Forecasts are presented that Korean companies would face a serious challenge in the OLED market from their Chinese rivals, following a similar one in the LCD market. At present, Korean companies claim more than 90 percent of the global OLED market.
According to market research firm IHS, China's share in the OLED market would expand up to more than 15 percent by 2018 from only 2 percent last year. A string of Chinese companies, including Tianma, China Star and BOE are making a series of investments to gain a larger share in this area.
Industry experts predict that when China's market share would exceed the 15-percent level in this market, the profitability of Korean OLED makers would go down the hill. In the LCD market, Korean companies saw their profitability decline sharply when their Chinese rivals passed the 15-percent mark in market share.
A good case in point is LG Display which suffered a 90.3-percent decline in operating profit to 60.6 billion won in the fourth quarter of last year. LG Display is expected to slip to an operating loss in the first quarter of this year.
