LPL

Overview Market risk is the risk of loss related to adverse changes in market prices, including interest rates and foreign exchange rates, of financial instruments. We are exposed to various financial market risks in our ordinary course of business transactions, primarily from changes in interest rates and foreign exchange rates. We utilize various financial derivatives, including forward and swap contracts to mitigate such risks as well as manage our exposure associated with net asset and liability positions and cash flows denominated in foreign currencies. We have used, and intend to continue to use, these financial derivatives only for hedging purposes and not for speculative purposes. Our primary market risk exposures relate to interest rate movements on floating rate borrowings and exchange rate movements on foreign currency denominated accounts receivable, as well as foreign currency denominated future cash flows from sales, mostly denominated in U.S. dollars and foreign currency denominated accounts payable for purchases of raw materials and supplies, primarily denominated in U.S. dollars and, to a lesser extent, Chinese Yuan and Japanese Yen. The fair value of our financial instruments has been determined as the price, as of the applicable measurement date, that we would receive when selling an asset or that we would pay when transferring a liability, in an orderly transaction between market participants. Fair value is based on quoted market prices where available. For a further discussion of our market risk and fair value of our financial assets and liabilities, see Note 25 of the notes to our financial statements. 86 Table of Contents Interest Rate Risks Our exposure to interest rate risks relates primarily to our short-term and long-term debt obligations, which are typically incurred to fund capital expenditures and repay maturing debt, as well as for working capital and other general corporate purposes. As of December 31, 2025, we had outstanding short-term and long-term debt, including current portion and prior to deducting discounts on bonds, in the aggregate amount of W12,665 billion (US$8,767 million). See Note 25(a) of the notes to our financial statements. From time to time, we may enter into interest rate swap contracts to hedge against the effects of interest rate fluctuations of certain of our floating rate long-term debt. As of December 31, 2025, W2,280 billion (US$1,578 million) of our Korean Won denominated floating rate long-term borrowings were hedged against interest rate fluctuations using variable-to-fixed interest rate swap contracts that expire in between 2026 and 2028, and US$250 million of our U.S. dollar-denominated floating rate long-term borrowings were hedged against interest rate fluctuations using variable-to-fixed interest rate swap contracts that expire in 2027. In connection with such contracts, we recognized a gain on valuation of derivatives of W16 billion (US$11 million) in 2025. The table below provides information about our interest rate swap contracts. The table presents notional amounts used to calculate the contractual payments to be exchanged under such contracts. Expected Maturity Dates Fair Value at 2026 2027 2028 2029 2030 Thereafter Total December 31, 2025 (in billions of Won and millions of US$, except for interest rate percentages) Interest rate swaps Variable to fixed (W)(1) W 575 W 775 W 930 — — — W 2,280 W 2,280 Average pay rate 4.29 % 4.25 % 4.23 % — — — Average receive rate 4.32 % 4.60 % 4.79 % — — — Variable to fixed (US$)(1) — US$ 250 — — — — US$ 250 US$ 250 Average pay rate 4.89 % 4.89 % — — — — Average receive rate 4.89 % 4.56 % — — — — (1)Average pay rates and average receive rates are applicable to the total notional amounts outstanding until maturity. We may be exposed to interest rate risks on additional debt financing that we may periodically undertake to fund capital expenditures required for our capacity expansion. Upward fluctuations in interest rates increase the cost of new debt. The interest rate that we will be able to obtain in a new debt financing will depend on market conditions at that time and may differ from the rates we have secured on our current debt. As of December 31, 2025, we had US$565 million aggregate principal amount of U.S. dollar denominated short-term loans, US$2,350 million aggregate principal amount of U.S. dollar denominated long-term loans, CNY19,332 million aggregate principal amount of CNY denominated long-term loans, and W4,000 billion aggregate principal amount of Korean Won denominated long-term loans. As of December 31, 2025, the interest rates for our U.S. dollar denominated loans ranged from 4.51% to 6.27%, the interest rates for our CNY denominated loans ranged from 2.03% to 3.06%, and the interest rates for our Korean Won denominated loans ranged from 3.46% to 5.65%. See Note 12 of the notes to our financial statements. If interest rates on borrowings with floating rates had been 1% higher or lower with all other variables held constant, the impact on the profit or loss before income tax of the applicable period would be as follows: For the Years Ended December 31, 2023 2024 2025 Increase Decrease Increase Decrease Increase Decrease (In billions of Won) Increase or decrease in profit or loss before income tax(1) W (102 ) W 102 W (98 ) W 98 W (101 ) W 101 (1)Includes financial instruments subject to interest rate swap transactions not designated as hedging instruments The table below provides information about our financial instruments that are sensitive to changes in interest rates. 87 Table of Contents Expected Maturity Dates 2026 2027 2028 2029 2030 Thereafter Total Fair Value at December 31, 2025 (in billions of Won, except for interest rate percentages) Debt obligations Fixed rate (W) W 630 W 475 — — — — W 1,105 W 1,109 Average interest rate 4.6 % 3.8 % — — — — Variable rate (W) W 815 W 1,185 1,205 50 25 — W 3,280 W 3,280 Average interest rate 4.4 % 4.4 % 4.3 % 4.5 % 4.5 % — Fixed rate (CNY) W 2 W 276 — — — — W 279 W 274 Average interest rate 2.5 % 2.5 % — — — — Variable rate (CNY) W 926 W 630 2,124 — — — W 3,680 W 3,680 Average interest rate 2.4 % 2.3 % 2.7 % — — — Fixed rate (US$) W 595 W 574 — — — — W 1,169 W 1,196 Average interest rate 4.3 % 5.9 % — — — — Variable rate (US$) W 646 W 1,471 725 326 — — W 3,168 W 3,168 Average interest rate 5.1 % 5.4 % 5.2 % 4.9 % — — For a further discussion of our interest rate risk exposures, including a further sensitivity analysis on our interest rate risk exposures, see Notes 12 and 25 of the notes to our financial statements. Foreign Currency Risk The primary foreign currency to which we are exposed is the U.S. dollar. We are also exposed, to a lesser extent, to other foreign currencies, including the Japanese Yen as well as the Chinese Yuan, and the Vietnamese Dong. For a further discussion of our net exposure to U.S. dollar and Japanese Yen, see Note 25 of the notes to our financial statements. From time to time, we hedge against the effect of exchange rate fluctuations of the U.S. dollar and Chinese Yuan against the Korean Won on our U.S. dollar and Chinese Yuan debt exposure using cross-currency swap contracts. The table below sets forth our outstanding cross currency interest rate swap contracts as of December 31, 2025. Cross Currency Interest Rate Swap Contracts: Contracts to sell Korean (Won)/buy US$: Outstanding contract amount US$ 1,600 million Average contractual exchange rate (Won) 1,371.4/US$ Change in fair value (Won) (133.1) billion Contracts to sell Korean (Won)/buy CNY: Outstanding contract amount CNY 380 million Average contractual exchange rate (Won) 199.1/CNY Change in fair value (Won) (5.9) billion In addition to relying on natural hedges created by foreign currency assets and liabilities, from time to time we have entered, and may in the future enter, into forward exchange contracts with major financial institutions to minimize the impact of foreign currency fluctuations on our foreign currency liabilities. Gains and losses on forward exchange contracts are recorded in the period of the exchange rate changes as foreign exchange gain or loss. As of December 31, 2025, we did not have any outstanding forward exchange contracts. Our foreign currency exposure and changes in profit or loss before income tax resulting from a 5% foreign exchange rate change of each of the U.S. dollar and the Japanese Yen against the Korean Won are as follows: 88 Table of Contents For the Years Ended December 31, 2023 2024 2025 Profit or Loss Before Income Tax Profit or Loss Before Income Tax Profit or Loss Before Income Tax (In billions of Won) U.S. Dollars (5% weakening) W 58 W (36 ) W 21 U.S. Dollars (5% strengthening) (58 ) 36 (21 ) Japanese Yen (5% weakening) (11 ) (7 ) (5 ) Japanese Yen (5% strengthening) 11 7 5 Other Risks We are exposed to credit risk in the event of non-performance by the counterparties under our forward exchange contracts at maturity. In order to minimize this risk, we limit the transaction amount with any one party and continually monitor the credit quality of the counterparties to these financial instruments. We do not anticipate any material losses from these contracts, and we believe the risk of non-performance by the counterparties under these contracts is remote. A substantial portion of our sales is attributable to a limited number of our end-brand customers. Our top ten end-brand customers, including our largest shareholder as an end-brand customer, together accounted for a substantial majority of our sales in each of 2023, 2024 and 2025. While we negotiate directly with our end-brand customers concerning the price and quantity of the sales, for some sales transactions we invoice the end-brand customers’ designated system integrators. As a result of our significant dependence on a concentrated group of end-brand customers and their designated system integrators, we are exposed to credit risks associated with these entities. We have established certain measures, such as factoring arrangements and requirement of credit insurance from customers, to protect us from excessive exposure to such credit risks. We manage our accounts receivable and credit exposure to customers by establishing credit limits for each customer to whom we supply products on an open account basis in accordance with our internal credit guidelines. We assess credit risk through quantitative and qualitative analysis, and based on this analysis, we establish credit limits and determine whether we will seek to use one or more credit support devices, such as obtaining some form of third-party guaranty or stand-by letter of credit, obtaining credit insurance or through factoring of all or part of accounts receivables. Our credit policy does not require credit limits on accounts receivable created on letters of credit. To date, we have not experienced any material problems relating to customer payments. For a further discussion of our credit risk exposures, see Note 25 of the notes to our financial statements.

You should carefully consider the risks described below. Risks Relating to Our Industry Our revenue depends on continuing demand for IT products, mobile and other products, televisions, and auto products with panels of the type we produce. Our sales may not grow at the rate we expect if consumers do not purchase these products. The business in which we are engaged is directly affected by the business conditions of the downstream industries which utilize display panels in their products. Currently, our total sales are derived principally from customers who use our products in “IT products” (which term is used by us to collectively refer to notebook computers, desktop monitors and tablet computers in this annual report), mobile and other products, televisions, and “auto products” (which term is used by us to refer to automotive products in this annual report) with display devices. In particular, a substantial percentage of our sales is derived from end-brand customers, or their designated system integrators, who use our panels in their IT products, which accounted for 36.8%, 35.4% and 36.8% of our total revenue in 2023, 2024 and 2025, respectively. A substantial portion of our sales is also derived from end-brand customers, or their designated system integrators, who use our panels in their mobile and other products, which accounted for 33.1%, 33.0% and 35.4% of our total revenue in 2023, 2024 and 2025, respectively, those who use our panels in their televisions, which accounted for 20.3%, 22.4% and 18.6% of our total revenue in 2023, 2024 and 2025, respectively, and those who use our panels in their auto products, which accounted for 9.4%, 8.6% and 8.3% of our total revenue in 2023, 2024 and 2025, respectively. The overall demand for end products that utilize certain types of our display panels, including IT and television products, has remained weak in recent years due in part to heightened macroeconomic uncertainty and volatility in global markets. See “Risks Relating to Our Industry — A global economic downturn may result in reduced demand for our products and adversely affect our profitability.” As each of our IT products, mobile and other products, televisions and auto product segments significantly contributes to our total sales, we will continue to be dependent on continuing demand from each of the IT products industry, the mobile device industry, the television industry and the automotive industry for a substantial portion of our sales. A prolonged downturn in any of those industries in which our customers operate would result in reduced demand for our products, which may in turn result in reduced revenue, lower average selling prices and/or reduced margins. 3 Table of Contents The display panel industry is subject to cyclical fluctuations, including recurring periods of capacity increases, that may adversely affect our results of operations. The current global supply of medium- and large-sized display panels is manufactured primarily based on thin-film transistor liquid crystal display, or TFT-LCD, technology, and to a lesser but increasing extent, organic light-emitting diode, or OLED, technology, and a majority of small-sized display panels is now manufactured primarily based on OLED technology. While TFT-LCD technology remains the predominant technology in the notebook computer and desktop monitor segments and continues to account for the majority of the overall medium- and large-sized display panel market, the proportion of OLED panels in such market has been steadily increasing in recent years, particularly in the high-end downstream product segments. Display panel manufacturers in general are vulnerable to cyclical market conditions. Intense competition and expectations of growth in demand across the display panel industry may cause manufacturers to make additional investments in manufacturing capacity on similar schedules, resulting in a surge in capacity when production is ramped up at new fabrication facilities. During such surges in capacity growth, as evidenced by past experiences, customers can exert strong downward pricing pressure, resulting in sharp declines in average selling prices and significant fluctuations in the panel manufacturers’ gross margins. Conversely, demand surges and fluctuations in the supply chain can lead to price increases. From time to time, we have been affected by overcapacity in the display panel industry relative to the general demand for such panels which, together with uncertainties in the current global economic environment, has contributed to a general decline in the average selling prices of a number of our display panel products. We attempt to counteract the effects of overcapacity in the industry by increasing the proportion of high-value, differentiated specialty products based on newer technologies in our product mix, including products that utilize OLED technology, which accounted for 61% of our revenues in 2025 and are relatively less affected by the industry-wide overcapacity problems, while also engaging in cost reduction efforts. We also address overcapacity issues by, in the short-term, adjusting the utilization rates of our existing fabrication facilities based on our assessment of industry inventory levels and demand for our products and, in the mid- to long-term, by fine-tuning our investment strategies relating to product development and capacity growth in light of our assessment of future market conditions. Our average revenue per square meter of net display area, which is derived by dividing our total revenue by total square meters of net display area shipped, decreased by 2.5% from W1,103 thousand in 2023 to W1,076 thousand in 2024, largely due to the continued sluggish demand for medium-sized IT panel products, the effect of which was partly offset by an increase in the sales volume and proportion of small-sized panels for mobile and other products, which generally have higher sales price per net display area compared to their larger-sized counterparts, in our product mix. Our average revenue per square meter of net display area increased by 38.9% to W1,495 thousand in 2025, which primarily reflected our ongoing efforts to increase the sales volume and proportion of OLED panels (especially small-sized panels for mobile and other applications, which generally have higher sales price per net display area compared to larger-sized panels) in our product mix. This increase also reflected the discontinuation of our TFT-LCD television panel production in April 2025 and our continued reduction of lower-margin TFT-LCD panels for IT products to increasingly focus on differentiated, higher-end products in such segment. In addition, the depreciation of the Korean Won against the U.S. dollar during 2025 further enhanced this increase. While we believe that overcapacity and other cyclical issues in the industry are best addressed by increasing the proportion of high-value, differentiated specialty products based on newer technologies (such as OLED technology) in our product mix that are tailored to our customers’ evolving needs, we cannot provide any assurance that an increase in demand, which has helped to mitigate the impact of industry-wide overcapacity in the past, will recur or be sustained in future periods. We will therefore continue to closely monitor any overcapacity issues in the industry and respond accordingly. However, construction of new fabrication facilities and other capacity expansion projects in the display panel industry, including those currently under construction or planned to be constructed by us and other major display panel manufacturers in China and Korea, are undertaken with a multi-year time horizon based on expectations of future market trends. Therefore, even if overcapacity issues persist in the industry, there may be continued capacity expansion in the near future due to pre-committed capacity expansion projects in the industry that were undertaken in past years. Any significant industry-wide capacity increases that are not accompanied by a sufficient increase in demand could further drive down the average selling price of our panels, which would negatively affect our gross margin. Any decline in prices may be further compounded by a seasonal weakening in demand growth for end products such as personal computer products, consumer electronics products and mobile devices. Furthermore, once the differentiated products that had a positive impact on our performance mature in their technology cycle, our ability to counter the impact of cyclical market conditions on our gross margins would be further limited if we are not able to develop and commercialize newer products to offset the price erosion of such maturing products in a timely manner. We cannot provide assurance that any future downturns resulting from any large increases in capacity or other factors affecting the industry would not have a material adverse effect on our business, financial condition and results of operations. 