Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of November 2024

LG Display Co., Ltd.

(Translation of Registrant’s name into English)

LG Twin Towers, 128 Yeoui-daero, Yeongdeungpo-gu, Seoul 07336, Republic of Korea

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒ Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submission to furnish a report or other document that the registration foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ☐ No ☒

QUARTERLY REPORT

(From January 1, 2024 to September 30, 2024)

THIS IS A TRANSLATION OF THE SEMI-ANNUAL REPORT ORIGINALLY PREPARED IN KOREAN AND IS IN SUCH FORM AS REQUIRED BY THE KOREAN FINANCIAL SUPERVISORY COMMISSION.

IN THE TRANSLATION PROCESS, SOME PARTS OF THE REPORT WERE REFORMATTED, REARRANGED OR SUMMARIZED AND CERTAIN NUMBERS WERE ROUNDED FOR THE CONVENIENCE OF READERS. REFERENCES TO “Q1”, “Q2”, “Q3” AND “Q4” OF A FISCAL YEAR ARE REFERENCES TO THE THREE-MONTH PERIODS ENDED MARCH 31, JUNE 30, SEPTEMBER 30 AND DECEMBER 31, RESPECTIVELY, OF SUCH FISCAL YEAR. REFERENCES TO “Q1~Q3” OF A FISCAL YEAR ARE REFERENCES TO THE NINE-MONTH PERIOD ENDED SEPTEMBER 30 OF SUCH FISCAL YEAR. REFERENCES TO “W” ARE REFERENCES TO THE KOREAN WON.

UNLESS EXPRESSLY STATED OTHERWISE, ALL INFORMATION CONTAINED HEREIN IS PRESENTED ON A CONSOLIDATED BASIS IN ACCORDANCE WITH KOREAN INTERNATIONAL FINANCIAL REPORTING STANDARDS, OR K-IFRS, WHICH DIFFER IN CERTAIN RESPECTS FROM GENERALLY ACCEPTED ACCOUNTING PRINCIPLES IN CERTAIN OTHER COUNTRIES, INCLUDING THE UNITED STATES. K-IFRS ALSO DIFFERS IN CERTAIN RESPECTS FROM THE INTERNATIONAL FINANCIAL REPORTING STANDARDS AS ISSUED BY THE INTERNATIONAL ACCOUNTING STANDARDS BOARD. WE HAVE MADE NO ATTEMPT TO IDENTIFY OR QUANTIFY THE IMPACT OF THESE DIFFERENCES IN THIS DOCUMENT.

Contents


1.	Company		4
	A.	Name and contact information	4
	B.	Credit rating	4
	C.	Capitalization	4
	D.	Voting rights	4
	E.	Dividends	4
	F.	Matters relating to Articles of Incorporation	5

2.	Business		5
	A.	Business overview	5
	B.	Industry	6
	C.	New businesses	9
	D.	Customer-oriented marketing activities	9

3.	Major Products and Raw Materials		9
	A.	Major products	9
	B.	Average selling price trend of major products	9
	C.	Major raw materials	10

4.	Production and Equipment		11
	A.	Production capacity and output	11
	B.	Production performance and utilization ratio	11
	C.	Investment plan	11

5.	Sales		12
	A.	Sales performance	12
	B.	Sales organization and sales route	12
	C.	Sales methods and sales terms	13
	D.	Sales strategy	13
	E.	Major customers	13


6.	Purchase Orders		13

7.	Risk Management and Derivative Contracts		14
	A.	Risk management	14
	B.	Derivative contracts	14

8.	Major Contracts		15

9.	Research & Development		16
	A.	Summary of R&D-related expenditures	16
	B.	R&D achievements	16

10.	Intellectual Property		18

11.	Environmental and Safety Matters		18
	A.	Business environment management	18
	B.	Product environment management	19
	C.	Safety standards	21
	D.	Green management	21
	E.	Status of sanctions	21

12.	Financial Information		21
	A.	Financial highlights (Based on consolidated K-IFRS)	21
	B.	Financial highlights (Based on separate K-IFRS)	22
	C.	Consolidated subsidiaries as of September 30, 2024	23
	D.	Status of equity investments as of September 30, 2024	24

13.	Audit Information		25
	A.	Audit service	25
	B.	Non-audit service	25

14.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		25

15.	Board of Directors		25

16.	Information Regarding Shares		26
	A.	Total number of shares	26
	B.	Shareholder list	26

17.	Directors and Employees		26
	A.	Directors	26
	B.	Employees	27

18.	Other Matters		27
	A.	Legal proceedings	27
	B.	Status of collateral pledged to related party	27
	C.	Material events subsequent to the reporting period	27

Attachment: 1. Financial Statements in accordance with K-IFRS

1.	Company

Name and contact information

The name of our company is “EL-GI DISPLAY CHUSIK HOESA,” which shall be “LG Display Co., Ltd.” in English.

Our principal executive office is located at LG Twin Towers, 128 Yeoui-daero, Yeongdeungpo-gu, Seoul 07336, Republic of Korea, and our telephone number is +82-2-3777-1010. Our website address is http://www.lgdisplay.com.

Credit rating

This information is omitted in quarterly reports in accordance with Korean disclosure rules, and we plan to include such information in our semi-annual and annual reports.

Capitalization

(1)

Change in capital stock (as of September 30, 2024)

(Unit: Won, Shares)

Date of
Issuance

Method of
Issuance

Details of the Shares Issued

Type

Number of
Shares

Par value
per Share

Offering price
per Share

Remarks

March 15, 2024

Paid-in capital increase (share rights offering to existing shareholders)

Common
shares

142,184,300

W5,000

W9,090

Ratio of paid-in
capital increase:
39.74%

(2)

Convertible bonds (as of September 30, 2024)

We have no outstanding convertible bonds as of September 30, 2024.

Voting rights

This information is omitted in quarterly reports in accordance with Korean disclosure rules, and we plan to include such information in our semi-annual and annual reports.

Dividends

Dividends for the three most recent fiscal years


Description (unit)		2024 Q1~Q3			2023			2022
Par value (Won)			5,000			5,000			5,000
Profit (loss) for the year (million Won)⁽¹⁾			(1,644,843	)		(2,733,742	)		(3,071,565	)
Earnings (loss) per share (Won)⁽²⁾⁽³⁾			(3,563	)		(7,177	)		(8,064	)

Total cash dividend amount for the period (million Won)			—			—			—

Total stock dividend amount for the period (million Won)			—			—			—

Cash dividend payout ratio (%)⁽⁴⁾			—			—			—
Cash dividend yield (%)⁽⁵⁾	Common shares		—			—			—
	Preferred shares		—			—			—
Stock dividend yield (%)	Common shares		—			—			—
	Preferred shares		—			—			—
Cash dividend per share (Won)	Common shares		—			—			—
	Preferred shares		—			—			—
Stock dividend per share (share)	Common shares		—			—			—
	Preferred shares		—			—			—

(1)	Based on profit for the year attributable to the owners of the controlling company.

(2)	Earnings per share is based on par value of W5,000 per share and is calculated by dividing net income by weighted average number of common shares.

(3)

The number of outstanding common shares has increased due to our paid-in capital increase in the first quarter of 2024. The basic earnings (loss) per share and diluted earnings (loss) per share for the years ended December 31, 2023 and December 31, 2022 have been adjusted in consideration of the bonus element in a rights issue to our existing shareholders during the first quarter of 2024.

(4)	Cash dividend payout ratio is the percentage that is derived by dividing total cash dividend by profit for the year attributable to the owners of the controlling company.

(5)

Cash dividend yield is the percentage that is derived by dividing cash dividend by the arithmetic average of the daily closing prices of our common shares during the one-week period ending two trading days prior to the closing of the register of shareholders for the purpose of determining the shareholders entitled to receive annual dividends.

Historical dividend information


Number of consecutive years of dividends⁽¹⁾		Average Dividend Yield⁽¹⁾
Interim dividends	Annual dividends	Last 3 years	Last 5 years
—	—	0.94	0.56

(1)	The average dividend yield is calculated using the simple arithmetic average method, including the fiscal years in which no dividend was paid (dividends were paid with respect to fiscal year 2021 only based on the dividend resolution date).

Matters relating to Articles of Incorporation

This information is omitted in quarterly reports in accordance with Korean disclosure rules, and we plan to include such information in our semi-annual and annual reports.

2.	Business

Business overview

We were incorporated in February 1985 under the laws of the Republic of Korea. LG Electronics and LG Semicon transferred their respective LCD business to us in 1998, and since then, our business has been focused on the research, development, manufacture and sale of products that apply display technologies such as OLED and TFT-LCD. Sorting by major sales product category, television, IT products, mobile and other products, and “auto” products (comprising automotive display products) accounted for 23%, 38%, 30% and 9% of our total sales, respectively, in the first three quarters of 2024. Our customers primarily consist of global set makers, and our top ten customers comprised 89% of our total sales revenue in the first three quarters of 2024. As a company focused on exports, our overseas sales accounted for approximately 96% of our total sales in the first three quarters of 2024. We have overseas sales subsidiaries located in the United States, Germany, Japan, Taiwan, China and Singapore.

We operate key production facilities in Korea, China and Vietnam, and as of September 30, 2024, our cumulative production capacity in 2024 year-to-date was approximately 4.9 million glass sheets, as converted into eighth-generation sheets (2200x2500mm). In order to expand our production capacity of differentiated and competitive products such as OLED panels, our total capital expenditures on a cash out basis was around W3.5 trillion in 2023. In 2024, we expect to reduce our capital expenditure compared to 2023 to approximately in the W2 trillion range.

The major raw materials for display panel production include glass, semiconductors, polarizers, organic matter, backlight units (“BLU”) and printed circuit boards (“PCB”), and the prices of our raw materials may fluctuate as a result of supply and demand in the market as well as changes in our purchase quantity.

The display industry to which we belong is highly affected by the global economic conditions. Given the characteristics of the display business, which requires large-scale investments, display panel prices may fluctuate due to an imbalance between supply and demand, which may affect our profitability. The sales performance of industry players is differentiated by not only the production capacity of each company but also other competitive differences arising from factors including technology, cost structure, product development capability, manufacturing efficiency, quality control and customer relationships, along with the price differentiation incorporating such factors. In addition, given the high proportion of our sales overseas, our sales of display panels are denominated mainly in U.S. dollars whereas our purchases of raw materials are denominated mainly in U.S. dollars, Japanese Yen and Chinese Yuan. Accordingly, our profit margins may be affected by changes in the exchange rates between the currencies. We strive to minimize the risk relating to foreign currency denominated assets, liabilities and operating cash flow due to exchange rate fluctuations.

Our research and development expenses represent approximately 9% of our sales, and we are continually creating customer value through systematic R&D activities for new products and technologies. Leveraging our competitive R&D activities, we are leading the display market by providing differentiated values in display panel products utilizing our OLED and TFT-LCD technologies for various uses including television, IT, mobile products and automobiles.

Consolidated operating results highlights


	(Unit: In billions of Won)
	2024 Q1~Q3			2023			2022
Sales Revenue		18,782			21,331			26,152
Gross Profit		1,675			345			1,124
Operating Profit (loss)		(644	)		(2,510	)		(2,085	)
Total Assets		33,150			35,759			35,686
Total Liabilities		24,806			26,989			24,367

Industry

(1)

Industry characteristics

•

From the supply perspective, the display panel industry is technology- and capital-intensive in nature and requires mass production through achieving an economy of scale.

•

From the demand perspective, the display panel industry tends to demonstrate a high level of volatility depending on the global macroeconomic conditions, major regional sales events and/or seasonal factors.

•

Though the display panel industry is currently facing risks of decreased consumption of related goods in the business-to-consumer sector and reduced investor confidence in the business-to-business sector due to ongoing uncertainty in the global macroeconomic environment, there are continued opportunities in the display market to meet changes in consumer lifestyle and specific consumer needs in the mid- to long-term.

•

In the market for television display panels, new opportunities from the growth of the ultra-large TV market are expected to arise with the increase of video content (including over-the-top services) and expanding uses of television (such as playing video games).

•

In the market for traditional IT products such as notebook and desktop monitors, growth opportunities for new offerings such as gaming products and portable products are expected to increase driven by lifestyle changes.

•

The growth in the market for smartphone products continues to be concentrated around high value-added products using plastic OLED display panels that offer superior performance through diversification of form factors, low-power consumption and high resolution, in light of the increased use of smartphones for mobile contents and gaming purposes.

•

In the market for automotive display panels, display panels are increasingly being used in light of the expanded adoption of in-vehicle infotainment systems, and the market is continuing to demonstrate qualitative growth as the demand for larger and higher-resolution display panels continue to increase.

•

As the market for LCD panel-based products has reached a maturity stage, the growing adoption of OLED panels across various segments, driven by their differentiated advantages, is expected to create new opportunities.

(2)

Growth Potential

•

The display panel industry is expected to continue to grow, as the essential role of display products as a key device for information and communication in daily lives of individuals as well as for industrial purposes becomes more pronounced. We are strengthening our business competitiveness based on customer value and developing new markets under our strategic plan to transition our business to center around OLED, which has a strong growth potential within the display panel industry. With respect to large-sized display panels, we are focusing on expanding the OLED market through differentiated products and technology, such as META technology, which offers high-resolution and high-luminance, as well as strengthening business with new customers. We are also leading the expansion into new product areas, such as transparent OLED display panels and gaming display panels. In the medium-sized display panel business, we are increasing the proportion of premium products such as high resolution and wide screen products based on IPS and Oxide technologies, and we are also increasing the use of OLED panels in IT products to improve power consumption and provide differentiated form factors. In the small-sized display panel business, we have secured high value-added and differentiated technology and stable operating capabilities for 6th generation plastic OLED smartphone displays while continuing to grow our automotive display panels business by providing differentiated solutions such as plastic OLED, advanced thin OLED and LTPS LCD panels for ultra-large vehicle displays optimized for software-defined vehicles. We are also in the process of proactively preparing the technology to respond to new market opportunities for ultra-small-sized displays, including those in relation to augmented reality and virtual reality uses.

(3)

Cyclicality

•

The display panel business is characterized by being highly cyclical and sensitive to fluctuations in the general economy. The industry may experience volatility caused by imbalances between supply and demand due to changes in capital expenditure levels and adjustments in production utilization rates within the industry.

•

Macroeconomic factors and other causes of business cycles can affect demand for display panels. Accordingly, if supply exceeds demand, average selling prices of display panels may decrease. Conversely, if market demand outpaces supply, average selling prices may increase.

(4)

Market conditions

•

Most display panel manufacturers are located in Asia as set forth below. Competition in the TFT-LCD sector is intensifying amid increasing levels of investment led by Chinese panel manufacturers. In response, Korean panel manufacturers are continuing their efforts to maintain their market leadership and differentiate themselves by transitioning their business focus to OLED products and upgrading their TFT-LCD businesses.

Korea: LG Display, Samsung Display, etc.

Taiwan: AU Optronics, Innolux, etc.

Japan: Japan Display, Sharp, etc.

China: BOE, CSOT, HKC, etc.

•

Our worldwide market share of large-sized display panels (i.e., panels that are 9 inches or larger) based on revenue is as follows:


	2024 Q1~Q3	2023			2022
Panels for Televisions⁽¹⁾⁽²⁾	14.1%		12.5	%		23.6	%
Panels for IT Products⁽¹⁾	20.9%		18.6	%		18.8	%

Total⁽¹⁾	16.5%		14.6	%		20.2	%

(1)	Source: Large Area Display Market Tracker (OMDIA). Data for 2024 Q1~Q3 are based on OMDIA’s estimates, as actual results for 2024 Q3 have not yet been made available as of the date of this report.

(2)	Includes panels for public displays.

(5)

Competitiveness and competitive advantages

•

Our ability to compete successfully depends on factors both within and outside our control, including the development of new and premium products through technological advances, timely investments that achieve profitability, maintaining flexible product portfolio and production facility operations responsive to market conditions, price of our products, competitive production costs, productivity enhancement, our relationship with customers, success in marketing to our end-brand customers, competitive environment and economic conditions within the industry, and foreign exchange rates.

•

In order for us to compete effectively, it is critical to offer differentiated products that enable us to secure profit margins even during times of a mismatch in the market supply and demand, to be price- and cost-competitive and to maintain stable relationships with customers.

•

A substantial portion of our sales is attributable to a limited number of end-brand customers and their designated system integrators. As such, it is important to build a sustained relationship with such customers.

•

Developing new products and technologies that can be differentiated from those of our competitors is critical to the success of our business. It is important that we take active measures to protect our intellectual property internationally. It is also necessary to recruit and retain experienced key managerial personnel and skilled line operators.

•

As a leading technology innovator in the display industry, we continue to focus on delivering differentiated value to our customers by developing various technologies and products, including display panels with WOLED/POLED, IPS, Oxide, in-TOUCH and other technologies. With respect to OLED panels, following our supply of the world’s first 55-inch OLED panels for televisions in 2013, we have continued to achieve ongoing technological innovation by continuing to enhance the performance of our products and to offer differentiated large-sized OLED products such as our large-sized gaming OLED products and those incorporating our META technology. Moreover, we have continually introduced and expanded our high value-added plastic OLED products for smartphones, smartwatches, automotive products and foldable notebook computers, among others. With respect to TFT-LCD panels, we are leading the market with our competitive advantages in technology, including through our IPS, Oxide and LTPS technology-based ultra-large television panels, desktop and notebook monitors featuring high resolutions, differentiated designs and high frequency refresh rates, and specialized products for automotive, commercial and medical uses. Our production facilities are also equipped to produce products incorporating in-TOUCH technology.

•

Moreover, we are maintaining and strengthening close long-term partnerships with major global firms to secure customers and expand relationships for technology development.

New businesses

For our continued growth, we are actively exploring and preparing for new business opportunities in response to the changing market environment. As such, we are continually reviewing and looking at opportunities in the display and promising new industries.

Customer-oriented marketing activities

Through engaging in detailed analysis and acquiring insight on the market and industry conditions, technology, products and end-user consumers, we seek to provide differentiated values that are customer- and consumer-friendly. In addition, we engage in activities that are geared to proactively identify and offer meaningful benefits to customers and consumers. As a result, we are continually developing products that provide differentiated values using our technologies. At the same time, we strive to create new markets and mutually benefit our business and our customers by obtaining customer trust and satisfaction through our customer- and consumer-oriented marketing activities.

3.	Major Products and Raw Materials

Major products

We manufacture OLED and TFT-LCD panels, of which a significant majority is sold overseas.

(Unit: In billions of Won, except percentages)

2024 Q1~Q3

Business area

Sales type

Items (By product)

Usage

Major trademark

Sales
Revenue

Percentages
(%)

Display

Goods/Products/ Services/ Other sales

Televisions

Panels for
televisions

LG
Display

4,264

22.7

IT
products

Panels for
monitors,
notebook
computers
and tablets

LG
Display

7,248

38.6

Mobile,

etc.

Panels for
smartphones,
smartwatches,
etc.

LG
Display

5,617

29.9

Auto
products

Panels for
automobiles

LG
Display

1,653

8.8

Total

18,782

100.0

Average selling price trend of major products

The average selling prices of display panels are subject to change based on market conditions and demand by product category. The average selling price of display panels per square meter of net display area shipped in the third quarter of 2024 was USD 825, mainly due to a decrease in shipments of medium- and large- sized display panels and an increase in shipments of smartphone display panels driven by expanded production capacity of such panels compared to the previous year. The average selling prices of display panels per square meter of net display area may continually fluctuate in the future due to changes in market conditions, demand trends and our product mix.

(Unit: US$ / m²)


Period		Average Selling Price⁽¹⁾⁽²⁾(in US$ / m²)
2024 Q3		825
2024 Q2		779
2024 Q1		782
2023 Q4		1,064
2023 Q3		804
2023 Q2		803
2023 Q1		850
2022 Q4		708
2022 Q3		675
2022 Q2		566
2022 Q1		660

(1)	Quarterly average selling price per square meter of net display area shipped.

(2)	Excludes semi-finished products in the cell process.

Major raw materials

Prices of major raw materials depend on fluctuations in supply and demand in the market as well as on changes in size and quantity of raw materials due to the increased production of large-sized panels.


		(Unit: In billions of Won, except percentages)
Business area	Purchase type	Items	Usage	Cost⁽¹⁾		Ratio (%)			Suppliers⁽²⁾
Display	Raw materials	PCB	Display panel manufacturing		981		11.2	%		Youngpoong Electronics Co., Ltd., etc.
		Polarizers			1,408		16.0	%		LG Chem, etc.
		BLU			868		9.9	%		Heesung Electronics LTD., etc.
		Glass			452		5.2	%		Paju Electric Glass Co., Ltd., etc.
		Drive IC			551		6.3	%		LX Semicon, etc.
		Others			4,512		51.4	%		—

Total					8,772		100.0	%

- Period: January 1, 2024 ~ September 30, 2024.

(1)	Based on total cost for purchase of raw materials which includes manufacturing and development costs, etc.

(2)	Among our major suppliers, Paju Electric Glass Co., Ltd. is our affiliate, LG Chem is a member company of the LG Group and LX Semicon is an affiliate of LX Holdings Corp.

•

The market prices of main raw materials for display panels fluctuate depending on the global market conditions of raw materials and demand by product segment.

•

The market price of polarizers, which is a main raw material for display panels, decreased by 5% as of September 30, 2024 compared to the end of the previous year.

•

The market prices of PCB, drive IC and BLU, decreased by 5%, 5% and 4%, respectively, as of September 30, 2024, compared to the end of the previous year.

•

Despite the continued global economic slowdown in 2024, our raw material costs have slightly improved compared to the previous year due to an improvement in the balance of market supply and demand in the raw materials market and our efforts to strengthen our raw material cost competitiveness. The prices of raw materials may continue to fluctuate in light of changes in the market conditions of such materials.

4.	Production and Equipment

Production capacity and output

(1)

Production capacity

The table below sets forth the production capacity of our Gumi, Paju and Guangzhou facilities in the periods indicated.

(Unit: 1,000 glass sheets)

Business area

Items

Location of facilities

2024 Q1~Q3⁽¹⁾

2023⁽¹⁾

2022⁽¹⁾

Display

Display panel, etc.

Gumi, Paju, Guangzhou

4,852

5,223

8,794

(1)

Calculated based on the maximum monthly input capacity (based on glass input substrate size for eighth-generation glass sheets) during the year multiplied by the number of months in a given period. The production capacity for facilities with adjusted utilization rates have been calculated based on the maximum input capacity during the period.

(2)

Production output

The table below sets forth the production output of our Gumi, Paju and Guangzhou facilities in the periods indicated.

(Unit: 1,000 glass sheets)

Business area

Items

Location of facilities

2024 Q1~Q3⁽¹⁾

2023⁽¹⁾

2022⁽¹⁾

Display

Display panel, etc.

Gumi, Paju, Guangzhou

4,416

4,256

6,390

(1)	Based on the production results (input standard) of each plant converted into eighth-generation glass sheets.

Production performance and utilization ratio


		(Unit: Hours, except percentages)
Production facilities	Available working hours in 2024 Q1~Q3	Actual working hours in 2024 Q1~Q3	Average utilization ratio
Gumi	6,576⁽¹⁾ (24 hours x 274 days)	6,576⁽¹⁾ (24 hours x 274 days)		100.0	%
Paju	6,576⁽¹⁾ (24 hours x 274 days)	6,518⁽¹⁾ (24 hours x 272 days)		99.1	%
Guangzhou	6,576⁽¹⁾ (24 hours x 274 days)	6,576⁽¹⁾ (24 hours x 274 days)		100.0	%

(1)	Number of days is calculated by averaging the number of working days for each facility.

Investment plan

In 2023, our total capital expenditures on a cash out basis was around W3.5 trillion. In 2024, we expect to reduce our capital expenditures compared to 2023 to approximately in the W2 trillion range.

Sales

Sales performance


				(Unit: In billions of Won)
Business area	Sales types	Items (Market)		2024 Q1~Q3		2023		2022⁽²⁾
Display	Products	Display panel	Overseas⁽¹⁾		17,953		20,634		25,651
			Korea⁽¹⁾		729		620		668
			Total		18,682		21,254		26,319
	Royalty	LCD, OLED technology patent	Overseas⁽¹⁾		38		16		12
			Korea⁽¹⁾		0		0		0
			Total		38		16		12
	Others	Raw materials, components, etc.	Overseas⁽¹⁾		52		46		24
			Korea⁽¹⁾		11		14		10
			Total		63		60		34
	Total		Overseas⁽¹⁾		18,043		20,696		25,687
			Korea⁽¹⁾		740		634		678
			Total		18,783		21,330		26,365

(1)	Based on ship-to-party.

(2)	Sales excluding forward exchange hedging loss of W213 billion for currency risk management of expected export transactions, which has been reclassified to revenue.

Sales organization and sales route

•

As of September 30, 2024, each of our television, IT, mobile and auto product businesses had individual sales and customer support functions.

•

Sales subsidiaries in the United States, Germany, Japan, Taiwan, China and Singapore perform sales activities and provide local technical support to customers.

•

Sales of our products take place through one of the following two routes:

1) LG Display Headquarters and overseas manufacturing subsidiaries g Overseas sales subsidiaries (USA/Germany/Japan/Taiwan/China/Singapore), etc. g System integrators and end-brand customers g End users

2) LG Display Headquarters and overseas manufacturing subsidiaries g System integrators and end-brand customers g End users

•

Sales performance by sales route


Sales performance	Sales route⁽¹⁾	Ratio
Overseas	Overseas subsidiaries		97.7	%
Overseas	Headquarters		2.3	%
Overseas sales portion (overseas sales / total sales)			96.1	%
Korea	Overseas subsidiaries		28.1	%
Korea	Headquarters		71.9	%
Korea sales portion (Korea sales / total sales)			3.9	%

(1)	Percentage by sales route is based on revenue from the Display business segment.

Sales methods and sales terms

•

Direct sales and sales through overseas subsidiaries, etc. Sales terms are subject to change depending on the fluctuation in the supply and demand.

Sales strategy

•

With respect to television display products, we are strengthening our competitive advantages in the premium television display market by enhancing the performance and advancing the technology of our OLED television display panels and working towards strengthening our business portfolio and reinforcing consumer values through new growth businesses such as gaming and transparent products.

•

With respect to IT display products, we are continually strengthening the sales of high-resolution, IPS, narrow bezel and other high-end display panels with major global IT product manufacturers as our primary customer base.

•

With respect to mobile and other products (a wide range of products including smartphones, smartwatches and industrial products (including aviation and medical equipment, among others)), we are continuing to build a strong and diversified business portfolio and expand our global customer base by leveraging the strength of our differentiated technology and products such as OLED, narrow bezel, low-power consumption and thin and light features.

•

With respect to automotive display products, our business is steadily growing on the back of stable orders secured through our ability to deliver differentiated value to global automobile manufacturers leveraging our diversified technology and product portfolio that includes plastic OLED, advanced thin OLED and LTPS LCD panels.

Major customers

•

Customers “A” and “B” each accounted for more than 10% of our sales revenue in the first three quarters of 2024 and 2023. Our sales revenue derived from our top ten customers comprised 89% of our total sales revenue in each of the first three quarters of 2024 and 86% in the first three quarters of 2023.

6.	Purchase Orders

•

We supply some of our products in accordance with the production plans of automobile manufacturers. However, the volume of our supply is subject to fluctuation depending on the customers’ actual order volume and future market conditions, and it is not possible to accurately predict the changes in demand resulting from changes in the domestic and global economic environment. Moreover, as of September 30, 2024, we do not have purchase order contracts that recognize revenue by measuring progress towards satisfaction of performance obligation by using the cost-based input method.

7.	Risk Management and Derivative Contracts

Risk management

(1)

Major market risks

Our business is exposed to credit risk, liquidity risk and market risk. Accordingly, we operate a risk management system that identifies and analyzes these risks while monitoring and managing risk level by establishing appropriate risk controls in order to ensure that such risks do not exceed certain threshold levels.

Market risk refers to the risk that income from the financial instruments that we hold or the fair value of such financial instruments will fluctuate due to fluctuations in market prices, such as exchange rates, interest rates and prices of equity securities. The objective of our market risk management system is to manage and control our exposure to market risk within an acceptable level while optimizing our profit levels.

(2)

Risk management method

As the average selling prices of OLED and TFT-LCD panels can continue to decline over time irrespective of industry-wide cyclical fluctuations, we may find it hard to manage risks associated with certain factors that are outside our control. However, we counteract such declines in average selling prices by increasing the proportion of high value added panels in our product mix while also implementing various cost reduction measures.

In addition, in order to manage our risk against foreign currency fluctuations, we eliminate such risk by adopting a policy of maintaining our net exposure risk within an acceptable level by buying or selling foreign currencies at spot rates, when necessary, to address short-term imbalances in the inflow and outflow of foreign currency funds. We also continually monitor our currency position and risk for other monetary assets and liabilities denominated in foreign currencies, and when needed, we may from time to time enter into cross-currency interest rate swap contracts and foreign currency forward contracts. Furthermore, we have adopted a policy aimed at minimizing uncertainty and financial costs arising from interest rate fluctuations and manage our interest rate risk through periodic monitoring of interest rate trends and adoption of appropriate countermeasures.

Derivative contracts

(1)

Currency risks

•

We are exposed to currency risks on sales, purchases and borrowings that are denominated in currencies other than in Won, our functional currency. These currencies are primarily the U.S. dollar, the Chinese Yuan and the Japanese Yen.

•

Interest on borrowings is denominated in the currency of the borrowing. Generally, borrowings are denominated in currencies that match the cash flows generated by our underlying operations, primarily in Won, the U.S. dollar and the Chinese Yuan.

•

As of the end of the reporting period, in order to avoid risks of exchange rate fluctuations on the fair value of advance received, we entered into long position currency forward contracts of US$900 million with Standard Chartered Bank and others. As of the end of the reporting period, among the valuation gains and losses of derivatives to which fair value hedge accounting is applied, there is no ineffective portion, and we recognized a valuation gain of W45 billion (purchase commitment: USD 900 million, contract exchange rate: W1,289.1~1,310.1) as part of our foreign currency translation gains and losses. With regard to fair value hedging, the maximum expected period of exposure to fair value fluctuation risk from hedged transactions is within 16 months from the end of the reporting period.

•

As of the end of the reporting period, in order to avoid risks of interest rate fluctuations and exchange rate fluctuations on foreign currency denominated borrowings with floating interest rates, we entered into an aggregate of USD 1,730 million and CNY 726 million cross currency interest swap agreements with KB Kookmin Bank and others, for which we have not applied hedge accounting. Any rights or obligations arising from derivative contracts that do not apply hedge accounting are measured at fair value and are accounted for as assets and liabilities, whereas any resulting valuation gain or loss is recognized as profit or loss at the time such valuation gain or loss is incurred. We recognized a loss on valuation of derivative instruments in the amount of W102 billion with respect to the above foreign exchange derivative instruments held during the reporting period.

(2)

Interest rate risks

•

Our exposure to interest rate risks relates primarily to our floating rate long term loan obligations. We have established and are managing interest rate risk policies to minimize uncertainty and costs associated with interest rate fluctuations by monitoring cyclical interest rate fluctuations and enacting countermeasures.

