LG shows that it will borrow 1 trillion won from LG Electronics to enhance the competitiveness of OLED panel business.

March 29 news, according to foreign media reports, LG's panel manufacturer LG shows that it will borrow 1 trillion won, or about 771 million US dollars, from LG Electronics, another main business company of the group.

According to foreign media reports, LG announced the electronic loan from LG on Monday, local time, for a period of three years, from March 30 this year to March 30, 2026, with an annual interest rate of 6.06%.

Foreign media said in the report that LG shows that the funds borrowed from LG Electronics will be used to enhance the competitiveness of OLED panel business and provide financial support for operations. As of the end of last year, LG showed cash equivalents of 1.8246 trillion won, and after borrowing 1 trillion won, their cash reserves will increase significantly.

OLED panels with better display results are heavily invested by many panel manufacturers. LG shows obvious advantages in large-size OLED panels such as televisions, and they have also made progress in small and medium-sized OLED panels needed for smartphones, entering Apple's supply chain to supply iPhone.

In the high-end TV OLED panel market, they plan to enhance competitiveness based on strong financial resources and steadily increase market share. OLED TV's share of the high-end TV market, which sells for more than $1500, is growing, with the agency expecting it to grow from 36.7 per cent last year to 46.1 per cent this year and more than 50 per cent to 53.5 per cent next year.

In addition to high-end TV OLED panels, LG display will also accelerate the expansion of transparent OLED panels and game OLED panels and other new markets. In terms of small and medium-sized OLED panels, they have decided to enhance the competitiveness of car panel business, and they will enhance product competitiveness through technological advantages to newcomers to ensure future growth engines.