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LG Display President Jeong Cheoldong Faces Test of ‘OLED Transformation’ in 2nd Half

곽호룡 기자

horr@fntimes.com

기사입력 : 2025-06-10 10:20

◇ Surprise IT Panel Demand in Q1
◇ ‘iPhone 17 Launch’ Spurs Expectation for KRW 500 Billion Operating Profit in Q4

CEO and President, LG Display Jeong Cheoldong

CEO and President, LG Display Jeong Cheoldong

[Korea Financial Times, Gwak Horyung] The success or failure of LG Display’s first profit turnaround in four years hinges on the performance of small- and medium-sized OLEDs for products like the iPhone 17 in the second half of the year.

In the first quarter of this year, LG Display posted revenues of KRW 6.065 trillion and operating profit of KRW 33 billion. Compared to the same period last year, revenue increased by 15% and the company returned to profitability. However, compared to the previous quarter (Q4 2024), revenue and operating profit declined by 23% and 60%, respectively.

LG Display emphasized the significance of achieving a profit despite sunk costs from legacy LCD facilities and seasonal off-peak demand. In fact, EBITDA in Q1 stood at KRW 1.231 trillion, similar to Q4 2024, and annual cash flow continues to improve. Last year, EBITDA was KRW 4.7 trillion, up 153% from KRW 1.85 trillion the previous year.

Nevertheless, most analysts believe it is too early to say the company has fully rebounded.

The revenue share of IT panels (for monitors, laptops, and tablets) surged from 28% in Q4 2024 to 35% in Q1 2025, a 7 percentage point jump in just three months. TV panel share remained at 22%, mobile panels dropped from 42% to 34%, and automotive panels increased from 8% to 9%.

Industry insiders attribute the spike in IT panel demand to inventory buildup in anticipation of U.S. tariff policy changes, suggesting the effect may be temporary. As this one-off demand wanes, Q2 results may weaken.

In April, LG Display sold its Guangzhou LCD plant in China to CSOT, a display affiliate of TCL. This marked the company’s complete exit from the LCD TV panel business.

LG Display President Jeong Cheoldong Faces Test of ‘OLED Transformation’ in 2nd Half이미지 확대보기
LG Display President Jeong Cheoldong Faces Test of ‘OLED Transformation’ in 2nd Half이미지 확대보기

The results of LG Display’s transition from LCD to OLED will become evident starting in the second half of this year. During the Q1 earnings announcement in April, the company stated, “Revenue may decrease from Q2 as LCD TV panel sales are excluded, but this is a strategic choice to focus on advancing an OLED-centric business structure.”

Expectations are especially high for Apple’s iPhone 17, to be unveiled this fall. Apple plans to equip all iPhone 17 models with large OLED panels, specifically adopting LTPO (Low-Temperature Polycrystalline Oxide) technology that supports a 120Hz variable refresh rate. While Chinese manufacturers are catching up in domestic markets, they reportedly still fall short of Apple’s quality standards.

Based on these factors, securities firms project LG Display will achieve operating profit of KRW 470 billion to KRW 500 billion in Q4.

This would not only fulfill CEO and President, LG Display Jeong Cheoldong’s goal of an ‘annual turnaround’ but also mark a successful normalization of management.

Jeong, an engineer by background, became CEO of LG Display in March last year. He previously served as Chief Production Officer (CPO) during LG Display’s close collaboration with Apple from 2013 to 2016, before moving to other LG affiliates such as LG Chem and LG Innotek. He returned to LG Display after seven years, credited for boosting performance at LG Innotek.

Gwak Horyung (horr@fntimes.com)

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