Global OLED market booming
Riding on the back of growing global demand... Korea's display market is about to get a significant lift. That coupled with a weakened value of currency, things are looking up up for the backbone of Asia's fourth-largest economy.
Shin Se-min breaks down how these factors could help drive higher the overall exports of Korea. Korea may see signs of positivity in exports next year, driven by improved global demand for its OLED panels.
Analytics firm IHS Markit projects that the global OLED market will grow 32-percent in 2017,… totaling 19-point-2 billion U.S. dollars,… with shipments reaching 630-million units.
Already the increased production is being reflected in outbound shipments,… driving up the country's IT-related item exports by 3-point-3 percent in November, on-year.
And major Korean manufacturers are rolling up their sleeves.
Samsung Display has already poured over 4-point-9 billion dollars into making small and mid-sized OLED panels for smartphones and tablets during the first three quarters this year, and plans to invest an additional 4-billion next year.
The decision follows a deal Samsung reportedly struck with Apple for next year,… that includes supplying it with a large volume of OLED panels for the next iPhone series.
Another big player, LG Display revamped its business to focus on OLED technology,… and is also seeking to bump up its production of OLED TV panels to 1-point-7 million,… from its initial goal of one-and-a-half million set early this year.
All this,… could help bolster export growth especially with a weakened Korean won. "It's a positive influence on both Korea's import and export fronts. With the Korean won depreciating,… local exporters will be able to make more profit,… and that trend is likely to continue for some time next year, given the Fed's projection of at least three additional rate hikes."
Korea's central bank estimated that export prices on a won basis went up 4-point-1 percent in November on-month,… the highest increase in over seven years.
Overall exports jumped 2-point-7 percent last month... after nosediving 6-point-3 percent on-year in October due to the production halt of Samsung's Galaxy Note 7 and a prolonged unionized-strike in the automobile industry.