maintaining flexible product portfolio and production facility operations responsive to market conditions, price of our products, competitive production costs, productivity enhancement, our relationship with customers, success in marketing to our end-brand customers, competitive environment and economic conditions within the industry, and foreign exchange rates.

 

•

In order for us to compete effectively, it is critical to offer differentiated products that enable us to secure profit margins even during times of a mismatch in the market supply and demand, to be price- and cost-competitive and to maintain stable relationships with customers.

 

•

A substantial portion of our sales is attributable to a limited number of end-brand customers and their designated system integrators. As such, it is important to build a sustained relationship with such customers.

 

•

Developing new products and technologies that can be differentiated from those of our competitors is critical to the success of our business. It is important that we take active measures to protect our intellectual property internationally. It is also necessary to recruit and retain experienced key managerial personnel and skilled line operators.

 

•

As a leading technology innovator in the display industry, we continue to focus on delivering differentiated value to our customers by developing various technologies and products, including display panels with WOLED/POLED, IPS, Oxide, in-TOUCH, Tandem and other technologies. With respect to OLED panels, following our supply of the world’s first 55-inch OLED panels for televisions in 2013, we have continued to achieve ongoing technological innovation by continuing to enhance the performance of our products and to offer differentiated large-sized OLED products such as our large-sized gaming OLED products and those incorporating our META technology. Moreover, we have continually introduced and expanded our high value-added plastic OLED products for smartphones, smartwatches, automotive products and foldable notebook computers, along with our advanced thin OLED products for tablets, among others. With respect to TFT-LCD panels, we are leading the market with our competitive advantages in technology, including through our IPS, Oxide and LTPS technology-based ultra-large television panels, desktop and notebook monitors featuring high resolutions, differentiated designs and high frequency refresh rates, and specialized products for automotive, commercial and medical uses. Our production facilities are also equipped to produce products incorporating in-TOUCH technology.

 

7

•

Moreover, we are maintaining and strengthening close long-term partnerships with major global firms to secure customers and expand relationships for technology development.

 

C.

New businesses

For our continued growth, we are actively exploring and preparing for new business opportunities in response to the changing market environment. As such, we are continually reviewing and looking at opportunities in the display and promising new industries.

 

D.

Customer-oriented marketing activities

Through engaging in detailed analysis and acquiring insight on the market and industry conditions, technology, products and end-user consumers, we seek to provide differentiated values that are customer- and consumer-friendly. In addition, we engage in activities that are geared to proactively identify and offer meaningful benefits to customers and consumers. As a result, we are continually developing products that provide differentiated values using our technologies. At the same time, we strive to create new markets and mutually benefit our business and our customers by obtaining customer trust and satisfaction through our customer- and consumer-oriented marketing activities.

 

3.	Major Products and Raw Materials

 

A.

Major products

We manufacture OLED and TFT-LCD panels, of which a significant majority is sold overseas.

(Unit: In billions of Won, except percentages)

 

2025 Q1

Business area

Sales type

Items (By product)

Usage

Major trademark

Sales Revenue

Percentages (%)

Display

Goods/Products/Services/ Other sales

Televisions

Panels for televisions

LG Display

1,345

22.2

%

IT products

Panels for monitors, notebook computers and tablets

LG Display

2,108

34.8

%

Mobile, etc.

Panels for smartphones, smartwatches, etc.

LG Display

2,083

34.3

%

Auto products

Panels for automobiles

LG Display

529

8.7

%

Total

6,065

100.0

%

 

B.

Average selling price trend of major products

The average selling prices of display panels are subject to change based on market conditions and demand by product category. The average selling price of display panels per square meter of net display area shipped in the first quarter of 2025 was USD 804, representing a decrease from the previous quarter, primarily due to a seasonal decrease in the production volume of mobile display panels, which typically have higher average selling prices per square meter of net display area shipped. The average selling prices of display panels per square meter of net display area may continually fluctuate in the future due to changes in market conditions, demand trends and our product mix.

 

8

(Unit: US$ / m2)

 

Period		Average Selling Price(1)(2) (in US$ / m2)
2025 Q1		804
2024 Q4		873
2024 Q3		825
2024 Q2		779
2024 Q1		782
2023 Q4		1,064
2023 Q3		804
2023 Q2		803
2023 Q1		850

(1)	Quarterly average selling price per square meter of net display area shipped.

(2)	Excludes semi-finished products in the cell process.

 

C.

Major raw materials

Prices of major raw materials depend on fluctuations in supply and demand in the market as well as on changes in size and quantity of raw materials due to the increased production of large-sized panels.

(Unit: In billions of Won, except percentages)

 

Business area		Purchase type		Items		Usage		Cost(1)				Ratio (%)				Suppliers(2)
Display		Raw materials		PCB		Display panel manufacturing			211				8.5%			Youngpoong Electronics Co., Ltd., etc.
				Polarizers					390				15.8%			LG Chem, etc.
				BLU					189				7.7%			Heesung Electronics LTD., etc.
				Glass					136				5.5%			Paju Electric Glass Co., Ltd., etc.
				Drive IC					144				5.8%			LX Semicon, etc.
				Others					1,398				56.7%			—
Total									2,468				100.0%

 

-	Period: January 1, 2025 ~ March 31, 2025.

 

(1)	Based on total cost for purchase of raw materials which includes manufacturing and development costs, etc.

 

(2)	Among our major suppliers, Paju Electric Glass Co., Ltd. is our affiliate, LG Chem is a member company of the LG Group and LX Semicon is an affiliate of LX Holdings Corp.

 

•

The market prices of main raw materials for display panels fluctuate depending on the global market conditions of raw materials and demand by product segment.

 

•

The market price of polarizers, which is a main raw material for display panels, decreased by 5% as of March 31, 2025 compared to the end of the previous year.

 

•

The market prices of PCB, drive IC and BLU, decreased by 2%, 5% and 2%, respectively, as of March 31, 2025, compared to the end of the previous year.

 

9

•

Although the global economy in 2025 continues to face a slowdown amid trade conflicts and geopolitical uncertainties, we aim to optimize our raw material costs compared to the previous year through an improvement in the balance of market supply and demand in the raw materials market and our efforts to strengthen our raw material cost competitiveness. The prices of raw materials may continue to fluctuate in light of changes in the market conditions of such materials.

 

4.	Production and Equipment

 

A.

Production capacity and output

 

(1)

Production capacity

The table below sets forth the production capacity of our Gumi, Paju and Guangzhou facilities in the periods indicated.

(Unit: 1,000 glass sheets)

 

Business area		Items		Location of facilities		2025 Q1(1)		2024(1)		2023(1)
Display		Display panel, etc.		Gumi, Paju, Guangzhou		1,383		6,573		5,223

 

(1)

Calculated based on the maximum monthly input capacity (based on glass input substrate size for eighth-generation glass sheets) during the year multiplied by the number of months in a given period. The production capacity for facilities with adjusted utilization rates have been calculated based on the maximum input capacity during the period.

