[Alpha Biz=(Chicago) Reporter Kim Jisun] LG Display, which is suffering from a deficit due to the global economic downturn, has started to secure liquidity by borrowing 1 trillion won from LG Electronics.

LG Display announced on the 27th that it will borrow 1 trillion won from LG Electronics for a long time. The borrowing period is three years from the 30th. With an interest rate of 6.06%, it is a two-year grace period and a one-year installment repayment condition.

Such a large-scale fund transfusion is interpreted as a self-rescue measure for survival amid the continued deficit. LG Display, which experienced a COVID-19 boom, was directly hit by the global economic downturn last year. 

 

This is due to a sharp drop in demand for OLED (Organic Light Emitting Diode) panels, which are major products, due to the accumulation of inventory of electronics such as TVs. In fact, LG Display turned to a deficit of 488.3 billion won in the second quarter of last year and lost 759.3 billion won in the third quarter. Stock industry sources predict that LG Display will post a deficit of around KRW 1 trillion in the first quarter of this year.

LG Display said it will preemptively secure operating funds and strengthen its competitiveness in the OLED business through this borrowing.

LG Display plans to actively participate in the electronics business.

 

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