According to Korean media reports on April 7, LG Display (LGD) saw its overseas factories' net profit fall more than 30% year-over-year in 2025. The main reason was the company's ongoing restructuring, moving away from LCD toward OLED panels.
Public disclosure data released on April 7 showed that LGD's 16 overseas factories together made a net profit of 5.83 trillion Korean won last year - a sharp drop of 34.4% from the previous year. Out of these, 11 factories reported lower profits, with the seven factories in China hit especially hard.
The biggest decline came from the Guangzhou OLED factory (LGD High-Tech), which is LGD's key base for its OLED push. It posted a net profit of 2.361 trillion won, down 45.4% from the year before. This factory had expanded capacity by 50% back in 2021 to ramp up shipments, but slow TV demand recovery, falling panel prices, and higher costs caused profits to plunge at one point by as much as 87.8%.
Other Chinese factories in Nanjing, Shenzhen, Yantai, and Suzhou also saw profits shrink while shifting from LCD to OLED production.
In February this year, LGD announced it would sell the car LCD module business at its Nanjing factory to a local company called Toprun Total Solution for about 491.5 million RMB, with the deal expected to close on July 30. This is the second time LGD has sold off LCD assets in China - the first was the 8.5-generation LCD plant in Guangzhou to TCL's CSOT last year.
Industry sources say LGD has been selling factories and restructuring toward OLED in China because of intense low-price competition from local players. This transition has led to big drops in both revenue and profit for the Chinese operations.
LGD's Japan factory also suffered from weak IT panel demand and fewer customer orders, with net profit falling to just 11 billion won - down 54.2%.
The Germany factory was hit by sluggish European economy and weak upstream demand, seeing B2B panel sales drop and net profit slip 25.7% to 26 billion won.
In contrast, the Vietnam Haiphong factory performed strongly, earning 2.987 trillion won in net profit - up 19.2% from last year. People in the industry credit its improved production efficiency and cost competitiveness. As a key site for small-to-medium OLED and core panels, it maintained stable utilization rates and became a bright spot.
The Taiwan factory also did well, with net profit rising sharply by 78.6% to 50 billion won.
Overall, LGD has been pushing hard to improve its structure. The proportion of OLED revenue jumped from 40% in 2022 to 61% last year. Although the company accumulated huge operating losses of about 50 trillion won between 2022 and 2024, it finally turned things around in 2025 with an operating profit of 5.17 trillion won.
