South Korea's Ministry of Trade, Industry and Energy (MTIE) announced a 38.7 billion won (about $26.5 million) grant package to support the development of the country's display industry, aiming to enhance South Korea's competitiveness in the OLED and MicroLED display industries, OLED-info reported.
First, the dimension of technological competition
1 Dealing with Chinese competition
In recent years, China's display industry has developed rapidly, and technological breakthroughs and capacity expansion have been made in the field of OLED and MicroLED. As a global leader in display technology, South Korea is facing increasing competitive pressure from China. Through government funding, South Korea hopes to maintain its leading position in core display technologies, especially in the research and development of high-end OLED and MicroLED technologies, and further widen the technology gap with China.
2 Consolidate global technological advantages
South Korea has made significant achievements in the OLED space, with companies such as Samsung and LG gaining an advantage in technology and market share. However, with the rise of the display industry in other countries and regions around the world, South Korea needs to continue to invest in R&D resources to consolidate its leading position in the global display technology field. The funding program will help Korean companies develop next-generation display technologies, such as new OLED technology, AR/VR display technology, etc., to maintain a dominant position in the global display technology competition.
Second, the market demand dimension
1 Laptop market penetration
According to a report by TrendForce, the penetration rate of OLED displays in laptops is expected to reach 3% in 2024, and this growth is mainly driven by large-scale purchases by Chinese notebook brands. However, growth in 2025 is expected to be more modest, but Apple expects to introduce OLED displays in its MacBook lineup, which will be a significant turning point. This move is expected to activate panel manufacturers' high-generation OLED production lines, driving OLED notebook penetration to exceed 5% by 2027. The South Korean government's funding program will help Korean companies seize this market opportunity and increase their share of the laptop market.
2 Expansion of emerging application scenarios
As the next generation of display technology, microLED technology has many advantages, such as high brightness, low power consumption, and long life. With the rapid development of emerging application scenarios such as AR/VR, smart watches, and automotive displays, the market demand for MicroLED technology is growing. The Korean government's funding program will support Korean companies to develop microLED technology for these emerging application scenarios, thereby expanding their presence in emerging markets.
Figure: South Korea allocates $26.5 million to strengthen the OLED and MicroLED industries (Source: Trendforce)
Third, Industrial ecological dimension
1 Support the development of small and medium-sized enterprises
The Korean government's funding program will cover small and medium-sized enterprises, large corporations, universities and research institutes, among others. Small and medium-sized enterprises play an important role in display technology innovation and industrial development, but they often face problems such as insufficient funds. Through government funding, SMEs will gain access to more R&D resources to promote their technological innovation and product development in the field of OLED and MicroLED, further enriching the ecosystem of the Korean display industry.
2 Promote industry-university-research cooperation
The funding program will promote cooperation between Korean companies and universities and research institutes. Universities and research institutes have advantages in basic research and cutting-edge technology research and development, while enterprises have experience in industrial application and market promotion. Through industry-university-research cooperation, South Korea will be able to better integrate the resources of all parties, accelerate the R&D and industrialization of OLED and MicroLED technologies, and enhance the competitiveness of the entire industry.
Fourth, the policy and strategic dimension
1 Considerations at the national strategic level
The display industry is one of the important strategic industries in South Korea and is of great significance to South Korea's economic development and international competitiveness. Through the funding program, the Korean government can not only enhance the competitiveness of the display industry, but also promote the development of related industries, such as semiconductors, materials, equipment, etc., thereby enhancing the competitiveness of the Korean industry as a whole. In addition, the development of the display industry will create a large number of jobs and promote the sustainable development of the Korean economy.
2 Reduce dependence on foreign countries
The South Korean government's funding program also aims to reduce the Korean display industry's dependence on foreign technology. By increasing investment in domestic R&D, South Korea hopes to achieve independent and controllable display technology and reduce its dependence on foreign technology giants, such as in the field of XR (extended reality), the South Korean government has allocated an additional $2 million for related R&D to develop domestic XR equipment and spatial computing technology.
Conclusion
The South Korean government's funding plan is an important measure to respond to global display technology competition, expand market demand, improve the industrial ecology, and implement the national strategy. Through continuous technological innovation and industrial upgrading, South Korea is expected to continue to maintain its leading position in the OLED and MicroLED fields, further enhancing its competitiveness in the global display industry.