4 Table of Contents In addition, we may recognize impairment losses on our property, plant and equipment and intangible assets in connection with deteriorating market conditions. For example, in 2022, partly due to less favorable industry outlook in light of continued and exacerbated uncertainty in the prospects of the global economy, we recognized significant impairment losses in connection with a decrease in the estimated recovery value of our property, plant and equipment and intangible assets relating to our large-sized OLED display panel business. We cannot provide assurance that any future downturns will not result in additional recognition of impairment losses on our property, plant and equipment and intangible assets, which may have a material adverse effect on our financial condition and results of operations. A global economic downturn may result in reduced demand for our products and adversely affect our profitability. In recent years, adverse conditions and volatility in the worldwide financial markets, fluctuations in oil and commodity prices and the general weakness of the global economy have contributed to the uncertainty of global economic prospects in general and have adversely affected, and may continue to adversely affect, the Korean economy. Global economic downturns in the past have adversely affected demand for consumer products manufactured by our customers in Korea and overseas, including IT products, televisions, mobile devices and auto products utilizing display panels, which in turn led them to adjust their production levels. Uncertainties in the global economy have increased in recent years, with global financial and capital markets experiencing substantial volatility. In particular, the COVID-19 pandemic that began in late 2019 and fluctuations in interest rates globally have materially and adversely affected the global economy and financial markets in recent years. See “—Risks Relating to Our Company—Earthquakes, tsunamis, floods, severe health epidemics and other natural calamities could materially adversely affect our business, results of operations or financial condition.” Such uncertainties have been, and continue to be, exacerbated by, among other things, a deterioration in economic and trade relations between the United States and its trading partners (including as a result of the imposition of significant tariffs by the United States on its trading partners) which has been followed by retaliatory tariffs in some cases, escalations in trade protectionism globally, the invasion of Ukraine by Russia and ensuing sanctions against Russia, the slowdown of economic growth in China and other major emerging market economies, adverse economic and political conditions in Europe and Latin America and continuing geopolitical and social instability in North Korea and various parts of the Middle East, including the military conflicts between Iran and other countries, including the United States and Israel. We cannot provide any assurance that demand for our products can be sustained at current levels in future periods or that the demand for our products will not decrease in the future due to such economic downturns, which may adversely affect our profitability. We have from time to time adjusted, and may decide to adjust in the future, our production levels subject to market demand for our products, the production outlook of the global display panel industry, any significant disruptions in our supply chain and global economic conditions in general. As part of our continued efforts to increase the proportion of OLED panels in our product mix, we have been reducing the production level of TFT-LCD panels in recent years. Between 2022 and 2023, we closed certain TFT-LCD fabrication facilities, including P5 (where we had produced TFT-LCD panels for notebook computers and mobile and other products), P7 (where we had produced TFT-LCD panels for televisions) and P62 (where we had produced TFT-LCD panels for notebook computers and desktop monitors), in light of our continued efforts to increase the proportion of OLED panels in our product mix and the production capacity for such panels and further reduce our production level of TFT-LCD panels, which we believe to be relatively more sensitive to market conditions and generally allow for fewer opportunities for product differentiation. In September 2024, as part of our efforts to accelerate the ongoing shift in our strategic direction to focus on OLED panels, we entered into an agreement with TCL China Star Optoelectronics Technology (“TCL CSOT”), a leading Chinese display panel manufacturer, to dispose of our entire equity interest in LG Display (China) Co., Ltd. and LG Display Guangzhou Co., Ltd. (such subsidiaries collectively referred to in this annual report as the “China TFT-LCD Television Panel Subsidiaries”), which engaged in TFT-LCD panel manufacturing and TFT-LCD module manufacturing for televisions, respectively, for approximately W2.2 trillion. Following the completion of the sale, these entities were excluded from the scope of our consolidated subsidiaries effective April 1, 2025, and we have fully discontinued the production of TFT-LCD panels for televisions. See Note 1(c) of the notes to our financial statements for further discussion. Any decline in demand for display panel products may adversely affect our business, results of operations and/or financial condition. Our industry continues to experience steady declines in the average selling prices of display panels irrespective of cyclical fluctuations in the industry, and our margins would be adversely impacted if prices decrease faster than we are able to reduce our costs. The average selling prices of display panels have declined in general and are expected to continually decline with time irrespective of industry-wide cyclical fluctuations as a result of, among other factors, technological advancements and 5 Table of Contents cost reductions. Although we may be able to take advantage of the higher selling prices typically associated with new products and technologies when they are first introduced in the market, such prices decline over time, and in certain cases, very rapidly, as a result of market competition or otherwise, and we may have difficulties with setting the prices of our display panels at levels at which we can secure sufficient margins. For example, in part due to weaker market demand and increased competition, our gross margin fell to 1.6% in 2023 before rebounding to 9.7% in 2024 and 13.1% in 2025, which increases primarily reflected our continued efforts to increase the proportion of high-value, differentiated specialty products based on newer technologies (such as OLED technology) in recent years. If we are unable to effectively anticipate and counter the price erosion that accompanies our products, or if the average selling prices of our display panels decrease faster than the speed at which we are able to reduce our manufacturing costs, our gross margin would decrease and our results of operations and financial condition may be materially and adversely affected. We operate in a highly competitive environment and we may not be able to sustain our current market position. The display panel industry is highly competitive. Our main competitors in the industry include leading display manufacturers in China, Korea, Taiwan and Japan. We have experienced pressure on the prices and margins of our major products due largely to additional capacity from panel makers in Asia, particularly in China. The market share of Chinese manufacturers in the global TFT-LCD display market has significantly increased in recent years primarily due to their large investments in production facilities and production of large volumes of lower-priced panels with the support of the Chinese government as part of its efforts to encourage Chinese consumers to purchase domestically manufactured products. Chinese display panel manufacturers have also been increasingly making capital investments in OLED technology, especially with respect to small- and mid-sized OLED display panels. For example, BOE, China’s largest display panel manufacturer, has continued to make capital investments aimed at expanding its OLED production capabilities across multiple manufacturing facilities in China, including in Chengdu and other regions. Moreover, Samsung Display, one of our primary competitors based in Korea, has been making significant capital investments in a new OLED manufacturing facility in Asan, Korea. Increased production capacity resulting from such investments as well as additional investments by our competitors in China and elsewhere may result in further intensified competition. See “Item 4.B. Business Overview—Competition.” Some of our competitors may currently, or at some point in the future, have greater financial, sales and marketing, manufacturing, research and development or technological resources than we do. In addition, our competitors may be able to manufacture panels on a larger scale or with greater cost efficiencies than we do, and we anticipate increases in production capacity in the future by other display panel manufacturers using similar display panel technologies as ours. Any price erosion resulting from strong global competition or additional industry capacity may materially adversely affect our financial condition and results of operations. Mergers or consolidations within the industry in which we operate may result in increased competition as the entities emerging from such consolidation may have greater financial, manufacturing, research and development and other resources than we do, especially if such mergers or consolidations result in vertical integration and operational efficiencies. Increased competition resulting from such mergers or consolidations may lead to decreased margins, which may have a material adverse effect on our financial condition and results of operations. Our ability to compete successfully also depends on factors both within and outside our control, including product pricing, performance and reliability, our relationship with customers, successful and timely investment and product development, success or failure of our end-brand customers in marketing their brands and products, newly established industry standards, component and raw material supply costs, and general economic and industry conditions. We cannot provide assurance that we will be able to maintain a competitive advantage with respect to all these factors and, as a result, we may be unable to sustain our current market position. 6 Table of Contents Our operating results fluctuate from period to period, so you should not rely on period-to-period comparisons to predict our future performance. Our industry is affected by market conditions that are often outside the control of manufacturers. Our results of operations may fluctuate significantly from period to period due to a number of factors, including seasonal variations in consumer demand, capacity ramp-up by competitors, industry-wide technological changes, the loss of a key customer and the postponement, rescheduling or cancellation of large orders by a key customer, any of which may or may not reflect a continued trend from one period to the next. As a result of these factors and other risks discussed in this section, you should not rely on period-to-period comparisons to predict our future performance. Risks Relating to Our Company Our financial condition may be adversely affected if we cannot introduce new products to adapt to rapidly evolving customer needs on a timely basis. Our success will depend greatly on our ability to respond quickly to rapidly evolving customer requirements and to develop and efficiently manufacture new and differentiated products in anticipation of future demand. A failure or delay on our part to develop and efficiently manufacture products of such quality and technical specifications that meet our customers’ evolving needs may adversely affect our business. Close cooperation with our customers to gain insights into their product needs and to understand general trends in the end-product market is a key component of our strategy to produce successful products. In addition, when developing new products, we often work closely with equipment suppliers to design equipment that will make our production processes for such new products more efficient. If we are unable to work together effectively with our customers and equipment suppliers, or to sufficiently understand their respective needs and capabilities or general market trends, we may not be able to introduce or efficiently manufacture new products in a timely manner, which may have a material adverse effect on our financial situation. In addition, product differentiation, especially the ability to develop and market differentiated specialty products that command higher premiums in a timely manner, has become a key competitive strategy in the display panel market. This is in part due to trends in consumer electronics and other markets, such as IT products, televisions, mobile devices and auto products where the growth in demand is led by end products employing newer technologies with specifications tailored to deliver enhanced performance, convenience and user experience in a cost-efficient and timely manner. Accordingly, we have focused our efforts on developing and marketing differentiated specialty products, such as OLED display panels for televisions and commercial displays including our next-generation “META” display panels (which apply advanced technologies to offer brighter and more stable images), transparent OLED display panels as well as OLED display panels for gaming monitors. We also strive to deliver differentiated values to meet our consumers’ demand for various display panels including (i) panels utilizing ultra-high definition, or Ultra HD, technology and low power consumption with oxide TFT backplanes, (ii) Advanced High-Performance In-Plane Switching, or AH-IPS, panels for IT products and televisions, and (iii) plastic OLED display panels for smartphones, auto products and wearable devices. We have also focused our efforts on cost reductions in the production process, in particular of our OLED display panels, in order to improve or maintain our profit margins while offering competitive prices to our customers. We have developed differentiated sales and marketing strategies to promote our panels for differentiated specialty products as part of our strategy to grow our operations to meet increasing demand for new applications in consumer electronics and other markets. However, we cannot provide assurance that the differentiated products we develop and market will be responsive to our end customers’ needs nor that our products will be successfully incorporated into end products or new applications that lead market growth in consumer electronics or other markets. Problems with product quality, including defects, in our products could result in a decrease in customers and sales, unexpected expenses and loss of market share. Our products are manufactured using advanced, and often new, technology and must meet stringent quality requirements. Products manufactured using more advanced and newer technology, such as our OLED technology, may contain undetected errors or defects, especially when first introduced. For example, our latest display panels may contain defects that are not detected until after they are shipped or installed because we cannot test for all possible scenarios. Such defects could cause us to incur significant re-designing costs, divert the attention of our technology personnel from product development efforts and significantly affect our customer relations and business reputation. In addition, future product 7 Table of Contents failures could cause us to incur substantial expense to repair or replace defective products. We recognize a provision for warranty obligations based on the estimated costs that we expect to incur under our basic limited warranty for our products, which covers defective products and is valid for a period of time mutually agreed between us and the relevant customer from the date of purchase by such customer. The warranty provision is largely based on historical and anticipated rates of warranty claims, and therefore we cannot provide assurance that the provision would be sufficient to cover any surge in future warranty expenses that significantly exceed historical and anticipated rates of warranty claims. In addition, if we deliver products with errors or defects, or if there is a perception that our products contain errors or defects, our credibility and the market acceptance and sales of our products could be harmed. Widespread product failures may damage our market reputation, and/or reduce our market share and cause our sales to decline. We sell our products to a select group of key customers, including our largest shareholder and its affiliates, and any significant decrease in their order levels or material deterioration in their financial condition will negatively affect our financial condition and results of operations. A substantial portion of our sales is attributable to a limited group of end-brand customers and their designated system integrators. In particular, our sales of high value-added display panels are largely concentrated to a limited number of leading global end-brand customers and their system integrators with the requisite technological capabilities to produce products that require such high-value-added display panels. Sales attributed to our end-brand customers are for their end-brand products and do not include sales to these customers for their system integration activities for other end-brand products, if any. Our top ten end-brand customers, including LG Electronics Inc., our largest shareholder, together accounted for a substantial majority of our sales in each of 2023, 2024 and 2025. We benefit from the strong collaborative relationships we maintain with our end-brand customers by participating in the development of their products and gaining insights about levels of future demand for our products and other industry trends. Customers look to us for a dependable supply of quality products, even during downturns in the industry, and we benefit from the brand recognition of our customers’ end products. The loss of these end-brand customers, as a result of their entering into strategic supplier arrangements with our competitors or otherwise, would thus result not only in reduced sales, but also in the loss of these benefits. We cannot provide assurance that a select group of key end-brand customers, including our largest shareholder, will continue to place orders with us in the future at the same levels as in prior periods, or at all. We expect that we will continue to be dependent upon LG Electronics and its affiliates for a material portion of our revenue for the foreseeable future. See “Item 7.B. Related Party Transactions” for a description of these related party transactions with LG Electronics and its affiliates. Our results of operations and financial condition could therefore be affected by the overall performance of LG Electronics and its affiliates. Furthermore, although we have not experienced any material problems relating to customer payments to date, as a result of our significant dependence on a concentrated group of end-brand customers and their designated system integrators, we are exposed to credit risks associated with these entities. Consolidation and other changes at our end-brand customers could cause sales of our products to decline. Mergers, acquisitions, divestments or consolidations involving our end-brand customers can present risks to our business, as management at the new entity may change the way they do business, including their transactions with us, or may decide not to use us as one of their suppliers of display panels. In addition, we cannot provide assurance that a combined entity resulting from a merger, acquisition or consolidation or a newly formed entity resulting from a divestment will continue to purchase display panels from us at the same level, if at all, as each entity purchased in the aggregate when they were separate companies or that a divested company will purchase panels from us at the same level, if at all, as prior to the divestment. Our results of operations depend on our ability to keep pace with changes in technology. Advances in technology typically lead to rapid declines in sales volumes for products made with older technologies and may lead to these products becoming less competitive in the marketplace, or even obsolete. As a result, we have made, and will likely be required to continue to make, significant expenditures to develop or acquire new process and product technologies, along with corresponding manufacturing capabilities. For example, in August 2021, we announced plans to make investments in an aggregate amount of up to W3.3 trillion in a new fabrication complex in Paju, Korea, P10, which will be used for the production of small- and medium-sized OLED panels. We completed the construction of our AP5 fabrication facility located within such complex in February 2024, and have subsequently commenced mass production of medium-sized 8 Table of Contents OLED panels at such facility. In June 2025, we announced plans to invest approximately W1.3 trillion in next-generation OLED technologies and infrastructure, primarily at our fabrication complex in Paju, Korea, and such investment is currently in progress. In addition, on April 22, 2026, we announced plans to make investments in an aggregate amount of W1.1 trillion in new facilities for the purpose of enhancing our technological competitiveness and strengthening our basis for growth through the advancement of OLED technologies, with an expected completion date of June 30, 2028. Through the addition of 97-inch OLED televisions to our line-up of available products in 2022 and the earlier launch of OLED televisions in various sizes up to 88-inches, we have been striving to maintain a competitive edge in the OLED television panel market. Additionally, we have deployed, and are continuing to deploy, significant resources into plastic OLED panels for mobile and other products and auto products, as well as medium-sized OLED panels for IT products, to further expand our market presence. Our ability to develop differentiated products with new display technologies and utilize advanced manufacturing processes to increase production yields while lowering production cost will be critical to our sustained competitiveness. However, we cannot provide assurance that we will be able to continue to successfully develop new products or manufacturing processes through our research and development efforts or through obtaining technology licenses, or that we will keep pace with technological changes in the marketplace. Earthquakes, tsunamis, floods, severe health epidemics and other natural calamities could materially adversely affect our business, results of operations or financial condition. If earthquakes, tsunamis, floods, severe health epidemics or any other natural calamities were to occur in the future in any area where any of our assets, suppliers or customers are located, our business, results of operations or financial condition could be adversely affected. A number of suppliers of our raw materials, components and manufacturing equipment, as well as certain of our manufacturing facilities, are located in countries which have historically suffered natural calamities from time to time, such as China, Japan, Taiwan and Vietnam, as well as Korea. Any occurrence of such natural calamities in countries where our suppliers are located may lead to shortages or delays in the supply of raw materials, components or manufacturing equipment. In addition, natural calamities in areas where our customers are located, including China, the United States, Europe, Korea and Japan, may cause disruptions in their businesses, which in turn could adversely impact their demand for our products. The outbreak of any infectious diseases, such as COVID-19, could expose us to a number of risks, including but not limited to: •an increase in unemployment among, and/or decrease in disposable income of, consumers who purchase the products manufactured by our end-brand customers and a decline in overall consumer confidence and spending levels, which in turn may decrease demand for our products; •disruption in the normal operations of the businesses of our customers, which in turn may decrease demand for our products; •disruption in the supply of raw materials, components and equipment, including semiconductors, from our suppliers and vendors; •disruption in the delivery of our products to our customers; •disruption in the normal operations of our business resulting from contraction of infectious diseases by our employees, which may necessitate our employees to be quarantined and/or our manufacturing facilities or offices to be temporarily shut down; •disruption resulting from the necessity for social distancing, including implementation of temporary adjustment of work arrangements requiring employees to work remotely and restriction on overseas and domestic business travel, which may lead to a reduction in labor productivity; •fluctuations of the Won against major foreign currencies (see “—Our results of operations are subject to exchange rate fluctuations”); •unstable global and Korean financial markets, which may adversely affect our ability to meet our funding needs on a timely and cost-effective basis; and •decreases in the fair value of our investments in companies that may be adversely affected by the pandemic. 