•

As of the end of the reporting period, we entered into an aggregate of W925 billion in interest rate swap agreements with Shinhan Bank and others, for which we have not applied hedge accounting. We recognized a gain on valuation of derivative instruments in the amount of W1 billion and a loss on valuation of derivative instruments in the amount of W5 billion with respect to our interest rate derivative instruments held during the reporting period.

8.	Major Contracts

Our material contracts, other than contracts entered into in the ordinary course of business, are set forth below:


Type of agreement	Name of party	Term	Content
Technology licensing/supply agreement	Hewlett-Packard	January 2011 ~	Patent licensing of semi-conductor device technology
	Ignis Innovation, Inc.	July 2016 ~	Patent licensing of OLED related technology
	HannStar Display Corporation	December 2013 ~	Patent cross-licensing of LCD technology
	AU Optronics Corporation	August 2011 ~	Patent cross-licensing of LCD technology
	Innolux Corporation	July 2012 ~	Patent cross-licensing of LCD technology
	Universal Display Corporation	January 2015 ~ December 2025	Patent licensing of OLED related technology
	Semiconductor Energy Laboratory	January 2021 ~ December 2030	Patent licensing of LCD and OLED related technology

Real estate/others	LG Innotek Co., Ltd.	Date of contract: December 23, 2022 Term: December 26, 2022 ~ December 31, 2027	Lease of idle real estate property for rental income (the contract amount and other details are not disclosed in accordance with a non-disclosure agreement)
Real estate/others	LG Uplus Corp.	Date of contract: May 14, 2024	Sale of real estate property to enhance asset efficiency (for details, please refer to the Form 6-K furnished to the SEC on April 25, 2024)

9.	Research & Development (“R&D”)

Summary of R&D-related expenditures


		(Unit: In millions of Won, except percentages)
Items		2024 Q1~Q3			2023			2022
R&D Expenditures (prior to deducting governmental subsidies)			1,761,611			2,399,513			2,431,590
Governmental Subsidies			(505	)		(718	)		(1,008	)

Net R&D-Related Expenditures			1,761,106			2,398,795			2,430,582

Accounting Treatment⁽¹⁾	R&D Expenses		1,286,757			1,906,616			1,927,828
Accounting Treatment⁽¹⁾	Development Cost (Intangible Assets)		474,349			492,179			502,754

R&D-Related Expenditures / Revenue Ratio⁽²⁾ (Total R&D-Related Expenditures ÷ Revenue for the period × 100)			9.4	%		11.2	%		9.3	%

(1)	For accounting treatment purposes, R&D expenses are presented as research and development expenses in our statements of comprehensive income, net of amortization of capitalized intangible asset development costs.

(2)	Calculated based on the R&D-related expenditures before subtracting government subsidies (state subsidies).

R&D achievements

Achievements in 2022

(1)

Developed the world’s first 16:18 aspect ratio monitor product (27.6” SDQHD)

•

Developed a 27.6” (21.5”, 21.5”, vertical arrangement) monitor product, which is optimized for multi-tasking amid the increase in working remotely as a result of the COVID-19 pandemic

•

Created a new market through the development of a new aspect ratio (16:18, 2560x2880) product

(2)

Developed our first three-sided “Borderless” notebook panel product (13.4” WU XPS)

•

Led the high-end market by adopting a new, three-sided borderless design applying low power consumption variable refresh rate technology

(3)

Developed the world’s first 97” OLED TV product

•

Developed a product that outperforms competitors’ products both in display quality and in size in the high-end market

•

Strengthened the global trend towards OLED dominance by expanding our extra-large OLED TV product lineup and secured related original technology

(4)

Developed the world’s first Curved 1,900R Black monitor product (34”)

•

Developed the world’s first IPS Black Curved monitor product (contrast ratio 2000:1) by utilizing nega-LC material

•

Led the high-end Curved product market

(5)

Developed our first 12.3” cluster product utilizing VDA 3D technology

•

Utilizing VDA (Viewing Distance Adaption) technology, developed a 12.3” cluster product that applies glassless 3D technology and changes the user’s viewing distance while driving

(6)

Developed the world’s first 12.3” cluster product utilizing DLC technology

•

Utilizing DLC (Double LGP Control) technology, developed a 12.3” cluster product which display is, when positioned in the passenger seat, visually recognizable from the passenger seat but not from the driver’s seat.

(7)

Developed the world’s first META technology-applied product (gaming products: 27”, 45”; and television products: 4K 77/65/55”, 8K 77”)

•

Utilizing the development of META OLED technology, entered the gaming monitor market and strengthened flagship leadership in the premium TV market

1) Gaming product (27”, 45”): Secured high PPI luminance performance based on the META technology and provided a display optimized for gaming through high-speed (240 Hz), fast response time (0.03ms) and curved technology

2) Large television (4K/8K): Developed product with world’s best picture quality (luminance/viewing angle) based on META technology

(8)

Developed the world’s first IPS Gaming FHD 480Hz monitor product (24.5”)

•

Applied high-performance Oxide-TFT BCE-4 cell to 480Hz FHD screens

•

Received the 2023 CES Award in Best Innovation / Gaming / Computer Accessory category

Achievements in 2023

(1)

Developed the world’s first small- and medium-sized transparent WOLED product (30” HD)

•

Expanded market coverage with the development of a new product size (30”) for transparent small- and medium-sized display

•

Strengthened market leadership through achieving a transparency rate of 45% and increased luminance (600/200 nit)

(2)

Introduced the world’s first foldable pen touch notebook (17”)

•

Developed OLED panel for notebooks utilizing differentiated technologies such as the tandem OLED and a special folding structure

(3)

Developed the world’s first Gaming OLED 240Hz monitor product (39”, 34”)

•

Applied high-speed (240Hz), fast response time (0.03ms), high-luminance (275 nit @APL 100%) and curved (800R) OLED technology

•

Provided ultra-wide (21:9 aspect ratio) full-size OLED Gaming monitor product (initially provided in 45” and expanded further to provide 39” and 34” products)

Achievements in 2024

(1)

Developed the world’s first Gaming DFR product (31.5”)

•

Optimized display through applying DFR (Dynamic Frequency & Resolution) technology, which enables the implementation of high resolution (UHD 240Hz) and high refresh rate (FHD 480 Hz) on a single display panel

•

Maximized sound effects by applying d-TAS (Display Thin Accurator)

(2)

Developed the world’s first Gaming OLED QHD 480Hz monitor product (27”)

•

Provided optimal gaming environment with the development of the world’s first OLED QHD 480Hz high refresh rate monitor product

(3)

Developed our first ATO-based notebook panel (13.4”)

•

Developed Slim & Light product (1.16t / 162g) through the application of ATO (Advanced Thin OLED) structure

•

Developed high-efficiency OLED notebook panel product (SDR 400nit / HDR 500nit) utilizing Tandem OLED technology

•

Became our first notebook panel model to apply Touch on Encap technology

(4)

Developed our first Dual Resolution Gaming monitor product (27”)

•

Expanded the gaming monitor market and provided differentiated user experience by implementing the Dual Resolution feature

•

Enabled the use of a single monitor for both fast-paced (FHD 330Hz) games and high-resolution (UHD 165Hz) games

* Dual Resolution: UHD 165Hz « FHD 330Hz

(5)

Developed next-generation Micro LED display product (22.3”)

•

Provided a large-screen and high-resolution, new user experience through Active Matrix Micro LED transfer technology, panel technology, compensation technology and mechanical technology

1) 22.3” Module for 136” 4K business-to-consumer products

2) 22.3” Module for infinitely expandable business-to-business products

10.

Intellectual Property

As of September 30, 2024, our cumulative patent portfolio (including patents that have already expired) included 29,340 patents in Korea and 35,971 patents in other countries. In the first three quarters of 2024, we registered 1,563 patents in Korea and 2,098 patents in other countries.

11.

Environmental and Safety Matters

In order to minimize the environmental impact of our business activities, we are actively responding to environmental regulations applicable to our products and business sites.

Business environment management

We have installed and operate various types of prevention facilities to minimize the emission of environmental pollutants generated in our production process. With respect to air and water pollutants, we set and manage our internal standard at 70% of the permitted levels under the regulatory emission standards. In addition, in order to establish a resource circulation system, we operate a proprietary system to monitor waste from its generation to treatment, have developed waste treatment technology and identified suitable recycling companies to reduce the amount of waste we generate and maximize recycling.

In addition, as we were designated a target company for the greenhouse gas emission trading system in 2015, we allocate and monitor our greenhouse gas emissions every year. In order to continually promote the reduction of greenhouse gas emissions, we have set a medium- to long-term goal to reduce the emission level by continually investing in facility improvements and monitoring our emission levels.

We are subject to a variety of environmental laws and regulations, and operations at our manufacturing plants are subject to regulation and periodic scheduled and unscheduled on-site inspections by the Ministry of Environment and local environmental protection authorities. The primary types of environmental laws applicable to us include the following:

(1)

Environmental pollutant emission regulations: Integrated Control of Pollutant-discharging Facilities Act, Clean Air Conservation Act, Water Quality Conservation Act, Wastes Control Act, Environmental Impact Assessment Act, etc.

(2)

Greenhouse gas emission management: Framework Act on Carbon Neutral and Green Growth to Respond to Climate Crisis, Act on the Allocation and Trading of Greenhouse Gas Emission Permits, etc.

(3)

Other workplace environment management: Chemicals Control Act, Chemicals Registration and Evaluation Act, Soil Environment Conservation Act, etc.

Through the implementation of an environmental and energy management system, we are continuously making efforts to minimize environmental impact and reduce energy usage in all aspects of our business process. Accordingly, we have acquired and currently operate the environmental management system ISO14001 and energy management system ISO 50001 certifications for all of our domestic and overseas production sites. In addition, we have established company-wide safety, healthy, energy and environment management policies and manuals, which are regularly updated based on international standards. We also conduct systematic management of our business process in accordance with international standards through annual follow-up and renewal audits.

In recognition of our efforts, we were awarded the highest level, Leadership A, and received the grand prize award at the CDP Water Korea Best Awards in 2016 from the Carbon Disclosure Project, which was presided over by the Carbon Disclosure Project Korea Committee. Since then, we have continued to maintain our excellence in water conservation activities and received Leadership A recognition from 2018 to 2022. In addition, we have also received the Carbon Management Honors Club award from 2017 to 2020 and the Carbon Management Sector Honors from 2016 to 2022 in recognition of our continued greenhouse gas emission reduction activities.

In addition, in recognition of our efforts toward recycling rate improvement and waste reduction, we were nominated as a leading company with an excellent performance in resource circulation and received a commendation from the Minister of Environment in 2020. Our overseas subsidiary in Yantai earned Platinum Zero Waste to Landfill (“ZWTL”) validation in 2021, all of our domestic production facilities earned Gold ZWTL validation, our overseas subsidiary in Nanjing earned Platinum validation in 2022, and our Paju plant earned Platinum validation in June 2024. In 2022, we introduced a resource recirculation recognition program in accordance with the Korean government’s waste management policy and received circular resource certification on eight types of our discarded trays and vinyl. In 2023, we have obtained quality certification for certain of our recycled items recognized as circular resources, and we plan to continue to promote the resource circulation of our products. We will continue our efforts to reinforce our resource circulation program by minimizing waste and maximizing recycling rate.

We have continued to pursue ESG management activities based on the spirit of “value creation for consumers” and “human-first management,” and we plan to obtain further recognition for our eco-friendly management and share relevant information with the stakeholders.

Product environment management

In order to respond to applicable domestic and overseas environmental regulations, such as the European Union’s Restriction of Hazardous Substances (RoHS) and Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) that restrict the use of certain hazardous substances, we operate a hazardous substance management program that implements a four-step procedure (each such step, a “Gate”) that manages various stages of our production cycle, beginning with the registration process of our business partners up to the mass production stage. In addition, in order to preemptively address four types of phthalate substances that became additionally regulated pursuant to the RoHS in 2016 and officially went into effect on July 22, 2019, we replaced the latent risk elements in advance as well as implemented a more stable management process with respect to such substances. In implementing this process, we collaborated with external agencies to ascertain regulatory trends and establish our response strategy, and we formulated and applied effective management measures through the collaborative efforts of our development, procurement, quality assurance and analysis teams.

•

Gate 01 (Business Partner Stage): An audit is conducted prior to the registration of a new business partner (including the inspection of the business partner’s hazardous substance response process)

•

Gate 02 (Parts Development Stage): An environmental evaluation of each part under development is conducted (consisting of three stages: (1) document review; (2) XRF test and (3) precision analysis)

•

Gate 03 (Product Development Stage): An environmental evaluation of the product model and product labeling are conducted (including RoHS verification)

•

Gate 04 (Mass Production Stage): Process management through the periodic testing of mass-produced parts for any hazardous substances (including rate-based tests based on risk assessment)

We operate a “Hazardous Substance Management System for Products” that effectively manages hazardous substances by classifying them into four levels: A-I, A-II, B-I, and B-II. In particular, in addition to substances prohibited by global hazardous substance regulations on products, we have designated substances causing harm to the human body and the environment as Level B substances. By developing alternative technologies and parts and applying them to our products, we continually strive to achieve a gradual reduction and elimination of non-prohibited hazardous substances.

•

Level A-I (Prohibited Substances): Prohibited substances designated under the RoHS regulations (i.e., 10 regulated substances) and those designated by specific customers

•

Level A-II (Prohibited Substances): Substances prohibited by regulations and conventions other than those covered under Level A-1 and those designated as such by customers

•

Level B-I (Substances Subject to Voluntary Reduction): Substances that are being voluntarily replaced over a certain period of time

•

Level B-II (Substances Under Observation): Substances that are not currently banned, but are expected to become prohibited in the future

Moreover, we participated in reforming IEC 62321, an international testing standard published by the International Electrotechnical Commission and used by RoHS, and the commission adopted our halogen-free combustion ion chromatography method in as IEC 62321-3-2, which was published in June 2013.

In 2017, we became the first display panel company to receive the SGS Eco Label accreditation for OLED television display modules from SGS, a global product testing/accreditation agency, and have since continually received such accreditation. In 2024, such accreditation has been updated to “SGS EEPS accreditation.” In 2022, we expanded our accreditation program to cover display modules for monitors, notebook computers, tablets and automobiles, as a result of which our display modules for monitors and notebook computers received SGS Eco Label accreditation for the first time and our automotive display module became the first in the industry to receive the same accreditation for its excellence in energy efficiency, and we have since maintained the SGS Eco Label for such products. In 2023, our high-end LCD panels for 16-inch notebooks and 27-inch monitors, in which we incorporated recycled materials for the first time, received the SGS Eco Label accreditation. In addition, our 30-inch and 55-inch transparent display products, for which we applied hazardous substance reduction technology, became the first in the industry to receive the SGS Eco Label accreditation. Moreover, in 2022, our 27-inch monitor display product that applied anti-bacterial films received the SGS Performance Mark accreditation for its anti-bacterial performance, and in 2023, our commercial display module that applied Plus-Bright energy consumption reduction technology obtained the SGS Performance Mark accreditation for its energy efficiency performance. Our high-end LCD panels for 16-inch notebooks and 27-inch monitors also received the same accreditation for reducing energy consumption through the implementation of proprietary algorithms and improving panel transmittance.

Also in 2022, upon assessment and verification of GHG emissions throughout its entire product life cycle, our OLED TV panel received the industry’s first Carbon Footprint Certification from The Carbon Trust, a not-for-profit company founded by the United Kingdom government that provides voluntary carbon certification services and carbon labeling schemes. In 2023, our high-end IT LCD panels (27-inch and smaller) received the Product Carbon Footprint (PCF) certification from TÜV Rheinland, a global independent testing, inspection and certification agency, by achieving carbon emission reduction through the application of recycled materials and low energy consumption technologies. Our OLED panels for automotive products also received the same certification for achieving carbon emission through the application of light-control film integration technology.

In 2021, we received the “Green Technology Certification” for our advanced incell touch display technology, an eco-friendly technology with touch-sensing electrodes and transmission lines that reduce carbon emissions and the use of rare metals. Also, since 2021, we have continued to obtain an eco-friendly certification from TUV SUD, a globally recognized accreditation agency, for excellence in resource circulation and non-use of specific hazardous substances in our OLED television display panels and PO mobile models.

In 2018, we became the first display panel company to receive the “Green Technology Certification” from the Korean Ministry of Science and ICT for improving the light efficiency technology of OLED to promote energy use reduction. In 2017, for the IPS Nano Color for LCD, we received the Quality & Performance Mark from Intertek, a global product testing/accreditation agency, by applying a technology to eliminate cadmium (Cd) and indium phosphide (InP).

Safety standards

Our products comply with the IEC 62638-1 global product safety standards, and we obtain CB and UL certifications on applicable products.

In order to promote the enhancement of safety for automobile manufacturers and consumers, we became the first display panel company in June 2016 to introduce a flame-resistant certification program for our display panels, which program includes flame resistance standards for automotive materials (including ISO 3795, DIN 75200 and FMVSS 302 standards) as well as for safety standards for information technology devices, which has been certified by TUV SUD. In 2022, we expanded the number of applicable flame resistance standards for such program from three to nine.

Furthermore, in 2021, we established infrastructure for flammability tests required under the United States Federal Aviation Administration’s FAR 25.853 standards and impact tests under RTCA DO-313 standards, and the reliability of these test results have been certified by TUV SUD.

Green management

This information is omitted in quarterly reports in accordance with Korean disclosure rules, and we plan to include such information in our semi-annual and annual reports.

Status of sanctions

This information is omitted in quarterly reports in accordance with Korean disclosure rules, and we plan to include such information in our semi-annual and annual reports.

12.

Financial Information

Financial highlights (Based on consolidated K-IFRS).


	(Unit: In millions of Won)
Description	As of September 30, 2024		As of December 31, 2023		As of December 31, 2022
Current assets		9,856,177		9,503,186		9,444,035
Quick assets		6,518,022		6,975,458		6,571,117
Inventories		3,338,155		2,527,728		2,872,918
Non-current assets		23,293,500		26,256,112		26,241,984
Investments in equity accounted investees		31,115		84,329		109,119
Property, plant and equipment, net		17,468,293		20,200,332		20,946,933
Intangible assets		1,651,805		1,773,955		1,752,957
Other non-current assets		4,142,287		4,197,496		3,432,975
Total assets		33,149,677		35,759,298		35,686,019
Current liabilities		15,158,552		13,885,028		13,961,520
Non-current liabilities		9,647,697		13,103,726		10,405,272
Total liabilities		24,806,249		26,988,754		24,366,792
Share capital		2,500,000		1,789,079		1,789,079
Share premium		2,759,494		2,251,113		2,251,113
Retained earnings		978,528		2,676,014		5,359,769
Other equity		740,582		515,976		479,628
Non-controlling interest		1,364,824		1,538,362		1,439,638
Total equity		8,343,428		8,770,544		11,319,227


(Unit: In millions of Won, except for per share data and number of consolidated entities)
Description	For the nine months ended September 30, 2024			For the year ended December 31, 2023			For the year ended December 31, 2022
Revenue		18,782,475			21,330,819			26,151,781
Operating profit (loss)		(643,704	)		(2,510,164	)		(2,085,047	)
Profit (loss) from continuing operations		(1,570,182	)		(2,576,729	)		(3,195,585	)
Profit (loss) for the period		(1,570,182	)		(2,576,729	)		(3,195,585	)
Profit (loss) attributable to:
Owners of the company		(1,644,843	)		(2,733,742	)		(3,071,565	)
Non-controlling interest		74,661			157,013			(124,020	)
Basic earnings (loss) per share⁽¹⁾		(3,563	)		(7,177	)		(8,064	)
Diluted earnings (loss) per share⁽¹⁾		(3,563	)		(7, 177	)		(8,064	)
Number of consolidated entities⁽²⁾		22			22			22

(1)

(2)	The number of consolidated entities is based on the consolidated entities (including the parent company) as of the end of the reporting period.

Financial highlights (Based on separate K-IFRS).


	(Unit: In millions of Won)
Description	As of September 30, 2024			As of December 31, 2023		As of December 31, 2022
Current assets		8,632,367			5,590,482		5,627,177
Quick assets		6,345,063			3,809,523		3,702,583
Inventories		2,287,304			1,780,959		1,924,594
Non-current assets		21,569,086			24,141,930		23,631,862
Investments		3,812,917			4,932,063		4,837,704
Property, plant and equipment, net		12,239,406			13,584,247		14,044,844
Intangible assets		1,580,577			1,683,029		1,635,181
Other non-current assets		3,936,186			3,942,591		3,114,133
Total assets		30,201,453			29,732,412		29,259,039
Current liabilities		19,627,752			16,422,259		16,043,011
Non-current liabilities		5,439,816			7,628,598		5,865,589
Total liabilities		25,067,568			24,050,857		21,908,600
Share capital		2,500,000			1,789,079		1,789,079
Share premium		2,821,006			2,251,113		2,251,113
Retained earnings		(187,121	)		1,641,363		3,310,247
Other equity		0			0		0
Total equity		5,133,885			5,681,555		7,350,439


	(Unit: In millions of Won, except for per share data)
Description	For the nine months ended September 30, 2024			For the year ended December 31, 2023			For the year ended December 31, 2022
Revenue		18,070,434			19,811,015			24,131,172
Operating profit (loss)		(1,424,467	)		(3,884,121	)		(3,201,463	)
Profit (loss) from continuing operations		(1,775,926	)		(1,718,701	)		(3,191,387	)
Profit (loss) for the period		(1,775,926	)		(1,718,701	)		(3,191,387	)
Basic earnings (loss) per share⁽¹⁾		(3,847	)		(4,512	)		(8,379	)
Diluted earnings (loss) per share⁽¹⁾		(3,847	)		(4,512	)		(8,379	)

(1)

Consolidated subsidiaries (as of September 30, 2024)


Company Interest	Primary Business	Location	Equity
LG Display America, Inc.	Sales	U.S.A.		100	%
LG Display Germany GmbH	Sales	Germany		100	%
LG Display Japan Co., Ltd.	Sales	Japan		100	%
LG Display Taiwan Co., Ltd.	Sales	Taiwan		100	%
LG Display Nanjing Co., Ltd.	Manufacturing	China		100	%
LG Display Shanghai Co., Ltd.	Sales	China		100	%
LG Display Guangzhou Co., Ltd.⁽¹⁾	Manufacturing	China		100	%
LG Display Shenzhen Co., Ltd.	Sales	China		100	%
LG Display Singapore Pte. Ltd.	Sales	Singapore		100	%
L&T Display Technology (Fujian) Limited	Manufacturing and sales	China		51	%
LG Display Yantai Co., Ltd.	Manufacturing	China		100	%
Nanumnuri Co., Ltd.	Workplace services	Korea		100	%
LG Display (China) Co., Ltd.⁽¹⁾⁽²⁾	Manufacturing and sales	China		80	%
Unified Innovative Technology, LLC	Managing intellectual property	U.S.A.		100	%
LG Display Guangzhou Trading Co., Ltd.	Sales	China		100	%
Global OLED Technology LLC	Managing intellectual property	U.S.A.		100	%
LG Display Vietnam Haiphong Co., Ltd.	Manufacturing and sales	Vietnam		100	%
Suzhou Lehui Display Co., Ltd.	Manufacturing and sales	China		100	%
LG Display Fund I LLC⁽³⁾	Investing in new emerging companies	U.S.A		100	%
LG Display High-Tech (China) Co., Ltd.	Manufacturing and sales	China		70	%

(1)

On September 26, 2024, we entered into a contract to sell our 80% equity interest in LG Display (China) Co., Ltd. and 100% equity interest in LG Display Guangzhou Co., Ltd. As a result, the assets and liabilities related to LG Display (China) Co., Ltd. and LG Display Guangzhou Co., Ltd. have been reclassified as assets and liabilities held for sale.

(2)	During the reporting period, we acquired an additional 10% equity interest in LG Display (China) Co., Ltd. for W245,362 million.

(3)	During the reporting period, we invested an additional W5,803 million in LG Display Fund I LLC.

Status of equity investments (as of September 30, 2024)

(1)

Consolidated subsidiaries

Company

Capital Stock
(in millions)

Date of
Incorporation

Equity
Interest

LG Display America, Inc.

USD 411

September 1999

100

LG Display Germany GmbH

EUR 1

October 1999

100

LG Display Japan Co., Ltd.

JPY 95

October 1999

100

LG Display Taiwan Co., Ltd.

TWD 116

April 1999

100

LG Display Nanjing Co., Ltd.

CNY 3,020

July 2002

100

LG Display Shanghai Co., Ltd.

CNY 4

January 2003

100

LG Display Guangzhou Co., Ltd.⁽¹⁾

CNY 1,655

June 2006

100

LG Display Shenzhen Co., Ltd.

CNY 4

July 2007

100

LG Display Singapore Pte. Ltd.

USD 1

November 2008

100

L&T Display Technology (Fujian) Limited

CNY 116

December 2009

LG Display Yantai Co., Ltd.

CNY 1,008

March 2010

100

Nanumnuri Co., Ltd.

KRW 800

March 2012

100

LG Display (China) Co., Ltd.⁽¹⁾⁽²⁾

CNY 8,232

December 2012

Unified Innovative Technology, LLC

USD 9

March 2014

100

LG Display Guangzhou Trading Co., Ltd.

CNY 1

April 2015

100

Global OLED Technology LLC

USD 138

December 2009

100

LG Display Vietnam Haiphong Co., Ltd.

USD 600

May 2016

100

Suzhou Lehui Display Co., Ltd.

CNY 637

July 2016

100

LG Display Fund I LLC⁽³⁾

USD 80

May 2018

100

LG Display High-Tech (China) Co., Ltd.

CNY 15,600

July 2018

(1)

(2)	During the reporting period, we acquired an additional 10% equity interest in LG Display (China) Co., Ltd. for W245,362 million.

(3)	During the reporting period, we invested an additional W5,803 million in LG Display Fund I LLC.

(2)

Affiliated companies


Company	Carrying Amount (in millions)		Date of Incorporation		Equity Interest
Paju Electric Glass Co., Ltd.	W	28,213		January 2005		40	%
Wooree E&L Co., Ltd.⁽¹⁾		—		June 2008		—
YAS Co., Ltd.⁽¹⁾		—		April 2002		—
Avatec Co., Ltd.⁽¹⁾		—		August 2000		—
Arctic Sentinel, Inc.		—		June 2008		10	%
Cynora GmbH		—		March 2003		10	%
Material Science Co., Ltd.⁽²⁾	W	2,902		January 2014		14	%

(1)	Due to the loss of our significant influence during the reporting period, our investments in such investees have been reclassified from investment in associates to financial assets at fair value through profit or loss.

(2)	During the nine months ended September 30, 2024, our equity interest in Material Science Co., Ltd. decreased from 16% to 14% due to a decrease in the investee’s treasury shares.

Although our respective share interests in Arctic Sentinel, Inc., Cynora GmbH and Material Science Co., Ltd. are below 20%, we are able to exercise significant influence through our right to appoint a director to the board of directors of each investee. Accordingly, the investments in these investees have been accounted for using the equity method.

For the nine months ended September 30, 2024 and 2023, the aggregate amount of dividends we received from our affiliated companies was W200 million and W15,200 million, respectively.

13.

Audit Information

Audit service


	(Unit: In millions of Won, hours)
Description	2024 Q3	2023	2022
Auditor	Samil PwC	KPMG Samjong	KPMG Samjong
Activity	Audit by independent auditor	Audit by independent auditor	Audit by independent auditor
Compensation⁽¹⁾	1,800 (650)⁽²⁾	1,640 (590)⁽²⁾	1,557 (575)⁽²⁾
Time required⁽³⁾	13,208	21,246	21,238

(1)	Compensation amount is the contracted amount for the full fiscal year.

(2)	Compensation amount in ( ) is for Form 20-F filing and SOX 404 audit.

(3)	Figures are based on actual performance as of the date of this report.

Non-audit service


Period	Date of contract		Description of service		Period of service		Compensation
2024 Q3		February 2024		Tax advice		March 2024 ~ December 2024		W50 million
2024 Q3		September 2024		Tax advice		September 2024 ~ March 2025		W40 million
2023		—		—		—		—
2022		—		—		—		—

*	Based on direct contracts on a separate basis.

14.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

This information is omitted in quarterly and semi-annual reports in accordance with Korean disclosure rules, and we plan to include such information in our annual report.

15.

Board of Directors

This information is omitted in quarterly reports in accordance with Korean disclosure rules, and we plan to include such information in our semi-annual and annual reports.

16.

Information Regarding Shares

Total number of shares

(1)

Total number of shares authorized to be issued (as of September 30, 2024): 500,000,000 shares.

(2)

Total shares issued and outstanding (as of September 30, 2024): 500,000,000 shares.

Shareholder list

(1)

Largest shareholder and related parties as of September 30, 2024:


Name	Relationship	Number of shares of common stock		Equity interest
LG Electronics⁽¹⁾	Largest shareholder		183,593,206		36.72	%

(1)	The number of shares and equity interest held by LG Electronics reflect its participation in our paid-in capital increase in March 2024.

(2)

Shareholders who are known to us that own 5% or more of our shares as of September 30, 2024, which was the most recent record date:


Beneficial owner	Number of shares of common stock⁽¹⁾		Equity interest
LG Electronics		183,593,206		36.72	%
National Pension Service		27,972,630		5.59	%
Employee Stock Ownership Association		27,423,903		5.48	%

(1)	The number of shares of common stock is based on the most recent shareholder register as of September 30, 2024, and may differ from the actual shareholding status.

17.

Directors and Employees

Directors

(1)

List of Members of Board of Directors

Name

Position

Shares of the
Company held

First
appointed

Term expires

Cheoldong Jeong

Representative Director (non-outside),
Chief Executive Officer and President

—

December 1, 2023

March 22, 2027

Sung Hyun Kim

Director (non-outside), Chief Financial Officer and Vice President

—

December 1, 2018

March 23, 2025

Beom Jong Ha

Non-standing Director and Member of Outside Director Nomination Committee

—

March 23, 2022

March 23, 2025

Doocheol Moon

Outside Director and Member of Audit Committee, Outside Director Nomination Committee and ESG Committee

—

March 23, 2021

March 22, 2027

Chung Hae Kang

Outside Director and Member of Audit Committee, Related Party Transaction Committee and ESG Committee

—

March 23, 2022

March 23, 2025

Jungsuk Oh

Outside Director and Member of Audit Committee, Outside Director Nomination Committee, Related Party Transaction Committee and ESG Committee

—

April 26, 2022

March 21, 2026

Sang Hee Park

Outside Director and Member of Audit Committee, Related Party Transaction Committee and ESG Committee

—

March 21, 2023

March 21, 2026

(2)

Compensation of Directors

This information is omitted in quarterly reports in accordance with Korean disclosure rules, and we plan to include such information in our semi-annual and annual reports.

Employees

This information is omitted in quarterly reports in accordance with Korean disclosure rules, and we plan to include such information in our semi-annual and annual reports.

