Lee pointed out that if LGD implements China's investment plan as scheduled, it may be very difficult for LGD to return to profit next year. He estimates that LGD's 2nd quarter loss will reach 250 billion won, and the estimated annual full-year profit loss will be 710 billion won.
Business Korea reported on June 22 that due to the oversupply of LCD panels in China, the LGD Paju Plant, Gumi Plant is expected to lay off employees significantly in the second half of the year. The total number of LGD employees in South Korea is currently 33,000, which is higher than the 23,000 people in Samsung Display.
The report pointed out that LGD’s fear of losses this year will be as high as 1 trillion won (equivalent to US$900 million). Last year's BOE exceeded LGD’s BOE by accumulating 1.4 trillion won (equivalent to US$1.26 billion) from the Chinese government. Subsidy, operating profit has always been positive in 2011.
TCL Group (000100) announced on May 22 that it plans to spend RMB 42.683 billion in Shenzhen, China to build the 11th generation of 8K (65吋, 70吋, 75吋) and OLED (65吋, 75吋) display device production lines.
LG Display ADR (LPL. US) fell 4.72% to close at 8.48 US dollars on June 21, a record low since October 7, 2011; it has fallen by 38.37% so far this year.
As of 1:41 p.m. on June 22, LGD (034220.KS) fell 1.06% to 18,750 KRW; the lowest so far has dropped to 18,550 KRW, the lowest level since October 5, 2011.