9 Table of Contents In the event that a future recurrence of COVID-19 or an occurrence of other types of widespread infectious diseases cannot be effectively and timely contained, our business, financial condition and results of operations may be materially adversely affected. We are continuing to transition our business focus from TFT-LCD to OLED technology, and if we cannot successfully manage this transition or if OLED revenue growth does not offset declining TFT-LCD sales, our financial condition and results of operations may be materially adversely affected. While our revenue and sales volume had historically been predominantly derived from the sale of display panels with TFT-LCD technology, OLED technology is widely seen in the display industry as a successor technology to TFT-LCD technology and has gained wider market acceptance for use in display panels for IT products, televisions, auto products, mobile devices and other products, including commercial displays, entertainment systems and medical diagnostic equipment, and the proportion of our sales derived from our panel products utilizing OLED technology have been continually increasing in recent years and account for the majority of our total revenue in 2025. We have recognized the importance and potential of OLED technology and have in recent years engaged in research and development and invested in production facilities to further develop and commercialize OLED panels for small-, medium- and large-sized products. For example, in August 2021, we announced plans to make investments in an aggregate amount of up to W3.3 trillion in a new fabrication complex in Paju, Korea, P10, which will be used for the production of small- and medium-sized OLED panels. We completed the construction of our AP5 fabrication facility located within such complex in February 2024 and have subsequently commenced mass production of medium-sized OLED panels at such facility. In June 2025, we announced plans to invest approximately W1.3 trillion in next-generation OLED technologies and infrastructure, primarily at our fabrication complex in Paju, Korea, and such investment is currently in progress. In addition, on April 22, 2026, we announced plans to make investments in an aggregate amount of W1.1 trillion in new facilities for the purpose of enhancing our technological competitiveness and strengthening our basis for growth through the advancement of OLED technologies, with an expected completion date of June 30, 2028. At the same time, we have been strategically reducing the production level of our TFT-LCD panels, including through the disposal of our equity interest in our Chinese subsidiaries engaged in the manufacturing of TFT-LCD panels and modules for televisions. See “—A global economic downturn may result in reduced demand for our products and adversely affect our profitability.” above. Our continued efforts in developing and commercializing OLED technology have been recognized by various display panel industry groups in recent years. For example, in January 2023, our newly developed thin actuator sound solution for automobiles received the CES 2023 Innovation Award. In August 2024, our television and gaming OLED panels featuring META Technology 2.0 received the Korea Display of the Year award at the International Meeting on Information Display, the largest annual display industry conference held in Korea. While we strive to maintain our competitive edge in the market for OLED panels, which have become the dominant type of panels in the smartphone industry and are becoming increasingly adopted for IT and television products, the market for OLED panels as a whole remains smaller compared to the market for TFT-LCD panels, and we expect competition will continue to intensify in the future. In addition, the speed at which we achieve cost reduction for our OLED technology-based new products or at which significant demand for such products develops may be slower than our current expectations. As OLED panels continue to gain market acceptance as an alternative to TFT-LCD panels, if we are unable to continue to develop and commercialize OLED technology in a commercially viable and timely manner to offset declining sales of our TFT-LCD panels, or if customers prefer panels developed and manufactured by our competitors utilizing competing technologies to OLED technology, this would have a material adverse effect on our financial condition and results of operations. See also “—We operate in a highly competitive environment and we may not be able to sustain our current market position.” above. We will have significant capital requirements in connection with our business strategy and if capital resources are not available we may not be able to implement our strategy and future plans. In connection with our strategy to further enhance the diversity and capacity of our display panel production, we anticipate that we will continue to incur significant capital expenditures for the construction of new production facilities and the maintenance and enhancement of existing production facilities, particularly in connection with our continued investments in OLED technology. Our significant recent and pending capital expenditures include the following: 10 Table of Contents •In April 2026, we announced plans to make investments in an aggregate amount of W1.1 trillion in new facilities for the purpose of enhancing our technological competitiveness and strengthening our basis for growth through the advancement of OLED technologies, with an expected completion date of June 30, 2028. •In June 2025, we announced plans to invest approximately W1.3 trillion in next-generation OLED technologies and infrastructure, primarily at our fabrication complex in Paju, Korea, and such investment is currently in progress. •In August 2021, we announced plans to make investments in an aggregate amount of up to W3.3 trillion in a new fabrication complex in Paju, Korea, P10, which will be used for the production of small- and medium-sized OLED panels. We completed the construction of our AP5 fabrication facility located within such complex in February 2024 and have subsequently commenced mass production of medium-sized OLED panels at such facility. •In July 2017, we announced plans to make investments in an aggregate amount of up to W7.8 trillion mainly in new large-sized and plastic OLED production lines in Paju, Korea. In July 2019, we announced plans to make additional investments of W3.0 trillion in the previously announced new large-sized OLED production lines. Certain of such investments have already been completed with respect to plastic OLED panels and we commenced mass production of such panels in July 2019. However, our scheduled investments in large-sized OLED panels pursuant to the July 2017 and July 2019 announcements have been extended until the first quarter of 2028 due in part to increased uncertainties in the global economic environment. We are in the process of developing and assessing the specifics of such planned investments, including the timing. We have continued to make investments to construct new production facilities as well as for other purposes in order to proactively respond to the technological changes in the display industry and maintain a competitive market position. However, we have reduced our capital expenditure levels in recent periods as part of our efforts to gain financial stability by focusing on certain essential investments required to operate our business. In 2025, our total cash outflows for capital expenditure, consisting of cash used in acquisition of property, plant and equipment, amounted to W1.3 trillion, which represented a 36.7% decrease from W2.1 trillion in 2024. We currently expect that, in 2026, our total capital expenditures on a cash out basis will be higher compared to 2025 and will be used primarily to continue to fund our previously announced investments related to our continued and ongoing transition to an OLED-centric business structure, as well as other essential recurring investments. Such expected capital expenditures are subject to periodic assessment, and we cannot provide any assurance that such expected capital expenditures may not change materially after assessment. These capital expenditures will be made well in advance of any additional sales that will be generated from these expenditures. However, in the event of adverse market conditions, or if our actual expenditures significantly exceed our planned expenditures, our external financing activities combined with our internal sources of liquidity may not be sufficient to carry out our current and future operational plans, and we may decide not to expand the capacity of certain of our facilities or construct new production facilities as scheduled or at all. Our ability to obtain additional financing will depend upon a number of factors outside our control, including general economic, financial, competitive, regulatory and other considerations. In the past, difficulties affecting the global financial sectors, adverse conditions and volatility in the worldwide credit and financial markets, fluctuations in oil and commodity prices and the general weakness of the global economy have increased the uncertainty of global economic prospects in general and have adversely affected the global and Korean economies. Because we rely on financing both within and outside of Korea from time to time, difficulties affecting the global and Korean economies, including any increase in market volatility and their lingering effects (including those in relation to the global COVID-19 pandemic and rapid increases in interest rates globally from the second half of 2021 until recently to combat inflation, a deterioration in economic and trade relations between the United States and its trading partners (including as a result of the imposition of significant tariffs by the United States on its trading partners) which has been followed by retaliatory tariffs in some cases, escalations in trade protectionism globally, the invasion of Ukraine by Russia and ensuing sanctions against Russia, the slowdown of economic growth in China and other major emerging market economies, adverse economic and political conditions in Europe and Latin America and continuing geopolitical and social instability in North Korea and various parts of the Middle East, including the military conflicts between Iran and other countries, including the United States and Israel), could adversely affect our ability to obtain sufficient financing on commercially reasonable terms. The failure to obtain sufficient financing on commercially reasonable terms to complete our expansion plans could delay or impair our ability to pursue our business strategy, which could materially and adversely affect our business and results of operations. 11 Table of Contents Our manufacturing processes are complex and periodic improvements to increase efficiency can expose us to potential disruptions in operations. The manufacturing processes for TFT-LCD, OLED and other display products are highly complex, requiring sophisticated and costly equipment that is periodically modified and upgraded to improve manufacturing yields and product performance, and reduce unit manufacturing costs. These updates expose us to the risk that from time to time production difficulties will arise that could cause delivery delays, reduced output or both. We cannot provide assurance that we will not experience manufacturing problems in achieving acceptable output, product delivery delays or both as a result of, among other factors, construction delays, difficulties in upgrading or modifying existing production lines or building new plants, difficulties in modifying existing or adopting new manufacturing line technologies or processes or delays in equipment deliveries, any of which could constrain our capacity and adversely affect our results of operations. We may be unable to successfully execute our growth strategy or manage and sustain our growth on a timely basis, if at all, and, as a result, our business may be harmed. We have experienced, and expect to continue to experience, periods of rapid growth in the scope and/or complexity of our operations due to the construction of new fabrication facilities and the expansion and conversion of existing fabrication facilities to meet the evolving and anticipated demands of our customers. For example, we established our AP4 fabrication facility in July 2019 to increase our production capacity of plastic OLED panels for mobile and other products. In addition, we completed the construction of our AP5 fabrication facility (which constitutes a part of, and is located within, the larger P10 fabrication complex) to increase our production capacity of medium-sized OLED panels in February 2024. See “Item 4.D. Property, Plants and Equipment—Current Facilities.” With respect to our overseas facilities, in response to and in anticipation of growing demand in the China market, in July 2018, we established and acquired a majority ownership interest in, a joint venture with the government of Guangzhou to construct our new CO fabrication facility to manufacture next generation large-sized OLED panels in Guangzhou, China. We commenced mass production of large-sized OLED panels at the CO fabrication facility in July 2020. See also “—We will have significant capital requirements in connection with our business strategy and if capital resources are not available we may not be able to implement our strategy and future plans.” above. As part of our continued efforts to increase the proportion of higher-value OLED panels with higher degrees of manufacturing complexity in our product mix, we have also been reducing the production level of TFT-LCD panels in recent years, including by ceasing production of such panels at, and closing several of, our manufacturing facilities. See “—Risks Relating to Our Industry—A global economic downturn may result in reduced demand for our products and adversely affect our profitability.” In addition, we implemented a phased exit strategy for our TFT-LCD television panel manufacturing facility in China in light of TFT-LCD television panels’ higher degree of sensitivity to market volatility and oversupply in the TFT-LCD television display panel market. As part of such strategy, in September 2024, we entered into an agreement with TCL CSOT to dispose of our entire equity interest in the China TFT-LCD Television Panel Subsidiaries. Following the completion of the sale, these entities were excluded from the scope of our consolidated subsidiaries effective April 1, 2025. Sustained growth in the scope and complexity of our operations may strain our managerial, financial, manufacturing and other resources. We may experience manufacturing difficulties in starting new production lines, upgrading existing facilities or building new plants as a result of cost overruns, construction delays or shortages of, or quality problems with, materials, labor or equipment, any of which could result in a loss of future revenue. We may also incur opportunity costs if we misjudge the anticipated demand for certain display panel products and allocate our limited resources in increasing production capacity for such display panel products at the cost of maintaining existing or increasing production capacity of other display panel products that turn out to be more popular. In addition, we may incur various costs and/or losses in connection with closing or disposing of certain facilities in connection with rebalancing our product portfolio. Moreover, failure to keep up with our competitors in future investments in next-generation panel fabrication facilities or in the upgrading of manufacturing capacity of existing facilities would impair our ability to effectively compete within the display panel industry. Failure to obtain intended economic benefits from expansion and other strategic projects could adversely affect our business, financial condition and results of operations. If we cannot maintain high capacity utilization rates, our profitability will be adversely affected. The production of display panels entails high fixed costs resulting from considerable expenditures for the construction of complex fabrication and assembly facilities and the purchase of costly equipment, particularly for productions involving new technologies, such as OLED. We aim to maintain high capacity utilization rates so that we can allocate these fixed costs over a greater number of panels produced and realize a higher gross margin. However, due to any number of 12 Table of Contents reasons, including fluctuating demand for our products, overcapacity in the display industry or a significant disruption in the supply chain of raw materials, equipment and labor, we may need to reduce or delay the production of our products, resulting in lower-than-optimal capacity utilization rates. The high degree of uncertainty regarding global economic prospects resulting from global pandemics, rapid increases in policy interest rates globally to combat rising inflationary pressures, a deterioration in economic and trade relations between the United States and its trading partners (including as a result of the imposition of significant tariffs by the United States on its trading partners) which has been followed by retaliatory tariffs in some cases, escalations in trade protectionism globally, the invasion of Ukraine by Russia and ensuing sanctions against Russia, the slowdown of economic growth in China and other major emerging market economies, adverse economic and political conditions in Europe and Latin America and continuing geopolitical and social instability in North Korea and various parts of the Middle East, including the military conflicts between Iran and other countries, including the United States and Israel, have adversely impacted and may further adversely impact global demand for our products. For example, in 2024, we adjusted the production capacity of large-sized OLED display panels downward in response to changing market conditions to improve our profitability. As such, we cannot provide assurance that we will be able to sustain our capacity utilization rates in the future nor can we provide assurance that we will not reduce our utilization rates in the future as market and industry conditions change. Limited availability of raw materials, components and manufacturing equipment could materially and adversely affect our business, results of operations or financial condition. Our production operations depend on obtaining adequate supplies of quality raw materials and components on a timely basis. As a result, it is important for us to control our raw material and component costs and reduce the effects of fluctuations in price and availability. In general, we source most of our raw materials as well as key components, such as glass substrates, driver integrated circuits and polarizers used in both our TFT-LCD and OLED products, backlight units and liquid crystal materials used in our TFT-LCD products and hole transport materials and emission materials used in our OLED products, from two or more suppliers for each key component. However, we may establish a working relationship with a single supplier if we believe it is advantageous to do so due to performance, quality, support, delivery, capacity, price or other considerations. We may experience shortages in the supply of these key components, as well as other components or raw materials, as a result of, among other things, anticipated capacity expansion in the display industry, our dependence on a limited number of suppliers or temporary disruptions in the supply chain thereof due to factors outside of our control (including military conflicts such as the ongoing invasion of Ukraine by Russia and between Iran and other countries, including the United States and Israel, natural disasters, health hazards such as the COVID-19 pandemic, civil unrest, work stoppages, strikes or other labor-related disruptions involving our key suppliers, or trade sanctions or restrictions). Our results of operations would be adversely affected if we were unable to obtain adequate supplies of high-quality raw materials or components in a timely manner or make alternative arrangements for such supplies in a timely manner. Furthermore, we may be limited in our ability to pass on increases in the cost of raw materials and components to our customers. We do not typically enter into binding long-term contracts with our customers, and even in those cases where we do enter into long-term agreements with certain of our major end-brand customers, the price terms are contained in the purchase orders which are generally placed by them several weeks in advance of delivery. Except under certain special circumstances, the price terms in the purchase orders are not subject to change. Prices for our products are generally determined through negotiations with our customers, based generally on the complexity of the product specifications and the labor and technology involved in the design or production processes. However, if we become subject to any significant increase in the cost of raw materials or components that were not anticipated when negotiating the price terms after the purchase orders have been placed, we may be unable to pass on such cost increases to our customers. We have purchased, and expect to purchase, a substantial portion of our equipment from a limited number of qualified foreign and local suppliers. From time to time, increased demand for new equipment or replacement parts may cause lead times to extend beyond those normally required by the equipment vendors. The unavailability of equipment, delays in the delivery of equipment, or the delivery of equipment that does not meet our specifications, in each case including replacement parts, could delay implementation of our expansion or other capital expenditure plans and impair our ability to meet customer orders. This could result in a loss of revenue and cause financial stress on our operations. Advance purchase orders from our customers vary in volume from period to period, and we operate with a modest level of inventory, which may make it difficult for us to efficiently allocate capacity on a timely basis in response to changes in demand. As part of our ongoing efforts to enhance our overall business structure, including efforts to improve our profitability and reduce production volatility, we have been actively seeking, and plan to continue, to increase the proportion 13 Table of Contents of products manufactured under advance supply agreements that leverage our stable production capabilities and technological leadership in advanced display products, including those utilizing OLED technology. However, we continue to generate a majority of our sales from transactions pursuant to purchase orders on an ongoing basis from our global customers. See “Item 4.B. Business Overview—Sales.” Generally, our major customers and their designated system integrators provide us with advance rolling forecasts of their product requirements. However, in certain situations, the volume of products under their firm purchase orders ultimately placed may be less than anticipated based on these prior forecasts. Due to the cyclicality of the display industry, purchase order levels from our customers have varied from period to period. Although we typically operate with an inventory level estimated for several weeks, it may be difficult for us to adjust production costs or to allocate production capacity in a timely manner to compensate for any such volatility in order volumes. Our inability