18.

Other Matters

Legal proceedings

We are a defendant in two separate civil lawsuits (comprising one damages claim in the United Kingdom filed by private plaintiffs and one damages claim in Israel filed by private plaintiffs) filed against us and certain other TFT-LCD panel manufacturers in connection with alleged anticompetitive behavior of the defendants. In each of these cases, the amount being sought has not been determined. The trial for the case in the United Kingdom was completed and the court’s ruling regarding the amount of our liability remains subject to further determination, while no trial has been scheduled for the case in Israel. While the expected outcome of each of these cases is unclear, we do not believe that any of these cases would have a material effect on our financial conditions.

Status of collateral pledged to related party

On March 27, 2023, the Board of Directors resolved to borrow W1 trillion from our largest shareholder, LG Electronics, in order to strengthen the competitiveness of our OLED business as well as for working capital purposes, and withdrew W650 billion of the principal amount of such borrowing on March 30, 2023 and the remaining W350 billion on April 20, 2023. The repayment terms provide for a two-year grace period followed by a one-year repayment period in installments with an interest rate of 6.06%. In addition, we pledged certain of our land and buildings equivalent to the sum of the principal and interest amount as collateral for such borrowing.

Material events subsequent to the reporting period

This information is omitted in quarterly reports in accordance with Korean disclosure rules, and we plan to include such information in our semi-annual and annual reports.

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Condensed Consolidated Interim Financial Statements

(Unaudited)

September 30, 2024 and 2023

(With Report on Review of Condensed Consolidated Interim Financial Statements)

Contents


	Page

Report on Review of Condensed Consolidated Interim Financial Statements		30

Consolidated Interim Statements of Financial Position		32

Consolidated Interim Statements of Comprehensive Loss		33

Consolidated Interim Statements of Changes in Equity		34

Consolidated Interim Statements of Cash Flows		35

Notes to the Condensed Consolidated Interim Financial Statements		36

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

Report on Review of Condensed Consolidated Interim Financial Statements

(English Translation of a Report Originally Issued in Korean)

To the Shareholders and Board of Directors of

LG Display Co., Ltd.

Reviewed Financial Statements

We have reviewed the accompanying condensed consolidated interim financial statements of LG Display Co., Ltd. and its subsidiaries (collectively referred to as the “Group”). These condensed consolidated interim financial statements consist of the consolidated interim statement of financial position of the Group as at September 30, 2024, and the related consolidated interim statements of comprehensive income for the three-month and nine-month periods ended September 30, 2024, and consolidated interim statements of changes in equity and cash flows for the nine-month period ended September 30, 2024, and material accounting policy information and other selected explanatory notes, expressed in Korean won.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and presentation of these condensed consolidated interim financial statements in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (Korean IFRS) 1034 Interim Financial Reporting, and for such internal control as management determines is necessary to enable the preparation of condensed consolidated interim financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express a conclusion on these condensed consolidated interim financial statements based on our review.

We conducted our review in accordance with quarterly or semi-annual review standards established by the Securities and Futures Commission of the Republic of Korea. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Korean Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe the accompanying condensed consolidated interim financial statements are not prepared, in all material respects, in accordance with Korean IFRS 1034 Interim Financial Reporting.

Other Matters

The consolidated statements of comprehensive income for the three-month and nine-month periods ended September 30, 2023, and consolidated statements of changes in equity and cash flows for the nine-month period ended September 30, 2023, presented herein for comparative purposes, were reviewed by another auditor whose report dated November 13, 2023. Based on their review, nothing has come to their attention that causes them to believe the accompanying condensed financial statements do not present fairly, in all material respects, in accordance with Korean IFRS 1034 Interim Financial Reporting.

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

The consolidated statement of financial position as at December 31, 2023, and the consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, not presented herein, were audited by another auditor who expressed an unqualified opinion on those statements on March 7, 2024. The consolidated statement of financial position as at December 31, 2023, presented herein for comparative purposes, is consistent, in all material respects, with the above audited statement of financial position as at December 31, 2023.

Review standards and their application in practice vary among countries. The procedures and practices used in the Republic of Korea to review such financial statements may differ from those generally accepted and applied in other countries.

November 14, 2024

Seoul, Korea

This report is effective as of November 14, 2024, the review report date. Certain subsequent events or circumstances, which may occur between the review report date and the time of reading this report, could have a material impact on the accompanying condensed consolidated interim financial statements and notes thereto. Accordingly, the readers of the review report should understand that there is a possibility that the above review report may have to be revised to reflect the impact of such subsequent events or circumstances, if any.

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Consolidated Interim Statements of Financial Position

As of September 30, 2024 and December 31, 2023


(In millions of won)	Note		September 30, 2024 (Unaudited)		December 31, 2023
Assets
Cash and cash equivalents		4, 25	W	1,786,649		2,257,522
Deposits in banks		4, 25		1,100		905,971
Trade accounts and notes receivable, net		5, 15, 25, 27		3,039,963		3,218,093
Other accounts receivable, net		5, 25		136,789		126,985
Other current financial assets		6, 25		114,139		168,623
Inventories		7		3,338,155		2,527,728
Prepaid income taxes				24,398		44,505
Assets held for sale		28		1,135,684		—
Other current assets		5		279,300		253,759

Total current assets				9,856,177		9,503,186
Deposits in banks		4, 25		11		11
Investments in equity accounted investees		8		31,115		84,329
Other non-current financial assets		6, 25		162,856		173,626
Property, plant and equipment, net		9, 18		17,468,293		20,200,332
Intangible assets, net		10, 18		1,651,805		1,773,955
Investment Property		11, 18		29,183		32,995
Deferred tax assets		23		3,678,840		3,562,861
Defined benefits assets, net		13		250,741		407,438
Other non-current assets				20,656		20,565

Total non-current assets				23,293,500		26,256,112

Total assets			W	33,149,677		35,759,298

Liabilities
Trade accounts and notes payable		25, 27	W	4,093,230		4,175,064
Current financial liabilities		12, 25, 26		6,327,421		5,262,295
Other accounts payable		25		1,353,974		2,918,903
Accrued expenses				633,843		648,949
Income tax payable				20,267		52,237
Provisions		14		97,483		117,676
Advances received				828,214		625,838
Liabilities held for sale		28		1,730,839		—
Other current liabilities				73,281		84,066

Total current liabilities				15,158,552		13,885,028
Non-current financial liabilities		12, 25, 26, 27		8,627,707		11,439,776
Non-current provisions		14		58,064		63,805
Defined benefit liabilities, net		13		1,260		1,559
Long-term advances received		15		395,880		967,050
Deferred tax liabilities		23		970		2,069
Other non-current liabilities		25		563,816		629,467

Total non-current liabilities				9,647,697		13,103,726

Total liabilities				24,806,249		26,988,754

Equity
Share capital		16		2,500,000		1,789,079
Share premium		16		2,759,494		2,251,113
Retained earnings				978,528		2,676,014
Reserves		16		740,582		515,976

Equity attributable to owners of the Parent				6,978,604		7,232,182

Non-controlling interests				1,364,824		1,538,362

Total equity				8,343,428		8,770,544

Total liabilities and equity			W	33,149,677		35,759,298

See accompanying notes to the condensed consolidated interim financial statements.

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Consolidated Interim Statements of Comprehensive Loss

For the three-month and nine-month periods ended September 30, 2024 and 2023


(In millions of won, except loss per share amounts)	Note	For the three-month periods ended September 30						For the nine-month periods ended September 30
(In millions of won, except loss per share amounts)		2024 (Unaudited)			2023 (Unaudited)			2024 (Unaudited)			2023 (Unaudited)
Revenue	17, 18, 27	W	6,821,301			4,785,287			18,782,475			13,934,914
Cost of sales	7, 19, 27		(5,978,100	)		(4,747,957	)		(17,107,783	)		(14,453,640	)

Gross profit (loss)			843,201			37,330			1,674,692			(518,726	)
Selling expenses	19, 20		(157,081	)		(132,751	)		(427,027	)		(418,510	)
Administrative expenses	19, 20		(379,180	)		(220,526	)		(820,205	)		(665,678	)
Research and development expenses	19		(387,539	)		(346,133	)		(1,071,164	)		(1,038,994	)

Operating loss			(80,599	)		(662,080	)		(643,704	)		(2,641,908	)

Finance income	22		183,212			183,229			562,843			1,008,030
Finance costs	22		(346,937	)		(346,180	)		(1,172,185	)		(1,302,241	)
Other non-operating income	21		382,283			237,719			1,185,846			1,071,053
Other non-operating expenses	19, 21		(346,203	)		(421,353	)		(1,566,309	)		(1,494,633	)
Equity in income of equity accounted investees, net			1,032			2,204			4,320			1,269

Loss before income tax			(207,212	)		(1,006,461	)		(1,629,189	)		(3,358,430	)
Income tax benefit (expense)	23		(130,896	)		231,063			59,007			731,162

Loss for the period			(338,108	)		(775,398	)		(1,570,182	)		(2,627,268	)

Other comprehensive income (loss)
Items that will never be reclassified to profit or loss
Remeasurements of net defined benefit liabilities	13		(48,289	)		46			(52,558	)		(737	)
Other comprehensive income (loss) from associates			10			12			(85	)		180

			(48,279	)		58			(52,643	)		(557	)
Items that are or may be reclassified to profit or loss
Foreign currency translation differences for foreign operations	16		(207,808	)		155,199			286,140			234,110
Other comprehensive income (loss) from associates	16		3,401			(555	)		3,333			(1,222	)

			(204,407	)		154,644			289,473			232,888

Other comprehensive income (loss) for the period, net of income tax			(252,686	)		154,702			236,830			232,331

Total comprehensive loss for the period		W	(590,794	)		(620,696	)		(1,333,352	)		(2,394,937	)

Profit (loss) attributable to:
Owners of the Parent			(355,159	)		(720,026	)		(1,644,843	)		(2,791,928	)
Non-controlling interests			17,051			(55,372	)		74,661			164,660

Loss for the period		W	(338,108	)		(775,398	)		(1,570,182	)		(2,627,268	)

Total comprehensive income (loss) attributable to:
Owners of the Parent			(592,780	)		(592,554	)		(1,472,880	)		(2,572,989	)
Non-controlling interests			1,986			(28,142	)		139,528			178,052

Total comprehensive loss for the period		W	(590,794	)		(620,696	)		(1,333,352	)		(2,394,937	)

Loss per share (in won)
Basic loss per share	24	W	(710	)		(1,890	)		(3,563	)		(7,330	)

Diluted loss per share	24	W	(710	)		(1,890	)		(3,563	)		(7,330	)

See accompanying notes to the condensed consolidated interim financial statements.

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Consolidated Interim Statements of Changes in Equity

For the nine-month periods ended September 30, 2024 and 2023


			Attributable to owners of the Parent Company
(In millions of won)	Note		Share capital		Share premium			Retained earnings			Reserves			Sub-total			Non-controlling interests			Total equity
Balances at January 1, 2023			W	1,789,079		2,251,113			5,359,769			479,628			9,879,589			1,439,638			11,319,227

Total comprehensive income (loss) for the period
Profit (loss) for the period				—		—			(2,791,928	)		—			(2,791,928	)		164,660			(2,627,268	)

Other comprehensive income (loss)
Remeasurements of net defined benefit liabilities				—		—			(737	)		—			(737	)		—			(737	)
Foreign currency translation differences				—		—			—			220,718			220,718			13,392			234,110
Other comprehensive income (loss) from associates				—		—			180			(1,222	)		(1,042	)		—			(1,042	)

Total other comprehensive income (loss)				—		—			(557	)		219,496			218,939			13,392			232,331

Total comprehensive income (loss) for the period			W	—		—			(2,792,485	)		219,496			(2,572,989	)		178,052			(2,394,937	)

Transaction with owners, recognized directly in equity
Dividends to non-controlling shareholders in subsidiaries				—		—			—			—			—			(34,098	)		(34,098	)

Balances at September 30, 2023 (Unaudited)			W	1,789,079		2,251,113			2,567,284			699,124			7,306,600			1,583,592			8,890,192

Balances at January 1, 2024			W	1,789,079		2,251,113			2,676,014			515,976			7,232,182			1,538,362			8,770,544

Total comprehensive income (loss) for the period
Profit (loss) for the period				—		—			(1,644,843	)		—			(1,644,843	)		74,661			(1,570,182	)

Other comprehensive income (loss)
Remeasurements of net defined benefit liabilities				—		—			(52,558	)		—			(52,558	)		—			(52,558	)
Foreign currency translation differences				—		—			—			221,273			221,273			64,867			286,140
Other comprehensive income (loss) from associates				—		—			(85	)		3,333			3,248			—			3,248

Total other comprehensive income (loss)				—		—			(52,643	)		224,606			171,963			64,867			236,830

Total comprehensive income (loss) for the period			W	—		—			(1,697,486	)		224,606			(1,472,880	)		139,528			(1,333,352	)

Transaction with owners, recognized directly in equity
Capital increase		16		710,921		569,893			—			—			1,280,814			—			1,280,814
Acquisition of non-controlling shareholders’ interests in subsidiaries				—		(61,512	)		—			—			(61,512	)		(183,850	)		(245,362	)
Dividends to non-controlling shareholders in subsidiaries				—		—			—			—			—			(129,216	)		(129,216	)

Total transaction with owners, recognized directly in equity				710,921		508,381			—			—			1,219,302			(313,066	)		906,236

Balances at September 30, 2024 (Unaudited)			W	2,500,000		2,759,494			978,528			740,582			6,978,604			1,364,824			8,343,428

See accompanying notes to the condensed consolidated interim financial statements.

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Consolidated Interim Statements of Cash Flows

For the nine-month periods ended September 30, 2024 and 2023


(In millions of won)	Note		2024 (Unaudited)			2023 (Unaudited)
Cash flows from (used in) operating activities:
Cash generated from operations		26	W	1,828,938			2,062,734
Income taxes paid				(118,221	)		(271,508	)
Interests received				76,561			112,483
Interests paid				(735,192	)		(728,003	)

Cash flows from operating activities				1,052,086			1,175,706

Cash flows from (used in) investing activities:
Dividends received				200			15,200
Increase in deposits in banks				(1,700	)		(942,266	)
Proceeds from withdrawal of deposits in banks				915,083			1,625,197
Acquisition of financial assets at fair value through profit or loss				(4,792	)		(3,805	)
Proceeds from disposal of financial asset at fair value through profit or loss				2,342			546
Acquisition of financial assets at fair value through other comprehensive income				—			(1,000	)
Proceeds from disposal of financial assets at fair value through other comprehensive income				—			891
Proceeds from disposal of investments in associates				17,609			—
Acquisition of property, plant and equipment				(1,845,516	)		(2,765,349	)
Proceeds from disposal of property, plant and equipment				246,116			368,497
Acquisition of intangible assets				(626,117	)		(499,101	)
Proceeds from disposal of intangible assets				6,212			5,933
Government grants received				2,307			6,381
Proceeds from settlement of derivatives				229,982			127,833
Increase in short-term loans				14,233			23,402
Increase in deposits				(1,726	)		(3,432	)
Decrease in deposits				1,601			3,884
Proceeds from disposal of greenhouse gas emission permits				14,394			6,659

Cash flows used in investing activities				(1,029,772	)		(2,030,530	)

Cash flows from (used in) financing activities:		26
Proceeds from short-term borrowings				4,183,571			5,190,003
Repayments of short-term borrowings				(4,908,243	)		(5,250,763	)
Proceeds from issuance of bonds				—			469,266
Repayments of bonds				(370,000	)		(433,990	)
Proceeds from long-term borrowings				2,534,490			4,170,987
Repayments of current portion of long-term borrowings				(2,538,058	)		(2,043,682	)
Payment of lease liabilities				(53,583	)		(56,659	)
Capital increase				1,292,455			—
Transaction cost from capital increase				(11,640	)		—
Acquisition of non-controlling shareholders’ interests in subsidiaries				(245,362	)		—
Dividends to non-controlling shareholders in subsidiaries				(136,519	)		(34,098	)

Cash flows from (used in) financing activities				(252,889	)		2,011,064

Net increase (decrease) in cash and cash equivalents				(230,575	)		1,156,240
Cash and cash equivalents at January 1				2,257,522			1,824,649
Effect of exchange rate fluctuations on cash held				47,005			25,321
Cash and cash equivalents included in assets held for sale				(287,303	)		—

Cash and cash equivalents at September 30			W	1,786,649			3,006,210

See accompanying notes to the condensed consolidated interim financial statements.

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

1.	Reporting Entity

(a)

Description of the Parent Company

LG Display Co., Ltd. (the “Parent Company”) was incorporated in February 1985 and the Parent Company is a public corporation listed in the Korea Exchange since 2004. The main business of the Parent Company and its subsidiaries (the “Group”) is to manufacture and sell displays and its related products. As of September 30, 2024, the Group is operating Thin Film Transistor Liquid Crystal Display (“TFT-LCD”) and Organic Light Emitting Diode (“OLED”) panel manufacturing plants in Gumi, Paju and China and TFT-LCD and OLED module manufacturing plants in Gumi, Paju, China and Vietnam. The Parent Company is domiciled in the Republic of Korea with its address at 128 Yeouidae-ro, Yeongdeungpo-gu, Seoul, the Republic of Korea. As of September 30, 2024, LG Electronics Inc., a major shareholder of the Parent Company, owns 36.72% (183,593,206 shares) of the Parent Company’s common stock.

As of September 30, 2024, 500,000,000 shares of the Parent Company’s common stock is listed on Korea Exchange under the identifying code 034220, and 21,094,314 American Depository Shares (“ADSs”, 2 ADSs represent one share of common stock) is listed on the New York Stock Exchange under the symbol “LPL”.

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

1.	Reporting Entity, Continued

(b)

Consolidated Subsidiaries as of September 30, 2024

(In millions)

Subsidiaries

Location

Percentage of
ownership

Closing
month

Date of incorporation

Business

Share

LG Display America, Inc.

San Jose, U.S.A.

100

December

September 24, 1999

Sales of display products

USD 411

LG Display Germany GmbH

Eschborn, Germany

100

December

October 15, 1999

Sales of display products

EUR 1

LG Display Japan Co., Ltd.

Tokyo, Japan

100

December

October 12, 1999

Sales of display products

JPY 95

LG Display Taiwan Co., Ltd.

Taipei, Taiwan

100

December

April 12, 1999

Sales of display products

TWD 116

LG Display Nanjing Co., Ltd.

Nanjing, China

100

December

July 15, 2002

Production of display products

CNY 3,020

LG Display Shanghai Co., Ltd.

Shanghai, China

100

December

January 16, 2003

Sales of display products

CNY 4

LG Display Guangzhou Co.,
Ltd.(*1)

Guangzhou, China

100

December

June 30, 2006

Production of display products

CNY 1,655

LG Display Shenzhen Co., Ltd.

Shenzhen, China

100

December

July 27, 2007

Sales of display products

CNY 4

LG Display Singapore Pte. Ltd.

Singapore

100

December

November 4, 2008

Sales of display products

USD 1

L&T Display Technology (Fujian) Limited

Fujian, China

December

December 7, 2009

Production and sales of LCD
module and LCD monitor sets

CNY 116

LG Display Yantai Co., Ltd.

Yantai, China

100

December

March 17, 2010

Production of display products

CNY 1,008

Nanumnuri Co., Ltd.

Gumi, South Korea

100

December

March 21, 2012

Business facility maintenance

KRW 800

LG Display (China) Co.,
Ltd.(*1)(*2)

Guangzhou, China

December

December 10, 2012

Production and sales of
display products

CNY 8,232

Unified Innovative Technology, LLC

Wilmington, U.S.A.

100

December

March 12, 2014

Intellectual property
management

USD 9

LG Display Guangzhou Trading Co., Ltd.

Guangzhou, China

100

December

April 28, 2015

Sales of display products

CNY 1

Global OLED Technology, LLC

Sterling, U.S.A.

100

December

December 18, 2009

OLED intellectual property
management

USD 138

LG Display Vietnam Haiphong Co., Ltd.

Haiphong, Vietnam

100

December

May 5, 2016

Production and sales of
display products

USD 600

Suzhou Lehui Display Co., Ltd.

Suzhou, China

100

December

July 1, 2016

Production and sales of LCD
module and LCD monitor

CNY 637

LG DISPLAY FUND I LLC(*3)

Wilmington, U.S.A.

100

December

May 1, 2018

Investment in venture business
and technologies

USD 80

LG Display High-Tech (China) Co., Ltd.

Guangzhou, China

December

July 11, 2018

Production and sales of
display products

CNY 15,600

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

1.	Reporting Entity, Continued

(b)

Consolidated Subsidiaries as of September 30, 2024, Continued

(*1)

For the nine-month period ended September 30, 2024, the contract to sell 80% of its stake in LG Display (China) Co., Ltd. and 100% of its stake in LG Display Guangzhou Co., Ltd. was signed. As a result, the assets and liabilities associated with LG Display (China) Co., Ltd. and LG Display Guangzhou Co., Ltd. are presented as assets and liabilities held for sale.

(*2)

For the nine-month period ended September 30, 2024, the Group acquired 10% equity interests in LG Display (China) Co., Ltd. for W245,362 million.

(*3)

For the nine-month period ended September 30, 2024, the Parent Company contributed W5,803 million in cash for the capital increase of LG DISPLAY FUND I LLC. There was no change in the Parent Company’s percentage of ownership in LG DISPLAY FUND I LLC as a result of this additional investment.

In addition to the above subsidiaries, the Parent Company has invested W9,700 million in MMT (Money Market Trust), which is controlled by the Parent Company.

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

2.	Basis of Preparation

The Group maintains its accounting records in Korean won and prepares statutory financial statements in the Korean language (Hangul) in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (Korean IFRS). The accompanying condensed consolidated interim financial statements have been condensed, restructured and translated into English from the Korean language financial statements.

Certain information attached to the Korean language financial statements, but not required for a fair presentation of the Group’s financial position, financial performance or cash flows, is not presented in the accompanying condensed consolidated interim financial statements.

(a)

Application of accounting standards

The Group’s condensed consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standard as adopted by the Republic of Korea (Korean IFRS) 1034 Interim Financial Reporting. These condensed consolidated interim financial statements do not include all of the information required for full annual consolidated financial statements and should be read in conjunction with the consolidated financial statements of the Group as of and for the year ended December 31, 2023.

(b)

Basis of Measurement

The condensed consolidated interim financial statements have been prepared on the historical cost basis except for the following material items in the consolidated statement of financial position:

•

derivative financial instruments at fair value, financial assets at fair value through profit or loss (“FVTPL”), financial assets at fair value through other comprehensive income (“FVOCI”), financial liabilities at fair value through profit or loss (“FVTPL”), and

•

net defined benefit liabilities (defined benefit assets) recognized at the present value of defined benefit obligations less the fair value of plan assets

(c)

Functional and Presentation Currency

Each subsidiary’s financial statements within the Group are presented in the subsidiary’s functional currency, which is the currency of the primary economic environment in which each subsidiary operates. The condensed consolidated interim financial statements are presented in Korean won, which is the Parent Company’s functional currency.

(d)

Estimates and Judgments

The preparation of the condensed consolidated interim financial statements in conformity with Korean IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

(e)

Accounting standards and Interpretation issued and adopted by the Group

The Group has applied the following new or amended accounting standards for the annual periods commencing January 1, 2024.

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

2.	Basis of Preparation, Continued

(e)

Accounting standards and Interpretation issued and adopted by the Group, Continued

(i)

Amendments to Korean IFRS 1001 Presentation of Financial Statements – Classification of Liabilities as Current or Non-current, Non-current Liabilities with Covenants

The amendments clarify that liabilities are classified as either current or non-current, depending on the substantive rights that exist at the end of the reporting period. Classification is unaffected by the likelihood that an entity will exercise right to defer settlement of the liability or the expectations of management. Also, the settlement of liability includes the transfer of the entity’s own equity instruments, however, it would be excluded if an option to settle them by the entity’s own equity instruments if compound financial instruments is met the definition of equity instruments and recognized separately from the liability. In addition, covenants that an entity is required to comply with after the end of the reporting period would not affect classification of a liability as current or non-current at the reporting date. When an entity classifies a liability that is subject to the covenants which an entity is required to comply with within twelve months of the reporting date as non-current at the end of the reporting period, the entity shall disclose information in the notes to understand the risk that non-current liabilities with covenants could become repayable within twelve months after the reporting period. The amendments do not have a significant impact on the financial statements.

(ii)

Amendments to Korean IFRS 1007 Statement of Cash Flows, Korean IFRS 1107 Financial Instruments: Disclosures – Supplier finance arrangements

When applying supplier finance arrangements, an entity shall disclose information about its supplier finance arrangements that enables users of financial statements to assess the effects of those arrangements on the entity’s liabilities and cash flows and on the entity’s exposure to liquidity risk.

(iii)

Amendments to Korean IFRS 1116 Leases – Lease Liability in a Sale and Leaseback

When subsequently measuring lease liabilities arising from a sale and leaseback, a seller-lessee shall determine lease payments or revised lease payments in a way that the seller-lessee would not recognize any amount of the gain or loss that relates to the right of use retained by the seller-lessee. The amendments do not have a significant impact on the financial statements.

(iv)

Amendments to Korean IFRS 1001 Presentation of Financial Statements – Disclosure of Cryptographic Assets

The amendments require an additional disclosure if an entity holds cryptographic assets, or holds cryptographic assets on behalf of the customer, or issues cryptographic assets. The amendments do not have a significant impact on the financial statements.

(f)

Accounting standards and Interpretation issued but not yet adopted by the Group

The Accounting standards and Interpretation issued that have been enacted or amended but have not been applied because the effective date has not arrived are as follows:

Amendments to Korean IFRS 1021 The Effects of Changes in Foreign Exchange Rates and Korean IFRS 1101 First-time Adoption of International Financial Reporting Standards – Lack of Exchangeability

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

2.	Basis of Preparation, Continued

(f)

Accounting standards and Interpretation issued but not yet adopted by the Group, Continued

When an entity estimates a spot exchange rate because exchangeability between two currencies is lacking, the entity shall disclose related information. The amendments should be applied for annual periods beginning on or after January 1, 2025, and earlier application is permitted. The Group is in review for the impact of these amendments on the financial statements.

(g)

Income Tax Expense

The Group is within the scope of the Pillar Two model rules, there is no additional income tax expenses recognized in relation to the rules and applied the exception to recognizing and disclosing information about deferred tax and assets and liabilities related to Pillar Two income Taxes.

3.	Accounting Policies

The accounting policies followed by the Group in the preparation of its condensed consolidated interim financial statements are the same as those followed by the Group in its preparation of the consolidated financial statements as of and for the year ended December 31, 2023, except for the application of Korean IFRS 1034 Interim Financial Reporting.

4.	Cash and Cash Equivalents and Deposits in Banks

Cash and cash equivalents and deposits in banks as of September 30, 2024 and December 31, 2023 are as follows:


(In millions of won)	September 30, 2024		December 31, 2023
Current assets
Cash and cash equivalents
Cash	W	—		3
Deposits (*1)		1,786,649		2,257,519

Total	W	1,786,649		2,257,522

Deposits in banks
Time deposits (*2)	W	1,100		905,971
Non-current assets
Deposits in banks
Deposit for checking account	W	11		11

(*1)	As of September 30, 2024, deposits of W287,303 million are classified as assets held for sale.

(*2)	As of December 31, 2023, it includes funds deposited under agreements on mutually beneficial cooperation to aid LG Group companies’ suppliers, restricted deposits pledged to guarantee the Controlling Company and subsidiary’s borrowings and others.

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

5.	Trade Accounts and Notes Receivable, Other Accounts Receivable and Others

(a)

Trade accounts and notes receivable as of September 30, 2024 and December 31, 2023 are as follows:


(In millions of won)	September 30, 2024		December 31, 2023
Due from third parties, net	W	2,575,327		2,827,163
Due from related parties		464,636		390,930

Total	W	3,039,963		3,218,093

(b)

Other accounts receivable as of September 30, 2024 and December 31, 2023 are as follows:


(In millions of won)	September 30, 2024		December 31, 2023
Current assets
Non-trade receivables, net	W	132,282		112,739
Accrued income		4,507		14,246

Total	W	136,789		126,985

Due from related parties included in other accounts receivable as of September 30, 2024 are W82,612 million (December 31, 2023: W11,520 million).

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

5.	Trade Accounts and Notes Receivable, Other Accounts Receivable and Others, Continued

(c)

The aging of trade accounts and notes receivable and other accounts receivable as of September 30, 2024 and December 31, 2023 are as follows:



	September 30, 2024
	Original amount				Allowance for doubtful account
(In millions of won)	Trade accounts and notes receivable		Other accounts receivable		Trade accounts and notes receivable			Other accounts receivable
Not past due	W	3,010,563		133,799		(847	)		(196	)
1-15 days past due		26,647		23		(4	)		—
16-30 days past due		3,136		953		—			(9	)
31-60 days past due		—		145		—			(1	)
More than 60 days past due		468		2,083		—			(8	)

Total	W	3,040,814		137,003		(851	)		(214	)



	December 31, 2023
	Original amount				Allowance for doubtful account
(In millions of won)	Trade accounts and notes receivable		Other accounts receivable		Trade accounts and notes receivable			Other accounts receivable
Not past due	W	3,212,514		123,919		(932	)		(191	)
1-15 days past due		3,077		1,357		(1	)		—
16-30 days past due		3,435		156		—			(2	)
31-60 days past due		—		168		—			(2	)
More than 60 days past due		—		1,592		—			(12	)

Total	W	3,219,026		127,192		(933	)		(207	)

The movement in the allowance for doubtful account in respect of trade accounts and notes receivable and other accounts receivable for the nine-month periods ended September 30, 2024 and 2023 are as follows:


	September 30, 2024					September 30, 2023
(In millions of won)	Trade accounts and notes receivable			Other accounts receivable		Trade accounts and notes receivable		Other accounts receivable
At January 1	W	933			207		875		1,778
(Reversal of) bad debt expense		(82	)		7		38		(212	)

At September 30	W	851			214		913		1,566

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

5.	Trade Accounts and Notes Receivable, Other Accounts Receivable and Others, Continued

(d)

Other current assets as of September 30, 2024 and December 31, 2023 are as follows:


(In millions of won)	September 30, 2024		December 31, 2023
Advanced payments	W	4,062		1,675
Prepaid expenses		129,706		103,355
Prepaid value added tax		140,924		143,608
Right to recover returned goods		4,608		5,121

Total	W	279,300		253,759

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

6.	Other Financial Assets

Other financial assets as of September 30, 2024 and December 31, 2023 are as follows:


(In millions of won)	September 30, 2024		December 31, 2023
Current assets
Financial assets at fair value through profit or loss
Derivatives (*1)	W	59,760		136,762

Fair value hedging derivatives
Derivatives (*2)	W	10,271		—

Financial assets at amortized cost
Deposits	W	8,273		1,356
Short-term loans		29,969		26,375

Subtotal	W	38,242		27,731

Other financial assets
Lease receivables	W	5,866		4,130

Total	W	114,139		168,623

Non-current assets
Financial assets at fair value through profit or loss
Equity securities	W	119,397		87,027
Convertible securities		3,157		3,127
Derivatives (*1)		14,067		32,941

Subtotal	W	136,621		123,095

Fair value hedging derivatives
Derivatives (*2)	W	269		—

Financial assets at amortized cost
Deposits	W	8,224		17,022
Long-term loans		12,721		33,509

Subtotal	W	20,945		50,531

Other financial assets
Lease receivables	W	5,021		—

Total	W	162,856		173,626

(*1)	The derivatives, which are not designated as hedging instruments, arise from cross currency interest swap contracts and others for the purpose of managing currency and interest rate risks associated with foreign currency denominated borrowings and bonds.