 

(2)

Production output

The table below sets forth the production output of our Gumi, Paju and Guangzhou facilities in the periods indicated.

(Unit: 1,000 glass sheets)

 

Business area		Items		Location of facilities		2025 Q1(1)		2024(1)		2023(1)
Display		Display panel, etc.		Gumi, Paju, Guangzhou		1,303		5,656		4,256

 

(1)	Based on the production results (input standard) of each plant converted into eighth-generation glass sheets.

 

B.

Production performance and utilization ratio

(Unit: Hours, except percentages)

 

Production facilities		Available working hours in 2025 Q1		Actual working hours in 2025 Q1		Average utilization ratio
Gumi		2,160(1) (24 hours x 90 days)		2,160(1) (24 hours x 90 days)			100.0	%
Paju		2,160(1) (24 hours x 90 days)		2,160(1) (24 hours x 90 days)			100.0	%
Guangzhou		2,160(1) (24 hours x 90 days)		2,160(1) (24 hours x 90 days)			100.0	%

 

(1)	Number of days is calculated by averaging the number of working days for each facility.

 

C.

Investment plan

In 2024, our total capital expenditures on a cash out basis was around 2.2 trillion. In 2025, we plan to maintain a similar level of capital expenditures as in 2024, at around the low-to-mid 2 trillion range.

 

10

5.

Sales

 

A.

Sales performance

(Unit: In billions of Won)

 

Business area		Sales types		Items (Market)				2025 Q1				2024				2023
Display		Products		Display panel		Overseas(1)			5,757				25,496				20,634
						Korea(1)			236				960				620
						Total			5,993				26,456				21,254
		Royalty		LCD, OLED technology patent		Overseas(1)			34				61				16
						Korea(1)			0				0				0
						Total			34				61				16
		Others		Raw materials, components, etc.		Overseas(1)			34				52				46
						Korea(1)			4				47				14
						Total			38				99				60
		Total				Overseas(1)			5,825				25,609				20,696
						Korea(1)			240				1,007				634
						Total			6,065				26,616				21,330

 

(1)	Based on ship-to-party.

 

B.

Sales organization and sales route

 

•

As of March 31, 2025, each of our television, IT, mobile and auto product businesses had individual sales and customer support functions.

 

•

Sales subsidiaries in the United States, Germany, Japan, Taiwan, China and Singapore perform sales activities and provide local technical support to customers.

 

•

Sales of our products take place through one of the following two routes:

1) LG Display Headquarters and overseas manufacturing subsidiaries g Overseas sales subsidiaries (USA/Germany/Japan/Taiwan/China/Singapore), etc. g System integrators and end-brand customers g End users

2) LG Display Headquarters and overseas manufacturing subsidiaries g System integrators and end-brand customers g End users

 

•

Sales performance by sales route

 

Sales performance		Sales route(1)		Ratio
Overseas		Overseas subsidiaries			98.0	%
		Headquarters			2.0	%
Overseas sales portion (overseas sales / total sales)					96.0	%
Korea		Overseas subsidiaries			14.3	%
		Headquarters			85.7	%
Korea sales portion (Korea sales / total sales)					4.0	%

 

(1)	Percentage by sales route is based on revenue from the Display business segment.

 

11

C.

Sales methods and sales terms

 

•

Direct sales and sales through overseas subsidiaries, etc. Sales terms are subject to change depending on the fluctuation in the supply and demand.

 

D.

Sales strategy

 

•

With respect to television display products, we are strengthening our competitive advantages in the premium television display market by enhancing the performance of our OLED television display panels and advancing both product and technology sophistication levels. Furthermore, we are working towards strengthening our business portfolio and reinforcing consumer values through new growth businesses such as gaming and transparent products.

 

•

With respect to IT display products, we are continually strengthening the sales of high-resolution, IPS, narrow bezel and other high-end display panels with major global IT product manufacturers as our primary customer base.

 

•

With respect to mobile and other products (a wide range of products including smartphones, smartwatches and industrial products (including aviation and medical equipment, among others)), we are continuing to build a strong and diversified business portfolio and expand our global customer base by leveraging the strength of our differentiated technology and products such as OLED, narrow bezel, low-power consumption and thin and light features.

 

•

With respect to automotive display products, our business is steadily growing on the back of stable orders secured through our ability to deliver differentiated value to global automobile manufacturers leveraging our diversified technology and product portfolio that includes plastic OLED, advanced thin OLED and LTPS LCD panels.

 

E.

Major customers

 

•

Customers “A” and “B” each accounted for more than 10% of our sales revenue in the first quarter of 2025. Our sales revenue derived from our top ten customers comprised 90% of our total sales revenue in the first quarter of 2025 and 88% in the first quarter of 2024.

 

6.	Purchase Orders

 

•

We supply some of our products in accordance with the production plans of automobile manufacturers. However, the volume of our supply is subject to fluctuation depending on the customers’ actual order volume and future market conditions, and it is not possible to accurately predict the changes in demand resulting from changes in the domestic and global economic environment. Moreover, as of March 31, 2025, we do not have purchase order contracts that recognize revenue by measuring progress towards satisfaction of performance obligation by using the cost-based input method.

 

7.	Risk Management and Derivative Contracts

 

A.

Risk management

 

(1)

Major market risks

 

12

Our business is exposed to credit risk, liquidity risk and market risk. Accordingly, we operate a risk management system that identifies and analyzes these risks while monitoring and managing risk level by establishing appropriate risk controls in order to ensure that such risks do not exceed certain threshold levels.

Market risk refers to the risk that income from the financial instruments that we hold or the fair value of such financial instruments will fluctuate due to fluctuations in market prices, such as exchange rates, interest rates and prices of equity securities. The objective of our market risk management system is to manage and control our exposure to market risk within an acceptable level while optimizing our profit levels.

 

(2)

Risk management method

As the average selling prices of OLED and TFT-LCD panels can continue to decline over time irrespective of industry-wide cyclical fluctuations, we may find it hard to manage risks associated with certain factors that are outside our control. However, we counteract such declines in average selling prices by increasing the proportion of high value added panels in our product mix while also implementing various cost reduction measures.

In addition, in order to manage our risk against foreign currency fluctuations, we eliminate such risk by adopting a policy of maintaining our net exposure risk within an acceptable level by buying or selling foreign currencies at spot rates, when necessary, to address short-term imbalances in the inflow and outflow of foreign currency funds. We also continually monitor our currency position and risk for other monetary assets and liabilities denominated in foreign currencies, and when needed, we may from time to time enter into cross-currency interest rate swap contracts and foreign currency forward contracts. Furthermore, we have adopted a policy aimed at minimizing uncertainty and financial costs arising from interest rate fluctuations and manage our interest rate risk through periodic monitoring of interest rate trends and adoption of appropriate countermeasures.

