The Korea Development Bank (KDB), Hana Bank, and NH NongHyup Bank will provide a total of 200 billion won in joint low-interest loans to support LG Display's investment in organic light-emitting diodes (OLED). Combined with the 1.3 trillion won low-interest loan being pursued by the National Growth Fund, total financial support for LG Display reaches 1.5 trillion won.
According to financial industry sources on the 26th, the joint loan will be structured with KDB providing 100 billion won, Hana Bank 70 billion won, and NH NongHyup Bank 30 billion won. The raised funds will be channeled into investment to advance LG Display's OLED production technology.
The loan interest rate has been set lower than that of ordinary corporate bonds or corporate loans. KDB will apply an interest rate in the low 3 percent range, while Hana Bank and NongHyup Bank will provide loans at the certificate of deposit (CD) rate plus 1.15 percentage points. The loan terms are structured with a three-year grace period followed by installment repayment over two years.
The government's provision of large-scale funding through policy finance aims to back the competitiveness of advanced industries with financial support. The OLED industry is a field that continuously requires large-scale funding not only for building production lines but also for improving yield and advancing processes. As it is difficult to maintain a technological edge without timely investment, this policy finance and banking sector support is expected to lower companies' investment burden and enhance their technological competitiveness.
This joint loan is being pursued in connection with the National Growth Fund's low-interest loan. Earlier, the National Growth Fund approved a plan to provide LG Display with a 1.3 trillion won low-interest loan at its investment review committee. The Financial Services Commission plans to hold a fund management review committee soon to finalize the support plan.
In addition to the National Growth Fund support, LG Display plans to invest a total of 3 trillion won—combining the 200 billion won private joint loan and 1.5 trillion won of its own funds—to advance small and medium-sized OLED production technology.
The National Growth Fund has been expanding financial support for national advanced strategic industries. Earlier, it provided a 750 billion won long-term loan for the Sinan Ui offshore wind power project, and supplied 2.5 trillion won in low-interest loans for Samsung Electronics' AI semiconductor cluster project at its Pyeongtaek Line 5. It has also directly invested 250 billion won in AI semiconductor company Rebellions, expanding policy finance support for advanced industries.