(*2)	The derivatives, which are designated as hedging instruments, arise from forward exchange contracts for the purpose of managing currency risk associated with advances received in foreign currency.

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

7.	Inventories

Inventories as of September 30, 2024 and December 31, 2023 are as follows:


(In millions of won)	September 30, 2024		December 31, 2023
Finished goods	W	1,281,750		750,775
Work-in-process		1,325,967		1,145,606
Raw materials		571,241		457,356
Supplies		159,197		173,991

Total	W	3,338,155		2,527,728

For the nine-month periods ended September 30, 2024 and 2023, the amount of inventories recognized as cost of sales and loss on valuation of inventories are as follows:


(In millions of won)	2024		2023
Cost of sales	W	17,107,783		14,453,640
Inventories recognized as cost of sales		17,088,471		14,443,989
Loss on valuation of inventories		19,312		9,651

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

8.	Investments in Associates

Details of investment in associates as of September 30, 2024 and December 31, 2023 are as follows:

(In millions of won)

Associates

Location

Closing

Date of
incorporation

Business

September 30, 2024

December 31, 2023

Percentage
of ownership

Carrying
amount

Percentage
of ownership

Carrying
amount

Paju Electric Glass Co., Ltd.

Paju,

South Korea

December

January

2005

Production of glass for display

40%

28,213

40%

24,200

WooRee E&L Co., Ltd. (*1)

Ansan,

South Korea

December

June

2008

Production of LED back light unit packages

—

13%

7,106

YAS Co., Ltd. (*1)

Paju,

South Korea

December

April

2002

Development and production of deposition equipment for OLEDs

—

16%

28,564

AVATEC Co., Ltd. (*1)

Daegu,

South Korea

December

August

2000

Processing and sales of glass for display

—

14%

20,871

Arctic Sentinel, Inc.

Los Angeles, U.S.A.

March

June

2008

Development and production of

tablet for kids

10%

—

10%

—

Cynora GmbH

Bruchsal,

Germany

December

March

2003

Development organic light emitting materials for displays and lighting devices

10%

—

10%

—

Material Science Co., Ltd. (*2)

Seoul,

South Korea

December

January

2014

Development, production, and sales of materials for display

14%

2,902

16%

3,588

Total

31,115

84,329

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

8.	Investments in Associates, Continued

(*1)	For the nine-month period ended September 30, 2024, due to loss of significant influence, it has been reclassified from Investments in associates to financial assets at fair value through profit or loss.

(*2)	For the nine-month period ended September 30, 2024, due to the investee’s disposal of treasury shares, the Parent Company’s percentage of ownership decreased from 16% to 14%.

Although the Parent Company’s respective share interests in Arctic Sentinel, Inc., Cynora GmbH and Material Science Co., Ltd. are below 20%, the Parent Company is able to exercise significant influence through its right to appoint one or more directors to the board of directors of each investee. Accordingly, the investments in these investees have been accounted for using the equity method.

Dividend income recognized from associates for the nine-month periods ended September 30, 2024 amounted to W200 million (dividend income recognized from associates for the nine-month periods ended September 30, 2023: W15,200 million).

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

9.	Property, Plant and Equipment

(a)

Changes in property, plant and equipment for the nine-month periods ended September 30, 2024 and 2023 are as follows:


(In millions of won)	2024			2023
Book value as of January 1	W	20,200,332			20,946,933
Acquisitions		1,232,567			2,892,799
Depreciation		(3,324,357	)		(2,639,160	)
Disposals		(246,279	)		(417,315	)
Impairment loss (*)		(73,036	)		(58,285	)
Others		(991	)		(10,335	)
Effect of changes in exchange rates		249,379			245,064
Government grants received		(2,307	)		(6,381	)
Reclassified as held for sale		(567,015	)		—

Book value as of September 30	W	17,468,293			20,953,320

(*)	Impairment losses are recognized for the difference between the carrying amount and the recoverable amount of property, plant and equipment.

(b)

For the nine-month periods ended September 30, 2024, the capitalized borrowing costs and the annualized capitalization rates were W35,917 million and 5.35%(the capitalized borrowing costs and the annualized capitalization rates for the nine-month periods ended September 30, 2023: W216,481 million and 5.11%).

10.	Intangible Assets

Changes in intangible assets for the nine-month periods ended September 30, 2024 and 2023 are as follows:


(In millions of won)	2024			2023
Book value as of January 1	W	1,773,955			1,752,957
Acquisitions		83,712			121,902
Acquisitions by internal development		473,190			393,176
Depreciation		(622,240	)		(492,318	)
Disposals		(6,575	)		(3,999	)
Impairment loss (*)		(69,457	)		(50,659	)
Others		838			326
Effect of changes in exchange rates		19,115			13,943
Reclassified as held for sale		(733	)		—

Book value as of September 30	W	1,651,805			1,735,328

(*)	Impairment losses are recognized for the difference between the carrying amount and the recoverable amount of intangible assets.

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

11.	Investment Property

(a)

Changes in investment properties for the nine-month periods ended September 30, 2024 and 2023 are as follows:


(In millions of won)	2024			2023
At January 1	W	32,995			28,269
Transfer from property, plant and equipment		—			9,928
Depreciation		(3,812	)		(3,690	)
Others		—			(228	)

At September 30	W	29,183			34,279

(b)

For the nine-month period ended September 30, 2024, rental income from investment property is W6,457 million (rental income from investment property for the nine-month period ended September 30, 2023: W3,704 million) and rental cost is W3,812 million (rental cost for the nine-month period ended September 30, 2023: W3,690 million).

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

12.	Financial Liabilities

(a)

Financial liabilities as of September 30, 2024 and December 31, 2023 are as follows:


(In millions of won)	September 30, 2024		December 31, 2023
Current
Short-term borrowings	W	1,187,213		1,875,635
Current portion of long-term borrowings		4,461,746		2,934,693
Current portion of bonds		611,620		369,716
Derivatives (*1)		30,101		26,193
Fair value hedging derivatives (*2)		—		7,392
Lease liabilities		36,741		48,666

Total	W	6,327,421		5,262,295

Non-current
Long-term borrowings	W	8,045,921		10,230,658
Bonds		510,809		1,118,427
Derivatives (*1)		42,469		37,333
Fair value hedging derivatives (*2)		1,905		28,660
Lease liabilities		26,603		24,698

Total	W	8,627,707		11,439,776

(*1)	The derivatives, which are not designated as hedging instruments, arise from cross currency interest swap contracts and others for the purpose of managing currency and interest rate risks associated with foreign currency denominated borrowings and bonds.

(*2)	The derivatives, which are designated as hedging instruments, arise from forward exchange contracts for the purpose of managing currency risk associated with advances received in foreign currency.

(b)

Details of short-term borrowings as of September 30, 2024 and December 31, 2023 are as follows:

(In millions of won)

Lender

Description

Annual interest rate
as of
September 30, 2024 (%)

September 30,
2024

December 31,
2023

Standard Chartered Bank Korea Limited and others

Working capital
and others

3.50 ~ 6.73

1,187,213

1,875,635

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

12.	Financial Liabilities, Continued

(c)

Details of Korean won denominated long-term borrowings as of September 30, 2024 and December 31, 2023 are as follows:

(In millions of won)

Lender

Description

Maturity

Annual interest rate
as of
September 30, 2024 (%)

September 30,
2024

December 31,
2023

LG Electronics Inc.

Operating capital

March 2026

6.06

1,000,000

Korea Development Bank and others

Facility capital
and others

November
2024 ~ March
2030

2.41 ~ 6.18

4,090,168

3,490,967

Less: current portion of long-term borrowings

(2,046,000

)

(776,000

)

Total

3,044,168

3,714,967

(d)

Details of foreign currency denominated long-term borrowings as of September 30, 2024 and December 31, 2023 are as follows:

(In millions of won, USD and CNY)

Lender

Description

Maturity

Annual interest rate
as of
September 30, 2024 (%)

September 30,
2024

December 31,
2023

KEB Hana Bank and others

Facility
capital and
others

November
2024 ~ July
2029

2.46 ~ 7.69

7,417,499

8,674,384

Foreign currency equivalent of foreign currency borrowings

USD

CNY

2,587

21,210

USD

CNY

3,222

24,991

Less: current portion of long-term borrowings

(2,415,746

)

(2,158,693

)

Total

5,001,753

6,515,691

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

12.	Financial Liabilities, Continued

(e)

Details of bonds issued and outstanding as of September 30, 2024 and December 31, 2023 are as follows:


(In millions of won and USD)	Maturity		Annual interest rate as of September 30, 2024 (%)		September 30, 2024			December 31, 2023
*Korean won denominated bonds at amortized cost (1)**
Publicly issued bonds		February 2025 ~ February 2027		2.79 ~ 3.66	W	655,000			1,025,000
Privately issued bonds		January 2025 ~ January 2026		7.20 ~ 7.25		337,000			337,000
Less: discount on bonds						(1,048	)		(2,120	)
Less: current portion						(611,620	)		(369,716	)

Subtotal					W	379,332			990,164

*Foreign currency denominated bonds at amortized cost (2)**
Privately issued bonds		April 2026		7.16	W	131,960			128,940
Foreign currency equivalent of foreign currency denominated bonds					USD	100		USD	100
Less: discount on bonds						(483	)		(677	)

Less: foreign currency equivalent of discount on bonds of foreign currency denominated bonds					USD	(0	)	USD	(1	)

Subtotal					W	131,477			128,263

Total					W	510,809			1,118,427

(*1)	Principal of the won denominated bonds is to be repaid at maturity and interests are paid quarterly.

(*2)	Principal of the foreign currency denominated bonds is to be repaid at maturity and interests are paid quarterly.

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

13.	Post-employment Benefits

The Parent Company and certain subsidiaries’ defined benefit plans provide a lump-sum payment to an employee based on final salary rates and length of service at the time the employee leaves the Parent Company or certain subsidiaries.

(a)

Net defined benefit liabilities (defined benefit assets) recognized as of September 30, 2024 and December 31, 2023 are as follows:


(In millions of won)	September 30, 2024			December 31, 2023
Present value of defined benefit obligations	W	1,436,628			1,491,146
Fair value of plan assets		(1,686,109	)		(1,897,025	)

Total	W	(249,481	)		(405,879	)

Defined benefit liabilities, net	W	1,260			1,559
Defined benefit assets, net	W	(250,741	)		(407,438	)

(b)

Plan assets as of September 30, 2024 and December 31, 2023 are as follows:


(In millions of won)	September 30, 2024		December 31, 2023
Time deposits in banks	W	1,686,109		1,897,025

As of September 30, 2024, the Group maintains the plan assets primarily with Shinhan Bank , KEB Hana Bank and others.

(c)

Expenses related to defined benefit plans recognized in profit or loss for the three-month and nine-month periods ended September 30, 2024 and 2023 are as follows:


(In millions of won)	For the three-month periods ended September 30						For the nine-month periods ended September 30
(In millions of won)	2024			2023			2024			2023
Current service cost	W	37,196			43,464			114,421			130,417
Net interest cost		(4,713	)		(5,985	)		(14,140	)		(17,957	)

Total	W	32,483			37,479			100,281			112,460

(d)

Remeasurements of the net defined benefit liabilities (assets) included in other comprehensive income (loss) for the three-month and nine-month periods ended September 30, 2024 and 2023 are as follows:


(In millions of won)	For the three-month periods ended September 30						For the nine-month periods ended September 30
(In millions of won)	2024			2023			2024			2023
Remeasurements of net defined benefit liabilities	W	(62,648	)		60			(68,187	)		(952	)
Tax effect		14,359			(14	)		15,629			215

Remeasurements of net defined benefit liabilities, net of income tax	W	(48,289	)		46			(52,558	)		(737	)

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

14.	Provisions

Changes in provisions for the nine-month periods ended September 30, 2024 and 2023 are as follows:


(In millions of won)	Litigation		*Warranties ()**			Others			Total
At January 1, 2024	W	1,806		173,795			5,880			181,481
Additions (reversal)		136		74,047			(235	)		73,948
Usage		—		(99,882	)		—			(99,882	)

At September 30, 2024	W	1,942		147,960			5,645			155,547

Current	W	1,942		89,896			5,645			97,483
Non-current	W	—		58,064			—			58,064

(*)	The Group provides warranty on defective products for warranty periods after sales. The provision is calculated based on the assumption of expected number of warranty claims and costs per claim considering historical experience.


(In millions of won)	Litigation		*Warranties ()**			Others			Total
At January 1, 2023	W	1,680		249,368			8,431			259,479
Additions (reversal)		118		72,277			(3,122	)		69,273
Usage		—		(136,617	)		—			(136,617	)

At September 30, 2023	W	1,798		185,028			5,309			192,135

Current	W	1,798		119,517			5,309			126,624
Non-current	W	—		65,511			—			65,511

(*)	The Group provides warranty on defective products for warranty periods after sales. The provision is calculated based on the assumption of expected number of warranty claims and costs per claim considering historical experience.

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

15.	Contingent Liabilities and Commitments

(a)

Legal Proceedings

Anti-trust litigations

The Group and other LCD panel manufacturers have been sued by individual claimants on allegations of violating EU competition laws. While the Group continues its vigorous defense of the various pending proceedings described above, as of September 30, 2024, the Group cannot predict the final outcomes of the lawsuits that have been filed.

Others

The Group is involved in various lawsuits and disputes in addition to pending proceedings described above. The Group cannot reliably estimate the timing and amount of outflows of resources embodying economic benefits relating to the disputes.

(b)

Commitments

Factoring and securitization of accounts receivable

The Parent Company has discount agreements with Korea Development Bank and other banks for accounts receivable related to export sales transactions with its subsidiary, up to USD 1,000 million (W1,319,600 million). As of September 30, 2024, there is no discounted accounts receivable that are not past due in connection with these agreements. In relation to the above agreements, the financial institutions have the recourse for account receivables that are past due.

The Parent Company has assignment agreements with Standard Chartered Bank and other banks for accounts receivable related to domestic and export sales transactions, up to W4,024,780 million. As of September 30, 2024, the amount of the sold accounts receivable that are not past due in connection with these agreements is W1,708,639 million. In relation to the above agreements, the financial institutions do not have the recourse for account receivables that are past due.

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

15.	Contingent Liabilities and Commitments, Continued

Letters of credit

The Group has entered into agreements with a financial institutions to open letter of credit (L/C), etc., and as of September 30, 2024, the credit limits for each agreement are as follows:


(In millions of won and USD)	Contractual amount		KRW equivalent
KEB Hana Bank		USD 413	W	544,335
Industrial Bank of Korea		USD 419		552,583
Industrial and Commercial Bank of China		USD 200		263,920
KB Kookmin Bank		USD 625		824,750
MUFG Bank		USD 100		131,960
Sumitomo Mitsui Banking Corporation		USD 200		263,920
The Export–Import Bank of Korea		USD 94		123,713

Total		USD 2,051		2,705,181

Payment guarantees

The Parent Company obtained payment guarantees amounting of USD 1,050 million (W1,385,580 million) from KB Kookmin Bank and other banks for advances received related to the long-term supply agreements.

LG Display (China) Co., Ltd. and other subsidiaries have entered into agreements with China Construction Bank Corporation and other banks to receive guarantees up to CNY 930 million (W175,528 million), JPY 900 million (W8,321 million), VND 76,157 million (W4,082 million), and USD 0.2 million (W250 million) for the payment of consumption tax, import value-added tax, customs duties, and electricity charges.

Patent and License agreements

As of September 30, 2024, the Group has patent license agreements with Hitachi Display, Ltd. and others in relation to its LCD business and patent license agreements with Universal Display Corporation and others in relation to its OLED business. Also, as of September 30, 2024, the Group has a trademark license agreement with LG Corp. and other license agreements with other companies for patents, trademarks and other intellectual property rights.

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

15.	Contingent Liabilities and Commitments, Continued

Long-term Supply Agreement

As of September 30, 2024, in connection with long-term supply agreements with customers, the Parent Company recognized advances received of USD 900 million (W1,187,640 million). The advances received will be used to offset against accounts receivable arising from future product sales after a certain period of time from the date of receipt. In relation to this, the Parent Company received payment guarantees of USD 1,050 million (W1,385,580 million) from KB Kookmin Bank and other banks (see note 15(b) payment guarantees).

Collateral

The details of collateral provided by the Group are as follows:


(In millions of won and CNY) Collateral	Carrying amount	Maximum bond amount		Secured creditor	Collateral borrowings amount
Property, plant and equipment and others	W 454,995		1,200,000	LG Electronics Inc.	1,000,000
Property, plant and equipment and others	70,796		326,400	Korea Development Bank and others	136,000
Property, plant and equipment and others (*)	241,435		780,000	Korea Development Bank and others	650,000
Property, plant and equipment and others	711,756		—	China Construction Bank Corporation and others	CNY 7,830

(*)	The carrying amount of collateral asset, amounting to W241,435 million, includes collateral asset of W70,796 million for collateral borrowings of W136,000 million from Korea Development Bank and other banks.

Commitments for asset acquisition

The amount committed to acquire property, plant, equipment and intangible assets not recognized on the financial statements as of September 30, 2024 is W563,344 million.

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

16.	Share Capital, Share Premium and Reserves

(a)

Share capital and Share premium

The total number of shares to be issued by the Parent Company is 500,000,000 shares, the number of shares issued is 500,000,000 shares (December 31, 2023: 357,815,700 shares), and the par value per share is W5,000.

The Parent Company conducted a paid-in capital increase based on the resolution of the board of directors on December 18, 2023, and the newly issued shares were listed on the Korea Exchange (KRX) on March 26, 2024.

With the new shares of common stock, the share capital increased by W710,921 million to W2,500,000 million.


		Classification		Description
		Purpose		Facility capital, operating capital and debt repayment
		Type of shares issued		Common stock
		Number of shares issued		142,184,300 shares
		The amount per shares		W9,090

Capital surplus as of September 30, 2024 and December 31, 2023 are as follows:


(In millions of won)	September 30, 2024			December 31, 2023
Share premium	W	2,821,006			2,251,113
Other capital surplus		(61,512	)		—

Total	W	2,759,494			2,251,113

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

16.	Share Capital, Share Premium and Reserves, Continued

(b)

Reserves

Reserves consist mainly of the following:

Translation reserve

The translation reserve comprises all foreign currency differences arising from the translation of the financial statements of overseas subsidiaries and others.

Other comprehensive loss from associates

The other comprehensive loss from associates comprises the amount related to change in equity of investments in equity accounted investees.

Reserves as of September 30, 2024 and December 31, 2023 are as follows:


(In millions of won)	September 30, 2024			December 31, 2023
Foreign currency translation differences for overseas subsidiaries and others	W	770,065			548,792
Other comprehensive loss from associates		(29,483	)		(32,816	)

Total	W	740,582			515,976

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

17.

Revenue

Details of revenue for the three-month and nine-month periods ended September 30, 2024 and 2023 are as follows:


	For the three-month periods ended September 30				For the nine-month periods ended September 30
(In millions of won)	2024		2023		2024		2023
Sales of goods	W	6,773,608		4,759,962		18,682,153		13,880,497
Royalties		23,419		3,388		37,671		12,743
Others		24,274		21,937		62,651		41,674

Total	W	6,821,301		4,785,287		18,782,475		13,934,914

18.	Information about geographical areas and products

Details of information of geographical areas and products for the three-month and nine-month periods ended September 30, 2024 and 2023 are as follows:

(a)

Revenue by geography (Customer based)


(In millions of won)	For the three-month periods ended September 30				For the nine-month periods ended September 30
Region	2024		2023		2024		2023
Domestic	W	221,480		156,143		740,213		452,441
Foreign
China		4,642,375		3,196,439		12,699,104		9,097,005
Asia (excluding China)		775,707		551,101		2,361,394		1,782,865
North America		633,441		558,485		1,662,311		1,554,495
Europe		548,298		323,119		1,319,453		1,048,108

Subtotal	W	6,599,821		4,629,144		18,042,262		13,482,473

Total	W	6,821,301		4,785,287		18,782,475		13,934,914

Revenue to customer A and customer B amount to W9,805,943 million and W2,607,910 million, respectively, for the nine-month period ended September 30, 2024 (the nine-month period ended September 30, 2023: W6,587,044 million and W2,451,390 million, respectively). The Group’s top ten customers together accounted for 89% of revenue for the nine-month period ended September 30, 2024 (the nine-month period ended September 30, 2023: 86%).

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

18.	Information about geographical areas and products, Continued

(b)

Non-current assets by geography


(In millions of won)	September 30, 2024						December 31, 2023
Region	Property, plant and equipment		Intangible assets		Investment Property		Property, plant and equipment		Intangible assets		Investment Property
Domestic	W	12,239,085		1,580,664		29,183		13,583,136		1,683,116		32,995
Foreign
China		2,229,125		20,030		—		3,358,395		32,009		—
Vietnam		2,989,931		36,868		—		3,244,729		31,472		—
Others		10,152		14,243		—		14,072		27,358		—

Subtotal	W	5,229,208		71,141		—		6,617,196		90,839		—

Total	W	17,468,293		1,651,805		29,183		20,200,332		1,773,955		32,995

(c)

Revenue by products and services


	For the three-month periods ended September 30				For the nine-month periods ended September 30
(In millions of won)	2024		2023		2024		2023
TV	W	1,552,952		1,086,004		4,264,506		3,014,923
IT		2,188,798		1,933,117		7,247,709		5,601,724
Mobile and others (*)		2,533,968		1,301,145		5,616,829		3,854,496
AUTO		545,583		465,021		1,653,431		1,463,771

Total	W	6,821,301		4,785,287		18,782,475		13,934,914

(*)	This includes royalties and other revenue.

For the nine-month periods ended September 30, 2024, the proportion of revenue from OLED products to total revenue disclosed above was 53%(for the nine-month periods ended September 30, 2023 : 43%).

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

19.	The Nature of Expenses

The classification of expenses by nature for the three-month and nine-month periods ended September 30, 2024 and 2023 are as follows:


	For the three-month periods ended September 30						For the nine-month periods ended September 30
(In millions of won)	2024			2023			2024			2023
Changes in inventories	W	(256,362	)		(666,959	)		(810,426	)		(475,624	)
Purchases of raw materials and others		3,449,422			2,921,472			9,504,445			7,729,983
Depreciation and amortization		1,242,583			1,044,317			3,902,268			3,073,707
Outsourcing		302,200			262,736			857,631			672,963
Labor		1,018,609			848,774			2,787,038			2,572,509
Supplies and others		246,520			242,496			693,844			678,554
Utility		373,824			312,073			1,034,159			875,485
Fees and commissions		192,585			161,184			535,879			504,613
Shipping		53,125			30,595			128,206			89,903
Advertising		17,196			17,741			47,961			53,145
Warranty		32,302			19,700			74,047			72,277
Travel		12,464			18,425			40,448			47,770
Taxes and dues		33,438			32,632			104,182			97,105
Others		239,963			269,144			760,873			794,723

Total	W	6,957,869			5,514,330			19,660,555			16,787,113

Total expenses consist of cost of sales, selling, administrative, research and development expenses and other non-operating expenses, excluding foreign exchange differences.

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

20.	Selling and Administrative Expenses

Details of selling and administrative expenses for the three-month and nine-month periods ended September 30, 2024 and 2023 are as follows:


	For the three-month periods ended September 30				For the nine-month periods ended September 30
(In millions of won)	2024		2023		2024		2023
Salaries	W	248,327		87,148		427,627		273,171
Expenses related to defined benefit plans		5,437		6,051		17,149		18,615
Other employee benefits		20,516		20,461		63,419		64,549
Shipping		39,941		22,455		87,980		64,730
Fees and commissions		62,989		63,392		180,104		186,892
Depreciation and amortization		66,761		65,157		204,964		199,597
Taxes and dues		14,713		17,671		48,055		50,656
Advertising		17,196		17,741		47,961		53,145
Warranty		32,302		19,700		74,047		72,277
Insurance		3,532		3,378		10,610		10,267
Travel		2,809		4,750		9,859		13,845
Training		1,853		2,138		8,042		8,099
Others		19,885		23,235		67,415		68,345

Total	W	536,261		353,277		1,247,232		1,084,188

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

21.	Other Non-operating Income and Other Non-operating Expenses

(a)

Details of other non-operating income for the three-month and nine-month periods ended September 30, 2024 and 2023 are as follows:


	For the three-month periods ended September 30				For the nine-month periods ended September 30
(In millions of won)	2024		2023		2024		2023
Foreign currency gain	W	372,731		222,295		1,113,096		1,026,369
Gain on disposal of property, plant and equipment		3,453		4,948		47,652		28,746
Reversal of impairment loss on property, plant and equipment		617		—		4,314		7
Gain on disposal of intangible assets		—		1,520		25		1,989
Reversal of impairment loss on intangible assets		—		120		14		242
Rental income		571		462		1,552		1,707
Others		4,911		8,374		19,193		11,993

Total	W	382,283		237,719		1,185,846		1,071,053

(b)

Details of other non-operating expenses for the three-month and nine-month periods ended September 30, 2024 and 2023 are as follows:


	For the three-month periods ended September 30				For the nine-month periods ended September 30
(In millions of won)	2024		2023		2024		2023
Foreign currency loss	W	290,234		354,390		1,331,933		1,284,342
Loss on disposal of property, plant and equipment		19,112		22,731		59,610		77,428
Impairment loss on property, plant and equipment		1,122		2,861		77,350		58,293
Loss on disposal of intangible assets		38		—		388		55
Impairment loss on intangible assets		19,475		29,098		69,471		50,900
Others		16,222		12,273		27,557		23,615

Total	W	346,203		421,353		1,566,309		1,494,633

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

22.	Finance Income and Finance Costs

Finance income and costs recognized in profit or loss for the three-month and nine-month periods ended September 30, 2024 and 2023 are as follows:


	For the three-month periods ended September 30					For the nine-month periods ended September 30
(In millions of won)	2024			2023		2024		2023
Finance income
Interest income	W	24,542			36,096		69,021		102,651
Foreign currency gain		175,622			56,337		262,514		481,602
Gain on transaction of derivatives		46,763			42,743		229,982		127,833
Gain on valuation of derivatives		(63,715	)		48,053		1,326		295,896
Others		—			—		—		48

Total	W	183,212			183,229		562,843		1,008,030

Finance costs
Interest expense	W	233,520			199,340		689,957		508,630
Foreign currency loss		1,048			134,202		345,888		551,793
Loss on sale of trade accounts and notes receivable		5,673			10,167		22,572		24,671
Loss on valuation of derivatives		104,164			—		106,246		201,401
Loss on valuation of financial assets at fair value through profit or loss		—			—		—		10,372
Others		2,532			2,471		7,522		5,374

Total	W	346,937			346,180		1,172,185		1,302,241

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

23.	Income Tax Benefit (Expense)

(a)

Details of income tax benefit (expense) for the three-month and nine-month periods ended September 30, 2024 and 2023 are as follows:


	For the three-month periods ended September 30					For the nine-month periods ended September 30
(In millions of won)	2024			2023		2024			2023
Current tax benefit (expense)	W	32,887			5,211		(59,509	)		(217,224	)
Deferred tax benefit (expense)		(163,783	)		225,852		118,516			948,386

Income tax benefit (expense)	W	(130,896	)		231,063		59,007			731,162

(b)

Deferred tax assets and liabilities

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced when sufficient estimated future taxable income of the Group is not probable to realize part or all of that deferred tax assets. The Group’s deferred tax assets and liabilities may differ from actual refundable or payable amount.

Deferred tax assets and liabilities as of September 30, 2024 and December 31, 2023 are attributable to the following:


	Assets				Liabilities						Total
(In millions of won)	September 30, 2024		December, 31, 2023		September 30, 2024			December, 31, 2023			September 30, 2024			December, 31, 2023
Other accounts receivable, net	W	—		—		(83	)		(61	)		(83	)		(61	)
Inventories, net		67,127		51,728		—			—			67,127			51,728
Defined benefits assets, etc		431		—		(57,374	)		(89,753	)		(56,943	)		(89,753	)
Subsidiaries and associates		89,817		89,033		(154,367	)		(178,682	)		(64,550	)		(89,649	)
Accrued expenses		97,250		97,867		(3	)		—			97,247			97,867
Property, plant and equipment		582,901		609,345		(706	)		(43,282	)		582,195			566,063
Intangible assets		32,443		13,314		(534	)		(2,069	)		31,909			11,245
Provisions		33,891		39,586		—			—			33,891			39,586
Other temporary differences		44,494		70,182		(7,877	)		(11,451	)		36,617			58,731
Tax losses carryforwards		2,796,905		2,766,820		—			—			2,796,905			2,766,820
Tax credit carryforwards		153,555		148,215		—			—			153,555			148,215

Deferred tax assets (liabilities)	W	3,898,814		3,886,090		(220,944	)		(325,298	)		3,677,870			3,560,792

(c)

Global Minimum Tax

Under Pillar Two legislation, the Group is liable to pay a top-up tax for the difference between the GloBE effective tax rate per jurisdiction and the 15% minimum rate. The Group has assessed its impact of the Pillar Two legislation on its financial statements. As a result of the assessment, the Group has no current tax expenses related to Pillar Two legislation for the nine-month period ended September 30, 2024.

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

24.	Loss Per Share

(a)

Basic loss per share for the three-month and nine-month periods ended September 30, 2024 and 2023 are as follows:


	For the three-month periods ended September 30						For the nine-month periods ended September 30
(In won and number of shares)	2024			2023			2024			2023
Loss for the period	W	(355,159,361,649	)		(720,025,816,567	)		(1,644,843,015,057	)		(2,791,928,210,926	)
Weighted-average number of common shares outstanding		500,000,000			380,884,673			461,599,861			380,884,673

Basic loss per share	W	(710	)		(1,890	)		(3,563	)		(7,330	)

Due to paid-in capital increase during the three-month period ended March 31, 2024, the number of outstanding shares has increased. The weighted-average number of common shares outstanding for previous period has been adjusted considering a bonus element in a rights issue to existing shareholders during the three-month period ended March 31, 2024.

(b)

Diluted loss per share

The Group has no potential dilutive ordinary shares, and accordingly, basic loss per share is identical to diluted loss per share.

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

25.	Financial Risk Management

The Group is exposed to credit risk, liquidity risk and market risk. The Group identifies and analyzes such risks, and controls are implemented under a risk management system to monitor and manage these risks at below an acceptable level.