 

B.

Derivative contracts

 

(1)

Currency risks

 

•

We are exposed to currency risks on sales, purchases and borrowings that are denominated in currencies other than in Won, our functional currency. These currencies are primarily the U.S. dollar, the Chinese Yuan, the Japanese Yen, and Vietnam Dong.

 

•

Interest on borrowings is denominated in the currency of the borrowing. Generally, borrowings are denominated in currencies that match the cash flows generated by our underlying operations, primarily in Won, the U.S. dollar and the Chinese Yuan.

 

•

As of the end of the reporting period, in order to avoid risks of exchange rate fluctuations on the fair value of advance received, we entered into long position currency forward contracts of USD 600 million with Standard Chartered Bank and others. As of the end of the reporting period, among the valuation gains and losses of derivatives to which fair value hedge accounting is applied, there is no ineffective portion, and we recognized a valuation gain of 2 billion (purchase commitment: USD 600 million, contract exchange rate: 1,289.1~1,310.1) as part of our foreign currency translation gains and losses. With regard to fair value hedging, the maximum expected period of exposure to fair value fluctuation risk from hedged transactions is within 10 months from the end of the reporting period.

 

•

As of the end of the reporting period, in order to avoid risks of interest rate fluctuations and exchange rate fluctuations on foreign currency denominated borrowings with floating interest rates, we entered into an aggregate of USD 1,735 million and CNY 726 million cross currency interest swap agreements with KB Kookmin Bank and others, for which we have not applied hedge accounting. Any rights or obligations arising from derivative contracts that do not apply hedge accounting are measured at fair value and are accounted for as assets and liabilities, whereas any resulting valuation gain or loss is recognized as profit or loss at the time such valuation gain or loss is incurred. We recognized a loss on valuation of derivative instruments in the amount of 53 billion with respect to the above foreign exchange derivative instruments held during the reporting period.

 

13

(2)

Interest rate risks

 

•

Our exposure to interest rate risks relates primarily to our floating rate long term loan obligations. We have established and are managing interest rate risk policies to minimize uncertainty and costs associated with interest rate fluctuations by monitoring cyclical interest rate fluctuations and enacting countermeasures.

 

•

As of the end of the reporting period, we entered into an aggregate of 810 billion in interest rate swap agreements with Shinhan Bank and others, for which we have not applied hedge accounting. We recognized a gain on valuation of derivative instruments in the amount of 2 billion and a loss on valuation of derivative instruments in the amount of 2 billion with respect to our interest rate derivative instruments held during the reporting period.

 

8.	Major Contracts

Our material contracts, other than contracts entered into in the ordinary course of business, are set forth below:

 

Type of agreement		Name of party		Term		Content
Technology licensing/supply agreement		Hewlett-Packard		January 2011 ~		Patent licensing of semi-conductor device technology
		Ignis Innovation, Inc.		July 2016 ~		Patent licensing of OLED related technology
		HannStar Display Corporation		December 2013 ~		Patent cross-licensing of LCD technology
		AU Optronics Corporation		August 2011 ~		Patent cross-licensing of LCD technology
		Innolux Corporation		July 2012 ~		Patent cross-licensing of LCD technology
		Universal Display Corporation		January 2015 ~ December 2025		Patent licensing of OLED related technology
		Semiconductor Energy Laboratory		January 2021 ~ December 2030		Patent licensing of LCD and OLED related technology
Real estate/others		LG Innotek Co., Ltd.		Date of contract: December 23, 2022 Term: December 26, 2022 ~ December 31, 2027		Lease of idle real estate property for rental income (the contract amount and other details are not disclosed in accordance with a non-disclosure agreement)
		LG Uplus Corp.		Date of contract: May 14, 2024		Sale of real estate property to enhance asset efficiency (for details, please refer to the Form 6-K furnished to the SEC on April 25, 2024)

 

14

9.	Research & Development (“R&D”)

 

A.

Summary of R&D-related expenditures

(Unit: In millions of Won, except percentages)

 

Items				2025 Q1				2024				2023
R&D Expenditures (prior to deducting governmental subsidies)					601,914				2,237,403				2,399,513
Governmental Subsidies					(8	)			(705	)			(718	)
Net R&D-Related Expenditures					601,906				2,236,698				2,398,795
Accounting Treatment(1)		R&D Expenses			470,055				1,687,315				1,906,616
		Development Cost (Intangible Assets)			131,851				549,383				492,179
R&D-Related Expenditures / Revenue Ratio(2) (Total R&D-Related Expenditures ÷ Revenue for the period × 100)					9.9	%			8.4	%			11.2	%

 

(1)	For accounting treatment purposes, R&D expenses are presented as research and development expenses in our statements of comprehensive income, net of amortization of capitalized intangible asset development costs.

(2)	Calculated based on the R&D-related expenditures before subtracting government subsidies (state subsidies).

 

B.

R&D achievements

Achievements in 2023

 

(1)

Developed the world’s first small- and medium-sized transparent WOLED product (30” HD)

 

•

Expanded market coverage with the development of a new product size (30”) for transparent small- and medium-sized display

 

•

Strengthened market leadership through achieving a transparency rate of 45% and increased luminance (600/200 nit)

 

(2)

Introduced the world’s first foldable pen touch notebook (17”)

 

•

Developed OLED panel for notebooks utilizing differentiated technologies such as the tandem OLED and a special folding structure

 

(3)

Developed the world’s first Gaming OLED 240Hz monitor product (39”, 34”)

 

•

Applied high-speed (240Hz), fast response time (0.03ms), high-luminance (275 nit @APL 100%) and curved (800R) OLED technology

 

•

Provided ultra-wide (21:9 aspect ratio) full-size OLED Gaming monitor product (initially provided in 45” and expanded further to provide 39” and 34” products)

Achievements in 2024

 

(1)

Developed the world’s first Gaming DFR product (31.5”)

 

•

Optimized display through applying DFR (Dynamic Frequency & Resolution) technology, which enables the implementation of high resolution (UHD 240Hz) and high refresh rate (FHD 480 Hz) on a single display panel

 

•

Maximized sound effects by applying d-TAS (Display Thin Accurator)

 

(2)

Developed the world’s first Gaming OLED QHD 480Hz monitor product (27”)

 

•

Provided optimal gaming environment with the development of the world’s first OLED QHD 480Hz high refresh rate monitor product

 

(3)

Developed our first ATO-based notebook panel (13.4”)

 

•

Developed Slim & Light product (1.16t / 162g) through the application of advanced thin OLED structure

 

•

Developed high-efficiency OLED notebook panel product (SDR 400nit / HDR 500nit) utilizing Tandem OLED technology

 

