LG Electronics has had a very close working relationship with its affiliate LG Display.
They are tied more closely than the ordinary relationship between affiliates. The two companies achieved a win-win growth through mutual cooperation. The most notable outcome of their cooperation was OLED TV, the first of its kind in the world.
As much as 70 percent of TVs and smartphones produced by LG Electronics rely on LCD panels produced by LG Display. Today, however, there is a sign of cracks in their relationship. As the TV business of LG Electronics is slowing down, there are rumors that they blame each other for the declining performance of the TV business.
LG Electronics is striving to cut the price of OLED TVs. To develop OLED TVs as an alternative to LCD TVs which account for 99 percent of the global TV market, it is needed to reduce the price of OLED TVs. With this in mind, LG Electronics has increased pressure on LG Display to supply more OLED panels at a lower price.
LG Display is complaining about this situation, saying that it could double or triple its profits if it can sell OLED panels for use in digital signage or car dashboards.