Display technology has been assigned as a national strategic technology following semiconductor, battery, and biotechnology. While, reportedly, the Ministry of Strategy and Finance revealed on Jan 18, 2023, a revised enforcement rule of the Restriction of Special Taxation Act. This adopts five display technologies to the section of national strategic technologies. Out of five, there are three-panel techs that include AMOLED, micro LED, and QD nanomaterial display. While two were deposition/coating materials for panels, and thin film transistor (TFT) forming equipment.
Moving further, notably, the designation of display technologies as a National Strategic Technology will substantially benefit Samsung Display, LG Display, and Korean materials, parts, and equipment manufacturers. On the other hand, these companies are applicable for expanded tax benefits, that start from Jan. 1, 2023.
With respect to R&D investment, the tax credit rates are 30-40 percent for large enterprises. While 40-50 percent for small and medium-sized enterprises (SMEs). Meanwhile, the Korean government is thinking of further expanding tax credits for facility investment to 15 percent. This is for big companies and 25 percent for SMEs.
The Korean display industry’s presence is hugely crumpled by Chinese companies
Industry experts expected that the expanded tax credits will boost investment in next-generation display technologies. Noticeably, with respect to OLED, the Korean display industry’s presence is hugely crumpled by Chinese companies.
In terms of exports, then Korea’s display grow by 1.5 percent from 2022 to US$21.5 billion in 2023. Whereas the Korean government predicted this investment in the 6th and 8th OLEDs generations.
Alternatively, Korean display manufacturers are speculated to make investments in micro LED and OLED displays. In order to dominate the extended reality (XR) device market.
On the other hand, Samsung Display is ready to bring in equipment. In order to produce micro OLED prototypes at the A2 Line in Asan, South Chungcheong Province in Korea. Talking about LG Display, then this also recently secured technological prowess. It achieved a 3,500 pixels per inch (PPI) resolution in a 0.42-inch OLED (micro OLED).