15

•

Became our first notebook panel model to apply Touch on Encap technology

 

(4)

Developed our first Dual Resolution Gaming monitor product (27”)

 

•

Expanded the gaming monitor market and provided differentiated user experience by implementing the Dual Resolution feature

 

•

Enabled the use of a single monitor for both fast-paced (FHD 330Hz) games and high-resolution (UHD 165Hz) games

* Dual Resolution : UHD 165Hz « FHD 330Hz

 

(5)

Developed next-generation Micro LED display product (22.3”)

 

•

Provided a large-screen and high-resolution, new user experience through Active Matrix Micro LED transfer technology, panel technology, compensation technology and mechanical technology

1) 22.3” Module for 136” 4K business-to-consumer products

2) 22.3” Module for infinitely expandable business-to-business products

 

(6)

Developed the world’s first ultra-large high resolution transparent OLED display product (77”)

 

•

Developed new television models and lifestyle solutions with ultra-large, high-resolution displays with 45% transparency

 

(7)

Developed the world’s first large-sized WOLED product based on 4-Stack technology (83/77/65/55/48” 4K television displays)

 

•

Strengthened the competitiveness of our WOLED flagship models by applying the 4-Stack technology to large-sized WOLED display panels for the first time in the industry

 

•

Improved customer value by delivering premium picture quality (luminance, color reproduction, and high-speed) while enhancing cost competitiveness

 

•

Established a foundation for market expansion by strengthening the potential to expand into the new high-end monitor market

Achievements in 2025

 

(1)

Developed the world’s first 45WUHD 165Hz Gaming OLED product

 

•

Optimized display based on intended use through applying DFR (Dynamic Frequency & Resolution) technology, which enables the implementation of high resolution (WUHD 165Hz) and high refresh rate (WFHD 330Hz) on a single display panel

 

•

Enhanced gaming immersion through the application of an 800R Curved display

 

(2)

Developed the world’s first medium-sized OLED notebook panel product based on low-temperature polycrystalline oxide (“LTPO”) and Tandem technology (14”)

 

•

Developed Tandem OLED product with low power consumption and variable refresh rate based on LTPO technology

 

•

Developed a medium-sized OLED display product with low power consumption to lead the high-end notebook computers market

 

10.	Intellectual Property

As of March 31, 2025, our cumulative patent portfolio (including patents that have already expired) included 30,351 patents in Korea and 37,135 patents in other countries. In 2025, we registered 468 patents in Korea and 545 patents in other countries.

 

11.	Environmental and Safety Matters

In order to minimize the environmental impact of our business activities, we are actively responding to environmental regulations applicable to our products and business sites.

 

16

A.

Business environment management

We have installed and operate various types of prevention facilities to minimize the emission of environmental pollutants generated in our production process. With respect to air and water pollutants, we set and manage our internal standard at 70% of the permitted levels under the regulatory emission standards. In addition, in order to establish a resource circulation system, we operate a proprietary system to monitor waste from its generation to treatment, have developed waste treatment technology and identified suitable recycling companies to reduce the amount of waste we generate and maximize recycling.

In addition, as we were designated a target company for the greenhouse gas emission trading system in 2015, we allocate and monitor our greenhouse gas emissions every year. In order to continually promote the reduction of greenhouse gas emissions, we have set a medium- to long-term goal to reduce the emission level by continually investing in facility improvements and monitoring our emission levels.

We are subject to a variety of environmental laws and regulations, and operations at our manufacturing plants are subject to regulation and periodic scheduled and unscheduled on-site inspections by the Ministry of Environment and local environmental protection authorities. The primary types of environmental laws applicable to us include the following:

 

(1)

Environmental pollutant emission regulations: Integrated Control of Pollutant-discharging Facilities Act, Clean Air Conservation Act, Water Quality Conservation Act, Wastes Control Act, Environmental Impact Assessment Act, etc.

 

(2)

Greenhouse gas emission management: Framework Act on Carbon Neutral and Green Growth to Respond to Climate Crisis, Act on the Allocation and Trading of Greenhouse Gas Emission Permits, etc.

 

(3)

Other workplace environment management: Chemicals Control Act, Chemicals Registration and Evaluation Act, Soil Environment Conservation Act, etc.

Through the implementation of an environmental and energy management system, we are continuously making efforts to minimize environmental impact and reduce energy usage in all aspects of our business process. Accordingly, we have acquired and currently operate the environmental management system ISO14001 and energy management system ISO 50001 certifications for all of our domestic and overseas production sites. In addition, we have established company-wide safety, healthy, energy and environment management policies and manuals, which are regularly updated based on international standards. We also conduct systematic management of our business process in accordance with international standards through annual follow-up and renewal audits.

In recognition of our efforts, we were awarded the highest level, Leadership A, and received the grand prize award at the CDP Water Korea Best Awards in 2016 from the Carbon Disclosure Project, which was presided over by the Carbon Disclosure Project Korea Committee. Since then, we have continued to maintain our excellence in water conservation activities and received Leadership A recognition from 2018 to 2022. In addition, we have also received the Carbon Management Honors Club award from 2017 to 2020 and the Carbon Management Sector Honors from 2016 to 2023 in recognition of our continued greenhouse gas emission reduction activities.

In addition, in recognition of our efforts toward recycling rate improvement and waste reduction, we were nominated as a leading company with an excellent performance in resource circulation and received a commendation from the Minister of Environment in 2020. Our overseas subsidiary in Yantai earned Platinum Zero Waste to Landfill (“ZWTL”) validation in 2021, all of our domestic production facilities earned Gold ZWTL validation, our overseas subsidiary in Nanjing earned Platinum validation in 2022, and our Paju plant earned Platinum validation in June 2024. In 2022, we introduced a resource recirculation recognition program in accordance with the Korean government’s waste management policy and received circular resource certification on eight types of our discarded trays and vinyl. In 2023, we have obtained quality certification for certain of our recycled items recognized as circular resources, and we plan to continue to promote the resource circulation of our products. We will continue our efforts to reinforce our resource circulation program by minimizing waste and maximizing recycling rate.

 

17

We have continued to pursue ESG management activities based on the spirit of “value creation for consumers” and “human-first management,” and we plan to obtain further recognition for our eco-friendly management and share relevant information with the stakeholders.

 

B.

Product environment management

In order to respond to applicable domestic and overseas environmental regulations, such as the European Union’s Restriction of Hazardous Substances (RoHS) and Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) that restrict the use of certain hazardous substances, we operate a hazardous substance management program that implements a four-step procedure (each such step, a “Gate”) that manages various stages of our production cycle, beginning with the registration process of our business partners up to the mass production stage. In addition, in order to preemptively address four types of phthalate substances that became additionally regulated pursuant to the RoHS in 2016 and officially went into effect on July 22, 2019, we replaced the latent risk elements in advance as well as implemented a more stable management process with respect to such substances. In implementing this process, we collaborated with external agencies to ascertain regulatory trends and establish our response strategy, and we formulated and applied effective management measures through the collaborative efforts of our development, procurement, quality assurance and analysis teams.