to respond quickly to changes in overall demand for display products as well as changes in product mix and specifications may result in lost revenue, which would adversely affect our results of operations. We may experience losses on inventories. The lifecycle of products in the consumer electronics industries, which constitute the primary downstream industries of our business, is continuing to decrease due to rapid technological advancements. Accordingly, frequent new product introductions in the consumer electronics industries can result in a decline in the average selling prices of our display panels and the obsolescence of our existing display panel inventory. In addition, from time to time, we have experienced, and may continue to experience, inventory accumulation of certain of our display panel products as a result of continued slowdown in demand from downstream industries, which in turn was in part due to longer replacement cycles for products that utilize our display panels. Such events can result in a decrease in the stated value of our panel inventory, which we value at the lower of cost or net realizable value. We manage our inventory based on our customers’ and our own forecasts and typically operate with an inventory level estimated for several weeks. Although adjustments are regularly made based on market conditions, we typically deliver our goods to the customers within several weeks after a firm order has been placed. While we maintain open channels of communication with our major customers to avoid unexpected decreases in firm orders or subsequent changes to placed orders, and try to minimize our inventory levels, such actions by our customers may have an adverse effect on our inventory management. An increase in our inventory levels may cause, among other things, an increase in the cost of managing such inventories and a reduction in the value of inventory over time, which in turn may negatively affect our results of operations due to higher cost of sales resulting from the recognition of inventory valuation losses. Unfavorable outcomes in investigations and proceedings against us and other TFT-LCD panel producers for possible anti-competitive activities may have a direct and indirect material impact on our operations. Since 2006, we and certain other TFT-LCD panel producers have been subject to an investigation by the U.S. Department of Justice, various and separate claims brought by direct and indirect purchasers, and a number of legal proceedings brought by attorneys general of various states in the United States, with respect to possible anti-competitive activities in the TFT-LCD industry. We have since settled and resolved the investigation and various subsequent legal proceedings, with the exception of the attorney general of the Commonwealth of Puerto Rico. The settlements were duly approved by the applicable courts and, in the case of the state attorneys general actions, by their respective state governments. In October 2022, the United States District Court for the District of Puerto Rico dismissed the case without prejudice for failure to prosecute. We have also been subject to investigations outside of the United States, including by the European Commission, with respect to the same subject matter. We have since settled, resolved, and/or paid fines for such actual investigations brought by the relevant competition authorities. Following the European Commission’s decision, various follow-on claims were initiated in the United Kingdom by various claimants alleging damages as a result of violation of European competition laws. We have since reached settlements with each of the claimants, with the exception of a follow-on damages claim filed by Granville Technology Group and others (“Granville”) in the U.K. in December 2016. In February 2024, the court rendered its judgment on such follow-on damages claim against the defendants, including us. In March 2025, Granville appealed such decision, and on April 1, 2026, the Court of Appeal rendered its judgment on the appeal against the defendants. As of April 16, 2026, the amount for which we will be liable remain subject to further determination by the Court of Appeal. In addition, in December 2013, a class action complaint was filed by Hatzlacha, a consumer organization, on behalf of Israeli consumers against LG Display and other defendants in the Central District in Israel. As of April 16, 2026, we have not been served with the complaint from Hatzlacha. 14 Table of Contents See “Item 8.A. Consolidated Statements and Other Financial Information—Legal Proceedings—Antitrust and Others” for a more detailed description of these matters as well as other material legal proceedings that we are involved in. In each of the foregoing matters that are ongoing, we are continually evaluating the merits of the respective claims and vigorously defending ourselves. Irrespective of the validity or the successful assertion of the claims described above, we may incur significant costs with respect to litigating or settling any or all of the asserted claims. While we continue to vigorously defend the various ongoing proceedings that we are involved in, it is possible that one or more proceedings may result in cash outflow to settle or resolve these claims, which may have an adverse effect on our operating results or financial condition. We need to observe certain financial and other covenants under the terms of our debt obligations, the failure to comply with which would put us in default under such debt obligations. We rely on debt financing to satisfy a significant portion of our cash requirements for capital investments. As of December 31, 2025, we had outstanding short-term borrowings of W811 billion (US$561 million) and long-term debt (including current portion and prior to deducting discounts on bonds) in the amount of W11,854 billion (US$8,206 million), consisting of W380 billion of Korean Won denominated bonds, US$100 million of U.S. dollar denominated bonds, US$2,350 million of U.S. dollar denominated long-term borrowings, CNY19,332 million of CNY denominated long-term borrowings and W4,000 billion of Korean Won denominated long-term borrowings. We are subject to financial and other covenants, including maintenance of credit ratings and debt-to-equity ratios, under certain of our debt obligations. The documentation for such debt also contains negative pledge provisions limiting our ability to provide liens on our assets as well as cross-default and cross-acceleration clauses, which give related creditors the right to accelerate the amounts due under such debt if an event of default or acceleration has occurred with respect to our existing or future indebtedness, or if any material part of our indebtedness or indebtedness of our subsidiaries is capable of being declared payable before the stated maturity date. In addition, such covenants restrict our ability to raise future debt financing. If we breach the financial or other covenants contained in the documentation governing our debt obligations, our financial condition will be adversely affected to the extent we are not able to cure such breaches, obtain a waiver from the relevant lenders or debtholders or repay the relevant debt. Our results of operations are subject to exchange rate fluctuations. There has been considerable volatility in foreign exchange rates between the Korean Won and major foreign currencies in recent years. To the extent that we incur costs in one currency and make sales in another, our profit margins may be affected by changes in the exchange rates between the two currencies. Our sales of display panels are denominated mainly in U.S. dollars, while our purchases of raw materials are denominated mainly in U.S. dollars and, to a much lesser extent, Chinese Yuan and Japanese Yen. The largest proportion of our expenditures on capital equipment is denominated in Korean Won and, to a lesser extent, U.S. dollars, Vietnamese Dong and Chinese Yuan. Accordingly, fluctuations in exchange rates, in particular between the U.S. dollar and the Korean Won as well as between the Chinese Yuan and the Korean Won, between the Japanese Yen and the Korean Won and between the Vietnamese Dong and the Korean Won, affect our pre-tax income, and in recent years, the value of the Won relative to the U.S. dollar, Chinese Yuan, Japanese Yen and Vietnamese Dong has fluctuated widely. Although a depreciation of the Korean Won against the U.S. dollar increases the Korean Won value of our export sales and enhances the price-competitiveness of our products in foreign markets in U.S. dollar terms, it also increases the cost of imported raw materials and components in Korean Won terms and our cost in Korean Won of servicing our U.S. dollar-denominated debt. A depreciation of the Korean Won against the Chinese Yuan, Japanese Yen or Vietnamese Dong increases the Korean Won cost of our Chinese Yuan-, Japanese Yen- or Vietnamese Dong-denominated purchases of equipment, raw materials or components, as applicable, and, to the extent we have any debt denominated in Chinese Yuan or Japanese Yen, our cost in Korean Won of servicing such debt, but has relatively little impact on our sales as most of our sales are denominated in U.S. dollars. In addition, continued exchange rate volatility may also result in foreign exchange losses for us. Although a depreciation of the Korean Won against the U.S. dollar, in general, has a net positive impact on our results of operations that more than offsets the net negative impact caused by a depreciation of the Korean Won against the Chinese Yuan, Japanese Yen or Vietnamese Dong, we cannot provide assurance that the exchange rate of the Korean Won against foreign currencies will not be subject to significant fluctuations, or that the impact of such fluctuations will not adversely affect the results of our operations. 15 Table of Contents Our business relies on our patent rights which may be narrowed in scope or found to be invalid or otherwise unenforceable. Our success will depend, to a significant extent, on our ability to obtain and enforce our patent rights both in Korea and worldwide. The coverage claimed in a patent application can be significantly reduced before a patent is issued, either in Korea or abroad. Consequently, we cannot provide assurance that any of our pending or future patent applications will result in the issuance of patents. Patents issued to us may be subjected to further proceedings limiting their scope and may not provide significant proprietary protection or competitive advantage. Our patents also may be challenged, circumvented, invalidated or deemed unenforceable. In addition, because patent applications in certain countries generally are not published until more than 18 months after they are first filed, and because publication of discoveries in scientific or patent literature often lags behind actual discoveries, we cannot be certain that we were, or any of our licensors was, the first creator of inventions covered by pending patent applications, that we or any of our licensors will be entitled to any rights in purported inventions claimed in pending or future patent applications, or that we were, or any of our licensors was, the first to file patent applications on such inventions. Furthermore, pending patent applications or patents already issued to us or our licensors may become subject to dispute, and any dispute could be resolved against us. For example, we may become involved in re-examination, reissue or interference proceedings and the result of these proceedings could be the invalidation or substantial narrowing of our patent claims. We also could be subject to court proceedings that could find our patents invalid or unenforceable or could substantially narrow the scope of our patent claims. In addition, depending on the jurisdiction, statutory differences in patentable subject matter may limit the protection we can obtain on some of our inventions. Failure to protect our intellectual property rights could impair our competitiveness and harm our business and future prospects. We believe that developing new products and technologies that can be differentiated from those of our competitors is critical to the success of our business. We take active measures to obtain international protection of our intellectual property by obtaining patents and undertaking monitoring activities in our major markets. However, we cannot assure you that the measures we are taking will effectively deter competitors from improper use of our proprietary technologies. Our competitors may misappropriate our intellectual property, disputes as to ownership of intellectual property may arise and our intellectual property may otherwise become known or independently developed by our competitors. Any failure to protect our intellectual property could impair our competitiveness and harm our business and future prospects. Our rapid introduction of new technologies and products may increase the likelihood that third parties will assert claims that our products infringe upon their proprietary rights. The rapid technological changes that characterize our industry require that we quickly implement new processes and components with respect to our products. Often with respect to recently developed processes and components, a degree of uncertainty exists as to who may rightfully claim ownership rights in such processes and components. Uncertainty of this type increases the risk that claims alleging that such components or processes infringe upon third party rights may be brought against us. Although we take and will continue to take steps to ensure that our new products do not infringe upon third party rights, if our products or manufacturing processes are found to infringe upon third party rights, we may be subject to significant liabilities and be required to change our manufacturing processes or be prohibited from manufacturing certain products, which could have a material adverse effect on our operations and financial condition. We may be required to defend against charges of infringement of patent or other proprietary rights of third parties. Although patent and other intellectual property disputes in our industry have often been settled through licensing or similar arrangements, such defense could require us to incur substantial expense and to divert significant resources of our technical and management personnel, and could result in our loss of rights to develop or make certain products or require us to pay monetary damages or royalties to license proprietary rights from third parties. Furthermore, we cannot be certain that the necessary licenses would be available to us on acceptable terms, if at all. Accordingly, an adverse determination in a judicial or administrative proceeding or failure to obtain necessary licenses could prevent us from manufacturing and selling certain of our products. Any such litigation, whether successful or unsuccessful, could result in substantial costs to us and diversions of our resources, either of which could adversely affect our business. 16 Table of Contents We rely on technology provided by third parties and our business will suffer if we are unable to renew our licensing arrangements with them. From time to time, we have obtained licenses for patent, copyright, trademark and other intellectual property rights to process and device technologies used in the production of our display panels. We have entered into key licensing arrangements with third parties, for which we have made, and continue to make, periodic license fee payments. In addition, we also have cross-license agreements with certain other third parties. These agreements terminate upon the expiration of the respective terms of the patents. See “Item 5.C. Research and Development, Patents and Licenses, etc.—Intellectual Property—License Agreements.” If we are unable to renew our technology licensing arrangements on acceptable terms, we may lose the legal protection to use certain of the processes we employ to manufacture our products and be prohibited from using those processes, which may prevent us from manufacturing and selling certain of our products, including our key products. In addition, we could be at a disadvantage if our competitors obtain licenses for protected technologies on more favorable terms than we do. In the future, we may also need to obtain additional patent licenses for new or existing technologies. We cannot provide assurance that these license agreements can be obtained or renewed on acceptable terms or at all, and if not, our business and operating results could be adversely affected. We rely upon trade secrets and other unpatented proprietary know-how to maintain our competitive position in the display panel industry and any loss of our rights to, or unauthorized disclosure of, our trade secrets or other unpatented proprietary know-how could negatively affect our business. We rely upon trade secrets, unpatented proprietary know-how and information, as well as continuing technological innovation in our business. The information we rely upon includes price forecasts, core technology and key customer information. We enter into confidentiality agreements with each of our employees and consultants upon the commencement of an employment or consulting relationship. These agreements generally provide that all inventions, ideas, discoveries, improvements and copyrightable material made or conceived by the individual arising out of the employment or consulting relationship and all confidential information developed or made known to the individual during the term of the relationship is our exclusive property. We cannot provide assurance that these types of agreements will be sufficient to prevent the misappropriation of our intellectual property rights, will be fully enforceable, or that they will not be breached. We also cannot be certain that we will have adequate remedies for any such breach. The disclosure of our trade secrets or other know-how as a result of such a breach could adversely affect our business. In addition, our competitors may come to know about or determine our trade secrets and other proprietary information through a variety of methods. Disputes may arise concerning the ownership of intellectual property or the applicability or enforceability of our confidentiality agreements, and there can be no assurance that any such disputes would be resolved in our favor. Furthermore, others may acquire or independently develop similar technology, or if patents are not issued with respect to technologies arising from our research, we may not be able to maintain information pertinent to such research as proprietary technology or trade secrets and that could have an adverse effect on our competitive position within the display panel industry. If our cybersecurity is breached, we may incur significant legal and financial exposure, damage to our reputation and a loss of confidence of our customers. Our business involves the storage and transmission of confidential information relating to us as well as our customers and suppliers, and any breach in our cybersecurity could expose us to a risk of loss, the improper use or disclosure of such information, ensuing potential liability or litigation, any of which could harm our reputation and adversely affect our business. Although there has been no material instance where an unauthorized party was able to obtain access to our data or our customers’ data, there can be no assurance that we will not be vulnerable to cyber-attacks in the future. See “Item 16K. Cybersecurity.” Our cybersecurity measures may also fail due to employee error, malfeasance or otherwise. Instituting appropriate access controls and safeguards across our information technology infrastructure is challenging. Furthermore, outside parties may attempt to fraudulently induce employees to disclose sensitive information in order to gain access to our data or our customers’ data or accounts or may otherwise obtain access to such data or accounts. Because the techniques used to obtain unauthorized access, disable or degrade service or sabotage systems change frequently and often are not recognized until launched against a target, we may be unable to anticipate these techniques or implement adequate preventative measures. If an actual or perceived breach of our cybersecurity occurs or the market perception of the effectiveness of our cybersecurity 17 Table of Contents measures is adversely affected, we may incur significant legal and financial exposure, including legal claims and regulatory fines and penalties, damage to our reputation and a loss of confidence of our customers, which could have an adverse effect on our business, financial condition and results of operations. We rely on key researchers and engineers, senior management and production facility operators, and the loss of the services of any such personnel or the inability to attract and retain them may negatively affect our business. Our success depends to a significant extent upon the continued service of our research and development and engineering personnel, and on our ability to continue to attract, retain and motivate qualified researchers and engineers, especially during periods of rapid growth. In particular, our focus on leading the market in introducing new products and advanced manufacturing processes has meant that we must continue to recruit research and development personnel and engineers with expertise in cutting-edge technologies. We also depend on the services of experienced key senior management, and if we lose their services, it would be difficult to find and integrate replacement personnel in a timely manner, if at all. We also employ highly skilled line operators at our various production facilities. Although as part of our efforts to recruit and retain key personnel, we offer various benefits such as salary increases, promotions, housing and children’s education expenses, there can be no assurance that such benefits will be sufficient to attract and retain key personnel. The loss of the services of any of our key research and development and engineering personnel, senior management or skilled operators without adequate replacement, or the inability to attract new qualified personnel, would have a material adverse effect on our operations. The interests of LG Electronics, our largest shareholder, and any directors or officers nominated by it, may differ from or conflict with those of us or our other shareholders. When exercising its rights as our largest shareholder, LG Electronics may take into account not only our interests but also its interests and the interests of its affiliates. LG Electronics’ interests may at times conflict with ours in a number of areas relating to our business, including potential acquisitions of businesses or properties, incurrence of indebtedness, financial commitments, sales and marketing functions, indemnity arrangements, service arrangements and the exercise by LG Electronics of significant influence over our management and affairs. See “Item 6.A. Directors and