"LG Display will cooperate with Samsung"

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Summary

LG Display will purchase the Samsung Electroic's LCD Panel each otehr until 2nd quater this year. Its president Kwon said that the debate about the collaboration will be finished appoximately 90%. Two companies have bought the panel their own company doesn't produce from a foreign company.

Moreover, LG Display will continue the next generation investment steadily and will produce in other country, for example China, in connect with overseas firms. In addition, he presented about the the walk of AM OLED(An active-matrix OLED) actively.

He met the President of DELL and discussed a lack of the supply of LCD Panel. Besides, he won't respond to Sony's strategy of a price discount.

And today(4/11) LG Display released the achievements that the sales figure of the first quater is 4trillion 36billion won and the operating profit of this period is 881billion won.

Opinion

The Korean government forces the two large companies Samsung and LG to cooperate each other because the domestic capital flees due to their purchase of Taiwanese Panel. In the short term, their strategy is right but in the view of the long term it's worng because the firms of cheap panel can develop increasingly and they can threaten their own Samsung and LG.

Therefore, LG Display's strategy must be right but two companies are not ONE so they should researh their creative technology first. In the meaning of that, LG's development of the next generation panel can bring a lot of benefit later and they can concentrate on their panel, that is, LG can makes a 42 inch one but Samsung makes 40 inch.

LG Display will be placed in the first class as to LCD panel through this process.

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