"Work That Took a Month Now Done in Just 8 Hours"…Samsung and LG Turn to AI to Counter China's Pursuit

Korea Display Industry Association Hosts Policy Forum
Samsung and LG Display Request Policy Support for Technological Superiority
Calls for Policy Backing for AX Manufacturing Innovation and Direct Refund System

The two leading domestic display companies expressed their commitment to AI-based manufacturing innovation in response to the technological pursuit from China, while also calling for policy support in the areas of taxation, infrastructure, and institutional improvement. They suggested that as displays are now emerging as a national security asset, institutional support from the government and legislature has become essential.

Cheol Hur, Vice President of Samsung Display, stated at the policy forum titled "Display as Industrial Security, Leading the Super Gap with AI," hosted by the Korea Display Industry Association at the National Assembly Members' Office Building in Yeouido, Seoul, on the 1st, "Displays have evolved beyond simple product competitiveness and have become a core strategic asset that determines leadership in the electronics industry and national security." He added, "Samsung Display is maximizing productivity and drastically reducing defect rates by leveraging AI for material design and strengthening AI-based inspection."

Vice President Cheol Hur of Samsung Display is giving a presentation at a policy forum hosted by the Korea Display Industry Association held at the National Assembly Members' Office Building in Yeouido, Seoul, on the 1st. Photo by Jin-young Kim

The forum was held as part of efforts to seek ways to maintain Korea's super gap leadership, following recent developments such as the U.S. government including Chinese display companies on its military company (1260H) list, further elevating displays as a national security asset. Corporate representatives who participated as panelists stressed that, to counter China’s rapid catch-up, their companies are fully committed to enterprise-wide AI transformation (AX) and next-generation technology development, and they strongly urged the government and the National Assembly to provide bold and decisive institutional support.

Vice President Hur introduced three recommendations to maintain the technology gap, saying, "In order to seize next-generation market leadership, we made a large-scale investment of over 4 trillion won in the 8.6 generation OLED line for IT, successfully initiating mass production this July."

He emphasized, "The current carryforward period for tax credits related to national strategic technologies is 10 years, but we request that it be extended to 20 years and operated stably without a sunset provision. Please also include all costs invested in research and development (R&D) as eligible for deductions, so that companies can continue long-term technology development and facility investment."

Regarding investment infrastructure, he added, "In order for advanced factories to operate as planned, not only must permits be processed quickly, but also essential infrastructure—such as electricity, water supply, and roads—must be provided on time. We also ask for proactive support to expand competitive renewable energy power purchase agreements (PPAs) to meet global clients’ RE100 requirements." In addition, he requested an expansion of national project support to strengthen mutually beneficial models with small and medium-sized enterprises as well as research institutes.

Lee Hangoo, Group Leader of LG Display, is giving a presentation at the policy forum hosted by the Korea Display Industry Association on the 1st at the National Assembly Members' Hall in Yeouido, Seoul. Photo by Kim Jinyoung

Hangoo Lee, Group Leader of LG Display, identified "overwhelming and differentiated technology" as the key solution to outpace China, and cited LG Display's tandem OLED technology as a representative example.

He explained, "We possess tandem OLED technology, which stacks two or more organic emission layers to more than double the luminance (brightness), increase lifespan by four times, and reduce power consumption by 50%. By introducing AI to the development domain, the time required for frame design on edge areas has been reduced from about a month to just eight hours."

As tangible policy support that companies can truly feel in the field, he recommended the introduction of a "direct refund system" and improvement of the "local preferential index." Lee elaborated, "Due to the nature of the capital goods industry, large costs in the year of investment often result in a deficit, and thus no corporate tax is paid, while refunds are delayed until profits are made in later years. We ask that a direct refund system be introduced so that refunds are paid in cash in the very year the investment is made."

Regarding the 'local preferential index' currently being promoted by the government, he pointed out, "While the intention to provide greater financial support to regions physically distant from Seoul is good, border areas near North Korea, such as Paju and Yeoncheon, may not be far in physical distance but certainly experience greater isolation and emotional distance." He continued, "Please take into careful consideration the special characteristics of these border regions when designing the local preferential index and regional electricity pricing schemes."

Members of the National Assembly and government officials present at the forum pledged active support for the industry's requests. Park Jung, lawmaker of the Democratic Party of Korea, said, "It is urgent to improve cost competitiveness by revolutionizing manufacturing processes and yields through the integration of AI. The National Assembly will also take the lead in providing legislative and policy support to ensure that K-Display can maintain its super gap in global competitiveness."

Guests and panelists at the policy forum titled "Display as Industrial Security, Leading the Super Gap with AI," hosted by the Korea Display Industry Association on the 1st at the National Assembly Members' Office Building in Yeouido, Seoul, are taking a commemorative photo. Korea Display Industry Association

This content was produced with the assistance of AI translation services.