(a)

Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices, will affect the Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

(i)

Currency risk

The Group is exposed to currency risk on sales, purchases and borrowings that are denominated in a currency other than the functional currency of the Parent Company, Korean won (KRW). The currencies in which these transactions primarily are denominated are USD, CNY, JPY, etc.

Interest on borrowings is accrued in the currency of the borrowing. Generally, borrowings are denominated in currencies that match the cash flows generated by the underlying operations of the Group, primarily KRW, USD and CNY.

The Group adopts policies to ensure that its net exposure is kept to a manageable level by buying or selling foreign currencies at spot rates when necessary to address short-term imbalances. In respect of monetary assets and liabilities denominated in foreign currencies, the Group manages currency risk through continuously managing the position of foreign currencies, measuring the currency risk and, if necessary, using derivatives such as currency forwards, currency swap and others.

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

25.	Financial Risk Management, Continued

i) Exposure to currency risk

The Group’s exposure to primarily foreign currency risk based on notional amounts as of September 30, 2024 and December 31, 2023 is as follows:


	Net exposure
(In millions)	September 30, 2024			December 31, 2023
USD		(2,017	)		(859	)
JPY		(16,661	)		(23,398	)
CNY		(28,653	)		(19,043	)
VND		(1,153,025	)		(1,796,335	)

Net exposure is the difference between foreign currency assets and liabilities and it includes derivatives assets and liabilities from cross currency interest rate swap contracts and forward exchange contracts.

Cross currency interest rate swap contracts, USD 700 million (2023: USD 500 million) and CNY 726 million (2023: CNY 345 million) were entered into to manage currency risk with respect to foreign currency denominated borrowings and USD 1,030 million (2023: USD 1,430 million) were entered into to manage currency risk and interest rate risk with respect to foreign currency denominated borrowings and bonds.

Forward exchange contracts, USD 900 million (2023: USD 1,200 million) were entered into to manage currency risk with respect to advances received in foreign currency.

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

25.	Financial Risk Management, Continued

i) Exposure to currency risk, Continued

Average exchange rates applied for the nine-month periods ended September 30, 2024 and 2023 and the exchange rates at September 30, 2024 and December 31, 2023 are as follows:


	Average rate				Reporting date spot rate
(In won)	2024		2023		September 30, 2024		December 31, 2023
USD	W	1,352.41		1,300.93		1,319.60		1,289.40
JPY		8.96		9.44		9.25		9.13
CNY		187.55		184.86		188.74		180.84
VND		0.0541		0.0550		0.0536		0.0532

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

25.	Financial Risk Management, Continued

ii) Sensitivity analysis

A weaker won, as indicated below, against the following currencies which comprise the Group’s assets or liabilities denominated in a foreign currency as of September 30, 2024 and December 31, 2023, would have increased (decreased) equity and profit or loss by the amounts shown below. This analysis is based on foreign currency exchange rate variances that the Group considers to be reasonably possible at the end of the reporting period. The analysis assumes that all other variables, in particular interest rates, would remain constant. The changes in equity and profit or loss would have been as follows:


	September 30, 2024						December 31, 2023
(In millions of won)	Equity			Profit or loss			Equity			Profit or loss
USD (5 percent weakening)	W	(130,861	)		(7,462	)		(68,615	)		44,361
JPY (5 percent weakening)		(5,916	)		(6,007	)		(8,160	)		(8,480	)
CNY (5 percent weakening)		(270,395	)		(3	)		(172,198	)		(2	)
VND (5 percent weakening)		(2,382	)		(2,382	)		(3,683	)		(3,683	)

A stronger won against the above currencies as of September 30, 2024 and December 31, 2023 would have had the equal but opposite effect on the above currencies to the amounts shown above, on the basis that all other variables remain constant.

iii) Fair value hedging derivatives

In relation to advances received that are denominated in foreign currency, the Parent Company uses derivative instruments to hedge change of fair value due to foreign currency exchange rate changes. As of September 30, 2024, there is no ineffective portion of the gain or loss on valuation of derivatives to which change of fair value hedging accounting has been applied and gain on valuation amounting to W44,686 million, respectively, (contracted buying amount: USD 900 million, contracted exchange rate: W1,289.11 ~ 1,310.08) are recognized in profit or loss.

(ii) Interest rate risk

Interest rate risk arises principally from the Group’s variable interest-bearing bonds and borrowings. The Group establishes and applies its policy to reduce uncertainty arising from fluctuations in interest rates and to minimize finance cost and manages interest rate risk by monitoring of trends of fluctuations in interest rate and establishing plan for countermeasures. Meanwhile, the Group entered into cross currency interest rate swap contracts amounting to USD 1,030 million (W1,359,188 million) and interest rate swap contracts amounting to W925,000 million in notional amount to manage interest rate risk with respect to variable interest bearing borrowings.

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

25.	Financial Risk Management, Continued

i) Profile

The interest rate profile of the Group’s interest-bearing financial instruments as of September 30, 2024 and December 31, 2023 is as follows:


(In millions of won)	September 30, 2024			December 31, 2023
Fixed rate instruments
Financial assets	W	1,787,749			3,163,490
Financial liabilities		(5,115,483	)		(6,333,238	)

Total	W	(3,327,734	)		(3,169,748	)

Variable rate instruments
Financial liabilities	W	(9,701,826	)		(10,195,891	)

ii) Equity and profit or loss sensitivity analysis for variable rate instruments

As of September 30, 2024 and December 31, 2023, a change of 100 basis points in interest rates at the reporting date would have increased (decreased) equity and profit or loss by the amounts shown below for the respective following 12 month periods. This analysis assumes that all other variables, in particular foreign currency rates, remain constant.


	Equity					Profit or loss
(In millions of won)	1%p increase			1%p decrease		1%p increase			1%p decrease
September 30, 2024
Variable rate instruments (*)	W	(74,782	)		74,782		(74,782	)		74,782
December 31, 2023
Variable rate instruments (*)	W	(78,590	)		78,590		(78,590	)		78,590

(*)	Financial instruments related to non-hedging interest rate swap are included in the calculation.

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

25.	Financial Risk Management, Continued

(b)

Credit risk

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Group’s receivables from customers.

The Group’s exposure to credit risk of trade and other receivables is influenced mainly by the individual characteristics of each customer. However, management believes that the default risk of the country in which each customer operates, do not have a significant influence on credit risk since the majority of the customers are global electronic appliance manufacturers operating in global markets.

The Group establishes credit limits for each customer and each new customer is analyzed quantitatively and qualitatively before determining whether to utilize third party guarantees, insurance or factoring as appropriate.

In relation to the impairment of financial assets subsequent to initial recognition, the Group recognizes the changes in expected credit loss (“ECL”) in profit or loss at each reporting date.

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk as of September 30, 2024 and December 31, 2023 are as follows:


(In millions of won)	September 30, 2024		December 31, 2023
Financial assets at amortized cost
Cash equivalents	W	1,786,649		2,257,519
Deposits in banks		1,111		905,982
Trade accounts and notes receivable, net		3,039,963		3,218,093
Non-trade receivables		132,282		112,739
Accrued income		4,507		14,246
Deposits		16,497		18,378
Loans		42,690		59,884

Subtotal		5,023,699		6,586,841

Other financial assets
Lease receivables	W	10,887		4,130

Subtotal		10,887		4,130

Financial assets at fair value through profit or loss
Convertible securities	W	3,157		3,127
Derivatives		73,827		169,703

Subtotal	W	76,984		172,830

Financial assets effective for fair value hedging
Derivatives	W	10,540		—

Subtotal		10,540		—

Total	W	5,122,110		6,763,801

Trade accounts and notes receivable are insured in order for the Group to manage credit risk if they do not meet the Group’s internal credit ratings. Uninsured trade accounts and notes receivable are managed by continuous monitoring of internal credit rating standards established by the Group and seeking insurance coverage, if necessary.

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

25.	Financial Risk Management, Continued

(c)

Liquidity risk

Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or other financial assets. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation.

The Group has historically been able to satisfy its cash requirements from cash flows from operations and debt and equity financing. To the extent that the Group does not generate sufficient cash flows from operations to meet its capital requirements, the Group may rely on other financing activities, such as long-term borrowings and offerings of debt instruments, equity-linked and other debt instruments. In addition, the Group maintains a line of credit with various banks.

The following are the contractual maturities of financial liabilities, including estimated interest payments, as of September 30, 2024.


			Contractual cash flows in
(In millions of won)	Carrying amount		Total			6 months or less			6-12 months			1-2 years			2-5 years			More than 5 years
Non-derivative financial liabilities
Borrowings	W	13,694,880		14,701,524			3,029,934			3,001,374			4,339,302			4,305,273			25,641
Bonds		1,122,429		1,167,806			634,649			6,848			399,024			127,285			—
Trade accounts and notes payable (*)		4,093,230		4,093,230			3,722,885			370,345			—			—			—
Other accounts payable (*)		1,353,974		1,356,373			1,190,258			166,115			—			—			—
Long-term other accounts payable		291,326		335,013			—			—			79,011			172,868			83,134
Security deposits received		156,851		187,523			650			678			3,980			182,215			—
Lease liabilities		63,344		66,070			26,651			11,838			16,134			10,254			1,193

Derivative financial liabilities
Derivatives	W	72,570		47,376			23,801			3,856			5,403			14,316			—
Cash outflow		—		1,789,882			657,903			164,313			244,181			723,485			—
Cash inflow		—		(1,742,506	)		(634,102	)		(160,457	)		(238,778	)		(709,169	)		—
Fair value hedging derivatives		1,905		1,905			—			—			1,905			—			—

Total	W	20,850,509		21,956,820			8,628,828			3,561,054			4,844,759			4,812,211			109,968

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

25.	Financial Risk Management, Continued

(*)

As of September 30, 2024, it includes W923,483 million of payable to credit card companies for utility expenses and others paid using business credit card for purchases. The Group presented the payable to credit card companies as trade account notes payables and other accounts payable and disclosed related cash flows as operating and investing activities since the Group is using the business credit card for purchases through agreements with suppliers for transactions arising from purchasing of goods and services, the payment term is within a year from the purchase, as part of the normal operating cycle, and no collateral is provided.

The following are the contractual maturities of financial liabilities, including estimated interest payments, as of December 31, 2023.


			Contractual cash flows in
(In millions of won)	Carrying amount		Total			6 months or less			6-12 months			1-2 years			2-5 years			More than 5 years
Non-derivative financial liabilities
Borrowings	W	15,040,986		16,309,036			3,534,173			1,900,982			6,231,118			4,397,095			245,668
Bonds		1,488,143		1,597,741			111,169			319,011			642,996			524,565			—
Trade accounts and notes payable		4,175,064		4,175,064			3,969,497			205,567			—			—			—
Other accounts payable (*)		2,918,903		2,921,719			2,688,979			232,740			—			—			—
Long-term other accounts payable		357,907		413,255			—			—			129,587			175,358			108,310
Security deposits received		153,370		190,329			3,120			4,597			1,047			181,565			—
Lease liabilities		73,364		77,246			29,980			21,335			11,848			11,461			2,622

Derivative financial liabilities
Derivatives	W	63,526		45,705			18,781			3,988			12,474			10,462			—
Cash outflow		—		1,385,858			657,325			47,527			510,676			170,330			—
Cash inflow		—		(1,340,153	)		(638,544	)		(43,539	)		(498,202	)		(159,868	)		—
Fair value hedging derivatives		36,052		36,052			1,514			5,878			20,282			8,378			—

Total	W	24,307,315		25,766,147			10,357,213			2,694,098			7,049,352			5,308,884			356,600

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

25.	Financial Risk Management, Continued

(*)

As of December 31, 2023, it includes W1,092,180 million of payable to credit card companies for utility expenses and others paid using business credit card for purchases. The Group presented the payable to credit card companies as other accounts payable and disclosed related cash flows as operating and investing activities since the Group is using the business credit card for purchases through agreements with suppliers for transactions arising from purchasing of goods and services, the payment term is within a year from the purchase, as part of the normal operating cycle, and no collateral is provided.

It is not expected that the cash flows included in the maturity analysis could occur significantly earlier, or at significantly different amounts.

(d)

Capital management

Management’s policy is to maintain a capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Liabilities to equity ratio, net borrowings to equity ratio and other financial ratios are used by management to achieve an optimal capital structure. Management also monitors the return on capital as well as the level of dividends to ordinary shareholders.


(In millions of won)	September 30, 2024		December 31, 2023
Total liabilities	W	24,806,249		26,988,754
Total equity		8,343,428		8,770,544
Cash and deposits in banks (*1)		1,787,749		3,163,493
Borrowings (including bonds)		14,817,309		16,529,129
Total liabilities to equity ratio		297%		308%
Net borrowings to equity ratio (*2)		156%		152%

(*1)	Cash and deposits in banks consist of cash and cash equivalents and current deposits in banks.

(*2)	Net borrowings to equity ratio is calculated by dividing total borrowings (including bonds and excluding lease liabilities and others) less cash and current deposits in banks by total equity.

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

25.	Financial Risk Management, Continued

(e)

Determination of fair value

(i)

Measurement of fair value

A number of the Group’s accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes based on the following methods. When applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability.

Current assets and liabilities

The carrying amounts approximate their fair value because of the short maturity of these instruments.

ii)

Trade receivables and other receivables

The fair value of trade and other receivables is estimated as the present value of future cash flows, discounted at the market rate of interest at the reporting date. This fair value is determined for disclosure purposes. The carrying amounts of current receivables approximate their fair value.

iii)

Investments in equity and debt securities

The fair value of marketable financial assets at FVTPL and FVOCI is determined by reference to their quoted closing bid price at the reporting date. The fair value of non-marketable instruments is determined using the results of fair value assessment performed by external valuation institutions and others.

iv)

Non-derivative financial liabilities

Fair value, which is determined for disclosure purposes, except for the liabilities at FVTPL, is calculated based on the present value of future principal and interest cash flows, discounted at the market rate of interest at the reporting date.

Derivatives

The inputs used to measure the fair value of currency forward and cross currency interest rate swap are calculated based on the exchange rates and interest rates observable in the market at the reporting date.

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

25.	Financial Risk Management, Continued

(ii)

Fair values versus carrying amounts

The fair values of financial assets and liabilities, together with the carrying amounts shown in the condensed consolidated interim statements of financial position as of September 30, 2024 and December 31, 2023 are as follows:


	September 30, 2024				December 31, 2023
(In millions of won)	Carrying amounts		Fair values		Carrying amounts		Fair values
Financial assets at amortized cost
Cash and cash equivalents	W	1,786,649		(*1)		2,257,522		(*1)
Deposits in banks		1,111		(*1)		905,982		(*1)
Trade accounts and notes receivable		3,039,963		(*1)		3,218,093		(*1)
Non-trade receivables		132,282		(*1)		112,739		(*1)
Accrued income		4,507		(*1)		14,246		(*1)
Deposits		16,497		(*1)		18,378		(*1)
Loans		42,690		(*1)		59,884		(*1)
Other financial assets
Lease receivables	W	10,887		(*1)		4,130		(*1)
Financial assets at fair value through profit or loss
Equity securities	W	119,397		119,397		87,027		87,027
Convertible securities		3,157		3,157		3,127		3,127
Derivatives		73,827		73,827		169,703		169,703
Financial assets effective for fair value hedging
Derivatives	W	10,540		10,540		—		—
Financial liabilities at fair value through profit or loss
Derivatives	W	72,570		72,570		63,526		63,526
Financial liabilities effective for fair value hedging
Derivatives	W	1,905		1,905		36,052		36,052
Financial liabilities at amortized cost
Borrowings	W	13,694,880		13,767,524		15,040,986		15,101,258
Bonds		1,122,429		1,128,194		1,488,143		1,479,725
Trade accounts and notes payable		4,093,230		(*1)		4,175,064		(*1)
Other accounts payable		1,645,300		(*1)		3,276,810		(*1)
Security deposits received		156,851		(*1)		153,370		(*1)
Other financial liabilities
Lease liabilities	W	63,344		(*2)		73,364		(*2)

(*1)	Excluded from disclosures as the carrying amount approximates fair value.

(*2)	Excluded from the fair value disclosures in accordance with Korean IFRS 1107 ‘Financial Instruments: Disclosures’.

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

25.	Financial Risk Management, Continued

(iii)

Fair values of financial assets and liabilities

i) Fair value hierarchy

Financial instruments carried at fair value are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques. The different levels have been defined as follows:

•

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities

•

Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly

•

Level 3: inputs for the asset or liability that are not based on observable market data

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

25.	Financial Risk Management, Continued

ii)

Valuation techniques and inputs for Assets and Liabilities measured by the fair value hierarchy

Fair value hierarchy classifications of the financial instruments that are measured at fair value as of September 30, 2024 and December 31, 2023 are as follows:


(In millions of won)	September 30, 2024
Classification	Level 1		Level 2		Level 3		Total
Financial assets at fair value through profit or loss
Equity securities	W	25,931		—		93,466		119,397
Convertible securities		—		—		3,157		3,157
Derivatives		—		73,827		—		73,827
Financial assets effective for fair value hedging
Derivatives	W	—		10,540		—		10,540
Financial liabilities at fair value through profit or loss
Derivatives	W	—		72,570		—		72,570
Financial liabilities effective for fair value hedging
Derivatives	W	—		1,905		—		1,905

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

25.	Financial Risk Management, Continued


(In millions of won)	December 31, 2023
Classification	Level 1		Level 2		Level 3		Total
Financial assets at fair value through profit or loss
Equity securities	W	—		—		87,027		87,027
Convertible securities		—		—		3,127		3,127
Derivatives		—		169,703		—		169,703
Financial liabilities at fair value through profit or loss
Derivatives	W	—		63,526		—		63,526
Financial liabilities effective for fair value hedging
Derivatives	W	—		36,052		—		36,052

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

25.	Financial Risk Management, Continued

The valuation techniques and inputs for assets and liabilities measured at fair value that are classified as Level 2 and Level 3 within the fair value hierarchy as of September 30, 2024 and December 31, 2023 are as follows:

(In millions of won)

September 30, 2024

December 31, 2023

Valuation
technique

Input

Classification

Level 2

Level 3

Level 2

Level 3

Financial assets at fair value through profit or loss

Equity securities

—

93,466

—

87,027

Discounted
cash flow, etc.

Discount rate
and Estimated
cash flow, etc.

Convertible securities

—

3,157

—

3,127

Blended discount
model and
binominal option
pricing model

Discount rate,
stock price
and volatility

Derivatives

73,827

—

169,703

—

Discounted cash
flow

Discount rate
and Exchange
rate

Financial assets effective for fair value hedging

Derivatives

10,540

—

Discounted cash
flow

Discount rate
and Exchange
rate

Financial liabilities at fair value through profit or loss

Derivatives

72,570

—

63,526

—

Discounted cash
flow

Discount rate
and Exchange
rate

Financial liabilities effective for fair value hedging

Derivatives

1,905

—

36,052

—

Discounted cash
flow

Discount rate
and Exchange
rate

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

25.	Financial Risk Management, Continued

iii)

Financial instruments not measured at fair value but for which the fair value is disclosed

Fair value hierarchy classifications, valuation techniques and inputs for fair value measurements of the financial instruments not measured at fair value but for which the fair value is disclosed as of September 30, 2024 and December 31, 2023 are as follows:

(In millions of won)

September 30, 2024

Valuation
technique

Input

Classification

Level 1

Level 2

Level 3

Liabilities

Borrowings

—

13,767,524

Discounted
cash flow

Discount
rate

Bonds

—

1,128,194

Discounted
cash flow

Discount
rate

(In millions of won)

December 31, 2023

Valuation
technique

Input

Classification

Level 1

Level 2

Level 3

Liabilities

Borrowings

—

15,101,258

Discounted
cash flow

Discount
rate

Bonds

—

1,479,725

Discounted
cash flow

Discount
rate

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

25.	Financial Risk Management, Continued

iv)

The interest rates applied for determination of the above fair value as of September 30, 2024 and December 31, 2023 are as follows:


	September 30, 2024		December 31, 2023
Borrowings, bonds and others		3.83%~4.13%		4.60%~5.02%

The changes in financial assets classified as Level 3 of fair value measurements for the nine-month periods ended September 30, 2024 and 2023 is as follows:


(In millions of won)
Classification	January 1, 2024		Acquisition		Disposal			Valuation		Changes in Foreign Exchange Rates		September 30, 2024
Equity securities	W	87,027		4,792		(128	)		—		1,775		93,466
Convertible securities		3,127		—		—			—		30		3,157


(In millions of won)
Classification	January 1, 2023		Acquisition		Disposal			Valuation			Changes in Foreign Exchange Rates		September 30, 2023
Equity securities	W	96,064		2,476		(498	)		(10,372	)		5,197		92,867
Convertible securities		1,797		1,329		—			—			16		3,142

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

26.	Cash Flow Information

(a)

Cash flows generated from operations for the nine-month periods ended September 30, 2024 and 2023 are as follows:


(In millions of won)	2024			2023
Loss for the period	W	(1,570,182	)		(2,627,268	)

Adjustments for:
Income tax benefit (Note 23)		(59,007	)		(731,162	)
Depreciation and amortization (Note 19)		3,902,268			3,073,707
Gain on foreign currency translation		(362,452	)		(197,565	)
Loss on foreign currency translation		318,513			319,404
Expenses related to defined benefit plans (Note 13)		100,281			112,460
Gain on disposal of property, plant and equipment		(47,652	)		(28,746	)
Loss on disposal of property, plant and equipment		59,610			77,428
Impairment loss on property, plant and equipment		77,350			58,293
Reversal of impairment loss on property, plant and equipment		(4,314	)		(7	)
Gain on disposal of intangible assets		(25	)		(1,989	)
Loss on disposal of intangible assets		388			55
Impairment loss on intangible assets		69,471			50,900
Reversal of impairment loss on intangible assets		(14	)		(242	)
Expense on increase of provision		74,047			72,277
Finance income		(417,777	)		(538,194	)
Finance costs		959,436			924,409
Equity in loss (income) of equity method accounted investees, net		(4,320	)		(1,269	)
Others		(14,461	)		(6,996	)

Changes in:
Trade accounts and notes receivable		(434,094	)		182,104
Other accounts receivable		(37,958	)		82,057
Inventories		(857,419	)		(449,605	)
Other current assets		(68,530	)		13,164
Other non-current assets		(1,244	)		(2,946	)
Trade accounts and notes payable		989,511			446,224
Other accounts payable		(798,861	)		(157,115	)
Accrued expenses		58,737			3,201
Provisions		(100,117	)		(139,738	)
Advances received		(5,682	)		(24,103	)
Proceeds from settlement of derivatives		21,800			—
Other current liabilities		(8,974	)		(22,450	)
Defined benefit liabilities, net		(12,080	)		(32,450	)
Long-term advances received		—			1,580,222
Other non-current liabilities		2,689			28,674

Cash generated from operations	W	1,828,938			2,062,734

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

26.	Cash Flow Information, Continued

(b)

Changes in liabilities arising from financing activities for the nine-month periods ended September 30, 2024 and 2023 are as follows:


						Non-cash transactions
(In millions of won)	January 1, 2024		Cash flows from financing activities			Gain or loss on foreign currency translation		Interest expense		Classification of liabilities held for sale			Others		September 30, 2024
Short-term borrowings	W	1,875,635		(724,672	)		36,250		—		—			—		1,187,213
Long-term borrowings		13,165,351		(3,568	)		332,618		3,208		(995,510	)		5,568		12,507,667
Bonds		1,488,143		(370,000	)		3,009		1,277		—			—		1,122,429
Lease liabilities		73,364		(53,583	)		21,414		—		(5,523	)		27,672		63,344
Dividend payable		7,302		(136,519	)		—		—		—			129,217		—

Total	W	16,609,795		(1,288,342	)		393,291		4,485		(1,001,033	)		162,457		14,880,653


						Non-cash transactions
(In millions of won)	January 1, 2023		Cash flows from financing activities			Gain or loss on foreign currency translation		Interest expense		Others		September 30, 2023
Short-term borrowings	W	2,578,552		(60,760	)		58,248		—		—		2,576,040
Long-term borrowings		10,964,112		2,127,305			317,640		2,508		6,561		13,418,126
Bonds		1,448,746		35,276			7,748		1,276		167		1,493,213
Lease liabilities		72,788		(56,659	)		2,961		—		49,907		68,997
Dividend payable		—		(34,098	)		—		—		34,098		—

Total	W	15,064,198		2,011,064			386,597		3,784		90,733		17,556,376

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

27.	Related Parties and Others

(a)

Related parties

Related parties as of September 30, 2024 are as follows:


Classification		Description
Associates (*)		Paju Electric Glass Co., Ltd. and others
Entity that has significant influence over the Parent Company		LG Electronics Inc.
Subsidiaries of the entity that has significant influence over the Parent Company		Subsidiaries of LG Electronics Inc.

(*)	Details of associates are described in Note 8.

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

27.	Related Parties and Others, Continued

(b)

Major transactions with related parties for the nine-month periods ended September 30, 2024 and 2023 are as follows:


	2024
					Purchase and others
(In millions of won)	Sales and others		Dividend income		Purchase of raw material and others		Acquisition of property, plant and equipment		Others
Associates
AVATEC Co., Ltd.(*)	W	—		200		52,983		—		2,947
Paju Electric Glass Co., Ltd.		—		—		176,641		—		6,093
WooRee E&L Co., Ltd.(*)		—		—		5,045		—		32
YAS Co., Ltd.(*)		—		—		5,266		3,793		3,785
Material Science Co., Ltd.		—		—		—		—		888

Subtotal	W	—		200		239,935		3,793		13,745

Entity that has significant influence over the Parent Company
LG Electronics Inc.	W	260,558		—		14,565		160,237		124,353
Subsidiaries of the entity that has significant influence over the Parent Company
LG Electronics India Pvt. Ltd.	W	46,695		—		—		—		208
LG Electronics Vietnam Haiphong Co., Ltd.		214,830		—		—		84		4,825
LG Electronics Nanjing New Technology Co., Ltd.		289,925		—		—		—		560

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

27.	Related Parties and Others, Continued


	2024
					Purchase and others
(In millions of won)	Sales and others		Dividend income		Purchase of raw material and others		Acquisition of property, plant and equipment		Others
LG Electronics do Brasil Ltda.	W	17,739		—		—		—		217
LG Innotek Co., Ltd.		8,371		—		15,219		—		53,011
LG Electronics Mlawa Sp. z o.o.		636,686		—		—		—		743
LG Electronics Reynosa S.A. DE C.V.		678,569		—		—		—		543
LG Electronics Egypt S.A.E		14,232		—		—		—		23
LG Electronics Japan, Inc.		—		—		—		—		4,618
LG Electronics RUS, LLC		—		—		—		—		4,005
P.T. LG Electronics Indonesia		360,616		—		—		—		802
HI-M Solutek Co., Ltd		—		—		—		—		5,426
Others		98		—		155		42		3,105

Subtotal	W	2,267,761		—		15,374		126		78,086

Total	W	2,528,319		200		269,874		164,156		216,184

(*)	For the nine-month period ended September 30, 2024, WooRee E&L Co., Ltd., AVATEC Co., Ltd. and YAS Co., Ltd. were excluded from related parties and others due to loss of significant influence and transaction amount is the amount prior to exclusion.

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

27.	Related Parties and Others, Continued


	2023
					Purchase and others
(In millions of won)	Sales and others		Dividend income		Purchase of raw material and others		Acquisition of property, plant and equipment		Others
Associates
AVATEC Co., Ltd.	W	—		—		30,676		—		6,644
Paju Electric Glass Co., Ltd.		—		15,200		122,537		—		2,739
WooRee E&L Co., Ltd.		—		—		1,155		—		10
YAS Co., Ltd.		—		—		6,462		10,351		4,209
Material Science Co., Ltd.		—		—		—		—		72

Subtotal	W	—		15,200		160,830		10,351		13,674

Entity that has significant influence over the Parent Company
LG Electronics Inc.	W	168,939		—		14,417		267,719		133,862
Subsidiaries of the entity that has significant influence over the Parent Company
LG Electronics India Pvt. Ltd.	W	42,703		—		—		—		163
LG Electronics Vietnam Haiphong Co., Ltd.		334,522		—		—		5,368		575
LG Electronics Nanjing New Technology Co., Ltd.		262,532		—		—		—		344

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

27.	Related Parties and Others, Continued


	2023
					Purchase and others
(In millions of won)	Sales and others		Dividend income		Purchase of raw material and others		Acquisition of property, plant and equipment		Others
LG Electronics do Brasil Ltda.	W	22,625		—		—		—		92
LG Innotek Co., Ltd.		5,986		—		10,333		—		77,164
LG Electronics Mlawa Sp. z o.o.		523,404		—		—		—		1,205
LG Electronics Reynosa S.A. DE C.V.		594,690		—		—		—		485
LG Electronics Egypt S.A.E		18,732		—		—		—		63
LG Electronics Japan, Inc.		—		—		—		18		4,565
LG Electronics RUS, LLC		359		—		—		—		2,062
LG Electronics U.S.A., Inc.		—		—		—		—		1,606
P.T. LG Electronics Indonesia		342,184		—		—		—		1,842
LG Technology Ventures LLC		—		—		—		—		2,275
HI-M Solutek Co., Ltd		—		—		9		—		6,825
Others		1,068		—		84		—		1,010

Subtotal	W	2,148,805		—		10,426		5,386		100,276

Total	W	2,317,744		15,200		185,673		283,456		247,812

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

27.	Related Parties and Others, Continued

(c)

Balances of receivables and payables from transaction with related parties as at September 30, 2024 and December 31, 2023 are as follows:


	Trade accounts and notes receivable and others				Trade accounts and notes payable and others
(In millions of won)	September 30, 2024		December 31, 2023		September 30, 2024		December 31, 2023
Associates
AVATEC Co., Ltd.(*1)	W	—		—		—		4,775
Paju Electric Glass Co., Ltd.		—		—		63,451		56,136
WooRee E&L Co., Ltd.(*1)		—		695		—		2,219
YAS Co., Ltd.(*1)		—		—		—		12,483
Material Science Co., Ltd.		—		—		—		118

Subtotal	W	—		695		63,451		75,731

Entity that has significant influence over the Parent Company
LG Electronics Inc.(*2)	W	154,780		63,284		1,062,114		1,140,260

Subsidiaries of the entity that has significant influence over the Parent Company
LG Electronics Vietnam Haiphong Co., Ltd.	W	28,834		76,952		413		1,403
LG Electronics Nanjing New Technology Co., Ltd.		56,399		38,502		3		27
LG Innotek Co., Ltd.(*3)		1,842		3,002		202,794		216,049
LG Electronics Mlawa Sp. z o.o.		103,178		101,357		24		—
LG Electronics Reynosa, S.A. DE C.V.		149,134		64,208		8		109

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

27.	Related Parties and Others, Continued


	Trade accounts and notes receivable and others				Trade accounts and notes payable and others
(In millions of won)	September 30, 2024		December 31, 2023		September 30, 2024		December 31, 2023
P.T. LG Electronics Indonesia	W	34,204		46,146		7		108
LG Electronics India Pvt. Ltd.		13,019		2,013		—		35
Others		5,858		6,986		3,370		2,964

Subtotal	W	392,468		339,166		206,619		220,695

Total	W	547,248		403,145		1,332,184		1,436,686

(*1)	For the nine-month period ended September 30, 2024, as it was excluded from related parties and others due to loss of significant influence, there are no outstanding receivables or payables.

