Vect Signs Exclusive Domestic Supply Deal for Skyworth LED... "Accelerating Entry into Next-Generation Display Market"

On the 19th, Sichuan Shenzhen Skyworth Executive Vice President (left) and Yoo Changsoo, CEO of Vect, took a photo after signing a contract at Skyworth headquarters in Shenzhen, China. Photo by Skyworth

KOSDAQ-listed Vect is joining forces with Skyworth, a global electronics company based in China, to target the domestic commercial LED display market.

On May 20, Vect announced that it had signed an exclusive domestic distribution agreement with Skyworth Technology Commercial Co., Ltd. in Shenzhen, China, for Skyworth-branded LED display products.

Through this agreement, Vect has secured exclusive sales rights in Korea for Skyworth-branded commercial LED display modules and integrated (All-in-One) finished products. The company plans to combine Skyworth's product competitiveness with its own nationwide sales, installation, and maintenance infrastructure to accelerate expansion into the next-generation commercial LED display market.

Skyworth is a display business affiliate of Skyworth Group, a global electronics conglomerate operating in over 120 countries. The parent company, Skyworth Group, recorded consolidated sales of 70.3 billion yuan (approximately 15.6 trillion won) last year. The Smart System Technology division, which includes commercial display operations, posted sales of 8.6 billion yuan (about 2 trillion won).

Recently, the commercial LED display market has seen rapid trends toward larger sizes, higher resolutions, and a shift to COB (Chip on Board) technology. Industry experts note that price competitiveness and stable supply capabilities have emerged as key factors, and Skyworth is recognized for its competitiveness based on a vertically integrated production system and proprietary control technology.

Notably, Skyworth also holds a next-generation product lineup based on COB and Micro LED technologies, and is expanding its market share globally while competing with Samsung Electronics, LG Electronics, and Leyard.

With this agreement, Vect plans to expand its business around two pillars: the LED module business and the finished LED product business. LED modules will be supplied primarily to domestic electronic display manufacturers, public procurement entities, and large construction projects. Through these efforts, the company aims to strengthen its position as a core component supplier rather than just an installation contractor.

In the finished LED product market, Vect is focusing on the growing demand for 135- to 162-inch integrated LED displays. As these products rapidly replace traditional beam projectors and LCD video walls, the company expects to leverage its existing distribution network to generate not only product sales but also revenue from installation and maintenance (customer service).

Market growth prospects are also positive. According to market research firm IndexBox, the domestic commercial LED display market is expected to grow from between 680 billion and 780 billion won in 2026 to between 1.4 trillion and 1.8 trillion won by 2035. The average annual growth rate is projected at 8 to 10 percent.

Vect also plans to file domestic patent applications utilizing Skyworth technology and to register related products for public procurement electronic signage and as innovative products. Through these efforts, the company aims to establish a foundation for internalizing premium product lineups.

A company representative stated, "This agreement goes beyond simply securing sales rights, as it is expected to simultaneously deliver three strategic benefits: strengthening manufacturing cost competitiveness, expanding high-end product lines, and increasing maintenance revenue. It will become a key driver for operating profit growth after 2026."

The representative added, "We expect revenue from the exclusive sales of Skyworth-branded products to exceed 20 billion won in 2027. Given the expected sales in 2025, this contract is significant as it will change the company's mid- to long-term revenue structure."

Another official said, "Skyworth has established global competitiveness in the COB and Micro LED sectors. By combining this with Vect's nationwide after-sales service network, we will address concerns over service reliability for foreign brands and work to expand our market share in Korea."

Previously, Vect had secured priority cooperation and negotiation rights regarding exclusive supply through a memorandum of understanding (MOU) with Skyworth, and subsequently concluded this formal agreement after detailed discussions.

The two companies plan to hold an official domestic launch event between June and July, and are considering further collaboration in additional business sectors going forward.

This agreement is seen as a turning point for Vect, strengthening both its product competitiveness and service capabilities in the next-generation commercial LED market through cooperation with a global display company.

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