Display Sub-materials and Components Exports Halved... "Need to Upgrade Export Items"

Display Export Expansion Support Policy Seminar

From January to April this year, the export of display materials, parts, and equipment (SoBuJang) by our companies has been halved compared to last year. This is due to a sharp decline in exports to China. There is a need to advance export items and expand the export market base.

On the 13th, the Korea Display Industry Association held a Display Export Expansion Support Policy Seminar to introduce export support policies aimed at strengthening the global advancement capabilities of small and medium-sized enterprises (SMEs) and mid-sized companies in the display SoBuJang sector and expanding exports.

From January to April this year, exports of display SoBuJang decreased. Equipment exports recorded $280 million, down 54.4% compared to the same period last year. Exports of five specialized materials and parts items for displays amounted to $720 million until April this year, a 46.2% decrease. This significant decline in SoBuJang exports is due to global display companies reducing new investments and production volumes.

In particular, exports to China, which account for 40% of total display equipment exports, amounted to only $110 million as of the cumulative total in April, down 80%. This is because Chinese equipment companies have expanded the market mainly for LCD equipment with low entry barriers, and the Chinese government's localization promotion policies have intensified competition for orders with domestic companies.

For our companies to expand exports to China, it is necessary to quickly shift the trade structure from the red ocean LCD market to the high value-added OLED market and also consider expanding the export base to countries such as India and Vietnam. Accordingly, the export expansion policy seminar included explanations of various export support policies available to display SMEs and mid-sized companies, such as preferential export financing and overseas expansion support in the OLED sector.

Lee Dong-wook, Vice Chairman of the Association, said, “While expanding exports through the companies’ own capabilities is important, it is necessary to actively utilize government support policies such as export financing and overseas expansion.” He added, “As global IT companies are considering India, Vietnam, and other new markets to replace China, strategic entry by our SoBuJang companies should also be actively reviewed.”

Meanwhile, the Association is preparing a China trade consultation meeting in August, a dispatch of an export delegation to India in September, and a Korea-Japan trade consultation meeting in December to support the expansion of exports and entry into new markets for SoBuJang companies.

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