(*2)	Trades accounts and notes payable and others for LG Electronics Inc. as of September 30, 2024 and December 31, 2023 includes long-term borrowings of W1,000,000 million (see Note 12.(c)).

(*3)	Trade accounts and note payable and others for LG Innotek Co., Ltd. as of September 30, 2024 and December 31, 2023 includes deposits received amount W180,000 million from lease agreement.

(d)

Significant financial transactions with related parties and others for the nine-month periods ended September 30, 2024 and 2023, is as follows:

For the nine-month period ended September 30, 2024


(In millions of won)
Associates	Collection of loans
WooRee E&L Co., Ltd. (*)	W	256

(*)	For the nine-month period ended September 30, 2024, it was excluded from related parties and others due to loss of significant influence and transaction amount is the amount prior to exclusion.

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

27.	Related Parties and Others, Continued

ii)

For the nine-month period ended September 30, 2023


(In millions of won)
Associates	Collection of loans
WooRee E&L Co., Ltd.	W	73

(In millions of won)
Entity that has significant influence over the Parent Company	Borrowings
LG Electronics Inc.	W	1,000,000

The group entered into a loan agreement with LG Electronics Inc. on March 27, 2023 for a total borrowing amount of W1,000,000 million, and received W650,000 million on March 30, 2023 and W350,000 million on April 20, 2023.

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

27.	Related Parties and Others, Continued

(e)

Large Enterprise Group Transactions

According to the ‘Related Party Disclosures’ under the Korean IFRS 1024, although not included in the scope of related parties, the major transaction details with the Large Enterprise Group subsidiaries and their affiliates, as well as the amounts of receivables and payables for the nine-month periods ended September 30, 2024 and 2023 and as of September 30, 2024 and December 31, 2023, in accordance with the Monopoly Regulation and Fair Trade Act, are as follows:


	For the nine-month period ended September 30, 2024				September 30, 2024
(In millions of won)	Sales and others		Purchase and others		Trade accounts and notes receivable and others		Trade accounts and notes payable and others
LG Uplus Corp.	W	105,300		2,173		—		181
LG Chem Ltd. and its subsidiaries		375		434,432		144		253,003
D&O Corp. and its subsidiaries (*1)		205		64,325		—		84,117
LG Corp. (*2)		—		45,285		7,554		5,765
LG Management Development Institute		—		22,035		2		446
LG CNS Co., Ltd. and its subsidiaries		148		162,270		—		46,250
LG Household & Health Care and its subsidiaries		—		95		—		47
HS AD Inc. and its subsidiaries		—		4,909		—		596
Robostar Co., Ltd.		—		507		—		211

Total	W	106,028		736,031		7,700		390,616

(*1)

Among the matters related to D&O Corp. (formerly S&I Corporation Co., Ltd.) and its subsidiaries, S&I Corporation Co., Ltd. and Xi C&A Co., Ltd. were excluded from the large corporate group as of March 19, 2024 and reflected based on the transaction amount for the three-month period ended March 31, 2024.

(*2)

According to the lease agreement signed with LG Corp., the recognized lease liabilities as of September 30, 2024 are W2,243 million, and the lease liabilities are not included in the amount of ‘Trade accounts and notes payable and others’ above. The lease repayment for the nine-month period ended September 30, 2024 amounts to W8,157 million.

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

27.	Related Parties and Others, Continued


	For the nine-month period ended September 30, 2023				December 31, 2023
(In millions of won)	Sales and others		Purchase and others		Trade accounts and notes receivable and others		Trade accounts and notes payable and others
LG Uplus Corp.	W	—		1,853		—		206
LG Chem Ltd. and its subsidiaries		318		341,779		49		209,113
D&O Corp. and its subsidiaries		1,932		564,330		—		105,757
LG Corp. (*1)		1,891		34,672		16,261		5,575
LG Management Development Institute		—		31,151		—		543
LG CNS Co., Ltd. and its subsidiaries		8		178,433		5		112,881
LG Household & Health Care Ltd. and its subsidiaries		—		109		—		1
HS AD Inc.(formerly, G2R Inc.) and its subsidiaries(*2)		—		11,085		—		5,687
Robostar Co., Ltd.		—		775		—		312

Total	W	4,149		1,164,187		16,315		440,075

(*1)

According to the lease agreement signed with LG Corp., the recognized lease liabilities as of December 31, 2023 are W8,493 million, and the lease liabilities are not included in the amount of ‘Trade accounts and notes payable and others’ above. The lease repayment for the nine-month period ended September 30, 2023 amounts to W6,868 million.

(*2)	G2R Inc. changed its name to HS AD Inc. on July 1, 2023.

LG DISPLAY CO., LTD. AND SUBSIDIARIES

Notes to the Condensed Consolidated Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

27.	Related Parties and Others, Continued

(f)

Key management personnel compensation

Compensation costs of key management for the nine-month periods ended September 30, 2024 and 2023 are as follows:


(In millions of won)	2024		2023
Short-term benefits	W	1,797		1,715
Expenses related to the defined benefit plan		576		266

Total	W	2,373		1,981

Key management refers to the registered directors who have significant control and responsibilities over the Parent Company’s operations and business.

(g)

At the end of the reporting period, the Group did not set an allowance for doubtful accounts on the balance of receivables for related parties.

28.	Assets and Liabilities Held for Sale (Disposal Groups)

During the nine-month period ended September 30, 2024, management of the Group decided to sell 80% of its stake in LG Display (China) Co., Ltd. and 100% of its stake in LG Display Guangzhou Co., Ltd. to TCL CSOT. The contract was signed on September 26, 2024, and the transaction is expected to be completed within one year. As a result, the assets and liabilities associated with LG Display (China) Co., Ltd. and LG Display Guangzhou Co., Ltd. are presented as assets and liabilities held for sale.

LG DISPLAY CO., LTD.

Condensed Separate Interim Financial Statements

(Unaudited)

September 30, 2024 and 2023

(With Report on Review of Condensed Interim Financial Statements)

Contents


	Page

Report on Review of Condensed Interim Financial Statements		101

Separate Interim Statements of Financial Position		103

Separate Interim Statements of Comprehensive Loss		104

Separate Interim Statements of Changes in Equity		105

Separate Interim Statements of Cash Flows		106

Notes to the Condensed Separate Interim Financial Statements		107

100

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

Report on Review of Condensed Interim Financial Statements

(English Translation of a Report Originally Issued in Korean)

To the Shareholders and Board of Directors of

LG Display Co., Ltd.

Reviewed Financial Statements

We have reviewed the accompanying condensed interim financial statements of LG Display Co., Ltd (referred to as the “Company”). These condensed interim financial statements consist of the interim statement of financial position of the Company as at September 30, 2024, and the related interim statements of comprehensive income for the three-month and nine-month periods ended September 30, 2024, and interim statements of changes in equity and cash flows for the nine-month period ended September 30, 2024, and material accounting policy information and other selected explanatory notes, expressed in Korean won.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and presentation of these condensed interim financial statements in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (Korean IFRS) 1034 Interim Financial Reporting, and for such internal control as management determines is necessary to enable the preparation of condensed interim financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express a conclusion on these condensed interim financial statements based on our review.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe the accompanying condensed interim financial statements are not prepared, in all material respects, in accordance with Korean IFRS 1034 Interim Financial Reporting.

Other Matters

The statements of comprehensive income for the three-month and nine-month periods ended September 30, 2023, and statements of changes in equity and cash flows for the nine-month period ended September 30, 2023, presented herein for comparative purposes, were reviewed by another auditor whose report dated November 13, 2023. Based on their review, nothing has come to their attention that causes them to believe the accompanying condensed financial statements do not present fairly, in all material respects, in accordance with Korean IFRS 1034 Interim Financial Reporting.

101

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

The statement of financial position as at December 31, 2023, and the statements of comprehensive income, changes in equity and cash flows for the year then ended, not presented herein, were audited by another auditor who expressed an unqualified opinion on those statements on March 7, 2024. The statement of financial position as at December 31, 2023, presented herein for comparative purposes, is consistent, in all material respects, with the above audited statement of financial position as at December 31, 2023.

November 14, 2024

Seoul, Korea

This report is effective as of November 14, 2024, the review report date. Certain subsequent events or circumstances, which may occur between the review report date and the time of reading this report, could have a material impact on the accompanying condensed interim financial statements and notes thereto. Accordingly, the readers of the review report should understand that there is a possibility that the above review report may have to be revised to reflect the impact of such subsequent events or circumstances, if any.

102

LG DISPLAY CO., LTD.

Separate Interim Statements of Financial Position

As of September 30, 2024 and December 31, 2023


(In millions of won)	Note		September 30, 2024 (Unaudited)			December 31, 2023
Assets
Cash and cash equivalents		4, 24	W	319,116			334,502
Deposits in banks		4, 24		—			20,000
Trade accounts and notes receivable, net		5, 15, 24, 26		4,570,587			3,077,901
Other accounts receivable, net		5, 24		139,128			95,178
Other current financial assets		6, 24		108,181			163,137
Inventories		7		2,287,304			1,780,959
Prepaid income tax				1,860			1,954
Classification of assets held for sale		27		1,016,645			—
Other current assets		5		189,546			116,851

Total current assets				8,632,367			5,590,482
Deposits in banks		4, 24		11			11
Investments		8		3,812,917			4,932,063
Other non-current accounts receivable, net		5, 24		9,913			13,833
Other non-current financial assets		6, 24		59,538			80,793
Property, plant and equipment, net		9		12,239,406			13,584,247
Intangible assets, net		10		1,580,577			1,683,029
Investment property		11		29,183			32,995
Deferred tax assets		22		3,566,869			3,387,504
Defined benefits assets, net		13		250,322			407,212
Other non-current assets				20,350			20,243

Total non-current assets				21,569,086			24,141,930

Total assets			W	30,201,453			29,732,412

Liabilities
Trade accounts and notes payable		24, 26	W	10,707,441			8,993,964
Current financial liabilities		12, 24, 25		6,341,495			3,850,822
Other accounts payable		24		1,120,478			2,334,289
Accrued expenses				484,506			461,819
Provisions		14		96,352			115,834
Advances received		15		821,335			608,044
Other current liabilities				56,145			57,487

Total current liabilities				19,627,752			16,422,259
Non-current financial liabilities		12, 24, 25, 26		4,431,157			5,985,874
Non-current provisions		14		58,064			63,805
Long-term advances received		15		395,880			967,050
Other non-current liabilities		24		554,715			611,869

Total non-current liabilities				5,439,816			7,628,598

Total liabilities				25,067,568			24,050,857

Equity
Share capital		16		2,500,000			1,789,079
Share premium		16		2,821,006			2,251,113
Retained earnings (Accumulated deficit)				(187,121	)		1,641,363

Total equity				5,133,885			5,681,555

Total liabilities and equity			W	30,201,453			29,732,412

See accompanying notes to the condensed separate interim financial statements.

103

LG DISPLAY CO., LTD.

Separate Interim Statements of Comprehensive Loss

For the three-month and nine-month periods ended September 30, 2024 and 2023


(In millions of won, except loss per share amounts)	Note	For the three-month period ended September 30						For the nine-month period ended September 30
		2024 (Unaudited)			2023 (Unaudited)			2024 (Unaudited)			2023 (Unaudited)
Revenue	17, 26		6,811,193			4,688,687		W	18,070,434			12,960,038
Cost of sales	7, 18, 26		(6,371,886	)		(4,726,328	)		(17,637,351	)		(14,946,610	)

Gross profit (loss)			439,307			(37,641	)		433,083			(1,986,572	)
Selling expenses	18, 19		(73,815	)		(62,221	)		(206,492	)		(207,011	)
Administrative expenses	18, 19		(305,357	)		(145,087	)		(594,150	)		(440,533	)
Research and development expenses	18		(381,901	)		(344,230	)		(1,056,908	)		(1,032,399	)

Operating loss			(321,766	)		(589,179	)		(1,424,467	)		(3,666,515	)

Finance income	21		83,819			99,477			583,016			2,383,109
Finance costs	21		(154,431	)		(200,967	)		(775,033	)		(720,590	)
Other non-operating income	20		308,890			208,109			964,187			662,852
Other non-operating expenses	18, 20		(164,749	)		(358,343	)		(1,275,483	)		(1,130,484	)

Loss before income tax			(248,237	)		(840,903	)		(1,927,780	)		(2,471,628	)
Income tax benefit (expense)	22		(118,037	)		199,589			151,854			881,630

Loss for the period			(366,274	)		(641,314	)		(1,775,926	)		(1,589,998	)

Other comprehensive income (loss)
Items that will never be reclassified to profit or loss
Remeasurements of net defined benefit liabilities	13		(48,289	)		46			(52,558	)		(737	)
Other comprehensive income (loss) for the period, net of income tax			(48,289	)		46			(52,558	)		(737	)

Total comprehensive loss for the period			(414,563	)		(641,268	)	W	(1,828,484	)		(1,590,735	)

Loss per share (in won)
Basic loss per share	23		(733	)		(1,684	)	W	(3,847	)		(4,174	)
Diluted loss per share	23		(733	)		(1,684	)	W	(3,847	)		(4,174	)

See accompanying notes to the condensed separate interim financial statements.

104

LG DISPLAY CO., LTD.

Separate Interim Statements of Changes in Equity

For the nine-month periods ended September 30, 2024 and 2023


(In millions of won)	Note		Share capital		Share premium		Retained earnings (Accumulated deficit)			Other capital		Total equity
Balances at January 1, 2023			W	1,789,079		2,251,113		3,310,247			—		7,350,439

Total comprehensive loss for the period
Loss for the period				—		—		(1,589,998	)		—		(1,589,998	)

Other comprehensive loss
Remeasurements of net defined benefit liabilities				—		—		(737	)		—		(737	)

Total comprehensive loss for the period			W	—		—		(1,590,735	)		—		(1,590,735	)

Balances at September 30, 2023 (Unaudited)			W	1,789,079		2,251,113		1,719,512			—		5,759,704

Balances at January 1, 2024			W	1,789,079		2,251,113		1,641,363			—		5,681,555

Total comprehensive loss for the period
Loss for the period				—		—		(1,775,926	)		—		(1,775,926	)

Other comprehensive loss
Remeasurements of net defined benefit liabilities				—		—		(52,558	)		—		(52,558	)

Total comprehensive loss for the period			W	—		—		(1,828,484	)		—		(1,828,484	)

Transaction with owners, recognized directly in equity
Capital increase		16	W	710,921		569,893		—			—		1,280,814

Balances at September 30, 2024 (Unaudited)			W	2,500,000		2,821,006		(187,121	)		—		5,133,885

See accompanying notes to the condensed separate interim financial statements.

105

LG DISPLAY CO., LTD.

Separate Interim Statements of Cash Flows

For the nine-month periods ended September 30, 2024 and 2023


(In millions of won)	Note		2024 (Unaudited)			2023 (Unaudited)
Cash flows from (used in) operating activities:
Cash generated from operations		25	W	(786,964	)		(1,161,595	)
Income taxes paid				(11,788	)		(91,108	)
Interests received				14,180			12,857
Interests paid				(500,126	)		(452,179	)

Cash flows used in operating activities				(1,284,698	)		(1,692,025	)

Cash flows from (used in) investing activities:
Dividends received				228,833			1,887,196
Increase in deposits in banks				—			(20,000	)
Proceeds from withdrawal of deposits in banks				20,000			42,804
Acquisition of financial assets at fair value through other comprehensive income				—			(1,000	)
Proceeds from disposal of financial assets at fair value through other comprehensive income				—			891
Proceeds from disposal of financial assets at fair value through profit or loss				2,226			—
Acquisition of investments				(838,003	)		(223,991	)
Proceeds from disposal of investments				933,009			—
Acquisition of property, plant and equipment				(1,166,572	)		(1,754,721	)
Proceeds from disposal of property, plant and equipment				245,933			371,030
Acquisition of intangible assets				(608,187	)		(488,948	)
Proceeds from disposal of intangible assets				6,212			5,933
Proceeds from settlement of derivatives				229,982			127,833
Decrease in short-term loans				14,233			23,402
Increase in deposits				(979	)		(5	)
Decrease in deposits				593			92
Proceeds from disposal of greenhouse gas emission permits				14,394			6,659

Cash flows used in investing activities:				(918,326	)		(22,825	)

Cash flows from (used in) financing activities:		25
Proceeds from short-term borrowings				5,076,777			4,629,907
Repayments of short-term borrowings				(3,709,363	)		(4,490,582	)
Proceeds from issuance of bonds				—			469,266
Repayments of bonds				(370,000	)		(433,990	)
Proceeds from long-term borrowings				1,925,711			2,647,189
Repayments of current portion of long-term borrowings				(2,010,552	)		(1,644,306	)
Payment guarantee fee received				5,662			5,149
Repayments of payment guarantee fee				(992	)		(1,726	)
Capital increase				1,292,455			—
Transaction cost from capital increase				(11,640	)		—
Payment of lease liabilities				(10,420	)		(9,685	)

Cash flows from financing activities				2,187,638			1,171,222

Net decrease in cash and cash equivalents				(15,386	)		(543,628	)
Cash and cash equivalents at January 1				334,502			692,312

Cash and cash equivalents at September 30			W	319,116			148,684

See accompanying notes to the condensed separate interim financial statements.

106

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

1.	Organization and Description of Business

LG Display Co., Ltd. (the “Company”) was incorporated in February 1985 and the Company is a public corporation listed in the Korea Exchange since 2004. The main business of the Company is to manufacture and sell displays and its related products. As of September 30, 2024, the Company is operating Thin Film Transistor Liquid Crystal Display (“TFT-LCD”) and Organic Light Emitting Diode (“OLED”) panel manufacturing plants in Gumi, Paju and China and TFT-LCD and OLED module manufacturing plants in Gumi, Paju, China and Vietnam. The Company is domiciled in the Republic of Korea with its address at 128 Yeouidae-ro, Yeongdeungpo-gu, Seoul, the Republic of Korea. As of September 30, 2024, LG Electronics Inc., a major shareholder of the Company, owns 36.72% (183,593,206 shares) of the Company’s common stock.

As of September 30, 2024, 500,000,000 shares of the Company’s common stock is listed on Korea Exchange under the identifying code 034220, and 21,094,314 American Depository Shares (“ADSs”, 2 ADSs represent one share of common stock) is listed on the New York Stock Exchange under the symbol “LPL”.

2.	Basis of Preparation

The Company maintains its accounting records in Korean won and prepares statutory financial statements in the Korean language (Hangul) in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (Korean IFRS). The accompanying condensed separate interim financial statements have been condensed, restructured and translated into English from the Korean language financial statements.

Certain information attached to the Korean language financial statements, but not required for a fair presentation of the Company’s financial position, financial performance or cash flows, is not presented in the accompanying condensed separate interim financial statements.

(a)

Application of accounting standards

The Company’s condensed separate interim financial statements have been prepared in accordance with International Financial Reporting Standard as adopted by the Republic of Korea (Korean IFRS) 1034 Interim Financial Reporting. These condensed separate interim financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the separate financial statements of the Company as of and for the year ended December 31, 2023.

These condensed interim financial statements are separate interim financial statements prepared in accordance with Korean IFRS 1027, Separate Financial Statements, presented by a parent, an investor in an associate, in which the investments are accounted for on the basis of the direct equity interest rather than on the basis of the reported results and net assets of the investees.

(b)

Basis of Measurement

The condensed separate interim financial statements have been prepared on the historical cost basis except for the following material items in the statement of financial position:

•

net defined benefit liabilities (defined benefit assets) recognized at the present value of defined benefit obligations less the fair value of plan assets

107

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

2.	Basis of Preparation, Continued

(c)

Functional and Presentation Currency

The condensed separate interim financial statements are presented in Korean won, which is the Company’s functional currency.

(d)

Estimates and Judgments

The preparation of the condensed separate interim financial statements in conformity with Korean IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

(e)

Accounting standards and Interpretation issued and adopted by the Company

The Company has applied the following new or amended accounting standards for the annual periods commencing January 1, 2024.

(i)

Amendments to Korean IFRS 1001 Presentation of Financial Statements – Classification of Liabilities as Current or Non-current, Non-current Liabilities with Covenants

(ii)

Amendments to Korean IFRS 1007 Statement of Cash Flows, Korean IFRS 1107 Financial Instruments: Disclosures – Supplier finance arrangements

(iii)

Amendments to Korean IFRS 1116 Leases – Lease Liability in a Sale and Leaseback

108

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

2.	Basis of Preparation, Continued

(iv)

Amendments to Korean IFRS 1001 Presentation of Financial Statements – Disclosure of Cryptographic Assets

(f)

Accounting standards and Interpretation issued but not yet adopted by the Company

The Accounting standards and Interpretation issued that have been enacted or amended but have not been applied because the effective date has not arrived are as follows:

Amendments to Korean IFRS 1021 The Effects of Changes in Foreign Exchange Rates and Korean IFRS 1101 First-time Adoption of International Financial Reporting Standards – Lack of Exchangeability

When an entity estimates a spot exchange rate because exchangeability between two currencies is lacking, the entity shall disclose related information. The amendments should be applied for annual periods beginning on or after January 1, 2025, and earlier application is permitted. The Company is in review for the impact of these amendments on the financial statements.

(g)

Income Tax Expense

The Company is within the scope of the Pillar Two model rules, there is no additional income tax expenses recognized in relation to the rules and applied the exception to recognizing and disclosing information about deferred tax and assets and liabilities related to Pillar Two income Taxes.

109

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

3.	Accounting Policies

The accounting policies followed by the Company in the preparation of its condensed separate interim financial statements are the same as those followed by the Company in its preparation of the separate financial statements as of and for the year ended December 31, 2023, except for the application of Korean IFRS 1034 Interim Financial Reporting.

4.	Cash and Cash Equivalents and Deposits in Banks

Cash and cash equivalents and deposits in banks as of September 30, 2024 and December 31, 2023 are as follows:


(In millions of won)	September 30, 2024		December 31, 2023
Current assets
Cash and cash equivalents
Deposits	W	319,116		334,502
Deposits in banks
Time deposits (*)	W	—		20,000
Non-current assets
Deposits in banks
Deposit for checking account	W	11		11

(*)

The balance as of December 31, 2023, consists of funds for business cooperation to aid LG Group companies’ suppliers, which is restricted in use.

110

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

5.	Trade Accounts and Notes Receivable, Other Accounts Receivable and Others

(a)

Trade accounts and notes receivable as of September 30, 2024 and December 31, 2023 are as follows:


(In millions of won)	September 30, 2024		December 31, 2023
Due from third parties, net	W	193,856		172,109
Due from related parties		4,376,731		2,905,792

Total	W	4,570,587		3,077,901

(b)

Other accounts receivable as of September 30, 2024 and December 31, 2023 are as follows:


(In millions of won)	September 30, 2024		December 31, 2023
Current assets
Non-trade receivables, net	W	137,078		94,936
Accrued income		2,050		242

Subtotal	W	139,128		95,178

Non-current assets
Long-term non-trade receivables	W	9,913		13,833

Total	W	149,041		109,011

Due from related parties included in other accounts receivable as of September 30, 2024 are W113,312 million (December 31, 2023: W55,593 million).

(c)

The aging of trade accounts and notes receivable and other accounts receivable as of September 30, 2024 and December 31, 2023 are as follows:


	September 30, 2024
	Original Amount				Allowance for doubtful account
(In millions of won)	Trade accounts and notes receivable		Other accounts receivable		Trade accounts and notes receivable			Other accounts receivable
Not past due	W	4,566,131		146,142		(238	)		(83	)
1-15 days past due		4,014		4		—			—
16-30 days past due		—		953		—			(9	)
31-60 days past due		396		145		—			(1	)
More than 60 days past due		284		1,897		—			(7	)

Total	W	4,570,825		149,141		(238	)		(100	)

111

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

5.	Trade Accounts and Notes Receivable, Other Accounts Receivable and Others, Continued


	December 31, 2023
	Original Amount				Allowance for doubtful account
(In millions of won)	Trade accounts and notes receivable		Other accounts receivable		Trade accounts and notes receivable			Other accounts receivable
Not past due	W	3,074,502		105,816		(234	)		(62	)
1-15 days past due		198		1,357		—			—
16-30 days past due		3,435		156		—			(2	)
31-60 days past due		—		168		—			(2	)
More than 60 days past due		—		1,592		—			(12	)

Total	W	3,078,135		109,089		(234	)		(78	)


	September 30, 2024				September 30, 2023
(In millions of won)	Trade accounts and notes receivable		Other accounts receivable		Trade accounts and notes receivable			Other accounts receivable
At January 1	W	234		78		229			1,418
(Reversal of) bad debt expense		4		22		(50	)		(11	)

At September 30	W	238		100		179			1,407

(d)

Other current assets as of September 30, 2024 and December 31, 2023 are as follows:


(In millions of won)	September 30, 2024		December 31, 2023
Advanced payments	W	3,823		1,220
Prepaid expenses		109,747		71,382
Prepaid value added tax		71,369		39,128
Right to recover returned goods		4,607		5,121

Total	W	189,546		116,851

112

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

6.	Other Financial Assets

Other financial assets as of September 30, 2024 and December 31, 2023 are as follows:


(In millions of won)	September 30, 2024		December 31, 2023
Current assets
Financial assets at fair value through profit or loss
Derivatives (*1)	W	59,760		136,762
Fair value hedging derivatives
Derivatives (*2)	W	10,271		—
Financial assets at amortized cost
Short-term loans	W	29,969		26,375
Deposits		8,181		—

Subtotal	W	38,150		26,375

Total	W	108,181		163,137

Non-current assets
Financial assets at fair value through profit or loss
Equity securities	W	29,898		3,967
Convertible securities		1,838		1,838
Derivatives (*1)		14,067		32,941

Subtotal	W	45,803		38,746

Fair value hedging derivatives
Derivatives (*2)	W	269		—

Financial assets at amortized cost
Deposits	W	745		8,538
Long-term loans		12,721		33,509

Subtotal	W	13,466		42,047

Total	W	59,538		80,793

(*1)	The derivatives, which are not designated as hedging instruments, arise from cross currency interest swap contracts and others for the purpose of managing currency and interest rate risks associated with foreign currency denominated borrowings and bonds.

(*2)	The derivatives, which are designated as hedging instruments, arise from forward exchange contracts for the purpose of managing currency risk associated with advances received in foreign currency.

113

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

7.	Inventories

Inventories as of September 30, 2024 and December 31, 2023 are as follows:


(In millions of won)	September 30, 2024		December 31, 2023
Finished goods	W	445,052		279,483
Work-in-process		1,213,216		1,005,025
Raw materials		538,638		408,078
Supplies		90,398		88,373

Total	W	2,287,304		1,780,959

For the nine-month periods ended September 30, 2024 and 2023, the amount of inventories recognized as cost of sales and loss on valuation of inventories are as follows:


(In millions of won)	2024		2023
Cost of sales	W	17,637,351		14,946,610
Inventories recognized as cost of sales		17,616,332		14,938,054
Loss on valuation of inventories		21,019		8,556

114

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

8.	Investments

(a)

Details of investments in subsidiaries as at September 30, 2024 and December 31, 2023, are as follows:


(In millions of won)					September 30, 2024					December 31, 2023
Subsidiaries	Location		Business		Percentage of ownership			Carrying amount		Percentage of ownership			Carrying amount
LG Display America, Inc.		San Jose, U.S.A.		Sales of display products		100	%	W	36,815		100	%	W	36,815
LG Display Germany GmbH		Eschborn, Germany		Sales of display products		100	%		19,373		100	%		19,373
LG Display Japan Co., Ltd.		Tokyo, Japan		Sales of display products		100	%		15,686		100	%		15,686
LG Display Taiwan Co., Ltd.		Taipei, Taiwan		Sales of display products		100	%		35,230		100	%		35,230
LG Display Nanjing Co., Ltd.		Nanjing, China		Production of display products		100	%		593,726		100	%		593,726
LG Display Shanghai Co., Ltd.		Shanghai, China		Sales of display products		100	%		9,093		100	%		9,093
LG Display Guangzhou Co., Ltd.(*1)		Guangzhou, China		Production of display products		100	%		—		100	%		293,557
LG Display Shenzhen Co., Ltd.		Shenzhen, China		Sales of display products		100	%		3,467		100	%		3,467
LG Display Singapore Pte. Ltd.		Singapore		Sales of display products		100	%		1,250		100	%		1,250
L&T Display Technology (Fujian) Limited		Fujian, China		Production and sales of LCD module and LCD monitor sets		51	%		10,123		51	%		10,123
LG Display Yantai Co., Ltd.		Yantai, China		Production of display products		100	%		169,195		100	%		169,195
Nanumnuri Co., Ltd.		Gumi, South Korea		Business facility maintenance		100	%		800		100	%		800
LG Display (China) Co., Ltd.(*1)		Guangzhou, China		Production and sales of display products		51	%		—		51	%		723,086
Unified Innovative Technology, LLC		Wilmington, U.S.A.		Intellectual property management		100	%		9,489		100	%		9,489
LG Display Guangzhou Trading Co., Ltd.		Guangzhou, China		Sales of display products		100	%		218		100	%		218
Global OLED Technology, LLC		Sterling, U.S.A.		OLED intellectual property management		100	%		164,322		100	%		164,322
LG Display Vietnam Haiphong Co., Ltd.		Haiphong, Vietnam		Production and sales of display products		100	%		672,658		100	%		672,658
Suzhou Lehui Display Co., Ltd.		Suzhou, China		Production and sales of LCD module and LCD monitor sets		100	%		121,640		100	%		121,640
LG DISPLAY FUND I LLC(*2)		Wilmington, U.S.A.		Investment in venture businesses and technologies		100	%		96,908		100	%		91,105
LG Display High-Tech (China) Co., Ltd.		Guangzhou, China		Production and sales of display products		69	%		1,794,547		69	%		1,794,547
Money Market Trust(*3)		Seoul, Korea		Management of trust assets		100	%		9,700		100	%		92,900

Total								W	3,764,240				W	4,858,280

(*1)

For the nine-month period ended September 30, 2024, the Company reclassified as assets held for sale as a result of the ownership purchase agreement.

115

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

8.	Investments, Continued

(*2)

For the nine-month period ended September 30, 2024, the Company contributed W5,803 million in cash for the capital increase of LG DISPLAY FUND I LLC. There was no change in the Company’s percentage of ownership in LG DISPLAY FUND I LLC as a result of this additional investment.

(*3)

For the nine-month period ended September 30, 2024, the Company decreased by W83,200 million as a result of acquisition and disposal of Money Market Trust. There was no change in the Company’s percentage of ownership in Money Market Trust with this regard.