Senior Management” for a description of the composition of our current board of directors and senior management. Labor unrest may disrupt our operations. As of December 31, 2025, more than half of our employees based in Korea were union members, and production employees accounted for substantially all of these members. We have a collective bargaining arrangement with our labor union, which is negotiated once a year. Any deterioration in our relationship with our employees or labor unrest resulting in a work stoppage or strike may have a material adverse effect on our financial condition and results of operations. We are subject to strict safety and environmental regulations and we may be subject to fines or restrictions that could cause our operations to be interrupted. Our manufacturing processes involve hazardous materials and generate chemical waste, waste water and other industrial waste at various stages in the manufacturing process, and we are subject to a variety of laws and regulations relating to the use, storage, discharge and disposal of such chemical by-products and waste substances. We have enacted safety measures, engaged in employee education on handling such materials and installed various types of safety and anti-pollution equipment, consistent with industry standards, for the treatment of chemical waste and equipment for the recycling of treated waste water at our various facilities. See “Item 4.B. Business Overview—Environmental Matters” for a description of the anti-pollution equipment that we have installed in our various facilities. However, we cannot provide assurance that our protocols will always be followed and safety or environmental related claims will not be brought against us or that the local or national governments will not take steps toward adopting more stringent safety or environmental standards. Any failure on our part to comply with any present or future safety and environmental regulations could result in the assessment of damages or imposition of fines and penalties against us, suspension of production or a cessation of operations. From January 1, 2023 to December 31, 2025, we and certain of our current and former employees have received and paid aggregate fines and penalties of approximately W25 million in connection with violations of applicable safety and environmental regulations under Korean law. 18 Table of Contents Furthermore, safety and environmental regulations could require us to acquire costly equipment or to incur other significant compliance expenses that may materially and negatively affect our financial condition and results of operations. Impositions of anti-dumping duties, safeguard duties, countervailing duties, quotas or tariffs may have an adverse impact on our export sales. As a manufacturer with global sales and operations, we export a significant portion of our products manufactured in Korea, China and Vietnam. We continue to carefully monitor developments with respect to trade remedy policies, including quotas, tariffs, anti-dumping duties, safeguard duties or countervailing duties, in all major markets in which we sell our products and seek to mitigate the related risks by adjusting supply and export arrangements as necessary. However, there can be no assurance that the free trade agreements between Korea and its major trading partners will not be amended or anti-dumping duties, safeguard duties, countervailing duties, quotas or tariffs will not be imposed on our sales of products abroad in the future. The occurrence of any such events, including those described below, may have a material adverse impact on our business, financial condition and results of operation. Since early 2025, the U.S. government has implemented a series of tariff measures that have affected our business. In April 2025, under the International Emergency Economic Powers Act of 1977 (the “IEEPA”), the U.S. President imposed a universal 10% “reciprocal” tariff on imports from all trading partners, including those with free trade agreements with the United States, along with higher country-specific rates of 25% for Korea, 125% for China (on top of a previously applicable 20% tariff) and 46% for Vietnam. Following inter-governmental negotiations and subsequent adjustments made by the U.S. government, the applicable country-specific rates with respect to these countries were generally reduced to 15% for Korea, 20% for China and 20% for Vietnam. In February 2026, the United States Supreme Court ruled that the U.S. President has no peacetime authority to impose such tariffs under the IEEPA and that the power to impose such tariffs must come from a clear congressional grant to the U.S. President. In response, on the same day the decision was published, the U.S. President issued a Proclamation “Imposing a Temporary Import Surcharge to Address Fundamental International Payments Problems,” imposing a 10% temporary import surcharge on imports from all U.S. trading partners under section 122 of the Trade Act of 1974. Such “Section 122” tariff took effect on February 24, 2026, and remains in effect for 150 days. No assurance can be provided that such tariffs will not be extended or that similar tariffs will not be imposed in the future on different grounds. While our direct exports to customers in the United States are relatively small, any such tariffs may have a material adverse effect on our downstream customers that manufacture finished products using our display panels in countries subject to such tariffs and export those products to the United States. If tariffs on the products manufactured by our downstream customers increase, the resulting price increases may reduce consumer demand for such products in the United States, which may in turn adversely affect the demand for our display panels. Historically, tariffs have led to increased trade and political tensions. In response to tariffs imposed by the U.S. government, various countries have implemented, or have announced plans to implement, retaliatory measures on goods produced in the United States. Political tensions and increased uncertainty as a result of actual or anticipated changes in trade policies could reduce trade volume, investment, technological exchange and other economic activities between major international economies, resulting in a material adverse effect on global economic conditions and the stability of global financial markets. If applicable tariff rates on our products or related raw materials or components further increase, additional tariffs are imposed on a broader range of goods, or further retaliatory trade measures are taken by impacted foreign countries in response to additional tariffs, we may be required to raise our prices or incur additional expenses, which may have a material adverse impact on our business, financial condition and results of operations. Risks Relating to our American Depositary Shares, or ADSs, or our Common Stock Future sales of shares of our common stock or convertible securities in the public market may depress our stock price and make it difficult for you to recover the full value of your investment in our common stock or our ADSs. We cannot predict the effect, if any, that market sales of shares of our common stock or other securities that may be converted into shares of our common stock or the availability of such shares or securities for sale will have on the market price of our common stock prevailing from time to time. In March 2024, as part of our ongoing efforts to improve our financial condition and liquidity, we issued 142,184,300 new shares of common stock (including 1,038,078 new shares represented by 2,076,156 ADSs) at a subscription price of W9,090 per share (and US$3.450019 per ADS) pursuant to a preemptive rights offering to our existing shareholders, including ADS holders, followed by a public offering in Korea with respect to the fractional shares from the rights offering. We have used the proceeds of such offering to fund our capital investments, general corporate purposes (including purchases 19 Table of Contents of raw materials) and the repayment of certain of our outstanding debt. Immediately following the completion of such offering, the number of issued and outstanding shares of our common stock increased to 500,000,000. In particular, our largest shareholder, LG Electronics, subscribed for 47,968,206 new shares of our common stock for a cash consideration of W436 billion under such offering. As a result of its participation, following the completion of such offering, LG Electronics’ shareholding in us decreased from 37.9% to 36.7%. LG Electronics currently owns 36.7% of our voting stock. There is no assurance that LG Electronics will not sell all or a part of its ownership interest in us in the future. We have no current plans for any additional offerings of our common stock, ADSs or securities exchangeable for or convertible into such securities. However, it is possible that we may decide to offer or sell such securities in the future. Any future sales by LG Electronics or any future issuance by us of a significant number of shares of our common stock or other securities that may be converted into shares of our common stock in the public market, or the perception that any of these events may occur, could cause the market price of our common stock to decrease or to be lower than it might be in the absence of these events or perceptions. Our public shareholders may have more difficulty protecting their interests than they would as shareholders of a U.S. corporation. Our corporate affairs are governed by our articles of incorporation and by the laws governing Korean corporations. The rights and responsibilities of our shareholders and members of our board of directors under Korean law may be different from those that apply to shareholders and directors of a U.S. corporation. For example, minority shareholder rights afforded under Korean law often require the minority shareholder to meet minimum shareholding requirements in order to exercise certain rights. In the case of public companies, a shareholder must own, individually or collectively with other shareholders, at least 1% of our common stock, or 0.01% of our common stock for at least six consecutive months, in order to file a derivative suit on our behalf. While the facts and circumstances of each case will differ, the duty of care required of a director under Korean law may not be the same as the fiduciary duty of a director of a U.S. corporation. Therefore, holders of our common stock or our ADSs may have more difficulty protecting their interests against actions of our management, members of our board of directors or largest shareholders than they would as shareholders of a U.S. corporation. You may be limited in your ability to deposit or withdraw the common stock underlying the ADSs, which may adversely affect the value of your investment. Under the terms of our deposit agreement, holders of common stock may deposit such common stock with the depositary’s custodian in Korea and obtain ADSs, and holders of ADSs may surrender ADSs to the depositary and receive common stock. However, to the extent that a deposit of common stock exceeds the difference between: •the aggregate number of shares of common stock we have consented to allow to be deposited for the issuance of ADSs (including deposits in connection with offerings of ADSs and stock dividends or other distributions relating to ADSs); and •the number of shares of common stock on deposit with the custodian for the benefit of the depositary at the time of such proposed deposit, such common stock will not be accepted for deposit unless (1) our consent, subject to governmental authorization, with respect to such deposit has been obtained or (2) such consent is no longer required under Korean laws and regulations. Under the terms of the deposit agreement, no consent is required if the shares of common stock are obtained through a dividend, free distribution, rights offering or reclassification of such stock. The current limit on the number of shares that may be deposited into our ADR facility is 68,095,700 as of April 16, 2026. The number of shares issued or sold in any subsequent offering by us or our major shareholders, subject to government authorization, raises the limit on the number of shares that may be deposited into the ADR facility, except to the extent such deposit is prohibited by applicable laws or violates our articles of incorporation, or we decide with the ADR depositary to limit the number of shares of common stock so offered that would be eligible for deposit under the deposit agreement in order to maintain liquidity for the shares in Korea as may be requested by the relevant Korean authorities. We might not consent to the deposit of any additional shares of common stock. As a result, if a holder surrenders ADSs and withdraws common stock, it may not be able to deposit the common stock again to obtain ADSs. 20 Table of Contents Holders of ADSs will not have preemptive rights in some circumstances. The Korean Commercial Code, as amended, and our articles of incorporation require us, with some exceptions, to offer shareholders the right to subscribe for new shares of our common stock in proportion to their existing shareholding ratio whenever new shares are issued, except under certain circumstances as provided in our articles of incorporation. Accordingly, if we issue new shares to non-shareholders based on such exception, a holder of our ADSs may experience dilution in its holdings. Furthermore, if we offer any right to subscribe for additional shares of our common stock or any rights of any other nature to existing shareholders subject to their preemptive rights, the depositary, after consultation with us, may make the rights available to holders of our ADSs or use reasonable efforts to dispose of the rights on behalf of such holders and make the net proceeds available to such holders. The depositary, however, is not required to make available to holders any rights to purchase any additional shares of our common stock unless it deems that doing so is lawful and feasible and •a registration statement filed by us under the U.S. Securities Act of 1933, as amended, is in effect with respect to those shares; or •the offering and sale of those shares is exempt from or is not subject to the registration requirements of the Securities Act. We are under no obligation to file any registration statement with the SEC or to endeavor to cause such a registration statement to be declared effective. Moreover, we may not be able to establish an exemption from registration under the Securities Act. Accordingly, a holder of our ADSs may be unable to participate in our rights offerings and may experience dilution in its holdings. If a registration statement is required for a holder of our ADSs to exercise preemptive rights but is not filed by us or is not declared effective, the holder will not be able to exercise its preemptive rights for additional ADSs and it will suffer dilution of its equity interest in us. If the depositary is unable to sell rights that are not exercised or not distributed or if the sale is not lawful or feasible, it will allow the rights to lapse, in which case the holder will receive no value for these rights. Holders of ADSs will not be able to exercise dissent and appraisal rights unless they have withdrawn the underlying shares of our common stock and become our direct shareholders. In some limited circumstances, including the transfer of the whole or any significant part of our business and our merger or consolidation with another company, dissenting shareholders have the right to require us to purchase their shares under Korean law. However, a holder of our ADSs will not be able to exercise such dissent and appraisal rights if the depositary refuses to do so on their behalf. Our deposit agreement does not require the depositary to take any action in respect of exercising dissent and appraisal rights. In such a situation, holders of our ADSs must initiate the withdrawal of the underlying common stock from the ADS facility (and incur charges relating to that withdrawal) by the day immediately following the date of public disclosure of our board of directors’ resolution of a merger or other events triggering appraisal rights and become our direct shareholder prior to the record date of the shareholders’ meeting at which the relevant transaction is to be approved, in order to exercise dissent and appraisal rights. Dividend payments and the amount you may realize upon a sale of our common stock or ADSs that you hold will be affected by fluctuations in the exchange rate between the U.S. dollar and the Korean Won. Cash dividends, if any, in respect of the shares represented by our ADSs will be paid to the depositary in Korean Won and then converted by the depositary into U.S. dollars, subject to certain conditions. Accordingly, fluctuations in the exchange rate between the Korean Won and the U.S. dollar will affect, among other things, the amounts a holder will receive from the depositary in respect of dividends, the U.S. dollar value of the proceeds that a holder would receive upon sale in Korea of the shares of our common stock obtained upon surrender of ADSs and the secondary market price of ADSs. Such fluctuations will also affect the U.S. dollar value of dividends and sales proceeds received by holders of our common stock. Risks Relating to Korea If economic conditions in Korea deteriorate, our current business and future growth could be materially and adversely affected. We are incorporated in Korea, and a substantial portion of our operations and assets are located in Korea. As a result, we are subject to political, economic, legal and regulatory risks specific to Korea, and our performance and successful fulfillment of our operational strategies are dependent in large part on the overall Korean economy. 21 Table of Contents In addition, the future growth of the Korean economy is subject to many factors beyond our control, including developments in the global economy. In recent years, adverse conditions and volatility in the worldwide financial markets, fluctuations in oil and commodity prices, supply chain disruptions and the increasing weakness of the global economy, mainly due to the Russia-Ukraine war and ensuing sanctions against Russia, difficulties faced by several banks in the United States and Europe, the military conflicts between Iran and other countries, including the United States and Israel, as well as rapid increases in policy interest rates globally have contributed to the uncertainty of global economic prospects in general and have adversely affected, and may continue to adversely affect, the Korean economy. The value of the Won relative to major foreign currencies, in particular the U.S. dollar, has fluctuated significantly and, as a result of uncertain global and Korean economic, social and political conditions, there has been significant volatility in the stock prices of Korean companies recently. Future declines in the Korea Composite Stock Price Index (the “KOSPI”), and large amounts of sales of Korean securities by foreign investors and subsequent repatriation of the proceeds of such sales may adversely affect the value of the Won, the foreign currency reserves held by financial institutions in Korea, and the ability of Korean companies to raise capital. Any future deterioration of the Korean or global economy could adversely affect our business, financial condition and results of operations. Other developments that could have an adverse impact on Korea’s economy include: •declines in consumer confidence and a slowdown in consumer spending, including as a result of severe health epidemics and higher levels of market interest rates; •rising inflationary pressures leading to increases in the costs of goods and services and a decrease in purchasing power; •political uncertainty or increasing strife among or within political parties in Korea following the declaration of martial law by former President Yoon Suk-yeol in December 2024 that led to his impeachment and subsequent removal in April 2025 and the election of Mr. Lee Jae-myung as President in June 2025; •adverse conditions or developments in the economies of countries and regions that are important export markets for Korea, such as China, the United States, Europe and Japan, or in emerging market economies in Asia or elsewhere, including as a result of the deterioration of economic and trade relations among such countries (including increases in tariffs) and increased uncertainties in the global financial markets and industry; •hostilities or political or social tensions involving countries in the Middle East (including those resulting from the military conflicts between Iran and other countries, including the United States and Israel) and Northern Africa and any material disruption in the global supply of oil or sudden increase in the price of oil; •hostilities, political or social tensions involving Russia (including the Russia-Ukraine war and the ensuing actions against Russia) and any resulting adverse effects on the global supply of oil and other natural resources and the global financial markets; •adverse changes or volatility in foreign currency reserve levels, interest rates, inflation rates, commodity prices (including oil prices), exchange rates (including fluctuations of the U.S. dollar, Euro or Japanese Yen exchange rates or revaluation of the Chinese Yuan) or stock markets; •the occurrence of severe health epidemics, such as the COVID-19 pandemic, in Korea and other parts of the world; •deterioration in economic or diplomatic relations between Korea and its trading partners or allies, including deterioration resulting from territorial or trade disputes or disagreements in foreign policy; •the economic impact of any pending or future free trade agreements or of any changes to existing free trade agreements; •increased sovereign default risks in select countries and the resulting adverse effects on the global financial markets; •deterioration in the financial condition or performance of small- and medium-sized enterprises and other companies in Korea; •investigations of large Korean business groups and their senior management for possible misconduct; •shortages of imported raw materials, natural resources, rare earth minerals or component parts, including semiconductors, due to disruptions to the global supply chain; 22 Table of Contents •a continuing rise in the level of household debt and increasing delinquencies and credit defaults by retail and small- and medium-sized enterprise borrowers in Korea; •social and labor unrest; •substantial changes in the market prices of Korean real estate; •a substantial decrease in tax revenues and a substantial increase in the Korean government’s expenditures for fiscal stimulus measures, unemployment compensation and other economic and social programs, which would likely lead to a national budget deficit as well as an increase in the Korean government’s debt; •financial problems or lack of progress in the restructuring