Korean Media: Large-Screen Displays — China Captures 65% of Global Market Share, South Korea’s Share Plummets!
On September 12, South Korean media outlet *Herald Economy* published an article stating that Chinese display manufacturers are rapidly expanding their influence. Supported by China’s vast domestic demand market, companies are gradually securing market leadership by increasing production capacity and focusing on standardized products. Meanwhile, South Korean firms are shifting their business focus toward high-value-added sectors such as premium OLED TVs as a strategic response.
Data from market research firm Omdia shows that China's share in the global large-display market—including both LCD and OLED—rose sharply from 43.5% in 2020 to 65.0% last year, with projections indicating it will reach 67.3% this year. In contrast, South Korea’s share declined from 20.4% to 11.2% during the same period, and is expected to fall further to 11.0% this year. Due to aggressive low-price product strategies by Chinese firms, panel prices have dropped, resulting in South Korea losing complete control over the LCD segment to China.
South Korean companies like LG Display believe it is difficult to compete with China using identical product lines, so they are actively pursuing differentiation strategies. The most representative example within the South Korean display industry is its strategic shift centered on OLED technology. For the LCD sector, the ongoing trend toward product standardization could lead to increased output, intensifying price competition with latecomers like China. In contrast, competitiveness in the OLED sector hinges on technological prowess, production yield rates, and the ability to secure customer resources. Omdia forecasts that South Korea’s market share in the global OLED market will rise from 66.4% in 2024 to 71.0% this year, while China’s share is expected to decline from 32.2% during the same period to 28.8% this year.
China’s industrial expansion strategy has followed a similar pattern across multiple sectors, including semiconductors, displays, and home appliances. This strategy involves leveraging the domestic market to boost production capacity, establish cost competitiveness, and ultimately expand into global markets. Analysts point out that in the realm of standardized products, South Korean firms face significant challenges competing directly with China. Their survival strategy ultimately depends on achieving technological differentiation. Rather than following China’s massive production competition, they should focus on high-technology barriers to narrow the gap.
A South Korean industry insider stated: “When Chinese firms launch fierce attacks, the only way for South Korea’s display industry to survive lies in relying on ‘ultra-gap technologies’ that China cannot catch up with in the short term.”
Original Source: toutiao.com/article/1876109219883147/
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