(b)

Details of investments in associates as at September 30, 2024 and December 31, 2023, are as follows:


(In millions of won)			September 30, 2024					December 31, 2023
Associates	Location	Business	Percentage of ownership			Carrying amount		Percentage of ownership			Carrying amount
Paju Electric Glass Co., Ltd.	Paju, South Korea	Production of glass for display		40	%	W	45,089		40	%	W	45,089
WooRee E&L Co., Ltd.(*1)	Ansan, South Korea	Production of LED back light unit packages		—			—		13	%		7,106
YAS Co., Ltd.(*1)	Paju, South Korea	Development and production of evaporation equipment for OLEDs		—			—		16	%		10,000
AVATEC Co., Ltd.(*1)	Daegu, South Korea	Processing and Sales of glass for display		—			—		14	%		8,000
Arctic Sentinel, Inc.	Los Angeles, U.S.A.	Development and production of tablet for kids		10	%		—		10	%		—
Cynora GmbH	Bruchsal Germany	Development of organic light emitting materials for displays and lighting devices		10	%		—		10	%		—
Material Science Co., Ltd.(*2)	Seoul, South Korea	Development, production and sales of materials for display		14	%		3,588		16	%		3,588

						W	48,677				W	73,783

(*1)

For the nine-month period ended September 30, 2024, due to loss significant influence, we reclassified the investments in associates as financial assets at fair value through profit or loss.

(*2)

For the nine-month period ended September 30, 2024, due to the investee’s disposal of treasury shares and issuance of new shares, the Company’s percentage of ownership decreased from 16% to 14%.

Although the Company’s respective share interests in Arctic Sentinel, Inc., Cynora GmbH and Material Science Co., Ltd. are below 20%, the Company is able to exercise significant influence through its right to appoint one or more directors to the board of directors of each investee. Accordingly, the investments in these investees have been accounted for using the equity method.

Dividend income recognized from subsidiaries and associates for the nine-month period ended September 30, 2024 amounted to W220,337 million (dividend income recognized from associates for the nine-month periods ended September 30, 2023 : W1,887,196 million).

116

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

9.	Property, Plant and Equipment

(a)

Changes in property, plant and equipment for the nine-month periods ended September 30, 2024 and 2023 are as follows:


(In millions of won)	2024			2023
Book value as of January 1	W	13,584,247			14,044,844
Acquisitions		784,086			1,584,917
Depreciation		(1,815,033	)		(1,264,101	)
Disposals		(246,143	)		(418,617	)
Impairment loss (*)		(66,913	)		(6,760	)
Others		(838	)		(10,335	)

Book value as of September 30	W	12,239,406			13,929,948

(*)

Impairment losses are recognized for the difference between the carrying amount and the recoverable amount of property, plant and equipment.

(b)

For the nine-month periods ended September 30, 2024, the capitalized borrowing costs and the annualized capitalization rates were W19,624 million and 4.91% (the capitalized borrowing costs and the annualized capitalization rates for the nine-month periods ended September 30, 2023 : W180,955 million and 4.91%).

10.	Intangible Assets

Changes in intangible assets for the nine-month periods ended September 30, 2024 and 2023 are as follows:


(In millions of won)	2024			2023
Book value as of January 1	W	1,683,029			1,635,181
Acquisitions		82,089			118,426
Acquisitions by Internal Development Depreciation		473,190 (582,537	)		393,176 (453,546	)
Disposals		(6,575	)		(3,999	)
Impairment loss (*)		(69,457	)		(50,658	)
Others		838			326

Book value as of September 30	W	1,580,577			1,638,906

(*)

Impairment losses are recognized for the difference between the carrying amount and the recoverable amount of intangible assets.

11.	Investment Property

(a)

Changes in investment properties for the nine-month periods ended September 30, 2024 and 2023 are as follows:


(In millions of won)	2024			2023
At January 1	W	32,995			28,269
Transfer from property, plant, and equipment		—			9,928
Depreciation		(3,812	)		(3,690	)
Others		—			(228	)

At September 30	W	29,183			34,279

117

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

11.	Investment Property, Continued

(b)

12.	Financial Liabilities

(a)

Financial liabilities as of September 30, 2024 and December 31, 2023 are as follows:


(In millions of won)	September 30, 2024		December 31, 2023
Current
Short-term borrowings	W	2,770,733		1,428,213
Current portion of long-term borrowings		2,916,936		2,000,930
Current portion of bonds		611,620		369,716
Current portion of payment guarantee liabilities		5,905		6,780
Derivatives (*1)		30,101		26,193
Fair value hedging derivatives (*2)		—		7,392
Lease liabilities		6,200		11,598

Total	W	6,341,495		3,850,822

Non-current
Long-term borrowings	W	3,862,198		4,784,819
Bonds		510,809		1,118,427
Payment guarantee liabilities		9,913		13,833
Derivatives (*1)		42,469		37,333
Fair value hedging derivatives (*2)		1,905		28,660
Lease liabilities		3,863		2,802

Total	W	4,431,157		5,985,874

(*1)

The derivatives, which are not designated as hedging instruments, arise from cross currency interest swap contracts and others for the purpose of managing currency and interest rate risks associated with foreign currency denominated borrowings and bonds.

(*2)

The derivatives, which are designated as hedging instruments, arise from forward exchange contracts for the purpose of managing currency risk associated with advances received in foreign currency.

(b)

Details of short-term borrowings as of September 30, 2024 and December 31, 2023 are as follows:

(In millions of won)

Lender

Description

Annual interest rate
as of
September 30, 2024 (%)

September 30,
2024

December 31,
2023

LG Display Singapore Pte. Ltd.

Working Capital

4.59

1,939,812

—

Standard Chartered Bank Korea Limited and others

Working Capital
and others

3.50~6.73

830,921

1,428,213

Total

2,770,733

1,428,213

118

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

12.	Financial Liabilities, Continued

(c)

Details of Korean won denominated long-term borrowings as of September 30, 2024 and December 31, 2023 are as follows:

(In millions of won)

Lender

Description

Maturity

Annual interest rate as
of
September 30, 2024 (%)

September 30,
2024

December 31,
2023

LG Electronics Inc.

Operating
capital

March 2026

6.06

1,000,000

Korea Development Bank and others

Facility
capital and
others

November 2024~

March 2030

2.41~6.18

4,090,168

3,490,967

Less: current portion of long-term borrowings

(2,046,000

)

(776,000

)

Total

3,044,168

3,714,967

(d)

Details of foreign currency denominated long-term borrowings as of September 30, 2024 and December 31, 2023 are as follows:

(In millions of won and USD)

Lender

Description

Maturity

Annual interest rate as
of
September 30, 2024 (%)

September 30,
2024

December 31,
2023

KEB Hana Bank and others

Facility
capital and
others

November 2024~

March 2029

2.46~7.69

1,688,966

2,294,782

Foreign currency equivalent of foreign currency borrowings

USD

1,280

USD

1,780

Less: current portion of long-term borrowings

(870,936

)

(1,224,930

)

Total

818,030

1,069,852

119

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

12.	Financial Liabilities, Continued

(e)

Details of bonds issued and outstanding as of September 30, 2024 and December 31, 2023 are as follows:


(In millions of won and USD)	Maturity		Annual interest rate as of September 30, 2024 (%)		September 30, 2024			December 31, 2023
*Korean won denominated bonds at amortized cost (1)**
Publicly issued bonds		February 2025~ February 2027		2.79~3.66	W	655,000			1,025,000
Privately issued bonds		January 2025~ January 2026		7.20~7.25		337,000			337,000
Less: discount on bonds						(1,048	)		(2,120	)
Less: current portion						(611,620	)		(369,716	)

Subtotal					W	379,332			990,164

*Foreign currency denominated bonds at amortized cost (2)**
Privately issued bonds		April 2026		7.16	W	131,960			128,940
Foreign currency equivalent of foreign currency denominated bonds						USD 100			USD 100
Less: discount on bonds						(483)			(677)
Less: foreign currency equivalent of discount on bonds of foreign currency denominated bonds						USD (0)			USD (1)

Subtotal					W	131,477			128,263

Total					W	510,809			1,118,427

(*1)

Principal of the won denominated bonds is to be repaid at maturity and interests are paid quarterly.

(*2)

Principal of the foreign currency denominated bonds is to be repaid at maturity and interests are paid quarterly.

120

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

13.	Post-employment Benefits

The Company’s defined benefit plans provide a lump-sum payment to an employee based on final salary rates and length of service at the time the employee leaves the Company.

(a)

Net defined benefit liabilities (defined benefit assets) recognized as of September 30, 2024 and December 31, 2023 are as follows:


(In millions of won)	September 30, 2024			December 31, 2023
Present value of defined benefit obligations	W	1,427,985			1,482,976
Fair value of plan assets		(1,678,307	)		(1,890,188	)

Total	W	(250,322)			(407,212	)

(b)

Plan assets as of September 30, 2024 and December 31, 2023 are as follows:


(In millions of won)	September 30, 2024		December 31, 2023
Time deposits in banks	W	1,678,307		1,890,188

As of September 30, 2024, the Company maintains the plan assets primarily with Shinhan Bank, KEB Hana Bank and others.

(c)

Expenses related to defined benefit plans recognized in profit or loss for the three-month and nine-month periods ended September 30, 2024 and 2023 are as follows:


(In millions of won)	For the three-month periods ended September 30						For the nine-month periods ended September 30
	2024			2023			2024			2023
Current service cost	W	36,714			42,870			112,944			128,610
Net interest cost		(4,713	)		(5,985	)		(14,140	)		(17,957	)

	W	32,001			36,885			98,804			110,653

(d)


(In millions of won)	For the three-month periods ended September 30						For the nine-month periods ended September 30
	2024			2023			2024			2023
Remeasurements of net defined benefit liabilities	W	(62,648	)		60			(68,187	)		(952	)
Tax effect		14,359			(14	)		15,629			215

Remeasurements of net defined benefit liabilities, net of income tax	W	(48,289	)		46			(52,558	)		(737	)

121

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

14.	Provisions

Changes in provisions for the nine-month periods ended September 30, 2024 and 2023 are as follows:


(In millions of won)	Litigation		*Warranties ()**			Others			Total
At January 1, 2024	W	1,806		171,952			5,880			179,638
Additions (reversal)		136		49,241			(235	)		49,142
Usage		—		(74,364	)		—			(74,364	)

At September 30, 2024	W	1,942		146,829			5,645			154,416

Current	W	1,942		88,765			5,645			96,352
Non-current	W	—		58,064			—			58,064

(*)

The Company provides warranty on defective products for warranty periods after sales. The provision is calculated based on the assumption of expected number of warranty claims and costs per claim considering historical experience.


(In millions of won)	Litigation		*Warranties ()**			Others			Total
At January 1, 2023	W	1,680		248,137			8,432			258,249
Additions (reversal)		118		31,279			(3,123	)		28,274
Usage		—		(96,337	)		—			(96,337	)

At September 30, 2023	W	1,798		183,079			5,309			190,186

Current	W	1,798		117,568			5,309			124,675
Non-current	W	—		65,511			—			65,511

(*)

122

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

15.	Contingent Liabilities and Commitments

(a)

Legal Proceedings

Anti-trust litigations

The Company and other LCD panel manufacturers have been sued by individual claimants on allegations of violating EU competition laws. While the Company continues its vigorous defense of the various pending proceedings described above, as of September 30, 2024, the Company cannot predict the final outcomes of the lawsuits that have been filed.

Others

The Company is involved in various lawsuits and disputes in addition to the pending proceedings described above. The Company cannot reliably estimate the timing and amount of outflows of resources embodying economic benefits relating to the disputes.

(b)

Commitments

Factoring and securitization of accounts receivable

The Company has discount agreements with Korea Development Bank and other banks for accounts receivable related to export sales transactions with its subsidiary, up to USD 1,000 million (W1,319,600 million). As of September 30, 2024, there is no amount of the discounted accounts receivable that are not past due in connection with these agreements. In relation to the above agreements, the financial institutions have the recourse for account receivables that are past due.

The Company has assignment agreements with MUFG Bank and other banks for accounts receivable related to domestic and export sales transactions, up to W494,850 million. As of September 30, 2024, the amount of the sold accounts receivable that are not past due in connection with these agreements is W22,171 million. In relation to the above agreements, the financial institutions do not have the recourse for account receivables that are past due.

123

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

15.	Contingent Liabilities and Commitments, Continued

Letters of credit

The Company has entered into agreements with a financial institutions to open letter of credit (L/C), etc., and as of September 30, 2024, the credit limits for each agreement are as follows:


(In millions of won and USD)	Contractual amount		KRW equivalent
KEB Hana Bank	USD	413	W	544,335
Industrial Bank of Korea	USD	419		552,583
Industrial and Commercial Bank of China	USD	200		263,920
KB Kookmin Bank	USD	625		824,750
MUFG Bank	USD	100		131,960
Sumitomo Mitsui Banking Corporation	USD	200		263,920
The Export–Import Bank of Korea	USD	94		123,713

Total	USD	2,051	W	2,705,181

Payment guarantees

The Company provides payment guarantee to LG Display Vietnam Haiphong Co., Ltd. for the loan principal of USD 1,322 million (W1,744,804 million).

In addition, the Company obtained payment guarantees of USD 1,050 million (W1,385,580 million) from KB Kookmin Bank and other banks for advances received related to the long-term supply agreements.

Patent and License agreements

As of September 30, 2024, the Company has patent license agreements with Hitachi Display, Ltd. and others in relation to its LCD business and patent license agreements with Universal Display Corporation and others in relation to its OLED business. Also, as of September 30, 2024, the Company has a trademark license agreement with LG Corp. and license agreements with other companies for patents, trademarks and other intellectual property rights.

Long-term supply agreement

As of September 30, 2024, in connection with long-term supply agreements with customers, the Company recognized advances received of USD 900 million (W1,187,640 million). The advances received will be used to offset against accounts receivable arising from future product sales after a certain period of time from the date of receipt. In relation to this, the Company received payment guarantees of USD 1,050 million (W1,385,580 million) from KB Kookmin Bank and other banks (see note 15(b) payment guarantees).

124

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

15.	Contingent Liabilities and Commitments, Continued

Collateral

The details of the collateral provided by the Company are as follows:


(In millions of won)
Collateral	Carrying amount		Maximum bond amount		Secured creditor	Collateral borrowings amount
Property plant and equipment and others	W	454,995		1,200,000	LG Electronics Inc.		1,000,000
Property plant and equipment and others		70,796		326,400	Korea Development Bank and others		136,000
Property plant and equipment and others (*)		241,435		780,000	Korea Development Bank and others		650,000

(*)

The carrying amount of collateral asset, amounting to W241,435 million, includes collateral asset of W70,796 million for collateral borrowings of W136,000 million from Korea Development Bank and other banks.

Commitments for asset acquisition

The amount committed to acquire property, plant, equipment and intangible assets not recognized on the financial statements as of September 30, 2024 is W417,915 million.

125

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

16.	Share Capital and Share Premium

The total number of shares to be issued by the Company is 500,000,000 shares, the number of shares issued is 500,000,000 shares (December 31, 2023: 357,815,700 shares), and the par value per share is W5,000.

The Company conducted a paid-in capital increase based on the resolution of the board of directors on December 18, 2023, and the newly issued shares were listed on the Korea Exchange (KRX) on March 26, 2024.

With the new shares of common stock, the share capital increased by W710,921 million to W2,500,000 million.


Classification		Description
Purpose		Facility capital, operating capital and debt repayment
Type of shares issued		Common stock
Number of shares issued		142,184,300 shares
The amount per shares		W9,090

The capital surplus consists of share premium and due to the capital increase during the nine-month period ended September 30, 2024, the share premium increased by W569,893 million to W2,821,006 million.

17.

Revenue

Details of revenue for the three-month and nine-month periods ended September 30, 2024 and 2023 are as follows:


	For the three-month periods ended September 30				For the nine-month periods ended September 30
(In millions of won)	2024		2023		2024		2023
Sales of goods	W	6,778,535		4,675,613		18,007,702		12,922,420
Royalties		23,176		3,071		36,449		10,251
Others		9,482		10,003		26,283		27,367

Total	W	6,811,193		4,688,687		18,070,434		12,960,038

126

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

18.	The Nature of Expenses

The classification of expenses by nature for the three-month and nine-month periods ended September 30, 2024 and 2023 are as follows:


	For the three-month periods ended September 30						For the nine-month periods ended September 30
(In millions of won)	2024			2023			2024			2023
Changes in inventories	W	(153,040	)		(450,081	)		(506,345	)		(395,297	)
Purchases of raw materials and others		2,830,109			2,103,850			7,413,543			6,472,747
Depreciation and amortization		738,483			581,819			2,353,241			1,659,876
Outsourcing		2,139,221			1,654,325			5,898,408			4,807,749
Labor		772,173			622,503			2,067,245			1,877,808
Supplies and others		168,867			179,516			482,465			506,781
Utility		285,374			232,533			787,520			645,890
Fees and commissions		91,084			94,065			283,385			298,608
Shipping		15,971			11,364			46,814			29,750
Advertising		17,184			17,731			47,873			53,114
Warranty		24,937			8,345			49,241			31,279
Travel		10,627			16,041			34,462			41,707
Taxes and dues		18,918			15,073			57,086			48,565
Others		213,124			245,411			685,755			694,574

Total	W	7,173,032			5,332,495			19,700,693			16,773,151

Total expenses consist of cost of sales, selling, administrative, research and development expenses and other non-operating expenses, excluding foreign exchange differences.

127

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

19.	Selling and Administrative Expenses

Details of selling and administrative expenses for the three-month and nine-month periods ended September 30, 2024 and 2023 are as follows:


	For the three-month periods ended September 30				For the nine-month periods ended September 30
(In millions of won)	2024		2023		2024		2023
Salaries	W	217,320		56,568		334,751		180,424
Expenses related to defined benefit plans		5,250		5,569		15,956		17,105
Other employee benefits		12,249		11,973		37,460		38,669
Shipping		6,455		6,679		17,103		15,258
Fees and commissions		35,684		39,074		115,860		124,143
Depreciation and amortization		36,680		37,554		113,899		115,453
Taxes and dues		1,011		1,268		3,404		4,636
Advertising		17,184		17,731		47,873		53,114
Warranty		24,937		8,345		49,241		31,279
Insurance		2,407		2,415		7,061		7,179
Travel		1,740		3,309		6,250		9,906
Training		1,437		1,740		6,747		7,307
Others		16,818		15,083		45,037		43,071

Total	W	379,172		207,308		800,642		647,544

128

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

20.	Other Non-operating Income and Other Non-operating Expenses

(a)

Details of other non-operating income for the three-month and nine-month periods ended September 30, 2024 and 2023 are as follows:


	For the three-month periods ended September 30				For the nine-month periods ended September 30
(In millions of won)	2024		2023		2024		2023
Foreign currency gain	W	279,163		195,246		884,871		624,308
Gain on disposal of property, plant and equipment		3,132		5,489		47,110		28,089
Gain on disposal of intangible assets		—		1,520		25		1,989
Reversal of impairment loss on property, plant and equipment		617		—		4,314		—
Reversal of impairment loss on intangible assets		—		120		14		242
Rental income		466		467		1,363		1,450
Others		25,512		5,267		26,490		6,774

Total	W	308,890		208,109		964,187		662,852

(b)

Details of other non-operating expenses for the three-month and nine-month periods ended September 30, 2024 and 2023 are as follows:


	For the three-month periods ended September 30				For the nine-month periods ended September 30
(In millions of won)	2024		2023		2024		2023
Foreign currency loss	W	124,676		303,714		1,069,691		983,886
Loss on disposal of property, plant and equipment		18,852		22,737		59,114		77,295
Impairment loss on property, plant and equipment		—		1,812		71,227		6,760
Loss on disposal of intangible assets		38		—		388		55
Impairment loss on intangible assets		19,475		29,098		69,471		50,900
Others		1,708		982		5,592		11,588

Total	W	164,749		358,343		1,275,483		1,130,484

129

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

21.	Finance Income and Finance Costs

Finance income and costs recognized in profit or loss for the three-month and nine-month periods ended September 30, 2024 and 2023 are as follows:


	For the three-month periods ended September 30					For the nine-month periods ended September 30
(In millions of won)	2024			2023		2024		2023
Finance income
Interest income	W	5,470			3,780		14,275		12,288
Dividend income		—			—		220,337		1,887,196
Foreign currency gain		93,604			2,872		111,613		54,362
Gain on transaction of derivatives		46,763			42,743		229,982		127,833
Gain on valuation of derivatives		(63,715	)		48,053		1,326		295,896
Others		1,697			2,029		5,483		5,534

Total	W	83,819			99,477		583,016		2,383,109

Finance costs
Interest expense	W	177,049			125,890		499,934		296,102
Foreign currency loss		(129,638	)		71,905		160,354		208,117
Loss on repayment of bonds and borrowings		305			—		305		167
Loss on sale of trade accounts and notes receivable		33			344		261		574
Loss on valuation of financial assets at fair value through profit or loss		—			—		—		7,776
Loss on valuation of derivatives		104,164			—		106,246		201,401
Others		2,518			2,828		7,933		6,453

Total	W	154,431			200,967		775,033		720,590

130

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

22.	Income Tax Benefit (expense)

(a)

Details of income tax benefit (expense) for the three-month and nine-month periods ended September 30, 2024 and 2023 are as follows:


	For the three-month periods ended September 30						For the nine-month periods ended September 30
(In millions of won)	2024			2023			2024			2023
Current tax expense	W	(195	)		(6,275	)		(11,883	)		(90,536	)
Deferred tax benefit (expense)		(117,842	)		205,864			163,737			972,166

Income tax benefit (expense)	W	(118,037	)		199,589			151,854			881,630

(b)

Deferred tax assets and liabilities:

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced when sufficient estimated future taxable income is not probable to realize part or all of that deferred tax assets. The Company’s deferred tax assets and liabilities may differ from actual refundable or payable amount.

Deferred tax assets and liabilities as of September 30, 2024 and December 31, 2023 are attributable to the following:


	Assets				Liabilities						Total
(In millions of won)	September 30, 2024		December 31, 2023		September 30, 2024			December 31, 2023			September 30, 2024			December 31, 2023
Other accounts receivable, net	W	—		—		(83	)		(61	)		(83	)		(61	)
Inventories, net		31,491		28,607		—			—			31,491			28,607
Defined benefits assets, net		—		—		(57,374	)		(89,753	)		(57,374	)		(89,753	)
Accrued expenses		92,579		93,511		—			—			92,579			93,511
Property, plant and equipment		394,712		389,828		—			—			394,712			389,828
Intangible assets		32,155		10,504		—			—			32,155			10,504
Provisions		33,891		39,586		—			—			33,891			39,586
Subsidiaries and associates		89,817		89,033		(10,817	)		(10,839	)		79,000			78,194
Other temporary differences		18,891		22,977		(7,030	)		(11,444	)		11,861			11,533
Tax loss carryforwards		2,795,082		2,677,340		—			—			2,795,082			2,677,340
Tax credit carryforwards		153,555		148,215		—			—			153,555			148,215

Deferred tax assets (liabilities)	W	3,642,173		3,499,601		(75,304	)		(112,097	)		3,566,869			3,387,504

(c)

Global Minimum Tax

Under Pillar Two legislation, the Company is liable to pay a top-up tax for the difference between the GloBE effective tax rate per jurisdiction and the 15% minimum rate. The Company has assessed its impact of the Pillar Two legislation on its financial statements. As a result of the assessment, the Company has no current tax expenses related to Pillar Two legislation for the nine-month period ended September 30, 2024.

131

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

23.	Loss per Share

(a)

Basic loss per share for the three-month and nine-month periods ended September 30, 2024 and 2023 are as follows:


	For the three-month periods ended September 30						For the nine-month periods ended September 30
(In won and number of shares)	2024			2023			2024			2023
Loss for the period	W	(366,274,182,018	)		(641,314,725,624	)		(1,775,926,413,141	)		(1,589,998,414,082	)
Weighted-average number of common stocks outstanding		500,000,000			380,884,673			461,599,861			380,884,673

Basic loss per share	W	(733	)		(1,684	)		(3,847	)		(4,174	)

(b)

Diluted loss per share

The Company has no potential dilutive ordinary shares, and accordingly, basic loss per share is identical to diluted loss per share.

132

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

24.	Financial Risk Management

The Company is exposed to credit risk, liquidity risk and market risk. The Company identifies and analyzes such risks, and controls are implemented under a risk management system to monitor and manage these risks at below an acceptable level.

(a)

Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Company’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

(i)

Currency risk

The Company is exposed to currency risk on sales, purchases and borrowings that are denominated in a currency other than the functional currency of the Company, Korean won (KRW). The currencies in which these transactions primarily are denominated are USD, JPY, etc.

The Company adopts policies to ensure that its net exposure is kept to a manageable level by buying or selling foreign currencies at spot rates when necessary to address short-term imbalances. In respect of monetary assets and liabilities denominated in foreign currencies, the Company manages currency risk through continuously managing the position of foreign currencies, measuring the currency risk and, if necessary, using derivatives such as currency forwards, currency swap and others.

133

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

24.	Financial Risk Management, Continued

i) Exposure to currency risk

The Company’s exposure to primarily foreign currency risk based on notional amounts as of September 30, 2024 and December 31, 2023 is as follows:


	Net exposure
(In millions)	September 30, 2024			December 31, 2023
USD		(4,193	)		(3,898	)
JPY		(14,090	)		(16,840	)

Forward exchange contracts, USD 900 million (2023: USD 1,200 million) were entered into to manage currency risk with respect to advances received in foreign currency.

134

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

24.	Financial Risk Management, Continued

Average exchange rates applied for the nine-month periods ended September 30, 2024 and 2023 and the exchange rates at September 30, 2024 and December 31, 2023 are as follows:


	Average rate				Reporting date spot rate
(In won)	2024		2023		September 30, 2024		December 31, 2023
USD		1,352.41		1,300.93		1,319.60		1,289.40
JPY		8.96		9.44		9.25		9.13

ii) Sensitivity analysis

A weaker won, as indicated below, against the following currencies which comprise the Company’s assets or liabilities denominated in a foreign currency as of September 30, 2024 and December 31, 2023, would have increased (decreased) equity and profit or loss by the amounts shown below. This analysis is based on foreign currency exchange rate variances that the Company considers to be reasonably possible at the end of the reporting period. The analysis assumes that all other variables, in particular interest rates, would remain constant. The changes in equity and profit or loss would have been as follows:


	September 30, 2024						December 31, 2023
(In millions of won)	Equity			Profit or loss			Equity			Profit or loss
USD (5 percent weakening)	W	(213,281	)		(213,281	)	W	(193,758	)		(193,758	)
JPY (5 percent weakening)		(5,020	)		(5,020	)		(5,925	)		(5,925	)

iii) Fair value hedging derivatives

In relation to advances received that are dominated in foreign currency, the Company uses derivative instruments to hedge change of fair value due to foreign currency exchange rate changes. As of September 30, 2024, there is no ineffective portion of the gain or loss on valuation of derivatives to which change of fair value hedging accounting has been applied and gain on valuation amounting to W44,686 million, respectively, (contracted buying amount: USD 900 million, contracted exchange rate: W1,289.11~1,310.08) are recognized in profit or loss.

135

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

24.	Financial Risk Management, Continued

(ii) Interest rate risk

Interest rate risk arises principally from the Company’s variable interest-bearing bonds and borrowings. The Company establishes and applies its policy to reduce uncertainty arising from fluctuations in interest rates and to minimize finance cost and manages interest rate risk by monitoring of trends of fluctuations in interest rate and establishing plan for countermeasures. Meanwhile, the Company entered into cross currency interest rate swap contracts amounting to USD 1,030 million (W1,359,188 million) and interest rate swap contracts amounting to W925,000 million in notional amount to manage interest rate risk with respect to variable interest bearing borrowings.

i) Profile

The interest rate profile of the Company’s interest-bearing financial instruments as of September 30, 2024 and December 31, 2023 is as follows:


(In millions of won)	September 30, 2024			December 31, 2023
Fixed rate instruments
Financial assets	W	319,116			354,502
Financial liabilities		(4,798,779	)		(6,156,590	)

Total	W	(4,479,663	)		(5,802,088	)

Variable rate instruments
Financial liabilities	W	(5,873,517	)		(3,545,515	)

ii) Equity and profit or loss sensitivity analysis for variable rate instruments


	Equity					Profit or loss
(In millions of won)	1%p increase			1%p decrease		1%p increase			1%p decrease
September 30, 2024
Variable rate instruments (*)	W	(45,273	)		45,273		(45,273	)		45,273
December 31, 2023
Variable rate instruments (*)	W	(27,329	)		27,329		(27,329	)		27,329

(*)

Financial instruments related to non-hedging interest rate swap are included in the calculation.

136

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

24.	Financial Risk Management, Continued

(b)

Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers.

The Company’s exposure to credit risk of trade and other receivables is influenced mainly by the individual characteristics of each customer. However, management believes that the default risk of the country in which each customer operates, do not have a significant influence on credit risk since the majority of the customers are global electronic appliance manufacturers operating in global markets.

The Company establishes credit limits for each customer and each new customer is analyzed quantitatively and qualitatively before determining whether to utilize third party guarantees, insurance or factoring as appropriate.

In relation to the impairment of financial assets subsequent to initial recognition, the Company recognizes the changes in expected credit loss (“ECL”) in profit or loss at each reporting date.

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk as of September 30, 2024 and December 31, 2023 are as follows:


(In millions of won)	September 30, 2024		December 31, 2023
Financial assets at amortized cost
Cash equivalents	W	319,116		334,502
Deposits in banks		11		20,011
Trade accounts and notes receivable, net		4,570,587		3,077,901
Non-trade receivables		146,991		108,769
Accrued income		2,050		242
Deposits		8,926		8,538
Loans		42,690		59,884

Subtotal	W	5,090,371		3,609,847

Financial assets at fair value through profit or loss
Convertible securities	W	1,838		1,838
Derivatives		73,827		169,703

Subtotal	W	75,665		171,541

Financial assets effective for fair value hedging
Derivatives		10,540		—

Total	W	5,176,576		3,781,388

137

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

24.	Financial Risk Management, Continued

In addition to the financial assets above, as of September 30, 2024, the Company provides payment guarantees to LG Display Vietnam Haiphong, Co., Ltd. in connection with the principal amount of credit facilities amounting to USD 1,322 million (W1,744,804 million) (see note 15).

Trade accounts and notes receivable are insured in order for the Company to manage credit risk if they do not meet the Company’s internal credit ratings. Uninsured trade accounts and notes receivable are managed by continuous monitoring of internal credit rating standards established by the Company and seeking insurance coverage, if necessary.

(c)

Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or other financial assets. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

The Company has historically been able to satisfy its cash requirements from cash flows from operations and debt and equity financing. To the extent that the Company does not generate sufficient cash flows from operations to meet its capital requirements, the Company may rely on other financing activities, such as long-term borrowings and offerings of debt instruments, equity-linked and other debt instruments. In addition, the Company maintains a line of credit with various banks.

138

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

24.	Financial Risk Management, Continued

The following are the contractual maturities of financial liabilities, including estimated interest payments, as of September 30, 2024.