of Korean business groups, other large, troubled companies, their suppliers or the financial sector; •loss of investor confidence arising from corporate accounting irregularities or corporate governance issues concerning certain Korean companies; •increases in social expenditures to support an aging population in Korea or decreases in economic productivity due to the declining population size in Korea; •a continued decrease in the population and birthrates in Korea; •geo-political uncertainty and the risk of further attacks by terrorist groups around the world; •natural or man-made disasters that have a significant adverse economic or other impact on Korea or its major trading partners; and •an increase in the level of tensions or an outbreak of hostilities between North Korea and Korea or the United States. Escalations in tensions with North Korea could have an adverse effect on us and the market value of our common stock and ADSs. Relations between Korea and North Korea have been tense throughout Korea’s modern history. The level of tension between Korea and North Korea has fluctuated and may increase abruptly as a result of current and future events. In particular, there have been heightened security concerns in recent years stemming from North Korea’s nuclear weapon, ballistic missile and satellite programs as well as its hostile military actions against Korea. North Korea renounced its obligations under the Nuclear Non-Proliferation Treaty in January 2003 and has conducted six rounds of nuclear tests since October 2006, including claimed detonations of hydrogen bombs and warheads that can be mounted on ballistic missiles. Over the years, North Korea has continued to conduct a series of missile tests, including missiles launched from submarines and intercontinental missiles that it claims can reach the United States mainland. North Korea has increased the frequency of such activities since the beginning of 2022, firing numerous ballistic missiles, including intercontinental ballistic missiles, and in November 2023, successfully launched its first spy satellite. In response, the Korean government has repeatedly condemned North Korea’s provocations and flagrant violations of relevant United Nations Security Council resolutions. Over the years, the United Nations Security Council has passed a series of resolutions condemning North Korea’s actions and significantly expanding the scope of sanctions applicable to North Korea, as did the United States and the European Union. North Korea’s economy also faces severe challenges, which may further aggravate social and political pressures within North Korea. Although bilateral summit meetings were held between Korea and North Korea in April, May and September 2018 and between North Korea and the United States in June 2018, February 2019 and June 2019, there can be no assurance that the level of tensions affecting the Korean peninsula will not escalate in the future. Any increase in tensions, which may occur, for example, if North Korea experiences a leadership crisis, high‑level contacts between Korea and North Korea or between the United States and North Korea break down or further military hostilities occur, could have a material adverse effect on the Korean economy and on our business, financial condition and results of operations and the market value of our common stock and ADSs. 23 Table of Contents If the Korean government deems that emergency circumstances are likely to occur, it may restrict holders of our ADSs and the depositary from converting and remitting dividends and other amounts in U.S. dollars. Under the Korean Foreign Exchange Transaction Law, if the Korean government deems that certain emergency circumstances, including sudden fluctuations in interest rates or exchange rates, extreme difficulty in stabilizing the balance of payments or substantial disturbance in the Korean financial and capital markets, are likely to occur, it may impose any necessary restrictions as requiring Korean or foreign investors to obtain prior approval from the Ministry of Economy and Finance for the acquisition of Korean securities or the repatriation of interest, dividends or sales proceeds arising from disposition of such securities or other transactions involving foreign exchange. See “Item 10.D. Exchange Controls.” Item 4. INFORMATION ON THE COMPANY

We are a leading innovator of TFT-LCD, OLED and other display panel technologies. We manufacture display panels in a broad range of sizes and specifications primarily for use in IT products (comprising notebook computers, desktop monitors and tablet computers), televisions and various other applications, including mobile devices and automotive displays. The origin of our display business, which first started with TFT-LCD panels, can be traced to the TFT-LCD research that began in 1987 at the Goldstar R&D Center, which was then part of LG Electronics Inc. TFT-LCD research continued at the Anyang R&D Center, a research and development center established by LG Electronics in 1990 in Anyang, Korea, which was subsequently moved to our Paju Display Cluster in 2008, and which today continues to lead our technology innovation efforts. In 1993, the TFT-LCD business division was launched within LG Electronics, and in September 1995 mass production of TFT-LCD panels began at P1, its first fabrication facility, producing mainly TFT-LCD panels for notebook computers and other applications. In December 1997, LG Semicon Inc., a subsidiary of LG Electronics, began mass production at P2, producing mainly TFT-LCD panels for notebook computers. We were incorporated in 1985 under the laws of the Republic of Korea under the original name of Goldstar Software Co., Ltd., a subsidiary of LG Electronics whose main business was the development and marketing of software, which changed its name to LG Software, Ltd. in January 1995 and subsequently to LG Soft, Ltd. in January 1997. At the end of 1998, LG Electronics and LG Semicon transferred their respective TFT-LCD-related businesses to LG Soft, which, as part of the business transfer, changed its name to LG LCD Co., Ltd. In July 1999, LG Electronics entered into a joint venture agreement with Koninklijke Philips Electronics N.V., pursuant to which Philips Electronics acquired a 50% interest in LG LCD. In connection with this transaction, LG LCD transferred its existing software-related business to LG Electronics in order to focus solely on the TFT-LCD business. The joint venture, which was renamed LG.Philips LCD Co., Ltd., was officially launched in August 1999. In July 2004, we completed our initial public offering and listed shares of our common stock on the Korea Exchange under the identifying code “034220” and our ADSs on the New York Stock Exchange under the symbol “LPL”. Prior to the listings, LG Electronics and Philips Electronics terminated the joint venture agreement and entered into a shareholders’ agreement to reflect new arrangements between them as controlling shareholders. The shareholders’ agreement automatically terminated upon Philips Electronics’ sale of all of its remaining ownership interest in us in March 2009. Effective March 3, 2008, we changed our name from LG.Philips LCD Co., Ltd. to LG Display Co., Ltd. in order to reflect the expansion of our business scope and shift in business model, fully expressing our commitment to the future. We launched our OLED Business Unit in June 2008 following our acquisition of LG Electronics’ active matrix OLED, or AMOLED, business in January 2008, which included inventory, intellectual property rights and employees. In 2012, we restructured our internal organization to reflect the growing importance of OLED, transferring the mobile-related OLED business to the IT/Mobile Business Division and the OLED television panel business to the Television Business Division. In December 2014, we established a separate OLED Business Division to strengthen our competitive position, and in December 2016, we further integrated our OLED capabilities across the Television Business Division, the IT Business Division and the Mobile Business Division. In December 2021, we combined the Television Business Division into a new Large Display Business Unit and combined our IT Business Division and the Mobile Business Division into a Medium-Small Display Business Unit to increase product synergies. 24 Table of Contents In order to secure and maintain competitiveness of our overall business and facilitate our sustainable growth, we have continued to engage in various activities to accelerate the transition of the focus of our overall business to OLED and restructure our TFT-LCD business. Between 2022 and 2023, we closed certain TFT-LCD fabrication facilities, including P5 (where we had produced TFT-LCD panels for notebook computers and mobile and other products), P7 (where we had produced TFT-LCD panels for televisions) and P62 (where we had produced TFT-LCD panels for notebook computers and desktop monitors), in light of our continued efforts to increase the proportion of OLED panels in our product mix and the production capacity for such panels and further reduce our production level of TFT-LCD panels, which we believe to be relatively more sensitive to market conditions and generally allow for fewer opportunities for product differentiation. We also implemented a phased exit strategy for our TFT-LCD television panel manufacturing facility in China and, in September 2024, as part of such strategy, we entered into an agreement with TCL CSOT to dispose of our entire equity interest in the China TFT-LCD Television Panel Subsidiaries for approximately W2.2 trillion. Following the completion of the sale, these entities were excluded from the scope of our consolidated subsidiaries effective April 1, 2025. More recently, in February 2026, to further improve our overall operational efficiency and upgrade our business structure by outsourcing the in-house production of automotive display TFT-LCD modules, we entered into an agreement with Top Run Total Solution to transfer the automotive display TFT-LCD module business of LG Display Nanjing Co., Ltd., which transfer is expected to be completed in July 2026. Our principal executive offices are located at LG Twin Towers, 128 Yeoui-daero, Yeongdeungpo-gu, Seoul 07336 and our telephone number is +82-2-3777-1010. Our website address is http://www.lgdisplay.com. We have continued to develop our manufacturing process technologies and expand our production facilities. Each successive generation of our fabrication facilities has generally been designed to process larger-size glass substrates, allowing us to produce more panels and a variety of display sizes. The ability to process larger glass substrates allows us to produce a larger variety of display sizes to accommodate evolving business and consumer demands. In addition, due to the large number of fabrication facilities we operate, we have the flexibility to make strategic decisions based on market demand to convert existing production lines housed within a fabrication facility to manufacture display panels based on newer technologies. As part of our ongoing expansion plans, we have constructed several manufacturing facilities for OLED panels in Korea in recent years, including our AP4 fabrication facility for plastic OLED panels for mobile and other products, which commenced mass production in July 2019. Furthermore, in response to and in anticipation of growing demand in the China market, we established a joint venture with the government of Guangzhou to construct our new CO fabrication facility to manufacture next generation large-sized OLED panels, which was established under the name of LG Display High-Tech (China) Co., Ltd., in July 2018. We currently hold a 70% ownership interest in the joint venture and the government of Guangzhou holds the remaining 30% ownership interest, and we commenced mass production of large-sized OLED panels at the CO fabrication facility in July 2020. In February 2024, we completed the construction of our AP5 fabrication facility and have subsequently commenced mass production of medium-sized OLED panels at such facility. Each of our on-going expansion projects are generally subject to market conditions and any changes in our investment timetable. See “Item 4.D. Property, Plants and Equipment—Capital Expenditures.” With respect to our assembly facilities, from 1995 to early 2003, we assembled all panels in our Gumi assembly facility adjacent to our P1 facility. Since 2003, in order to better serve the needs of our global customers, we have commenced operations at various assembly facilities in Korea and several other countries. For more information on our module assembly facilities, see “Item 4.D. Property, Plants and Equipment—Current Facilities.” For a description of cash outflows relating to our capital expenditures in the past three fiscal years, see “Item 5.A. Operating Results—Overview—Manufacturing Productivity and Costs.” The U.S. Securities and Exchange Commission, or the SEC, maintains a website (http://www.sec.gov), which contains reports, proxy and information statements and other information regarding issuers that file electronically with the SEC. 25 Table of Contents Item 4.B. Business Overview Overview We manufacture TFT-LCD and OLED technology-based display panels in a broad range of sizes and specifications primarily for use in IT products (comprising notebook computers, desktop monitors and tablet computers), televisions, mobile devices, including smartphones, as well as auto products, and we are one of the world’s leading suppliers of large-sized OLED television panels. We also manufacture display panels for industrial and other applications, including entertainment systems and medical diagnostic equipment. In 2025, we sold a total of 101.3 million display panels that are nine inches or larger. According to OMDIA, we had a global market share for display panels of nine inches or larger of approximately 13% and for those smaller than nine inches of approximately 16%, each based on sales revenue in 2025. We currently operate fabrication facilities, which include separately designated sets of fabrication production lines housed in certain facilities, located in our fabrication complexes in Gumi and Paju, Korea and in Guangzhou, China. We also operate module assembly facilities in Korea and abroad. For a full description of our current facilities, see “Item 4.D. Property, Plants and Equipment—Current Facilities.” We seek to build our market position based on collaborative relationships with our customers and suppliers, a focus on high-end differentiated specialty display products and manufacturing productivity. Our end-brand customers include many of the world’s leading manufacturers of IT products and televisions, including LG Electronics, as well as mobile devices and automobiles. For a description of our sales to LG Electronics, our largest shareholder, see “Item 7.B. Related Party Transactions.” At the direction of our end-brand customers, we typically ship our display panels to their original equipment manufacturers, known as “system integrators,” who use our display panels in products they assemble on a contract basis for our end-brand customers. We engage in direct sales (including through our overseas subsidiaries), as well as indirect sales through trading companies, including our formerly affiliated trading company, LX International (formerly known as “LG International Corp.”) and its subsidiaries, to end-brand customers and their system integrators. Pursuant to the separation of certain companies, including LX International, from the LG Group to form a separate business group named the LX Group, which separation was approved by the Korea Fair Trade Commission in June 2022, LX International is no longer our affiliated company. Our sales were W21,331 billion in 2023, W26,615 billion in 2024 and W25,810 billion (US$17,867 million) in 2025. Technology Description TFT-LCD Technology A TFT-LCD panel consists of two thin glass substrates and polarizer films between which a layer of liquid crystals is deposited and behind which a light source called a backlight unit is mounted. The frontplane glass substrate is fitted with a color filter, while the backplane glass substrate, also called a TFT array, has many thin film transistors, or TFT, formed on its surface. The liquid crystals are normally aligned to allow the polarized light from the backlight unit to pass through the two glass panels. When voltage is applied to the transistors on the TFT array, the liquid crystals change their alignment and alter the amount of light that passes through them. Meanwhile, the color filter on the frontplane glass substrate gives each pixel its own color. The combination of these pixels in different colors and levels of brightness forms the image on the panel. The process for manufacturing a TFT-LCD panel consists of four steps: •TFT array process – involves fabricating a large number of thin film transistors on the backplane glass substrate. The number of transistors corresponds to the number of pixels on the screen. The process is similar to the process for manufacturing semiconductor chips, except that transistors are fabricated on large glass substrates instead of silicon wafers. Unlike in the semiconductor industry, however, the number of transistors per glass substrate is not a primary driver of the manufacturing costs for TFT-LCD panels; •Color filter process – involves fabricating a large number of color regions on the frontplane glass substrate that will overlay the TFT array prior to the cell process. The colored dots of red, green and blue combine to form various colors. The process is similar to the TFT array process but involves depositing colored pigments instead of transistors; 26 Table of Contents •Cell process – involves joining together the backplane glass substrate that is arrayed with transistors and the frontplane glass substrate that is patterned with a color filter. The space between the two glass substrates is filled with liquid crystal materials. The resulting adjoined substrate is called a cell; and •Module assembly process – involves connecting additional components, such as driver integrated circuits and backlight units, to the cell. The TFT array, color filter and cell processes are capital-intensive and require highly automated production equipment and are the primary determinants of fixed manufacturing cost. In contrast, the module assembly process involves semi-automated production equipment and manual labor to assemble the various components. Materials are the primary drivers of variable manufacturing cost. IPS Technology In-Plane Switching, or IPS, is a liquid crystal switching technology that was developed to address commonly faced problems with TFT-LCD panels that utilized other liquid crystal technologies, namely narrow viewing angles, inconsistent picture uniformity and slow response times. Unlike other liquid crystal technologies where the liquid crystals are aligned vertically or at an angle in relation to the glass substrate, with IPS technology, the liquid crystals are aligned horizontally in parallel to the glass substrate, which allows for wider viewing angles, greater picture uniformity and faster response times. Our TFT-LCD display panels, including our TFT-LCD television panels, utilize IPS technology. Advanced High Performance IPS, or AH-IPS, is an IPS technology that integrates ultra-fine pitch technology and high transmittance technology, which allows for ultra-high resolution imagery, increased luminance and greater energy efficiency. AH-IPS is currently utilized in our panels for certain types of IT products, smartphones and other mobile display products. OLED Technology An OLED panel consists of a thin film of organic material encased between anode and cathode electrodes. When a current is applied, light is emitted directly from the organic material. Because a separate backlight is not needed, OLED panels can be lighter and thinner compared to TFT-LCD panels, which require a separate backlight. In addition, images projected on OLED panels have higher contrast ratios and more realistic color reproduction compared to images projected on TFT-LCD panels. We utilize different types of sub-pixel and backplane technologies in our OLED panels. Under the RGB sub-pixel structure, a combination of red, green and blue sub-pixels without color filters or white sub-pixels are used to produce a range of colors. While we, along with most of our competitors, utilize RGB sub-pixel technology for small- and medium-sized products, there are various technical challenges in scaling RGB sub-pixel technology for large-sized products, such as television panels. For our OLED television panels, we have overcome these challenges by opting to utilize our WRGB sub-pixel structure, whereby red, green and blue color filters are placed over white OLED sub-pixels to produce a range of colors and began production of OLED television panels at our OP1 fabrication facility in 2013. We also utilize Tandem OLED technology, which we first commercialized in 2019, in certain of our products. Tandem OLED technology utilizes multiple stacks of organic light emitting layers, which offer enhanced durability, brightness and lifespan compared to single-layer OLED panels. We have applied Tandem OLED technology to our panels for select types of auto products and IT products, including notebook computers and tablet computers. Mass production of our plastic OLED panels for mobile and other products began at our AP3 and AP4 fabrication facilities in August 2017 and July 2019, respectively. In July 2020, we commenced mass production of large-sized OLED panels at our CO fabrication facility, located in Guangzhou, China. In February 2024, we completed the construction of our AP5 fabrication facility and have subsequently commenced mass production of medium-sized OLED panels at such facility. As for backplane technology, our large-sized OLED products are produced using oxide TFT backplane technology as compared to our smaller-sized OLED products which utilize low-temperature polycrystalline silicon (“LTPS”), or low-temperature polycrystalline oxide (“LTPO”), backplane technology, as described in greater detail below. 