LG Display expects limited impact from Japan's exports curbs

Japan's tougher regulations on exports of key materials to South Korea will have a limited impact on LG Display's production of OLED panels, a senior company official said Tuesday, vowing to secure alternatives as part of its contingency plan.

Last week, Japan began adopting a stringent approval process for exports to South Korea of high-tech materials, including fluorinated polyimides used to make flexible OLED displays, as well as resist and etching gas needed in the semiconductor fabrication process. 

Kang In-byung, the chief executive officer of LG Display, said the latest measures are not likely to hamper its production of OLED panels and rollable TVs, the premium TV lineup made of its flexible panels.

"We have some problems with fluorinated polyimides but are not affected by other materials," Kang told reporters on the sidelines of an industry forum in Seoul. "(The impact of Japanese export regulations) on displays is not as serious as semiconductors."

To minimize the impact from Japan's tougher export rules, the South Korean panel maker has been testing fluorinated polyimides produced in China and Taiwan to figure out whether they can replace Japanese products when needed, the official said.

"Not only Japan but also China and Taiwan supply fluorinated polyimide," Kang said. "We will accurately figure out our stockpiles to come up with countermeasures."

Japan produces about 90 percent of the world's fluorinated polyimides, which is deemed as of higher quality than materials from other nations. (Yonhap)