South Korea approves LG Display's plan to build OLED factory in China

FILE PHOTO: A man walks out of the headquarters of LG Display in Seoul, October 20, 2011. REUTERS/Jo Yong-Hak/File Photo

SEOUL (Reuters) - South Korea’s trade ministry said on Tuesday that a committee had approved LG Display Co Ltd’s plan to build a new organic light-emitting diode (OLED) panel production facility in China.

The approval comes five months after LG Display announced it would invest in large-size OLED production in Guangzhou, China, to respond to fast-growing demand for the screens in TVs in overseas markets.

The ministry said in a statement that the approval was conditional on LG Display boosting the use of local materials and equipment, subsequent investment in South Korea and strengthening processes such as security checks.

An LG Display spokeswoman did not have an immediate comment.

Reporting by Joyce Lee; Editing by Himani Sarkar