27 Table of Contents Backplane Technology Oxide TFT We use oxide TFT technology to produce backplanes for use in our large-sized OLED panels, such as the panels used in OLED television products. The traditional amorphous silicon-based TFT, or a-Si TFT, backplane technology has certain limitations that render it unsuitable for producing backplanes for use in large-sized OLED panels with high resolutions and fast refresh rates. For example, in larger and higher-resolution display panels, a-Si TFT backplanes consume increased rates of power and experience a decrease in the rate at which each transistor is able to switch between images, or the rate of mobility. As an alternative to a-Si TFT backplane technology, we have successfully adopted a metal oxide-based TFT, or simply oxide TFT, backplane technology. In place of the amorphous silicon-based semiconductors used in a-Si TFT backplanes, oxide TFT backplanes utilize metal oxide-based semiconductors, which consume less energy, have a higher rate of mobility and allow for construction of display panels with narrower bezels as compared to display panels with traditional a-Si TFT backplanes. We were the first company in the display industry to successfully adopt oxide TFT technology in large-sized OLED products, which has been a key factor in reducing the costs of manufacturing large-sized OLED panels in large quantities. Because the manufacturing process of oxide TFT-based OLED panels is similar to the process used to manufacture TFT-LCD panels, we are able to use our existing TFT-based production lines with relatively little modification to mass produce large-sized OLED panels. LTPS and LTPO LTPS backplanes are suitable for use in the production of high-resolution display panels due to their higher mobility rates compared to a-Si TFT or oxide TFT backplanes. However, due to a complex manufacturing process, LTPS backplanes have relatively higher production costs compared to a-Si TFT or oxide TFT backplanes, making it uneconomical to use in the production of large-sized panels. As a result, we generally utilize LTPS backplanes in the production of small- and medium-sized TFT-LCD panels and OLED smartphone and other applications. We also use LTPO backplane technology in our wearable devices and smartphones, which combines elements of both LTPS and oxide TFT technologies to produce backplanes with greater energy savings than LTPS backplanes. Products We manufacture display panels of various specifications that are integrated by our customers into principally the following products: •IT products, which comprise notebook computers (utilizing display panels ranging from 11.6 inches to 18 inches in size), desktop monitors (utilizing display panels ranging from 15.6 inches to 51.5 inches in size) and tablet computers (utilizing display panels ranging from 7.85 inches to 13 inches in size); •Televisions, which utilize display panels in various sizes ranging from 22.3 inches to 98 inches in size; •Mobile and other products, which utilize a wide array of display panel sizes, including smartphones and other types of mobile phones and industrial and other applications, such as entertainment systems and medical diagnostic equipment; and •Auto products, which utilize a variety of display panel sizes ranging from 6.1 inches to 38.9 inches in size. Unless otherwise specified, when we refer to panels in this annual report, we mean assembled cells with added components, such as driver integrated circuits and backlight units. 28 Table of Contents We design and manufacture our panels to meet the various size and performance specifications of our customers, including specifications relating to thinness, weight, resolution, color quality, power consumption, response times and viewing angles. The specifications vary from product to product. For television panels, a premium is placed on faster response times, wider viewing angles, higher resolution and greater color fidelity. Notebook computer panels require an emphasis on thinness, light weight and power efficiency, while desktop monitor panels demand a greater focus on brightness, color brilliance, faster response times and wide viewing angles. For mobile panels, particularly smartphones, an emphasis is placed on brightness and power efficiency. For automotive display panels, the focus is on high luminance, longer lifespan, temperature reliability and lower power consumption. In addition to manufacturing and selling display panels, we also manufacture and sell desktop monitors through our joint venture companies. See “—Joint Ventures.” IT Products Our panels for IT products comprise display panels for notebook computers (ranging from 11.6 inches to 18 inches in size), desktop monitors (ranging from 15.6 inches to 51.5 inches in size) and tablet computers (display panels ranging from 7.85 inches to 13 inches in size). Revenue from sales of our IT product panels was W7,853 billion, or 36.8% of our total revenue, in 2023, W9,420 billion, or 35.4% of our total revenue, in 2024 and W9,509 billion (US$6,583 million), or 36.8% of our total revenue, in 2025. In 2025, our principal products in terms of sales revenue in this category included panels of various sizes ranging from 13 inches to 16.0 inches for notebook computers, 21.5 inches to 27 inches for desktop monitors and 10.86 inches to 13 inches for tablet computers. The overall demand for IT products generally declined in 2023, primarily due to a general decrease in consumer consumption levels due in part to rising inflation and interest rates and economic volatility and uncertainty globally. However, in 2024, the IT market experienced a rebound, mainly driven by increased demand for low-cost IT products and growth in emerging markets, and our revenue from this segment was further boosted by the commencement of mass production of medium-sized OLED panels at our AP5 facility. In 2025, demand continued to grow, which was primarily attributable to an increase in demand for notebook computers as products purchased during the peak of the COVID-19 pandemic reached their replacement cycles, as well as increased replacement demand associated with the Windows 10 end-of-support transition. Demand for desktop monitors remained relatively stable in 2025 compared to 2024, as weaker sales in developed markets were largely offset by solid demand for gaming products and new models in emerging markets. Televisions Our television display panels range from 22.3 inches to 98 inches in size. We began mass production of television display panels in 2001. Our sales of display panels for televisions were W4,331 billion, or 20.3% of our total revenue, in 2023, W5,973 billion, or 22.4% of our total revenue, in 2024 and W4,791 billion (US$3,317 million), or 18.6% of our total revenue, in 2025. In 2025, our principal products in this category in terms of sales revenue consisted of display panels of sizes between 55 inches and 77 inches. Our sales of television display panels, which had historically been our largest product category by revenue in prior years, have been affected by our strategic decision to reduce and ultimately cease all of our production of TFT-LCD television display panels (which had historically comprised a substantial majority of our television display panels) in response to weakening market demand and intensifying price competition. In 2022, we reduced our production capacity of TFT-LCD panels for televisions at our manufacturing facilities in China and ceased production at, and closed, our P7 facility (where we had produced TFT-LCD panels for televisions) in December 2022, in light of our continued efforts to increase the proportion of OLED television panels in our product mix and the production capacity for such panels and further reduce our production level of TFT-LCD panels, which we believe to be relatively more sensitive to market conditions and generally allow for fewer opportunities for product differentiation. We also implemented a phased exit strategy for our TFT-LCD television panel manufacturing facility in China and, in September 2024, as part of our efforts to accelerate the ongoing shift in our strategic direction to focus on OLED panels, entered into an agreement with TCL CSOT to dispose of our entire equity interest in the China TFT-LCD Television Panel Subsidiaries. Following the completion of the sale, these entities were excluded from the scope of our consolidated subsidiaries effective April 1, 2025, and we have fully discontinued the production of TFT-LCD television panels and are currently focusing on ultra-large OLED television panels and premium business-to-consumer products. 29 Table of Contents Consumer demand for both TFT-LCD and OLED televisions decreased in 2023 due in part to the tapering of the temporary surge in demand for such products caused by the COVID-19 pandemic. Additionally, products purchased during the peak of the pandemic had not yet reached their replacement cycles, and there was a prolonged general decrease in consumer consumption levels due to rising inflation and interest rates and economic volatility and uncertainty globally. In 2024, while the overall television market conditions continued to remain weak amid continued economic volatility and uncertainty in many parts of the world and intensifying competition between OLED and mini-LED technologies, our revenue from television display panels increased due to our strategic focus on diversifying our product mix and increasing the proportion of gaming OLED and ultra-large display panels. In 2025, while the global television market remained relatively flat amid increased macroeconomic uncertainty and intensified price competition in TFT-LCD technologies, adoption of high-end display technologies such as OLED and mini-LED continued to increase, particularly in premium products offered by global television manufacturers. Against this backdrop, our revenue from television display panels decreased due to a significant decline in our TFT-LCD panel production following the sale of the China TFT-LCD Television Panel Subsidiaries in April 2025, which more than offset increased OLED panel production supported by stable demand from key customers. Brand manufacturers of televisions and their distribution channels prefer long-term arrangements with a limited number of display panel suppliers that can offer a full product line, and we believe that we will continue to be well positioned to meet their requirements with our strengths in technology, manufacturing scale and efficiency as well as the breadth of our product portfolio. Mobile and Other Products Our product portfolio also includes panels for mobile and other products, which utilize a wide array of display panel sizes, including smartphones and other types of mobile phones and industrial and other applications, including entertainment systems and medical diagnostic equipment. Display panels that are nine inches and smaller are referred to as small- and medium-sized panels. The market for smartphones recorded negative growth in 2023 and 2024 mainly due to a prolonged decline in demand for smartphones as a result of geopolitical conflicts, rising inflation and interest rates and economic volatility and uncertainty globally, as well as the high penetration rate of smartphones, according to Counterpoint Technology Market Research. In 2025, the smartphone market experienced modest growth, driven primarily by increased demand in China and certain emerging markets; however, overall growth remained constrained due to market saturation, extended device replacement cycles and the continued expansion of the secondary handset market. Revenue from sales of our display panels for mobile and other products were W7,071 billion, or 33.1% of our total revenue, in 2023, W8,782 billion, or 33.0% of our total revenue, in 2024 and W9,132 billion (US$6,322 million), or 35.4% of our total revenue, in 2025. In 2025, sales of panels for smartphones constituted a majority in terms of both sales revenue and sales volume in the mobile and other products category. In recent years, we have increased the proportion of OLED panels (including plastic OLED panels) for mobile and other products that command relatively higher prices in our product mix. Some of the panels we produce for industrial products, such as medical diagnostic equipment, are highly specialized niche products manufactured and designed to the specifications of our clients, while others, such as industrial controllers, may be manufactured by slightly modifying a standard product design for our other products, such as desktop monitors. Display panels for these other products broaden our sales base and product mix. They are also often a good channel through which we can commercialize a particular technology that we have developed. We generally determine the production level and specification of our display panels for mobile and other products by assessing various business opportunities as they arise. Auto products We produce a variety of display products based on OLED and TFT-LCD technologies in various sizes and shapes for auto products. We are further developing innovative new products and technologies for auto products, including ultra-large pillar-to-pillar displays and OLED curved displays, both of which are currently in mass production, as well as switchable privacy OLED and TFT-LCD displays, for both of which core technologies have been secured, and infrared camera under-display panels and slidable display designs that are under development. Our panels for auto products range from 6.1 inches to 38.9 inches in size. Our sales of display panels for auto products were W1,999 billion, or 9.4% of our total revenue, in 2023, W2,281 billion, or 8.6% of our total revenue, in 2024 and W2,136 billion (US$1,479 million), or 8.3% of our total revenue, in 2025. In 2025, our principal products in this category in terms of sales revenue consisted of display panels of sizes between 8 inches and 16 inches. Our panels for auto products are designed and manufactured to the specifications of our customers, which mainly consist of leading global automobile manufacturers. From 2023 to 2024, the 30 Table of Contents demand for automotive panels experienced gradual growth, driven by the recovery of the automobile market and increasing adoption of display panels, partly due to a recovery in demand for automobiles following the COVID-19 pandemic. Our revenue also grew during this period, supported by the increasing share of premium displays based on OLED and LTPS technologies as well as the trend toward larger display sizes. In 2025, global automobile sales continued to grow across most regions, and the automotive display panel market expanded further as the adoption of in-vehicle display panels continued to increase. Our revenue in this segment declined primarily due to a decrease in demand in the downstream automobile market, driven by intensifying competition from Chinese electric vehicle manufacturers. In recent years, we have been focusing on developing and manufacturing differentiated OLED automotive display panels to address the growth of software-defined vehicles and the development of autonomous driving technology. Sales and Marketing Customer Profile Our display panels are included primarily in IT products, televisions, mobile devices, automobiles and other products sold by our global end-brand customers, including LG Electronics. LG Electronics is our largest shareholder, and the terms of our sales to LG Electronics are negotiated based on then-prevailing market prices as adjusted for LG Electronics’ requirements, including volume and specifications. See “Item 7.B. Related Party Transactions” for further description of our sales to LG Electronics. We negotiate directly with our end-brand customers concerning the terms and conditions of the sales, but typically ship our display panels to designated system integrators at the direction of these end-brand customers. Sales data to end-brand customers include direct sales to these end-brand customers as well as sales to their designated system integrators, including through our formerly affiliated trading company, LX International, and its subsidiaries, as further discussed below under “—Sales.” A substantial portion of our sales is attributable to a limited number of our end-brand customers. Our top ten end‑brand customers together accounted for a significant majority of our sales in each of 2023, 2024 and 2025. Of our top ten end-brand customers, two of them each accounted for more than 10% of our sales on an individual basis for each of the past three years. For example, sales to LG Electronics, including as a system integrator, amounted to approximately 16%, 14% and 13% of our sales in 2023, 2024 and 2025, respectively. In addition to our top ten end-brand customers, we sell a portion of our display panels to a variety of other manufacturers of computers and electronic products. The following table sets forth for the years indicated the geographic breakdown of our sales based on the location of our customers. Year ended December 31, 2023 2024 2025 Sales % Sales % Sales Sales (3) % (in billions of Won and millions of US$, except for percentages) Korea W 634 3.0 % W 1,007 3.8 % W 990 US$ 685 3.8 % China 14,704 68.9 18,150 68.2 16,592 11,486 64.3 Asia (excluding China) (1) 2,398 11.3 3,228 12.1 4,541 3,144 17.7 Americas (2) 2,080 9.7 2,283 8.6 1,970 1,364 7.6 Europe 1,515 7.1 1,947 7.3 1,717 1,188 6.6 Total (3) W 21,331 100.0 % W 26,615 100.0 % W 25,810 US$ 17,867 100.0 % (1)Includes Oceania, Africa and the Middle East. (2)Includes North and South America. (3)For convenience, the Korean Won amounts are expressed in U.S. dollars at the rate of W1,444.55 to US$1.00, the noon buying rate in effect on December 31, 2025 as certified by the Federal Reserve Bank of New York for customs purposes. This translation should not be construed as a representation that the Korean Won amounts represent, have been or could be converted to U.S. dollars at that rate or any other rate. 31 Table of Contents Sales Our sales and marketing departments seek to maintain and strengthen relationships with our current customers in existing markets as well as expand our business in new markets and with new customers. We currently have wholly-owned sales subsidiaries in the United States, Japan, Germany, Taiwan, China and Singapore. The focus of our sales activities is on strengthening our relationships with large end-brand customers, with whom we maintain strong collaborative relationships. Customers look to us for a reliable supply of a wide range of display products. We believe our reliability and scale as a supplier helps support our customers’ product positions. We view our relationships with our end-brand customers as important to their product development strategies, and we collaborate with our end-brand customers in the design and development stages of their new products. In addition, our sales teams coordinate closely with our end-brand customers’ designated system integrators to ensure timely delivery. For each key customer, we appoint an account manager who is primarily responsible for our relationship with that specific customer, complemented by a product development team consisting of engineers who participate in meetings with that customer to understand the customer’s specific needs. In 2025, and historically, the majority of our sales were generated from transactions pursuant to purchase orders on an ongoing basis from our global customers. Typically, our end-brand customers or their designated system integrators place purchase orders with us a few weeks prior to delivery. Generally, the head office of an end-brand customer provides us with advance rolling forecasts, which, together with our own forecasts, enable us to plan our production schedule in advance. However, the volume and pricing of our display panel products are generally influenced by various factors including market conditions, such as competition with other vendors, the complexity of product specifications and the labor and technology involved in the design and production processes. As part of our ongoing efforts to enhance our overall business structure, including efforts to improve our profitability and reduce production volatility, we have been actively seeking, and plan to continue, to increase the proportion of products manufactured under advance supply agreements that leverage our stable production capabilities and technological leadership in advanced display products, including those utilizing OLED technology. Through these supply agreements, we aim to mitigate our exposure to fluctuations in the volume and market pricing of display products across our business areas, as long as there is no significant decline in demand caused by macroeconomic uncertainties. While these supply agreements provide an indication of the size and key components of a customer’s order, neither party is obligated to supply or purchase any products until a firm purchase order is issued. We primarily engage in direct sales (including through our overseas subsidiaries), and to a lesser extent, indirect sales through trading companies and its subsidiaries, to end-brand customers and their system integrators. Our sales subsidiaries procure purchase orders from, and distribute our products to, system integrators and end-brand customers located in their region. In regions where we do not have a sales subsidiary, or where doing so is consistent with local market practices, we sell our products to trading companies and its subsidiaries. These subsidiaries of trading companies process orders from and distribute products to customers located in their region. We generally provide a limited warranty to our end-brand customers, including the provision of replacement parts and warranty services for our products. Costs incurred under our warranty liabilities consist primarily of repairs. We set aside a warranty reserve based on our historical experience and future expectations as to the rate and cost of claims under our warranties. Where system integrators located in certain regions are invoiced directly, we have established certain measures, such as factoring arrangements and accounts receivable insurance programs, to protect us from excessive exposure to credit risks. Competition The display panel industry is highly competitive. Due to the capital intensive nature of the display panel industry and the high production volumes required to achieve economies of scale, the international market for display devices is characterized by significant barriers to entry, but the competition among the relatively small number of major producers is intense. In the case of TFT-LCD panel manufacturers, currently almost all of them are located in Asia, and we compete principally with manufacturers from Korea, Taiwan, China and Japan. We have experienced pressure on the prices and margins of our major products due largely to additional capacity from panel makers in Asia, particularly in China. The market share of Chinese manufacturers in the global TFT-LCD display market has significantly increased in recent years primarily due to their large investments in production facilities and production of large volumes of lower-priced panels with 32 Table of Contents the support of the Chinese government as part of its efforts to encourage Chinese consumers to purchase domestically manufactured products. Chinese display panel manufacturers have also been increasingly making capital investments in OLED technology, especially with respect to small- and mid-sized OLED display panels. For example, BOE, China’s largest display panel manufacturer, has continued to make capital investments aimed at expanding its OLED production capabilities across multiple manufacturing facilities in China, including in Chengdu and other regions. Moreover, Samsung Display, one of our primary competitors based in Korea, has continued making significant capital investments in a new OLED