The Public Growth Fund will support 1.35 trillion won in low-interest loans for LG Display(034220)'s organic light-emitting diode (OLED) facility investment and Techwing(089030)'s high-bandwidth memory (HBM) supply chain business.
The Financial Services Commission said on the 30th it held the Public Growth Fund's fund management deliberation committee and approved support for two facility investment projects to secure a global super-gap in the display industry and strengthen competitiveness in the HBM supply chain. The Financial Services Commission (FSC) explained that the support is meaningful as a strategic investment to strengthen the supply chain competitiveness of displays and memory semiconductors, Korea's core export industries.
LG Display will invest about 3 trillion won in Paju, Gyeonggi, to advance next-generation OLED technologies. Of this, 150 billion won will come from its own funds, and the remainder will be raised through the Advanced Strategic Industry Fund and loans from private banks. The Advanced Strategic Industry Fund will shoulder 1.3 trillion won, and private banks will provide 200 billion won, respectively.
The Financial Services Commission (FSC) said it expects LG Display, through this investment, to mass-produce products equipped with next-generation technologies to secure an early foothold in the premium market and simultaneously secure cost competitiveness and supply stability, further solidifying the global competitive edge of Korea's OLEDs.
It will also provide a low-interest loan of 50 billion won to Techwing, which is pushing to expand production facilities for HBM-dedicated test equipment in Cheonan, South Chungcheong. The total plant investment amounts to 91.6 billion won. Techwing supplies semiconductor test handlers to Samsung Electronics(005930), SK hynix(000660), and others. Recently, it has secured technology by exclusively supplying inspection equipment capable of 100% testing of individual HBM chips.
The Financial Services Commission (FSC) said it expects that, by expanding production capacity for test equipment, a core of the HBM supply chain, this support will enhance the stability of the memory semiconductor supply chain and make a major contribution to fostering advanced industrial ecosystems in the regions.
Including this approval, the Public Growth Fund has approved a total of 24 investments and loans this year, amounting to 16.3 trillion won. Of this, regional projects accounted for 42.4%.