			Contractual cash flows in
(In millions of won)	Carrying amount		Total			6 months or less			6-12 months			1-2 years			2-5 years			More than 5 years
Non-derivative financial liabilities
Borrowings	W	9,549,867		10,253,873			4,060,337			1,946,953			2,050,915			2,170,027			25,641
Bonds		1,122,429		1,167,806			634,649			6,848			399,024			127,285			—
Trade accounts and notes payable (*1)		10,707,441		10,707,441			10,337,096			370,345			—			—			—
Other accounts payable (*1)		1,120,478		1,122,582			955,696			166,886			—			—			—
Long-term other accounts payable		287,686		331,227			—			—			75,224			172,868			83,135
Payment guarantee (*2)		15,818		1,997,388			1,997,388			—			—			—			—
Security deposits received		156,847		187,520			650			678			3,977			182,215			—
Lease liabilities		10,063		10,627			4,555			1,963			2,390			1,556			163

Derivative financial liabilities
Derivatives	W	72,570		47,376			23,801			3,856			5,403			14,316			—
Cash outflow		—		1,789,882			657,903			164,313			244,181			723,485			—
Cash inflow		—		(1,742,506	)		(634,102	)		(160,457	)		(238,778	)		(709,169	)		—
Fair value hedging derivatives		1,905		1,905			—			—			1,905			—			—

Total	W	23,045,104		25,827,745			18,014,172			2,497,529			2,538,838			2,668,267			108,939

(*1)

As of September 30, 2024, it includes W923,483 million of payable to credit card companies for utility expenses and others paid using business credit card for purchases. The Company presented the payable to credit card companies as trade account notes payables and other accounts payable and disclosed related cash flows as operating and investing activities since the Company is using the business credit card for purchases through agreements with suppliers for transactions arising from purchasing of goods and services, the payment term is within a year from the purchase, as part of the normal operating cycle, and no collateral is provided.

(*2)	Contractual cash flows of payment guarantee represents the maximum amount to the earliest period that the Company could be required to pay the guarantee amount.

139

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

24.	Financial Risk Management, Continued

The following are the contractual maturities of financial liabilities, including estimated interest payments, as of December 31, 2023.


			Contractual cash flows in
(In millions of won)	Carrying amount		Total			6 months or less			6-12 months			1-2 years			2-5 years			More than 5 years
Non-derivative financial liabilities
Borrowings	W	8,213,962		8,868,714			2,482,724			1,313,880			3,351,277			1,720,833			—
Bonds		1,488,143		1,597,741			111,169			319,011			642,996			524,565			—
Trade accounts and notes payable		8,993,964		8,993,964			8,788,397			205,567			—			—			—
Other accounts payable (*1)		2,334,289		2,336,817			2,117,744			219,073			—			—			—
Long-term other accounts payable		343,845		398,451			—			—			114,783			175,358			108,310
Payment guarantee (*2)		20,613		2,182,973			2,182,973			—			—			—			—
Security deposits received		153,316		190,275			3,120			4,550			1,040			181,565			—
Lease liabilities		14,400		15,014			6,145			5,953			1,838			916			162

Derivative financial liabilities
Derivatives	W	63,526		45,705			18,781			3,988			12,474			10,462			—
Cash outflow		—		1,385,858			657,325			47,527			510,676			170,330			—
Cash inflow		—		(1,340,153	)		(638,544	)		(43,539	)		(498,202	)		(159,868	)		—
Fair value hedging derivatives		36,052		36,052			1,514			5,878			20,282			8,378			—

Total	W	21,662,110		24,665,706			15,712,567			2,077,900			4,144,690			2,622,077			108,472

(*1)

As of December 31, 2023, it includes W1,092,180 million of payable to credit card companies for utility expenses and others paid using business credit card for purchases. The Company presented the payable to credit card companies as other accounts payable and disclosed related cash flows as operating and investing activities since the Company is using the business credit card for purchases through agreements with suppliers for transactions arising from purchasing of goods and services, the payment term is within a year from the purchase, as part of the normal operating cycle, and no collateral is provided.

(*2)	Contractual cash flows of payment guarantee represents the maximum amount to the earliest period that the Company could be required to pay the guarantee amount.

It is not expected that the cash flows included in the maturity analysis could occur significantly earlier, or at significantly different amounts.

140

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

24.	Financial Risk Management, Continued

(d)

Capital management


(In millions of won)	September 30, 2024		December 31, 2023
Total liabilities	W	25,067,568		24,050,857
Total equity		5,133,885		5,681,555
Cash and deposits in banks (*1)		319,116		354,502
Borrowings (including bonds)		10,672,296		9,702,105
Total liabilities to equity ratio		488%		423%
Net borrowings to equity ratio (*2)		202%		165%

(*1)	Cash and deposits in banks consist of cash and cash equivalents and current deposits in banks.

(*2)	Net borrowings to equity ratio is calculated by dividing total borrowings (including bonds and excluding lease liabilities and others) less cash and current deposits in banks by total equity.

141

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

24.	Financial Risk Management, Continued

(e)

Determination of fair value

(i)

Measurement of fair value

A number of the Company’s accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes based on the following methods. When applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability.

Current assets and liabilities

The carrying amounts approximate their fair value because of the short maturity of these instruments.

ii)

Trade receivables and other receivables

iii)

Investments in equity and debt securities

iv)

Non-derivative financial liabilities

Derivatives

142

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

24.	Financial Risk Management, Continued

(ii)

Fair values versus carrying amounts

The fair values of financial assets and liabilities, together with the carrying amounts shown in the condensed separate interim statements of financial position as of September 30, 2024 and December 31, 2023 are as follows:


	September 30, 2024				December 31, 2023
(In millions of won)	Carrying amounts		Fair values		Carrying amounts		Fair values
Financial assets at amortized cost
Cash and cash equivalents	W	319,116		(*1)		334,502		(*1)
Deposits in banks		11		(*1)		20,011		(*1)
Trade accounts and notes receivable		4,570,587		(*1)		3,077,901		(*1)
Non-trade receivables		146,991		(*1)		108,769		(*1)
Accrued income		2,050		(*1)		242		(*1)
Deposits		8,926		(*1)		8,538		(*1)
Loans		42,690		(*1)		59,884		(*1)
Financial assets at fair value through profit or loss
Equity securities	W	29,898		29,898		3,967		3,967
Convertible securities		1,838		1,838		1,838		1,838
Derivatives		73,827		73,827		169,703		169,703
Financial assets effective for fair value hedging
Derivatives	W	10,540		10,540		—		—
Financial liabilities at fair value through profit or loss
Derivatives	W	72,570		72,570		63,526		63,526
Financial liabilities effective for fair value hedging
Derivatives	W	1,905		1,905		36,052		36,052
Financial liabilities at amortized cost
Borrowings	W	9,549,867		9,622,511		8,213,962		8,248,441
Bonds		1,122,429		1,128,194		1,488,143		1,479,725
Trade accounts and notes payable		10,707,441		(*1)		8,993,964		(*1)
Other accounts payable		1,408,164		(*1)		2,678,134		(*1)
Payment guarantee liabilities		15,818		(*1)		20,613		(*1)
Security deposits received		156,847		(*1)		153,316		(*1)
Other financial liabilities
Lease liabilities	W	10,063		(*2)		14,400		(*2)

(*1)	Excluded from disclosures as the carrying amount approximates fair value.

(*2)	Excluded from the fair value disclosures in accordance with Korean IFRS 1107 ‘Financial Instruments: Disclosures’.

143

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

24.	Financial Risk Management, Continued

(iii)

Fair values of financial assets and liabilities

i) Fair value hierarchy

•

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities

•

Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly

•

Level 3: inputs for the asset or liability that are not based on observable market data

ii) Valuation techniques and inputs for Assets and Liabilities measured by the fair value hierarchy

Fair value hierarchy classifications of the financial instruments that are measured at fair value as of September 30, 2024 and December 31, 2023 are as follows:


	September 30, 2024
(In millions of won)	Level 1		Level 2		Level 3		Total
Classification
Financial assets at fair value through profit or loss
Equity securities	W	25,931		—		3,967		29,898
Convertible securities		—		—		1,838		1,838
Derivatives		—		73,827		—		73,827
Financial assets effective for fair value hedging
Derivatives	W	—		10,540		—		10,540
Financial liabilities at fair value through profit or loss
Derivatives	W	—		72,570		—		72,570
Financial liabilities effective for fair value hedging
Derivatives	W	—		1,905		—		1,905

144

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

24.	Financial Risk Management, Continued


	December 31, 2023
(In millions of won)	Level 1		Level 2		Level 3		Total
Classification
Financial assets at fair value through profit or loss
Equity securities	W	—		—		3,967		3,967
Convertible securities		—		—		1,838		1,838
Derivatives		—		169,703		—		169,703
Financial liabilities at fair value through profit or loss
Derivatives	W	—		63,526		—		63,526
Financial liabilities effective for fair value hedging
Derivatives	W	—		36,052		—		36,052

145

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

24.	Financial Risk Management, Continued

(In millions of won)

September 30, 2024

December 31, 2023

Valuation technique

Input

Classification

Level 2

Level 3

Level 2

Level 3

Financial assets at fair value through profit or loss

Equity securities

—

3,967

—

3,967

Discounted
cash flow, etc.

Discount rate and
Estimated cash
flow, etc.

Convertible securities

—

1,838

—

1,838

Blended discount
model and
binominal option
pricing model

Discount rate,
stock price and
volatility

Derivatives

73,827

—

169,703

—

Discounted cash
flow

Discount rate and
Exchange rate

Financial assets effective for fair value hedging

Derivatives

10,540

—

Discounted cash
flow

Discount rate and
Exchange rate

Financial liabilities at fair value through profit or loss

Derivatives

72,570

—

63,526

—

Discounted cash
flow

Discount rate and
Exchange rate

Financial liabilities effective for fair value hedging

Derivatives

1,905

—

36,052

—

Discounted cash
flow

Discount rate and
Exchange rate

146

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

24.	Financial Risk Management, Continued

iii)

Financial instruments not measured at fair value but for which the fair value is disclosed

(In millions of won)

September 30, 2024

Valuation
technique

Input

Classification

Level 1

Level 2

Level 3

Liabilities

Borrowings

—

9,622,511

Discounted
cash flow

Discount
rate

Bonds

—

1,128,194

Discounted
cash flow

Discount
rate

(In millions of won)

December 31, 2023

Valuation
technique

Input

Classification

Level 1

Level 2

Level 3

Liabilities

Borrowings

—

8,248,441

Discounted
cash flow

Discount
rate

Bonds

—

1,479,725

Discounted
cash flow

Discount
rate

iv)

The interest rates applied for determination of the above fair value as of September 30, 2024 and December 31, 2023 are as follows:


	September 30, 2024	December 31, 2023
Borrowings, bonds and others	3.83%~4.13%	4.60%~5.02%

There is no transfer between Level 1, Level 2 and Level 3 for the nine-month periods ended September 30, 2024 and 2023, and the changes in financial assets classified as Level 3 of fair value measurements for the nine-month periods ended September 30, 2024 and 2023 is as follows:


(In millions of won)
Classification	January 1, 2024		Valuation		September 30, 2024
Equity securities	W	3,967		—		3,967
Convertible securities		1,838		—		1,838


(In millions of won)
Classification	January 1, 2023		Valuation			September 30, 2023
Equity securities	W	10,484		(7,776	)		2,708
Convertible securities		1,797		—			1,797

147

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

25.	Cash flow information

(a)

Cash flows generated from the operations for the nine-month periods ended September 30, 2024 and 2023 is as follows:


(In millions of won)	2024			2023
Loss for the period	W	(1,775,926	)		(1,589,998	)

Adjustments for:
Income tax benefit (Note 22)		(151,854	)		(881,630	)
Depreciation and amortization (Note 18)		2,353,241			1,659,876
Gain on foreign currency translation		(302,050	)		(120,271	)
Loss on foreign currency translation		197,642			294,043
Expenses related to defined benefit plans (Note 13)		98,804			110,653
Gain on disposal of property, plant and equipment		(47,110	)		(28,089	)
Loss on disposal of property, plant and equipment		59,114			77,295
Impairment loss on property, plant and equipment		71,227			6,760
Reversal of impairment loss on property, plant and equipment		(4,314	)		—
Gain on disposal of intangible assets		(25	)		(1,989	)
Loss on disposal of intangible assets		388			55
Impairment loss on intangible assets		69,471			50,900
Reversal of impairment loss on intangible assets		(14	)		(242	)
Expense on increase of provisions		49,241			31,279
Finance income		(610,158	)		(2,340,512	)
Finance costs		755,279			709,652
Others		(14,367	)		(6,659	)

Changes in:
Trade accounts and notes receivable		(2,060,464	)		(53,832	)
Other accounts receivable		(65,472	)		60,766
Inventories		(506,345	)		(395,297	)
Other current assets		(73,618	)		10,719
Other non-current assets		(1,241	)		(4,022	)
Proceeds from settlement of derivatives		21,800			—
Trade accounts and notes payable		1,989,126			7,527
Other accounts payable		(779,940	)		(169,370	)
Accrued expenses		27,477			(44,236	)
Provisions		(74,600	)		(99,458	)
Advances received		4,729			(1,951	)
Other current liabilities		(7,026	)		(22,340	)
Defined benefit liabilities, net		(10,101	)		(30,580	)
Long-term advances received		—			1,580,222
Other non-current liabilities		122			29,134

Cash generated from operations	W	(786,964	)		(1,161,595	)

148

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

25.	Cash flow information, Continued

(b)

Changes in liabilities arising from financing activities for the nine-month periods ended September 30, 2024 and 2023 are as follows:


						Non-cash transactions
(In millions of won)	January 1, 2024		Cash flows from financing activities			Gain or loss on foreign currency translation			Interest expense		Others			September 30, 2024
Short-term borrowings	W	1,428,213		1,367,414			(24,894	)		—		—			2,770,733
Payment guarantee liabilities		20,613		5,662			—			—		(10,457	)		15,818
Long-term borrowings		6,785,749		(84,841	)		75,018			3,208		—			6,779,134
Bonds		1,488,143		(370,000	)		3,009			1,277		—			1,122,429
Lease liabilities		14,400		(10,420	)		—			—		6,083			10,063

Total	W	9,737,118		907,815			53,133			4,485		(4,374	)		10,698,177


						Non-cash transactions
(In millions of won)	January 1, 2023		Cash flows from financing activities			Gain or loss on foreign currency translation		Interest expense		Others			September 30, 2023
Short-term borrowings	W	1,952,289		139,325			29,884		—		—			2,121,498
Payment guarantee liabilities		19,241		5,149			—		—		(925	)		23,465
Long-term borrowings		5,660,105		1,002,883			156,231		2,508		2,866			6,824,593
Bonds		1,448,746		35,276			7,747		1,276		168			1,493,213
Lease liabilities		5,952		(9,685	)		—		—		12,322			8,589

Total	W	9,086,333		1,172,948			193,862		3,784		14,431			10,471,358

149

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

26.	Related Parties and Others

(a)

Related parties

Related parties as of September 30, 2024 are as follows:


Classification		Description
Subsidiaries(*)		LG Display America, Inc. and others
Associates(*)		Paju Electric Glass Co., Ltd. and others
Entity that has significant influence over the Company		LG Electronics Inc.
Subsidiaries of the entity that has significant influence over the Company		Subsidiaries of LG Electronics Inc.

(*)	Details of subsidiaries and associates are described in Note 8.

150

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

26.	Related Parties and Others, Continued

(b)

Major transactions with related parties for the nine-month periods ended September 30, 2024 and 2023 are as follows:


	2024
					Purchase and others
(In millions of won)	Sales and others		Dividend income		Purchase of raw material and others		Acquisition of property, plant and equipment		Others
Subsidiaries
LG Display America, Inc.	W	10,674,078		—		—		—		21
LG Display Japan Co., Ltd.		772,055		—		—		—		269
LG Display Germany GmbH		1,094,607		—		—		—		13,934
LG Display Taiwan Co., Ltd.		1,925,174		—		—		—		1,817
LG Display Nanjing Co., Ltd.		65,676		—		1,253,852		—		9,698
LG Display Shanghai Co., Ltd.		424,849		—		—		—		35
LG Display Guangzhou Co., Ltd.		26,968		—		951,004		—		10,510
LG Display Shenzhen Co., Ltd.		447,345		—		—		—		—
LG Display Yantai Co., Ltd.		—		—		245,652		—		964
LG Display (China) Co., Ltd.		1,941		219,667		1,002,528		—		2,084
LG Display Singapore Pte. Ltd.		1,075,843		—		—		—		53,733
L&T Display Technology (Fujian) Limited		97,367		—		—		—		52
Nanumnuri Co., Ltd.		204		470		—		—		18,387
LG Display Guangzhou Trading Co., Ltd.		294,771		—		—		—		—
LG Display Vietnam Haiphong Co., Ltd.		116,642		—		2,492,393		—		26,592
Suzhou Lehui Display Co., Ltd.		68,081		—		1,829		—		3
LG Display High-Tech (China) Co., Ltd.		626		—		1,879,396		—		2,838

Subtotal	W	17,086,227		220,137		7,826,654		—		140,937

151

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

26.	Related Parties and Others, Continued


	2024
					Purchase and others
(In millions of won)	Sales and Others		Dividend income		Purchase of raw material and others		Acquisition of property, plant and equipment		Others
Associates
WooRee E&L Co., Ltd. (*)	W	—		—		355		—		32
AVATEC Co., Ltd. (*)		—		200		52,983		—		2,947
Paju Electric Glass Co., Ltd.		—		—		176,641		—		6,093
YAS Co., Ltd. (*)		—		—		5,266		1,160		3,785
Material Science Co., Ltd.		—		—		—		—		888

Subtotal	W	—		200		235,245		1,160		13,745

Entity that has significant influence over the Company
LG Electronics Inc.	W	243,033		—		8,247		44,721		108,114

152

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

26.	Related Parties and Others, Continued


	2024
					Purchase and others
(In millions of won)	Sales and others		Dividend income		Purchase of raw material and others		Acquisition of property, plant and equipment		Others
Subsidiaries of the entity that has significant influence over the Company
LG Electronics India Pvt. Ltd.	W	46,695		—		—		—		208
LG Electronics Vietnam Haiphong Co., Ltd.		147,975		—		—		—		4,825
LG Electronics Reynosa S.A. DE C.V.		14,937		—		—		—		543
LG Electronics do Brasil Ltda.		13,240		—		—		—		217
LG Electronics RUS, LLC		—		—		—		—		4,005
LG Electronics Egypt S.A.E		14,232		—		—		—		23
LG Innotek Co., Ltd.		7,795		—		2,827		—		53,011
P.T. LG Electronics Indonesia		19,908		—		—		—		802
Others		9		—		—		—		12,543

Subtotal	W	264,791		—		2,827		—		76,177

Total	W	17,594,051		220,337		8,072,973		45,881		338,973

(*)	For the nine-month period ended September 30, 2024, WooRee E&L Co., Ltd., AVATEC Co., Ltd. and YAS Co., Ltd. were excluded from related parties and others due to loss significant influence and transaction amount is the amount prior to exclusion.

153

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

26.	Related Parties and Others, Continued


	2023
					Purchase and others
(In millions of won)	Sales and others		Dividend income		Purchase of raw material and others		Acquisition of property, plant and equipment		Others
Subsidiaries
LG Display America, Inc.	W	7,215,441		—		—		—		6
LG Display Japan Co., Ltd.		674,238		—		—		—		241
LG Display Germany GmbH		855,486		—		—		—		43,724
LG Display Taiwan Co., Ltd.		1,180,187		—		—		—		1,239
LG Display Nanjing Co., Ltd.		78,547		425,666		1,129,818		—		11,240
LG Display Shanghai Co., Ltd.		357,115		—		—		—		—
LG Display Guangzhou Co., Ltd.		20,523		1,042,837		943,273		—		13,636
LG Display Shenzhen Co., Ltd.		272,449		—		—		—		—
LG Display Yantai Co., Ltd.		890		345,527		256,839		—		1,271
LG Display (China) Co., Ltd.		941		57,966		740,088		—		1,168
LG Display Singapore Pte. Ltd.		787,090		—		—		—		95
L&T Display Technology (Fujian) Limited		93,720		—		4		—		120
Nanumnuri Co., Ltd.		178		—		—		—		17,683
LG Display Guangzhou Trading Co., Ltd.		272,622		—		—		—		—
LG Display Vietnam Haiphong Co., Ltd.		20,449		—		1,891,433		—		22,292
Suzhou Lehui Display Co., Ltd.		66,272		—		35,896		—		28
LG Display High-Tech (China) Co., Ltd.		4,837		—		2,001,179		—		3,728

Subtotal	W	11,900,985		1,871,996		6,998,530		—		116,471

154

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

26.	Related Parties and Others, Continued


	2023
			Purchase and others
(In millions of won)	Sales and Others		Dividend income		Purchase of raw material and others		Acquisition of property, plant and equipment		Others
Associates	W
WooRee E&L Co., Ltd.		—		—		330		—		10
AVATEC Co., Ltd.		—		—		30,676		—		6,644
Paju Electric Glass Co., Ltd.		—		15,200		122,537		—		2,739
YAS Co., Ltd.		—		—		6,462		7,236		4,209
Material Science Co., Ltd.		—		—		—		—		72

Subtotal	W	—		15,200		160,005		7,236		13,674

Entity that has significant influence over the Company
LG Electronics Inc.	W	151,970		—		9,074		41,787		114,477

155

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

26.	Related Parties and Others, Continued


	2023
					Purchase and others
(In millions of won)	Sales and others		Dividend income		Purchase of raw material and others		Acquisition of property, plant and equipment		Others
Subsidiaries of the entity that has significant influence over the Company
LG Electronics India Pvt. Ltd.	W	42,703		—		—		—		163
LG Electronics Vietnam Haiphong Co., Ltd.		334,522		—		—		—		559
LG Electronics Reynosa S.A. DE C.V.		22,915		—		—		—		485
LG Electronics do Brasil Ltda.		17,980		—		—		—		92
LG Electronics RUS, LLC		—		—		—		—		2,062
LG Electronics Egypt S.A.E		18,732		—		—		—		44
LG Innotek Co., Ltd.		5,828		—		17		—		77,164
P.T. LG Electronics Indonesia		20,119		—		—		—		1,842
Others		11		—		9		—		14,967

Subtotal	W	462,810		—		26		—		97,378

Total	W	12,515,765		1,887,196		7,167,635		49,023		342,000

156

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

26.	Related Parties and Others, Continued

(c)

Balances of receivables and payables from transaction with related parties as at September 30, 2024 and December 31, 2023 are as follows:


	Trade accounts and notes receivable and others				Trade accounts and notes payable and others
(In millions of won)	September 30, 2024		December 31, 2023		September 30, 2024		December 31, 2023
Subsidiaries
LG Display America, Inc.	W	2,156,199		1,817,773		—		4
LG Display Japan Co., Ltd.		271,238		134,107		3		26
LG Display Germany GmbH		464,856		50,322		10,966		3,234
LG Display Taiwan Co., Ltd.		571,042		60,663		99		96
LG Display Nanjing Co., Ltd.		195		2,869		2,012,237		1,796,033
LG Display Shanghai Co., Ltd.		99,018		241,039		27		—
LG Display Guangzhou Co., Ltd.		184		205		1,425,409		1,241,145
LG Display Guangzhou Trading Co., Ltd.		248,611		287,296		—		—
LG Display Shenzhen Co., Ltd.		46,066		75,709		—		—
LG Display Yantai Co., Ltd.		—		1		241,754		228,364
LG Display (China) Co., Ltd.		1,878		2,452		786,157		451,003
LG Display Singapore Pte. Ltd.		336,834		24,171		1,940,078		3
L&T Display Technology (Fujian) Limited		22,790		24,690		108,336		103,501
Nanumnuri Co., Ltd.		—		—		2,426		2,316
LG Display Vietnam Haiphong Co., Ltd.		18,940		23,402		1,181,023		1,180,951
Suzhou Lehui Display Co., Ltd.		4,003		24,829		158		2,532
LG Display High-Tech (China) Co., Ltd.		49,797		34,268		2,156,026		1,730,516

Subtotal	W	4,291,651		2,803,796		9,864,699		6,739,724

157

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

26.	Related Parties and Others, Continued


	Trade accounts and notes receivable and others				Trade accounts and notes payable and others
(In millions of won)	September 30, 2024		December 31, 2023		September 30, 2024		December 31, 2023
Associates
WooRee E&L Co., Ltd. (*1)	W	—		695		—		645
AVATEC Co., Ltd. (*1)		—		—		—		4,775
Paju Electric Glass Co., Ltd.		—		—		63,451		56,136
YAS Co., Ltd. (*1)		—		—		—		7,875
Material Science Co., Ltd.		—		—		—		118

Subtotal	W	—		695		63,451		69,549

Entity that has significant influence over the Company
LG Electronics Inc. (*2)	W	152,077		62,027		1,032,116		1,044,258

158

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

26.	Related Parties and Others, Continued


	Trade accounts and notes receivable and others				Trade accounts and notes payable and others
(In millions of won)	September 30, 2024		December 31, 2023		September 30, 2024		December 31, 2023
Subsidiaries of the entity that has significant influence over the Company
LG Innotek Co., Ltd. (*3)	W	1,842		2,521		199,264		211,476
P.T. LG Electronics Indonesia		3,563		3,771		7		108
LG Electronics Reynosa S.A. DE C.V		723		3,814		8		109
LG Electronics India Pvt. Ltd.		13,019		2,013		—		35
LG Electronics Vietnam Haiphong Co., Ltd.		22,299		76,952		394		211
LG Electronics RUS, LLC		—		—		—		203
LG Electronics Egypt S.A.E		2,585		369		1		1
Others		2,284		6,122		2,979		1,811

Subtotal	W	46,315		95,562		202,653		213,954

Total	W	4,490,043		2,962,080		11,162,919		8,067,485

(*1)	For the nine-month period ended September 30, 2024, as it was excluded from related parties and others due to loss significant influence, there are no outstanding receivables or payables.

(*2)	Trades accounts and notes payable and others for LG Electronics Inc. as of September 30, 2024 and December 31, 2023 includes long-term borrowings of W1,000,000 million (see Note 12.(c)).

(*3)	Trade accounts and note payable and others for LG Innotek Co., Ltd. as of September 30, 2024 and December 31, 2023 includes deposits received amount W180,000 million from lease agreement.

159

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

26.	Related Parties and Others, Continued

(d)

Significant financial transactions with related parties and others for the nine-month periods ended September 30, 2024 and 2023, is as follows:


	2024
(In millions of won)	Company Name	Borrowings		Collection of loans
Subsidiary	LG Display Singapore Pte. Ltd.	W	1,989,054		—
Associates	WooRee E&L Co., Ltd. (*)		—		256

(*)

For the nine-month period ended September 30, 2024, it was excluded from related parties and others due to loss significant influence and transaction amount is the amount prior to exclusion.

For the nine-month period ended September 30, 2024, the Company contributed W5,803 million in cash for the capital increase of LG DISPLAY FUND I LLC and decreased by W83,200 million as a result of acquisition and disposal of Money Market Trust in addition to the above transactions.


	2023
(In millions of won)	Company Name	Borrowings		Collection of loans
Associates	WooRee E&L Co., Ltd.	W	—		73
Entity that has significant influence over the Company	LG Electronics Inc.(*)		1,000,000		—

(*)

The Company entered into a loan agreement with LG Electronics Inc. on March 27, 2023 for a total borrowing amount of W1,000,000 million, and received W650,000 million on March 30, 2023 and W350,000 million on April 20, 2023.

For the nine-month period ended September 30, 2023, the Company contributed W4,691 million in cash for the capital increase of LG DISPLAY FUND I LLC and increased by W219,300 million as a result of acquisition and disposal of Money Market Trust in addition to the above transactions.

160

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

26.	Related Parties and Others, Continued

(e)

Large Enterprise Group Transactions


	For the nine-month period ended September 30, 2024				September 30, 2024
(In millions of won)	Sales and others		Purchase and others		Trade accounts and notes receivable and others		Trade accounts and notes payable and others
LG Uplus Corp.	W	105,300		2,171		—		181
LG Chem Ltd. and its subsidiaries		331		346,033		118		200,516
D&O Corp. and its subsidiaries (*1)		205		36,340		—		1,966
LG Corp. (*2)		—		45,285		7,555		5,765
LG Management Development Institute		—		22,021		2		446
LG CNS Co., Ltd. and its subsidiaries		—		108,694		—		35,051
HS AD Inc. (formerly, G2R Inc.) and its subsidiaries		—		4,906		—		596
Robostar Co., Ltd.		—		209		—		185

Total	W	105,836		565,659		7,675		244,706

(*1)

(*2)

161

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

26.	Related Parties and Others, Continued


	For the nine-month period ended September 30, 2023				December 31, 2023
(In millions of won)	Sales and others		Purchase and others		Trade accounts and notes receivable and others		Trade accounts and notes payable and others
LG Uplus Corp.	W	—		1,847		—		206
LG Chem Ltd. and its subsidiaries		237		259,136		18		155,312
D&O Corp. and its subsidiaries		230		372,705		—		69,503
LG Corp. (*1)		1,891		34,672		16,261		5,575
LG Management Development Institute		—		31,137		—		543
LG CNS Co., Ltd. and its subsidiaries		—		119,068		—		89,939
HS AD Inc.(formerly, G2R Inc.) and its subsidiaries (*2)		—		11,085		—		5,687
Robostar Co., Ltd.		—		511		—		217

Total	W	2,358		830,161		16,279		326,982

(*1)

(*2)	G2R Inc. changed its name to HS AD Inc. on July 1, 2023.

162

LG DISPLAY CO., LTD.

Notes to the Condensed Separate Interim Financial Statements

September 30, 2024 and 2023 (Unaudited), and December 31, 2023

26.	Related Parties and Others, Continued

(f)

Key management personnel compensation

Compensation costs of key management for the nine-month periods ended September 30, 2024 and 2023 are as follows:


(In millions of won)	2024		2023
Short-term benefits	W	1,797		1,715
Expenses related to the defined benefit plan		576		266

Total	W	2,373		1,981

Key management refers to the registered directors who have significant control and responsibilities over the Company’s operations and business.

(g)

At the end of the reporting period, the Company did not set an allowance for doubtful accounts on the balance of receivables for related parties.

27.	Assets Held for Sale

During the nine-month period ended September 30, 2024, management of the Company decided to sell 51% of its stake in LG Display (China) Co., Ltd. and 100% of its stake in LG Display Guangzhou Co., Ltd. to TCL CSOT. The contract was signed on September 26, 2024, and the transaction is expected to be completed within one year. As a result, the investments in LG Display (China) Co., Ltd. and LG Display Guangzhou Co., Ltd. are presented as assets held for sale.

163

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	LG Display Co., Ltd.

	(Registrant)

Date: November 14, 2024	By:	/s/ Kyu Dong Kim
		(Signature)

	Name:	Kyu Dong Kim
	Title:	Vice President / Finance & Risk Management Division