Samsung Display and LG Display, two of South Korea's leading display manufacturers, have recently asked the government for increased public support to help them continue investing in next-generation display technology. They cited growing competition from Chinese firms as a key reason for their request. During a forum held on October 1st at the South Korean National Assembly, both companies urged the government to implement stronger support measures for the display industry. Samsung Display specifically wants to extend the time period for deferring unused tax credits for strategic technologies from 10 to 20 years. It also requested a more sustainable tax mechanism to support long-term research and development. LG Display, on the other hand, has proposed a direct reimbursement mechanism, arguing that when large investments significantly reduce taxable profit or lead to losses, the value of tax credits diminishes. LG Display would prefer to receive part of these credits directly in cash. According to data compiled by the Korea Display Industry Association from Omdia, China held 55.9% of the global display market by value in the first quarter of 2026, compared to 28.9% for South Korea. However, the situation is different in the OLED (organic light-emitting diode) segment, where South Korean manufacturers still lead. In 2025, South Korea accounted for 68.7% of the global OLED market, while Chinese competitors held 31.2%. This lead is significant but remains vulnerable to changes in the competitive landscape. Ahn Chan-jong from the South Korean Ministry of Commerce, Industry and Energy estimated that the technological gap in OLED has remained around 1.3 years since 2023. According to statements relayed by The Elec, he warned that without continued research and development, South Korean companies could be overtaken by their Chinese rivals in less than a year. To maintain their competitive edge, South Korean companies are making substantial investments. Samsung Display has already invested over 400 billion won in its generation 8.6 OLED IT line in Asan, which began mass production in July. The term "generation 8.6" refers to the size of the substrate used in the factory. Larger substrates allow more panels to be cut for laptops, tablets, or monitors, which can improve production efficiency and reduce costs. Chinese competitors are also making significant moves. TCL CSOT, a Chinese company, is developing its T8 project in Guangzhou, which focuses on printed OLED technology. This project involves an investment of 29.5 billion yuan and has an announced capacity of 22,500 Gen 8.6 substrates per month. The project benefits from support provided by local public entities, highlighting the level of public backing available to the Chinese display industry. The message to South Korea is clear: while it still holds a strong position in OLED technology, it must now work to defend that advantage against increasingly aggressive Chinese competitors who are investing heavily, automating their production lines, and receiving substantial public support.