The uninterrupted 32-year display war

This is why the government and industry must join hands and line up for the battle.

HAN WOO-DUKThe author is a senior reporter of the China Lab. The phrase “32 years of war” can sum up Korea-China economic relations, which will mark the 32nd anniversary of diplomatic relations on Aug. 24. While cooperating, the two countries chased one another. In home appliances, machinery, steel, shipbuilding and automobiles, China’s growth reflects a process of chasing and overtaking Korean industry.

Displays were the fiercest battleground. It started with the cathode-ray tube (CRT) monitors used in televisions and personal computers. Korean companies moved into the Chinese market after the establishment of diplomatic ties in 1992, and once had about 70 percent of the market. China fiercely chased and caught up with Korean CRTs in the mid-2000s.

At the moment of crisis, Korea switched to liquid crystal display (LCD) and was able to lead the Chinese display market again. China chased again and succeeded in overtaking Korea in the mid-2010s. Now, Korean companies are almost giving up. LG Display sold its LCD plant in Guangzhou.

But this is not the end. Korea, which was pushed back in LCD, got ahead with organic light-emitting diode (OLED). China’s pursuit started again. Chinese companies, including BOE, got government funding, built OLED factories and stole Korean talent. It’s a war.

The current situation is not favorable to Korea. The country had to surrender the top spot in the small and mid-sized OLEDs for smartphones and tablets to China in the first half. During the same period, China held 50.7 percent of the global market, while Korean companies such as Samsung and LG had 49.3 percent by shipping volume, according to Cinno Research. While China’s global market share increased by 10 percentage points, Korea’s share was reduced by that amount. Korea’s OLED dominance is in danger.

Will Korea be taken over again? Not necessarily. The industry predicts that micro-LED is the next-generation technology to shake off China’s pursuit. Korean companies are fighting hard to get the upper hand in technology.

The development of the war has also changed. Previously, Korea developed a technology first, and China chased it. But there is no time gap now. China already designated micro-LEDs as a national development item in 2021 and has been giving them full support. “The Opinions on Supporting the Development of Future Industrial Innovation” — which was jointly presented by seven related government ministries, including the Ministry of Industry and Information Technology, the Ministry of Science and Technology and the Ministry of Education, in January this year — reveals that it will raise the technology to the highest level in the world by 2027. This time, China seems to have a head start over Korea.

Displays are almost the only field that survived the 32 years of war. The field maintained unrivaled competitiveness along with semiconductors. If Korea is defeated in this war, the result may be industrial subordination. This is why the government and industry must join hands and line up for the battle.