- Gate 01 (Business Partner Stage): An audit is conducted prior to the registration of a new business partner (including the inspection of the business partner’s hazardous substance response process)

- Gate 02 (Parts Development Stage): An environmental evaluation of each part under development is conducted (consisting of three stages: (1) document review; (2) XRF test and (3) precision analysis)

- Gate 03 (Product Development Stage): An environmental evaluation of the product model and product labeling are conducted (including RoHS verification)

- Gate 04 (Mass Production Stage): Process management through the periodic testing of mass-produced parts for any hazardous substances (including rate-based tests based on risk assessment)

We operate a “Hazardous Substance Management System for Products” that effectively manages hazardous substances by classifying them into four levels: A-I, A-II, B-I, and B-II. In particular, in addition to substances prohibited by global hazardous substance regulations on products, we have designated substances causing harm to the human body and the environment as Level B substances. By developing alternative technologies and parts and applying them to our products, we continually strive to achieve a gradual reduction and elimination of non-prohibited hazardous substances.

- Level A-I (Prohibited Substances): Prohibited substances designated under the RoHS regulations (i.e., 10 regulated substances) and those designated by specific customers

- Level A-II (Prohibited Substances): Substances prohibited by regulations and conventions other than those covered under Level A-1 and those designated as such by customers

- Level B-I (Substances Subject to Voluntary Reduction): Substances that are being voluntarily replaced over a certain period of time

- Level B-II (Substances Under Observation): Substances that are not currently banned, but are expected to become prohibited in the future

Moreover, we participated in reforming IEC 62321, an international testing standard published by the International Electrotechnical Commission and used by RoHS, and the commission adopted our halogen-free combustion ion chromatography method in as IEC 62321-3-2, which was published in June 2013.

 

18

In 2017, we became the first display panel company to receive the SGS Eco Label accreditation for OLED television display modules from SGS, a global product testing/accreditation agency, and have since continually received such accreditation. In 2024, such accreditation has been updated to “SGS EEPS accreditation.” In 2022, we expanded our accreditation program to cover display modules for monitors, notebook computers, tablets and automobiles, as a result of which our display modules for monitors and notebook computers received SGS Eco Label accreditation for the first time and our automotive display module became the first in the industry to receive the same accreditation for its excellence in energy efficiency, and we have since maintained the SGS Eco Label for such products. In 2023, our high-end LCD panels for 16-inch notebooks and 27-inch monitors, in which we incorporated recycled materials for the first time, received the SGS Eco Label accreditation. In addition, our 30-inch and 55-inch transparent display products, for which we applied hazardous substance reduction technology, became the first in the industry to receive the SGS Eco Label accreditation. Moreover, in 2022, our 27-inch monitor display product that applied anti-bacterial films received the SGS Performance Mark accreditation for its anti-bacterial performance, and in 2023, our commercial display module that applied Plus-Bright energy consumption reduction technology obtained the SGS Performance Mark accreditation for its energy efficiency performance. Our high-end LCD panels for 16-inch notebooks and 27-inch monitors also received the same accreditation for reducing energy consumption through the implementation of proprietary algorithms and improving panel transmittance.

Also in 2022, upon assessment and verification of GHG emissions throughout its entire product life cycle, our OLED TV panel received the industry’s first Carbon Footprint Certification from The Carbon Trust, a not-for-profit company founded by the United Kingdom government that provides voluntary carbon certification services and carbon labeling schemes. In 2023, our high-end IT LCD panels (27-inch and smaller) received the Product Carbon Footprint (PCF) certification from TÜV Rheinland, a global independent testing, inspection and certification agency, by achieving carbon emission reduction through the application of recycled materials and low energy consumption technologies. Our OLED panels for automotive products also received the same certification for achieving carbon emission through the application of light-control film integration technology. In 2024, our 14-inch high-end LCD panel product for notebook computers received the Product Carbon Footprint Reduction (PCR) certification from TÜV Rheinland through the application of bio-plastic, recycled materials and ultra-precision micro-processing technology. Additionally, upon verification by Underwriters Laboratories (UL), a global inspection and certification agency, such display panel also received the Environmental Claim Validation (ECV) certification.

In 2021, we received the “Green Technology Certification” for our advanced incell touch display technology, an eco-friendly technology with touch-sensing electrodes and transmission lines that reduce carbon emissions and the use of rare metals. Also, since 2021, we have continued to obtain an eco-friendly certification from TUV SUD, a globally recognized accreditation agency, for excellence in resource circulation and non-use of specific hazardous substances in our display panels for OLED televisions, OLED tablets, and PO mobile models and smartwatches.

In 2018, we became the first display panel company to receive the “Green Technology Certification” from the Korean Ministry of Science and ICT for improving the light efficiency technology of OLED to promote energy use reduction. In 2017, for the IPS Nano Color for LCD, we received the Quality & Performance Mark from Intertek, a global product testing/accreditation agency, by applying a technology to eliminate cadmium (Cd) and indium phosphide (InP).

 

C.

Safety standards

Our products comply with the IEC 62638-1 global product safety standards, and we obtain CB and UL certifications on applicable products.

In order to promote the enhancement of safety for automobile manufacturers and consumers, we became the first display panel company in June 2016 to introduce a flame-resistant certification program for our display panels, which program includes flame resistance standards for automotive materials (including ISO 3795, DIN 75200 and FMVSS 302 standards) as well as for safety standards for information technology devices, which has been certified by TUV SUD. In 2022, we expanded the number of applicable flame resistance standards for such program from three to nine.

Furthermore, in 2021, we established infrastructure for flammability tests required under the United States Federal Aviation Administration’s FAR 25.853 standards and impact tests under RTCA DO-313 standards, and the reliability of these test results have been certified by TUV SUD.

 

19

D.

Green management

This information is omitted in quarterly reports in accordance with Korean disclosure rules, and we plan to include such information in our semi-annual and annual reports.

 

E.

Status of sanctions

This information is omitted in quarterly reports in accordance with Korean disclosure rules, and we plan to include such information in our semi-annual and annual reports.

 

12.	Financial Information

 

A.

Financial highlights (Based on consolidated K-IFRS).

