In a CEO roundtable hosted by the Korea Display Industry Association (KDIA) on November 2, business leaders in the Korean display industry signed a memorandum of understanding (MOU) to join hands in developing equipment to manufacture AMOLED, next-generation display. Korean firms have so far imported all of necessary AMOLED equipment from Japan. They also unveiled a plan to pour a minimum of 8.2 trillion won next year and a total of 28.5 trillion won over the next four years (2010-2013) for facility investment.

The roundtable was attended by Korean Minister of Knowledge Economy Choi Kyeong-hwan, CEO of LG Display Kwon Young-soo (also Chairman of KDIA), President of Samsung Electronics Jang Won-gi, and CEO of Samsung Mobile Display (SMD) Kang Ho-moon to discuss key issues of the display industry. Other participants included CEOs of equipment manufacturers, such as SFA, DMS, Jusung Engineering, KCTech, SNU Precision and YAS, and heads of material companies like Kolon and Dongjin Semichem.

The plans disclosed at the meeting involved new construction of 8G LCD production lines, fresh investment in high-end 11G LCD lines, and preemptive investment in AMOLED panels and OLED lighting to help Korean display firms obtain a top position in the next-generation display sector as well.

The companies also said that they will focus on developing ultra high-definition, three-dimensional (3D), mega-size LCD panels and high value-added innovative products, determined to take the lead in technology development in the global market.

Concerning Korean LCD panel makers’ China-bound investment plan, Minister Choi, although admitting the necessity for investment in China for securing a favorable position in the vast Chinese TV market, expressed concerns about excessive supply, discouraging domestic investment and a leakage of Korea’s core technology. He said that the nation’s committee for industrial technology protection will decide whether to give the green light to investment in China after preparing measures to easy such concerns, including expansion of domestic investment, protection of Korea’s key technology and securing opportunities for equipment and material companies to enter the industry.

The Minister of Knowledge Economy, SMD, LG Display and equipment makers decided to sign a MOU for joint-development of large-size AMOLED vapor deposition equipment and to support small-and mid-size equipment manufacturers in securing technology.

The signing of the MOU came as a countermeasure against Japan’s project for joint development of OLED technology. Under the MOU, SMD, LG Display and small-and mid-sized equipment makers, in the form of co-development, will mass produce vapor deposition equipment, key equipment for AMOLED panel production. The MOU was signed by Minister Choi, SMD CEO Kang Ho-moon, LG Display CEO Kwon Young-soo, SFA Vice Chairman Shin Eun-sun, YAS CEO Jeong Gwang-ho, etc.

If the project is successfully completed, AMOLED vapor deposition equipment will be able to be produced by Korea’s own technology, saving 320 billion won spent for importing the equipment.

The project is also expected to help Korea not only reduce its heavy reliance on imports for key equipment of next-generation display but also foster Korean equipment manufacturers as leading exporters.