Korean media: South Korea is about to lose more than 30% of its market share!
On October 23, the Korean media outlet JoongAng Daily published an article stating that as China accelerates its growth in the global display market, South Korea's position is weakening. Some people believe that the South Korean government should support the display industry to prevent its global leading position in organic light-emitting diode (OLED) from being eroded.
In recent days, the atmosphere at South Korea's "Display Day" was more one of concern than celebration. Display Day was established in 2006 to commemorate the year when the export value of display panels exceeded $10 billion. After nearly 20 years, South Korea currently exports $18.7 billion worth of display panels annually, but its dominant market position is declining.
According to Omdia, in the first quarter of this year, China accounted for 54.6% of the global display market, ranking first; South Korea ranked second with 30.6%. A South Korean display industry insider said, "Once the world leader, South Korea is now facing a crisis of its market share falling below 30%. We are helplessly handing over our market share to rapidly developing China."
LG Display recorded a 2% operating loss in the second quarter, while China's BOE achieved a 4% operating profit, and Tianma also reached 2%. Particularly noteworthy is that BOE was the first to turn a profit during the prolonged downturn in the display market from 2022 to last year, and has maintained profitability for nine consecutive quarters up to now.
Omdia stated, "Even during periods of oversupply, Chinese companies have maintained supply prices, which helped them quickly restore profitability. This directly drove investment in next-generation technologies, which have become a greater threat to South Korea."
BOE recently announced at the Global Innovation Partners Conference that it has invested 40 billion yuan in R&D over the past three years, and will add another 50 billion yuan in R&D investments over the next three years.
The effects of increased R&D investment by China are evident in its OLED competitiveness. According to Omdia, by 2030, China's share of global OLED supply capacity is expected to rise from 30% this year to 42%, while South Korea's share is expected to decline from 69% to 58% during the same period. Notably, by 2027, China is likely to surpass South Korea in mobile PC OLED production capacity, taking the top spot globally.
To respond to the impact of China's display industry, South Korea also needs government policy support. Recently, the South Korean Display Industry Association held a policy debate in the National Assembly, discussing measures to enhance the competitiveness of the display industry. Specifically, the most common consensus was the need to improve tax exemption systems.
Original: www.toutiao.com/article/1846776177710156/
Statement: The article represents the views of the author.