Supplier Support
Core Values
LG Display is “a company that keeps its promises to its suppliers, helps them stay competitive, and communicates well with each other”.
- Open Communication
- Proactive collaboration
- Change & Leap
| Core Values | Open Communication | Active Collaboration | Change and Growth |
|---|---|---|---|
| Mutual Growth Guidelines | ModestyRespect for suppliers | TrustMutual Respect & Fair Distribution of Results | CreativityConstant discovery of ideas |
| Listening & CaringThink deeply, act fast | Sense of ownershipVoluntary participation of suppliers | ChallengeHigh Goal Setting & Relentless Challenge | |
| Open MindOne Team Mind | SynergyMaximize synergy between suppliers and LG Display | Create ValuesSecuring the highest profitability |
Operational Framework
No.1 Supplier,
No.1 LGD
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01 Basic Compliance Keeping promises with partners
- Prohibition of unreasonable request and use of technical data
- Prohibition of unfair returns and refusal of receipt
- Prohibition of unfair subcontract payment
- Prohibition of cancellation of invalid orders
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02 Fundamental Competitiveness Actively help suppliers to strengthen their competitiveness
- Financial support
- Technical support
- Support for education, business, environment/safety, and security
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03 Open Communication Excellent communication with suppliers
- Inspiring Suppliers
- Cultivating Supplier Attitudes
Strengthening the Competitiveness of Suppliers
LG Display maintains close relationships with its suppliers, from procurement to manufacturing. To secure our competitiveness, we must strengthen the capabilities of our suppliers and solidify the overall industrial ecosystem. Accordingly, we are striving to create an industrial ecosystem that enables horizontal coexistence and mutual growth with our suppliers based on a new win-win cooperation system.
Win-Win Cooperation Strategy System
LG Display believes that ‘our suppliers’ strength is ‘our own’. Based on this philosophy, we introduced a ‘New Win-win Cooperation System’ to move beyond the traditional top-down structure between primary, secondary, and tertiary suppliers. Our goal is to build a horizontal, collaborative ecosystem. This system helps strengthen supplier competitiveness and enhance communication through various mutual growth programs, including financial support, technology cooperation, and medical welfare. As a result, we received the highest grade in the 2024 Mutual Growth Index.
New Win-Win Cooperation System
- LG Display
「New Win-Win Cooperation System」 -
- Expand the scope of support to more than 2,000 secondary and tertiary suppliers
- Creating a horizontal win-win ecosystem among all business partners
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Financial support
- 100 billion won in win-win technology cooperation fund
- Direct loans to secondary and tertiary partners (interest-free)
- Shared Growth Fund: Provide low-interest loans in partnership with financial institutions
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Technical cooperation
- Expand the scope of the new technology equipment competition
- Strengthen joint technology development for localization of equipment
- Manufacturing innovation
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Medical Assistance
- If an employee of a partner company working on the LG Display site is ill medical care without discrimination shall be provided.
- Reinforcement of support for creating a safe working environment for secondary and tertiary partners
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Mutual Growth Agreement
LG Display’s Fair Trade and Mutual Growth Agreement represents a mutual commitment to complying with fair trade laws and promoting win-win cooperation, with the goal of fostering a voluntary and sound trade environment. In 2024, we signed agreements with 83 suppliers to promote win-win growth. In addition, tier 1 suppliers have made commitments to collaborate with lower-tier suppliers, signing agreements between 72 second-tier suppliers and 47 third-tier suppliers. Through this, we are supporting the growth of second-tier and lower-tier suppliers as well.
Financial Support
LG Display helps improve the financial soundness of its suppliers through various measures. We support the smooth cash flow of our suppliers through direct financial support, such as interest-free loans for win-win technology cooperation and early payment of holiday bonuses. In addition, we have implemented various indirect financial support measures, such as providing low-interest loan products, mutual growth funds, and network loans. In addition, LG Display introduced and has been operating a win-win payment system since July 2015 to support smooth payment collection for secondary suppliers.
Technical Collaboration Support
Cultivating Supplier-led Technical Capabilities
LG Display supports the technological capabilities among its suppliers by implementing various programs, such as joint research and development, manufacturing innovation activities, and joint patent applications to promote technological innovation beyond simple cooperation. In 2024, LG Display conducted a total of 121 technical guidance and improvement activities with its suppliers and 26 joint research and development projects. In addition, LG Display is strengthening its technological competitiveness by supporting joint patent applications for the excellent technologies developed by its suppliers.
Strengthening Educational Infrastructure for Suppliers
LG Display provides practical training courses free of charge to suppliers with relatively insufficient education and training infrastructure. Previously, training was conducted offline and only provided to first-tier suppliers, but now it is also available online, expanding the scope of support to second- and third-tier suppliers. In particular, since the fourth quarter of 2019, we have made our online training available free of charge to other small and medium-sized enterprises that are not our suppliers. As a result, a total of 82 companies and 5,742 people participated in the training in 2024.
Medical Welfare Support
LG Display supports the direct and indirect improvement of its suppliers' management by conducting medical welfare and safety and health improvement activities. We have opened our in-house medical facilities, which are normally reserved for our employees, employees of our suppliers, providing medical welfare to 96 suppliers and 477 employees in 2024. In addition, we supported the improvement of occupational safety and health at 35 suppliers in 2024.
Strengthening Communication with Suppliers
LG Display collects our suppliers’ difficulties and suggestions both online and offline, actively reflecting their opinions. We also strengthen mutual growth cooperative communication by sharing our business plans for the new year through events such as the Co-Prosperity New Year Meeting and seek collaborative solutions to lead the future display market.