(Unit: In millions of Won)

 

Description		As of    March 31,   2025				As of  December 31,  2024				As of December 31, 2023
Current assets			10,225,245				10,123,037				9,503,186
Quick assets			7,269,153				7,451,795				6,975,458
Inventories			2,956,092				2,671,242				2,527,728
Non-current assets			21,762,563				22,736,529				26,256,112
Investments in equity accounted investees			33,575				33,177				84,329
Property, plant and equipment, net			16,374,848				17,202,873				20,200,332
Intangible assets			1,518,345				1,558,407				1,773,955
Other non-current assets			3,835,795				3,942,072				4,197,496
Total assets			31,987,808				32,859,566				35,759,298
Current liabilities			15,898,949				15,859,084				13,885,028
Non-current liabilities			8,254,812				8,927,675				13,103,726
Total liabilities			24,153,761				24,786,759				26,988,754
Share capital			2,500,000				2,500,000				1,789,079
Share premium			2,773,587				2,773,587				2,251,113
Retained earnings			(281,111	)			(18,512	)			2,676,014
Other equity			1,027,114				995,823				515,976
Accumulated other comprehensive income held for sale			254,768				291,363				—
Non-controlling interest			1,559,689				1,530,546				1,538,362
Total equity			7,834,047				8,072,807				8,770,544

(Unit: In millions of Won, except for per share data and number of consolidated entities)

 

Description		For the three months ended March 31, 2025				For the year ended December 31, 2024				For the year ended December 31, 2023
Revenue			6,065,298				26,615,347				21,330,819
Operating profit (loss)			33,464				(560,596	)			(2,510,164	)
Profit (loss) from continuing operations			(237,032	)			(2,409,300	)			(2,576,729	)
Profit (loss) for the period			(237,032	)			(2,409,300	)			(2,576,729	)
Profit (loss) attributable to:
Owners of the company			(262,725	)			(2,562,606	)			(2,733,742	)
Non-controlling interest			25,693				153,306				157,013
Basic earnings (loss) per share(1)			(525	)			(5,438	)			(7,177	)
Diluted earnings (loss) per share(1)			(525	)			(5,438	)			(7, 177	)
Number of consolidated entities(2)			22				22				22

 

(1)

The number of outstanding common shares has increased due to our paid-in capital increase in the first quarter of 2024. The basic earnings (loss) per share and diluted earnings (loss) per share for the year ended December 31, 2023 have been adjusted in consideration of the bonus element in a rights issue to our existing shareholders during the first quarter of 2024.

(2)	The number of consolidated entities is based on the consolidated entities (including the parent company) as of the end of the reporting period.

 

20

B.

Financial highlights (Based on separate K-IFRS).

(Unit: In millions of Won)

 

Description		As of    March 31,   2025				As of December 31, 2024				As of December 31, 2023
Current assets			7,727,486				8,647,395				5,590,482
Quick assets			5,722,320				6,860,717				3,809,523
Inventories			2,005,166				1,786,678				1,780,959
Non-current assets			20,619,956				21,151,656				24,141,930
Investments			3,975,002				3,939,474				4,932,063
Property, plant and equipment, net			11,483,422				11,913,336				13,584,247
Intangible assets			1,453,543				1,485,789				1,683,029
Other non-current assets			3,707,989				3,813,057				3,942,591
Total assets			28,347,442				29,799,051				29,732,412
Current liabilities			20,295,613				20,865,495				16,422,259
Non-current liabilities			4,620,498				5,137,758				7,628,598
Total liabilities			24,916,111				26,003,253				24,050,857
Share capital			2,500,000				2,500,000				1,789,079
Share premium			2,821,006				2,821,006				2,251,113
Retained earnings			(1,889,675	)			(1,525,208	)			1,641,363
Other equity			0				0				0
Total equity			3,431,331				3,795,798				5,681,555

(Unit: In millions of Won, except for per share data)

 

Description		For the three months ended March 31, 2025				For the year ended December 31, 2024				For the year ended December 31, 2023
Revenue			5,620,066				25,178,688				19,811,015
Operating profit (loss)			(288,957	)			(1,800,625	)			(3,884,121	)
Profit (loss) from continuing operations			(364,593	)			(3,034,736	)			(1,718,701	)
Profit (loss) for the period			(364,593	)			(3,034,736	)			(1,718,701	)
Basic earnings (loss) per share(1)			(729	)			(6,440	)			(4,512	)
Diluted earnings (loss) per share(1)			(729	)			(6,440	)			(4,512	)

 

(1)

The number of outstanding common shares has increased due to our paid-in capital increase in the first quarter of 2024. The basic earnings (loss) per share and diluted earnings (loss) per share for the year ended December 31, 2023 have been adjusted in consideration of the bonus element in a rights issue to our existing shareholders during the first quarter of 2024.

 

21

C.

Consolidated subsidiaries (as of March 31, 2025)

 

Company Interest		Primary Business		Location		Equity
LG Display America, Inc.		Sales		U.S.A.			100	%
LG Display Germany GmbH		Sales		Germany			100	%
LG Display Japan Co., Ltd.		Sales		Japan			100	%
LG Display Taiwan Co., Ltd.		Sales		Taiwan			100	%
LG Display Nanjing Co., Ltd.		Manufacturing		China			100	%
LG Display Shanghai Co., Ltd.		Sales		China			100	%
LG Display Guangzhou Co., Ltd.(1)		Manufacturing		China			100	%
LG Display Shenzhen Co., Ltd.		Sales		China			100	%
LG Display Singapore Pte. Ltd.		Sales		Singapore			100	%
L&T Display Technology (Fujian) Limited		Manufacturing and sales		China			51	%
LG Display Yantai Co., Ltd.		Manufacturing		China			100	%
Nanumnuri Co., Ltd.		Workplace services		Korea			100	%
LG Display (China) Co., Ltd.(1)		Manufacturing and sales		China			80	%
Unified Innovative Technology, LLC		Managing intellectual property		U.S.A.			100	%
LG Display Guangzhou Trading Co., Ltd.		Sales		China			100	%
Global OLED Technology LLC		Managing intellectual property		U.S.A.			100	%
LG Display Vietnam Haiphong Co., Ltd.		Manufacturing and sales		Vietnam			100	%
Suzhou Lehui Display Co., Ltd.		Manufacturing and sales		China			100	%
LG Display Fund I LLC(2)		Investing in new emerging companies		U.S.A			100	%
LG Display High-Tech (China) Co., Ltd.		Manufacturing and sales		China			70	%

 

(1)

On September 26, 2024, we entered into a contract to sell our 80% equity interest in LG Display (China) Co., Ltd. and 100% equity interest in LG Display Guangzhou Co., Ltd. As a result, the assets and liabilities related to LG Display (China) Co., Ltd. and LG Display Guangzhou Co., Ltd. have been reclassified as assets and liabilities held for sale.

(2)	During the reporting period, we invested an additional 1,098 million in LG Display Fund I LLC.

 

D.

