On November 7th, the South Korean media "Daily News" published an article stating that with the designation of monitors as "national cutting-edge strategic technologies" under the "Special Measures Law on Strengthening and Protecting the Competitiveness of National Cutting Edge Strategic Industries", the South Korean monitor industry, which has declined in status due to China's pursuit, is expected to rebound.

According to industry insiders on the 7th, the South Korean High tech Strategy Industry Committee recently listed 15 national high-tech strategic technology fields in three industries, including semiconductors, rechargeable batteries, and displays, as national cutting-edge strategic technologies.

The National Advanced Strategic Industries Act, passed by the South Korean parliament earlier this year, originally did not include displays, but as competitiveness weakens, there is an urgent need for support from the South Korean government.

In fact, Samsung monitors and LG monitors are in China.

Under the attack of price oriented LCD products, competitiveness has deteriorated and performance has also been hit.

Based on sales revenue, China has a market share of 41.5% in the world monitor market, ranking first. South Korea only accounted for 33.2%, falling to second place. It has been 17 years since South Korea surpassed Japan to top the list in 2004. It is predicted that China's market share will reach 43% this year, ranking first in the world for two consecutive years.

In response to this, Samsung Display completed the withdrawal of its LCD business in the first half of this year, and LG Display has also accelerated its exit strategy for LCD used in television, committed to ensuring new generation technologies such as OLED.

But China has also accelerated its investment in OLED and quickly caught up with South Korea once again. According to data from market research firm Omdia, the proportion of flexible OLED shipments for Samsung monitors used in smartphones last year was 62.5%, a decrease of 9.5 percentage points from the previous year. It is expected to further decrease to 61.1% this year. In this market, China's largest panel company, BOE, surpasses LG Display and ranks second.

With the formation of a sense of crisis in the display industry, Li Dongxu, Vice President of the Korea Display Industry Association, stated at the "Display Development Strategy Agreement Conference" held in April this year that "in the fierce pursuit of competing countries, Korean companies with the world's highest technological capabilities can expand the gap with competing countries by commercializing leading technologies." To stimulate private sector investment, it is necessary to expand tax support, and to cultivate senior talents for research and development.

LG Display President Zheng Haoyong, who serves as the President of the Korean Display Association, also stated at the "13th Display Day" event held in September this year, "As major overseas competitors accelerate their pace through active national support, the Korean display industry is facing greater challenges than ever before. In this situation, it is important to expand the gap with developing countries through technological innovation."

In response to this, Zhang Yingzhen, Deputy Minister of Industry, Commerce, and Resources of South Korea, said, "There are difficulties in the display industry. The Ministry of Industry will also continue to develop improvement plans to avoid companies falling into difficulties due to restrictions."

In this national cutting-edge strategic technology, new generation panel technologies such as OLED, QD, and Micro LED have been selected. The committee stated, "We plan to designate and disclose specific levels of technical details after soliciting opinions from experts and industry."

With the selection of cutting-edge strategic technology fields in the country, it provides an opportunity to comprehensively promote support policies for cutting-edge strategic industries such as site selection, human resources, technology development, finance, and relaxation of restrictions, represented by special parks and specialized graduate schools.

However, in order to enjoy tax benefits, approval from the competent department of national strategic technology, the Ministry of Planning and Finance, as stipulated in the Tax Exception Restriction Law, is required. The display industry hopes that this national cutting-edge strategic technology will serve as an opportunity for the implementation of the revised tax special execution order by the Ministry of Finance.

Industry insiders say, "After 17 years of being taken away from LCDs, the South Korean display industry has also been threatened by OLEDs. This designation as a national cutting-edge strategic technology is commendable, but in order to provide substantial assistance, displays should be included in the tax exception law."

Source: Network