NeoView Kolon, a subsidiary merged by Kolon Group in order to foster electronics business in 2001, is known within the industry to close down the PMOLED sector on December 31.
NeoView Kolon established factory in Hongseong, South Chungcheong Province of South Korea in 2003 and began PMOLED mass production. At this point, Samsung SMD (the current Samsung Display) and LG Electronics were also mass producing PMOLED. Other PMOLED producing companies included Korea’s Orion, Japan’s Futaba, and Tohoku Pioneer, and China’s Visionox. However, Samsung SMD stopped PMOLED business and sold manufacturing equipment to China’s Truly, and Samsung Display began AMOLED business from 2007. Subsequently, LG Electronics also closed down PMOLED sector and merged OLED related personnel to LG Display and launched AMOLED business. Orion was sold to China’s Changhong.
With the active application of AMOLED to Samsung Electronics’ Galaxy series, global PMOLED business began to rapidly shrink, and in order to maintain business, PMOLED companies pushed ahead with OLED lighting panel business.
NeoView Kolon entered into the automotive instrument panel business with PMOLED transparent display, but this business was also not easy. Furthermore, as the factory location is Hongseong, deep in the countryside, there was high turnover of employees and difficulty in technology development and recruitment. Despite the investment of over 100,000 million KRW, the company showed continued deficit.
NeoView Kolon turned into a financial sinkhole for Kolon Group and worsened the Group’s financial structure, leading to persistent discussion of selling or withdrawal of the business. Recently, Samsung Display is actively pushing forward the transparent AMOLED panel business. As such, transparent display business value for Kolon decreased, and it is estimated that this led to the decision of closing down the business.