This excerpt taken from the LPL 6-K filed Nov 6, 2009.
C. New business
In October 2007, we decided to invest in an 8th generation fabrication facility (P8) to expand our production capacity in line with the growing
large-sized LCD television market. The construction of P8 has been completed and mass production at P8 commenced in March 2009. In July 2008, we decided to invest in a 6th generation fabrication facility (P6E) to expand our production capacity. The
construction of P6E has been completed and mass production at P6E commenced in April 2009.
In June 2008, we launched the OLED Business Unit in anticipation of future growth in the OLED business. In addition, we also plan to strengthen our
market position in the future display technologies by accelerating the development of flexible display technologies and leading the LED backlight LCD market.
In order to facilitate a cooperative purchasing relationship with HannStar Display Corporation (HannStar), a company that manufactures TFT-LCD panels
in Taiwan, we decided to purchase 180 million shares of preferred stock of HannStar at a purchase price of NT$3,170,250,000. We acquired the preferred shares in February 2008. The preferred shares mature in three years and are convertible into
shares of common stock of HannStar.
We are making an effort to increase our competitiveness by forming cooperative relationships with suppliers and purchasers of our products. As part of
this effort, in June 2008 we purchased 2,037,204 shares of AVACO Co., Ltd., which produces sputters, a core equipment for LCD production, and in May 2008 we purchased 1,008,875 shares of TLI Co., Ltd., which produces core LCD panel components such
as timing controllers and driver integrated circuits. In July 2008, we purchased 6,850,000 shares of common stock of New Optics Ltd. In addition, in February 2009, we purchased 3,000,000 shares of common stock of ADP Engineering Co., Ltd., which was
approximately 12.9% of its then outstanding shares. In May 2009, we purchased 6,800,000 shares of common stock of Wooree LED Co., Ltd, which was approximately 29.6% of its then outstanding shares. By promoting strategic relationships with equipments
and parts suppliers, which enables us to obtain a stable source of supply of equipments and parts at competitive prices, we have strengthened our competitive position in the LCD business.
In July 2008, we and Skyworth RGB Electronics founded a research and development joint venture corporation with a registered capital of CNY
50 million in China.
In October 2008, we established a joint venture company with AmTRAN Technology Co., Ltd., a Taiwan corporation. The joint venture company will supply
both parties with TFT-LCD modules and TFT-LCD televisions. Through the establishment of this joint venture, we are able to further expand our customer base by securing a long-term stable panel dealer. It also allows us to produce LCD modules and LCD
television sets in a single factory, which enables us to provide our customers with products that are competitive both in terms of technology and price.
We are making an effort to strengthen our competitiveness in the solar cell business, which is emerging as a future growth engine. As part of this
effort, in June 2009, we purchased 933,332 shares of common stock of Dynamic Solar Design Co., Ltd., which was approximately 40.0% of its then outstanding shares. Dynamic Solar Design Co., Ltd. produces equipment for the solar cell business.
As part of our strategy to expand our production capacity overseas, in November 2009, we signed an investment agreement and a joint venture agreement
with the City of Guangzhou, China, to build an eighth-generation panel fabrication facility in China, subject to approval of the Korean government. Our investment amount in the joint venture company is (Won)1,110 billion. This proposed venture,
including its total investment amount, remains subject to approval by the Korean government.