Status of equity investments in associates (as of March 31, 2025)

 

Company		Carrying Amount (in millions)				Date of Incorporation				Equity Interest
Paju Electric Glass Co., Ltd.			29,659				January 2005				40	%
Arctic Sentinel, Inc.			—				June 2008				10	%
Cynora GmbH			—				March 2003				10	%
Material Science Co., Ltd.			3,916				January 2014				14	%

Although our respective share interests in Arctic Sentinel, Inc., Cynora GmbH and Material Science Co., Ltd. are below 20%, we are able to exercise significant influence through our right to appoint a director to the board of directors of each investee. Accordingly, the investments in these investees have been accounted for using the equity method.

For the three months ended March 31, 2025 and 2024, the aggregate amount of dividends we received from our affiliated companies was 1,664 million and 200 million, respectively.

 

22

13.	Audit Information

 

A.

Audit service

(Unit: In millions of Won, hours)

 

Description		2025 Q1		2024		2023
Auditor		Samil PwC		Samil PwC		KPMG Samjong
Activity		Audit by independent auditor		Audit by independent auditor		Audit by independent auditor
Compensation(1)		1,898 (602)(2)		1,800 (650)(2)		1,640 (590)(2)
Time required(3)		1,774		23,088		22,107

 

(1)	Compensation amount is the contracted amount for the full fiscal year.

(2)	Compensation amount in ( ) is for Form 20-F filing and SOX 404 audit.

(3)	Figures are based on actual performance as of the date of this report.

 

B.

Non-audit service

 

Period		Date of contract		Description of   service		Period of service		Compensation
2025 Q1		—		—		—		—
2024		February 2024		Tax advice		March 2024 ~ December 2024		50 million
		September 2024		Tax advice		September 2024 ~ March 2025		0 million
2023		—		—		—		—

 

*	Based on direct contracts on a separate basis.

 

14.	Management’s Discussion and Analysis of Financial Condition and Results of Operations

This information is omitted in quarterly and semi-annual reports in accordance with Korean disclosure rules, and we plan to include such information in our annual report.

 

15.	Board of Directors

This information is omitted in quarterly reports in accordance with Korean disclosure rules, and we plan to include such information in our semi-annual and annual reports.

 

16.	Information Regarding Shares

 

A.

Total number of shares

 

(1)

Total number of shares authorized to be issued (as of March 31, 2025): 1,000,000,000 shares.

 

(2)

Total shares issued and outstanding (as of March 31, 2025): 500,000,000 shares.

 

B.

Shareholder list

 

(1)

Largest shareholder and related parties as of March 31, 2025:

 

Name		Relationship		Number of shares of common stock(1)				Equity interest
LG Electronics		Largest shareholder			183,593,206				36.72	%
Cheoldong Jeong		Executive of an affiliated company(2)			12,460	(3)			0.00	%

 

(1)	The number of shares is based on the information available as of the date of this report.

(2)	Executives of affiliated companies are identified based on those who serve as our directors.

(3)	Cheoldong Jeong, our Representative Director, acquired our shares through open market purchases on the Korea Exchange.

 

23

(2)

Shareholders who are known to us that own 5% or more of our shares as of March 31, 2025, which was the most recent record date:

 

Beneficial owner		Number of shares of common stock(1)		Equity interest
LG Electronics		183,593,206		36.72%
National Pension Service		25,941,904		5.19%
Employee Stock Ownership Association		25,900,063		5.18%

 

(1)	The number of shares of common stock is based on the most recent shareholder register as of March 31, 2025, and may differ from the actual shareholding status.

 

17.	Directors and Employees

 

A.

Directors

 

(1)

List of Members of Board of Directors

 

Name		Position		Shares of the Company held				First appointed		Term expires
Cheoldong Jeong		Representative Director (non-outside), Chief Executive Officer and President			—			December 1, 2023		March 22, 2027
Sung Hyun Kim		Director (non-outside), Chief Financial Officer and Vice President			—			December 1, 2018		March 20, 2028
Sangwoo Lee		Non-standing Director and Member of Outside Director Nomination Committee			—			March 20, 2025		March 20, 2028
Doocheol Moon		Outside Director and Member of Audit Committee, Outside Director Nomination Committee and ESG Committee			—			March 23, 2021		March 22, 2027
Chung Hae Kang		Outside Director and Member of Audit Committee, Related Party Transaction Committee and ESG Committee			—			March 23, 2022		March 20, 2028
Jungsuk Oh		Outside Director and Member of Audit Committee, Outside Director Nomination Committee, Related Party Transaction Committee and ESG Committee			—			April 26, 2022		March 21, 2026
Sang Hee Park		Outside Director and Member of Audit Committee, Related Party Transaction Committee and ESG Committee			—			March 21, 2023		March 21, 2026

 

24

(2)

Compensation of Directors

This information is omitted in quarterly reports in accordance with Korean disclosure rules, and we plan to include such information in our semi-annual and annual reports.

 

B.

Employees

This information is omitted in quarterly reports in accordance with Korean disclosure rules, and we plan to include such information in our semi-annual and annual reports.

 

18.	Other Matters

 

A.

Legal proceedings

We are a defendant in two separate civil lawsuits (comprising one damages claim in the United Kingdom filed by private plaintiffs and one damages claim in Israel filed by private plaintiffs) filed against us and certain other TFT-LCD panel manufacturers in connection with alleged anticompetitive behavior of the defendants. In each of these cases, the amount being sought has not been determined. The trial for the case in the United Kingdom has been completed and the court’s decision in currently pending, while no trial has been scheduled for the case in Israel. While the expected outcome of each of these cases is unclear, we do not believe that any of these cases would have a material effect on our financial conditions.

B. Status of collateral pledged to related party

On March 27, 2023, the Board of Directors resolved to borrow 1 trillion from our largest shareholder, LG Electronics, in order to strengthen the competitiveness of our OLED business as well as for working capital purposes, and withdrew 650 billion of the principal amount of such borrowing on March 30, 2023 and the remaining 350 billion on April 20, 2023. The repayment terms provide for a two-year grace period followed by a one-year repayment period in installments with an interest rate of 6.06%. In addition, we pledged certain of our land and buildings equivalent to the sum of the principal and interest amount as collateral for such borrowing.

C. Material events subsequent to the reporting period LG DISPLAY CO., LTD. AND ITS SUBSIDIARIES

This information is omitted in quarterly reports in accordance with Korean disclosure rules, and we plan to include such information in our semi-annual and annual reports.

 

25

Condensed Consolidated Interim Financial Statements

(Unaudited)

March 31, 2025 and 2024

(With Report on Review of Condensed Consolidated Interim Financial Statements)

Contents

 

		Page
Report on Review of Condensed Consolidated Interim Financial Statements			1
Consolidated Interim Statements of Financial Position			3
Consolidated Interim Statements of Comprehensive Loss			4
Consolidated Interim Statements of Changes in Equity			5
Consolidated Interim Statements of Cash Flows			6
Notes to the Condensed Consolidated Interim Financial Statements			7

Report on Review of Condensed Consolidated Interim Financial Statements

(English Translation of a Report Originally Issued in Korean)

To the Shareholders and Board of Directors of

LG Display Co., Ltd.

