Seoul Semiconductor's 51st Business Restructuring Plan Approved with Support from Main Business Association

The Main Business Association (Korea Management Innovation Association for SMEs) announced on the 18th that Seoul Semiconductor's 51st business restructuring plan was finally approved by the Industrial Policy Review Committee of the Ministry of Trade, Industry and Energy on the 15th.

Established in 1992, Seoul Semiconductor is a mid-sized company that manufactures LED packages across various fields, including lighting, automotive, and IT. In particular, leveraging its proprietary wire-free package technology called "WICOP," the company has become a global leader in the optoelectronics sector, ranking third worldwide with a market share of approximately 4.8%.

Despite such outstanding technological capabilities, the main reasons behind Seoul Semiconductor's business restructuring have been the recent decline in LED package prices in the global market, which has reduced profitability, and the overall slowdown in industry growth.

Seoul Semiconductor plans to break away from its traditional LED package-centered business structure by accelerating the development of "micro LED modules for AR glasses" that incorporate its core WICOP technology. Through this, the company aims to secure a unique competitive edge in the next-generation global display market.

Scene from the business restructuring briefing held on the 18th of last month. MainBiz Association

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The business restructuring support program is a system that assists companies with proactive restructuring under the "Special Act on Corporate Vitalization," aiming to boost corporate vitality and enhance industrial competitiveness.

Approved companies will receive various incentives, including regulatory exemptions, tax benefits, and financial support, for up to five years. This will provide opportunities to enter new businesses and expand employment.

Since last year, the association has been serving as an official partner organization for the business restructuring support program, assisting with the identification of participating companies and the application process for restructuring plans. In addition, the association provides guidance on key aspects of the program, ways to utilize incentives, and participation requirements through briefing sessions and related events.

Companies wishing to participate in the review of the 52nd business restructuring plan for the second quarter of this year must submit the required documents to the association by the 27th. For more detailed information, inquiries can be directed to the association's Policy Business Team.

Cha Youngtae, Executive Director of the Main Business Association, stated, "It is highly significant that Seoul Semiconductor has taken its first step into the high value-added micro LED industry amid intensifying competition in the global LED market," adding, "The association will continue to support capable companies so that they can proactively improve their structure and enter future industries through the business restructuring system."

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