LG Display Set to Reach KRW 1 Trillion Operating Profit Next Year

[Korea Financial Times, Gwak Horyung] LG Display, led by President Jeong Cheol-dong, is on the verge of turning to annual profitability for the first time in four years. This comes as efforts to advance the OLED-centered business structure and strengthen partnerships with the largest strategic customer (Apple) are translating into concrete results.

LG Display recorded cumulative revenue of KRW 18.6092 trillion and operating profit of KRW 348.5 billion through Q3 this year. With operating profit of KRW 431 billion in Q3 alone, the likelihood of profitability turnaround for the first time in four years is high. Kim Sung-hyun, LG Display CFO and Executive Vice President, evaluated Q3 results, saying "OLED-centered business structure advancement and high-intensity cost innovation activities have been realized in management performance."

The performance rebound is due to the beyond-expectations success of the Apple iPhone 16 series, to which LG Display supplies LED panels. LG Display's mobile display panel sales proportion was 37% in Q3 this year, up 11 percentage points from the previous quarter and 3 percentage points year-over-year.
The performance improvement effect from strong iPhone sales is forecast to continue beyond Q4. The company's Q4 operating profit forecast is KRW 420-430 billion, similar to Q3. However, there is a possibility that operating profit may fall below KRW 400 billion due to additional voluntary retirement conducted at the end of October. Voluntary retirement-related costs were KRW 40 billion in Q3, but are expected to be larger in Q4.


Despite concerns about sluggish downstream industry demand next year, expectations are high that LG Display will generate steady profitability of over KRW 1 trillion annually centered on OLED. LG Display operating profit forecasts compiled by FnGuide are KRW 1.31 trillion for 2026 and KRW 1.41 trillion for 2027.

These achievements were also reflected in recently announced personnel appointments. The company promoted a total of 13 people in the 2026 regular executive appointments. The promotion scale increased 30% compared to previous years. By division, the SC (Strategic Customer) Business Division produced the most promotions with four people. The SC Business Division is a place newly established by President Jeong Cheol-dong immediately after taking office, separating it from the existing Small and Medium Business Division. It is understood as an organization strengthened to effectively manage Apple, effectively the largest strategic customer.

Along with this, the company solidified its will to secure next-generation technology by promoting Choi Young-seok, Head of Production Technology Center and Executive Director, to Chief Technology Officer (CTO) and Executive Vice President. President Jeong said at a town hall meeting last month, "Q (quality), D (supply stability), and R (customer partnership) are basic, and we must secure overwhelming competitiveness in T (technology leadership) and C (profitability)." Particularly, he emphasized, "We must become technology No. 1 that dominates the market and generates profits," and "Don't stay with today's achievements but fiercely run twice as fast as others."

Gwak Horyung (horr@fntimes.com)