Reviewed Financial Statements

We have reviewed the accompanying condensed consolidated interim financial statements of LG Display Co., Ltd. and its subsidiaries (collectively referred to as the “Group”). These condensed consolidated interim financial statements consist of the consolidated interim statement of financial position of the Group as at March 31, 2025, and the related consolidated interim statements of comprehensive income, changes in equity and cash flows for the three-month periods ended March 31, 2025 and 2024, and material accounting policy information and other selected explanatory notes, expressed in Korean won.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and presentation of these condensed consolidated interim financial statements in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (Korean IFRS) 1034 Interim Financial Reporting, and for such internal control as management determines is necessary to enable the preparation of condensed consolidated interim financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express a conclusion on these condensed consolidated interim financial statements based on our review.

We conducted our review in accordance with quarterly or semi-annual review standards established by the Securities and Futures Commission of the Republic of Korea. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Korean Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe the accompanying condensed consolidated interim financial statements are not prepared, in all material respects, in accordance with Korean IFRS 1034 Interim Financial Reporting.

 

1

Other Matters

We have audited the consolidated statement of financial position of the Group as at December 31, 2024, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, not presented herein, in accordance with Korean Standards on Auditing. We expressed an unqualified opinion on those consolidated financial statements in our audit report dated March 4, 2025. The consolidated statement of financial position as at December 31, 2024, presented herein for comparative purposes, is consistent, in all material respects, with the above audited consolidated statement of financial position as at December 31, 2024.

Review standards and their application in practice vary among countries. The procedures and practices used in the Republic of Korea to review such financial statements may differ from those generally accepted and applied in other countries.

May 13, 2025

Seoul, Korea

 

 

2

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Consolidated Interim Statements of Financial Position

As of March 31, 2025 and December 31, 2024

 

(In millions of won)		Note		March 31, 2025 (unaudited)				December 31, 2024
Assets
Cash and cash equivalents		4, 24			981,376				2,021,640
Deposits in banks		4, 24			900				600
Trade accounts and notes receivable, net		5, 15, 24, 26			3,407,328				3,624,477
Other accounts receivable, net		5, 24			195,425				250,029
Other current financial assets		6, 24			272,727				328,621
Inventories		7			2,956,092				2,671,242
Prepaid income tax					16,104				12,774
Assets held for sale		27			2,137,016				983,317
Other current assets					258,277				230,337
Total current assets					10,225,245				10,123,037
Deposits in banks		4, 24			11				11
Investments in equity accounted investees		8			33,575				33,177
Other non-current financial assets		6, 24			201,530				232,652
Property, plant and equipment, net		9, 18			16,374,848				17,202,873
Intangible assets, net		10, 18			1,518,345				1,558,407
Investment Property		11, 18			26,649				27,911
Deferred tax assets					3,474,389				3,504,177
Defined benefits assets, net		13			106,308				160,752
Other non-current assets					26,908				16,569
Total non-current assets					21,762,563				22,736,529
Total assets					31,987,808				32,859,566
Liabilities
Trade accounts and notes payable		24, 26			4,253,800				4,156,149
Current financial liabilities		12, 24, 25, 26			7,020,657				6,527,450
Other accounts payable		24			1,522,947				1,720,670
Accrued expenses					535,534				634,473
Income tax payable					18,037				65,366
Provisions		14			94,826				105,251
Advances received		15			919,347				904,628
Liabilities held for sale		27			1,480,635				1,656,841
Other current liabilities					53,166				88,256
Total current liabilities					15,898,949				15,859,084
Non-current financial liabilities		12, 24, 25			7,647,613				8,091,407
Non-current provisions		14			56,639				60,908
Defined benefit liabilities, net		13			1,151				1,093
Long-term advances received		15			—				220,500
Other non-current liabilities		24, 26			549,409				553,767
Total non-current liabilities					8,254,812				8,927,675
Total liabilities					24,153,761				24,786,759
Equity
Share capital		16			2,500,000				2,500,000
Share premium		16			2,773,587				2,773,587
Accumulated deficit					(281,111	)			(18,512	)
Reserves		16			1,027,114				995,823
Accumulated other comprehensive income held for sale		27			254,768				291,363
Equity attributable to owners of the Parent					6,274,358				6,542,261
Non-controlling interests					1,559,689				1,530,546
Total equity					7,834,047				8,072,807
Total liabilities and equity					31,987,808				32,859,566

See accompanying notes to the condensed consolidated interim financial statements.

 

3

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Consolidated Interim Statements of Comprehensive Loss

For the three-month periods ended March 31, 2025 and 2024

 

(In millions of won, except loss per share amounts)		Note				2025 (unaudited)				2024 (unaudited)
Revenue			17, 18, 26				6,065,298				5,252,975
Cost of sales			7, 19, 26				(5,322,494	)			(5,035,087	)
Gross profit (loss)							742,804				217,888
Selling expenses			19, 20				(117,323	)			(124,621	)
Administrative expenses			19, 20				(240,956	)			(222,952	)
Research and development expenses			19				(351,061	)			(339,747	)
Operating profit (loss)							33,464				(469,432	)
Finance income			22				180,313				202,202
Finance costs			22				(336,967	)			(407,708	)
Other non-operating income			21				317,304				431,888
Other non-operating expenses			21				(342,742	)			(748,145	)
Equity in income of equity accounted investees, net							133				1,847
Loss before income tax							(148,495	)			(989,348	)
Income tax benefit (expense)							(88,537	)			228,072
Loss for the period							(237,032	)			(761,276	)
Other comprehensive income (loss)
Items that will never be reclassified to profit or loss
Remeasurements of net defined benefit liabilities							126				(2,789	)
Other comprehensive income (loss) from associates			8				—				(94	)
							126				(2,883	)
Items that are or may be reclassified to profit or loss
Foreign currency translation differences for foreign operations			16				(3,661	)			253,528
Other comprehensive loss from associates			8, 16				1,807				(304	)
							(1,854	)			253,224
Other comprehensive income (loss) for the period, net of income tax							(1,728	)			250,341
Total comprehensive loss for the period							(238,760	)			(510,935	)
Profit (loss) attributable to:
Owners of the Parent							(262,725	)			(783,157	)
Non-controlling interests							25,693				21,881
Loss for the period							(237,032	)			(761,276	)
Total comprehensive income (loss) attributable to:
Owners of the Parent							(267,903	)			(574,737	)
Non-controlling interests							29,143				63,802
Total comprehensive loss for the period							(238,760	)			(510,935	)
Loss per share (in won)
Basic loss per share			23				(525	)			(2,037	)
Diluted loss per share			23				(525	)			(2,037	)

See accompanying notes to the condensed consolidated interim financial statements.

 

4