manufacturing facility in Asan, Korea. Increased production capacity resulting from such investments as well as additional investments by our competitors in China and elsewhere may result in further intensified competition. The principal elements of competition for customers in the display panel market include: •product portfolio range and availability; •product specifications and performance; •price; •capacity allocation and reliability; •customer service, including product design support; and •logistics support and proximity of regional stocking facilities. Our principal competitors are: •Samsung Display in Korea; •AU Optronics and Innolux in Taiwan; •Sharp in Japan; and •BOE, TCL CSOT and HKC in China. According to OMDIA, in 2025, Korean display panel manufacturers had a market share of 18% of the 9-inch or larger display panel market based on revenue, Chinese manufacturers had 63%, Taiwanese manufacturers had 15% and Japanese manufacturers had 4%. Our market share of the 9-inch or larger panel market based on revenue was approximately 13%. Also according to the same source, in 2025, Korean display panel manufacturers had a market share of 47% of the smaller than 9-inch display panel market based on revenue, Chinese manufacturers had 42%, Taiwanese manufacturers had 7% and Japanese manufacturers had 4%. Our market share of the smaller than 9-inch display panel market based on revenue was approximately 16%. Components, Raw Materials and Suppliers Components and raw materials accounted for approximately 55%, 57% and 58% of our cost of sales in 2023, 2024 and 2025, respectively. The key components and raw materials of our display products include glass substrates, driver integrated circuits and polarizers used in both our TFT-LCD and OLED products, backlight units and liquid crystal materials used in our TFT-LCD products, and hole transport materials and emission materials used in our OLED products. We source these components and raw materials from outside sources, although, unlike many other display panel manufacturers, we produce a substantial portion of the color filters we use. With respect to glass substrates, Paju Electric Glass Co., Ltd., a joint venture company in which we own a 40% equity interest, provides us with a stable supply at competitive prices. We generally negotiate non-binding master supply agreements with our suppliers several times a year, but pricing terms are negotiated on a quarterly basis, or if necessary, on a monthly basis. Firm purchase orders are issued generally six weeks prior to the scheduled delivery, except in the case of purchase orders for driver integrated circuits, which are issued generally several months prior to the scheduled delivery. We purchase our components and raw materials based on forecasts from our end-brand customers as well as our own assessments of our end-brand customers’ needs. In order to reduce our component and raw material costs and our dependence on any one supplier, we generally develop compatible components and raw materials and purchase our components and raw materials from more than one source. However, we source certain key components and raw materials from a limited group of suppliers in order to ensure timely supply and consistent quality. Also, in order to facilitate implementation of our cost reduction strategies, we continually review for potential cost savings in sourcing our components and raw materials from suppliers based in Korea 33 Table of Contents and those based abroad, including competitiveness of the prices offered by such suppliers and any potential for reduction in logistics and transportation costs. We perform periodic evaluations of our component and raw material suppliers based on a number of factors, including the quality and price of the components, delivery and response time, the quality of the services and the financial health of the suppliers. We reassess our supplier pool accordingly. We maintain a strategic relationship with many of our material suppliers, and from time to time, we make equity investments in our material suppliers as part of our efforts to secure a stable supply of key components and raw materials. In addition to components and raw materials, the manufacturing of our products requires significant quantities of electricity and water. In order to obtain and maintain reliable electric power and water supplies, we have our own back-up power generation facilities and water storage tanks as well as easy access to nearby water sources. Equipment, Suppliers and Third Party Processors We depend on a limited number of equipment manufacturers for equipment tailored to specific requirements. Since our manufacturing processes depend on the quality and technological capacity of our equipment, we work closely with the equipment manufacturers in the design process to ensure that the equipment meets our specifications. The principal types of equipment we use to manufacture display panels include deposition equipment, steppers, developers and coaters. We purchase equipment from a small number of qualified vendors to ensure consistent quality, timely delivery and performance. We maintain strategic relationships with many equipment manufacturers as part of our efforts to ensure quality while reducing costs. Historically, we have relied on a small number of overseas vendors for equipment purchases, but in recent years, we have diversified and localized our equipment purchases by shifting some of our purchases to Korean vendors. As a result of such efforts, most of our equipment for our facilities in Korea in 2025 was purchased from Korean vendors on an invoiced basis. Our engineers begin discussions with equipment manufacturers far in advance of the planned installation of equipment in a new fabrication facility, and we typically execute a letter of intent with the vendors in advance of our planned installation to ensure timely delivery of main equipment with long-term delivery schedules. Engineers from our vendors typically accompany the new equipment to our fabrication facilities to assist in the installation process to ensure proper operation. In addition, we outsource certain manufacturing processes to third party processors from time to time to supplement our processing capacity, and in certain cases, we maintain strategic relationships with such third party processors. Quality Control We believe that our advanced production capabilities and our reputation for high quality and reliable products have been important factors in attracting and retaining key customers. We have implemented quality inspection and testing procedures at all of our fabrication facilities and assembly facilities. Our quality control procedures are carried out at three stages of the manufacturing process: •incoming quality control with respect to components and raw materials; •in-process quality control, which is conducted at a series of control points in the manufacturing process; and •outgoing quality control, which focuses on packaging, delivery and post-delivery services to customers. With respect to incoming quality control, we perform quality control procedures for the raw materials and components that we purchase. These procedures include testing samples of large batches, obtaining vendor testing reports and testing to ensure compatibility with other components and raw materials, as well as vendor qualification and vendor rating. Our in-process quality control includes various programs designed to detect, as well as prevent, quality deviations, reduce manufacturing costs, ensure on-time delivery, increase in-process yields and improve field reliability of our products. We perform outgoing quality control based on burn-in testing and final visual inspection of our products and accelerated life testing of samples. We inspect and test our completed display panels to ensure that they meet our high production standards. We also provide post-delivery services to our customers, and maintain warranty exchange inventories in regional hubs to meet our customers’ needs. 34 Table of Contents Our quality assurance team works to ensure effective and consistent application of our quality control procedures, which include six-sigma quality control procedures, and to introduce new methodologies that could further enhance our quality control procedures. Our quality assurance programs have received accredited ISO/IATF 16949 certifications. The ISO/IATF certification process involves subjecting our manufacturing processes and quality management systems to reviews and observation for various fixed periods. ISO/IATF certification is required by certain European countries and the United States in connection with sales of industrial products in those countries, and provides independent verification to our customers regarding the quality control measures employed in our manufacturing and assembly processes. Insurance We currently have property insurance coverage, including business interruption coverage, for our production facilities in Gumi and Paju, Korea, for up to W2.5 trillion in the aggregate, and for our panel fabrication facilities located in Guangzhou, China for up to CNY 12.2 billion in the aggregate. We also have insurance coverage for work-related injuries to our employees, accidents during overseas business travel, damage during construction, damage to products and equipment during shipment, damage to equipment during installation at our fabrication facilities, automobile accidents, bodily injury and property damage from gas accidents, as well as mandatory unemployment insurance for our workers and director and officer liability insurance. In addition, we maintain general and product liability, employment practice liability, aviation product liability and world-wide cargo insurance. Our dormitories in Gumi and Paju, Korea, have fire insurance coverage for up to approximately W1.0 trillion in the aggregate. Our subsidiaries also have insurance coverage for damage to office fixtures and equipment and life and disability insurance for their employees. All of our overseas manufacturing subsidiaries also carry property insurance, business interruption insurance and commercial general liability insurance. Environmental Matters Our production processes generate various forms of chemical and other industrial waste, waste water and greenhouse gas emissions at various stages in the manufacturing process. We have installed various types of anti-pollution equipment for the treatment and recycling of such waste products and aggressively engage in greenhouse gas emission reduction and energy conservation efforts. As a member of the World Display device Industry Cooperation Committee, or WDICC, a display industry organization focusing on environmental issues, we have voluntarily agreed to reduce emission of greenhouse gases, such as nitrogen trifluoride, or NF3, sulfur hexafluoride, or SF6, and carbon tetrafluoride, or CF4, gases, by developing and adopting cost-effective abatement technologies and systems and increasing the number of abatement systems installed in our facilities. We installed NF3 abatement systems at all of our production lines when the production facilities were being constructed. In addition, we have installed SF6 and CF4 abatement systems, and developed and applied processes that utilize substitute gases with lower global warming potential than SF6, in each of our facilities in Gumi and Paju, Korea. In addition, starting in 2021, we have begun to use electricity generated from eco-friendly sources such as solar power, wind power and hydropower instead of fossil fuels to satisfy our electricity needs in part and plan to further expand our reliance on renewable energy in the future. 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 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 in July 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. For the more efficient operation of our waste water treatment equipment, we have also entered into an agreement with Suviol for the operation of our water treatment system. 35 Table of Contents We also 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, which categories represent substances subject to voluntary reduction or under observation for future action. 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. Operations at our manufacturing plants are subject to regulation and periodic scheduled and unscheduled on-site inspections by the Korean Ministry of Environment and local environmental protection authorities. We believe that we have adopted adequate anti-pollution measures for the effective maintenance of environmental protection standards consistent with local industry practice, and that we are in compliance in all material respects with the applicable environmental laws and regulations in Korea, including the Framework Act on Low Carbon, Green Growth, the Korean government, under which we are required to submit periodic greenhouse gas emission and energy usage statements, performance reports and greenhouse gas emission and energy usage reduction plans to the Korean government. Expenditures related to such compliance may be substantial and are generally included in capital expenditures. As required by Korean law, we employ licensed environmental specialists for each environmental area, including air quality, water quality, toxic materials and radiation. As part of our efforts to establish and operate environmental-friendly energy management systems at our domestic and overseas fabrication facilities and production plants, we have received the International Organization for Standardization (“ISO”) 14001 (environmental management system) and ISO 50001 (energy management system) certifications for all of our domestic and overseas production sites. In 2022, we achieved the Gold rating for Zero Waste to Landfill (“ZWTL”) for our Paju and Gumi facilities and the Platinum rating for our Nanjing facility. Through ongoing efforts to improve our recycling rate, our Paju facility achieved a Platinum rating in June 2024 and maintained its Platinum rating following the 2025 reassessment in July 2025. Our Gumi facility achieved a Platinum rating in July 2025, and our Guangzhou facility achieved a Platinum rating in December 2024. In November 2025, we achieved the Gold rating for our Vietnam facility, completing ZWTL certification for all of our production sites. Furthermore, in accordance with the Korean government’s waste management policy, we introduced a resource recycling certification program in 2022 and have obtained circular resource certification for a number of our waste materials. We continue to maintain these certifications through annual verification and ongoing improvement activities and intend to further strengthen our resource recycling program by minimizing waste generation and maximizing recycling rates. In addition, we are continually pursuing ESG management activities based on the spirit of “value creation for consumers” and “human-first management,” and we plan to obtain further recognitions for our eco-friendly management and share relevant information with our stakeholders. In 2021, we received the “Green Technology Certification” from the Korean Ministry of Science and ICT for our advanced incell touch display technology, an eco-friendly technology, which reduces 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 based in Germany, for excellence in resource circulation and compliance with Waste Electrical and Electronic Equipment (WEEE) regulations and the non-use of specific hazardous substances in our OLED television display panels, plastic OLED mobile and smartwatch display products, OLED tablet display panels and TFT-LCD panels for IT products. In 2022, we became the first company in the industry to receive the SGS Eco Label accreditation from SGS, a global product testing and certification agency, for our automotive display products utilizing plastic OLED and low-temperature polycrystalline silicon LCD. This recognition was awarded for reducing the power consumption of such products by enhancing the luminous efficiency of their organic elements, improving their liquid crystal transmittance rates, and minimizing hazardous substances. In 2024, this accreditation was updated to the “SGS EEPS accreditation.” In 2023, we received the SGS Eco Label accreditation for our high-end LCD display panels for certain IT products (27 inches or smaller in size) applying recycled materials for the first time and was the first in the industry to receive such accreditation for our 30-inch and 55-inch transparent display products applying hazardous substance reduction technology. We also received the SGS Performance Mark accreditation for our commercial display products applying energy consumption reduction technology and for our high-end IT display products (27 inches or smaller in size) for reducing energy consumption through the implementation of proprietary algorithms and improving panel transmittance. In addition, we received the SGS performance accreditation for our IT display products applying antibacterial films. 36 Table of Contents In addition, we received the Product Carbon Footprint (PCF) certification from TÜV Rheinland, a global independent testing, inspection and certification agency, in 2023 for our high-end IT display products (27-inch or smaller in size) for achieving a reduction in carbon emissions through the application of recycled materials and low energy consumption technologies. Our OLED panels for auto products also received the same certification for achieving a reduction in carbon emissions through the application of light-control film integration technology. In 2024, our 14-inch high-end LCD display panel for notebook computers received the Product Carbon Footprint Reduction (PCR) certification from TÜV Rheinland through the application of bio-plastics, recycled materials and ultra-precision micro-processing technology. Additionally, after verification by Underwriters Laboratories (UL), a global inspection and certification agency, such display panel also received the Environmental Claim Validation (ECV) certification. In 2025, we obtained the Product Carbon Footprint Calculation Method certification from TÜV Rheinland, reflecting our establishment of a system to evaluate carbon emissions generated throughout the entire product life cycle based on international standards and our proprietary evaluation methodology optimized for display panels, as well as an IT system for calculating product carbon footprints. In the same year, after enhancing and replacing PFAS-containing components in certain LCD panels for notebook computers, we obtained the SGS ECCS Mark – PFAS Screened. Joint Ventures We consider joint ventures an important part of our business, both operationally and strategically. We have used joint ventures to enter into new geographic markets, in particular China, to gain new customers and/or strengthen positions with existing customers and to procure certain components and raw materials. When entering new geographic markets where we do not have substantial local experience and infrastructure, teaming up with a local partner can reduce capital investment by leveraging the pre-existing infrastructure of local partners. In addition, local partners in these markets can provide knowledge and insight into local customs and practices and access to local suppliers of raw materials and components. All of these advantages can reduce the risk, and thereby enhance the prospects for the success, of an entry into a new geographic market. If the partner of the joint venture already has an established customer base, it can also be an effective means to acquire such new customers. Joint venture arrangements also allow us to access technology we would otherwise have to develop independently, thereby reducing the time and cost of development. They can also provide the opportunity to create synergies and applications of technology that would not otherwise be possible. From time to time, we have pursued a number of joint venture initiatives. For example, in September 2012, we entered into a joint venture agreement with Guangzhou GET Technologies Development Co., Ltd., or GET Tech, and Shenzhen SKYWORTH-RGB Electronic Co., Ltd., or Skyworth, to establish LG Display (China) Co., Ltd., which owned and operated our CA fabrication facility in Guangzhou, China. We initially acquired a 70.0% equity interest in LG Display (China) and invested a total of approximately US$927 million over a period of two years from the date of incorporation of LG Display (China). Each of GET Tech and Skyworth initially owned a 20.0% and 10.0% equity interest in LG Display (China), respectively. However, as part of our strategic shift to focus on OLED panels, we recently disposed of our equity interest in LG Display (China). In connection with such transaction, we first acquired Skyworth’s 10% equity interest in the company and subsequently entered into a sale agreement with TCL CSOT in September 2024 to dispose of our entire 80% equity interest in LG Display (China). Following the completion of the sale, LG Display (China) was excluded from the scope of our consolidated subsidiaries effective April 1, 2025. See “—Products—Televisions.” In addition, in July 2018, we established and acquired a 69% ownership interest in a joint venture with the government of Guangzhou, LG Display High-Tech (China) Co., Ltd., to construct our new CO fabrication facility to manufacture next generation large-sized OLED panels in Guangzhou, China. We currently own a 70% equity interest in LG Display High-Tech (China) Co., Ltd., and we commenced mass production of large-sized OLED panels at the CO fabrication facility in July 2020. We intend to continue to seek strategic acquisition and joint venture opportunities and conduct feasibility studies with respect to establishing new manufacturing subsidiaries in strategic locations to deepen our market penetration, achieve economies of scale, increase our customer base, expand our geographical reach and reduce costs. 37 Table of Contents Subsidiaries The following table sets forth summary information for our subsidiaries as of December 31, 2025: Subsidiary Main Activities Jurisdiction of Organization Date of Organization Percentage of Our Ownership Interest Percentage of Our Voting Power LG Display Taiwan Co., Ltd. Sales Taiwan April 1999 100% 100% LG Display America, Inc. Sales U.S.A. September 1999 100% 100% LG Display Japan Co., Ltd. Sales Japan October 1999 100% 100% LG Display Germany GmbH Sales Germany October 1999 100% 100% LG Display Nanjing Co., Ltd. Manufacturing China July 2002 100% 100% LG Display Shanghai Co., Ltd. Sales China January 2003 100% 100% LG Display Shenzhen Co., Ltd. Sales China July 2007 100% 100% LG Display Singapore Pte. Ltd. Sales Singapore November 2008 100% 100% LG Display Yantai Co., Ltd. Manufacturing China March 2010 100% 100% L&T Display Technology (Fujian) Ltd. Manufacturing and sales China December 2009 51% 51% Nanumnuri Co., Ltd. Managing welfare facilities Korea March 2012 100% 100% Unified Innovative Technology, LLC Managing intellectual property U.S.A. March 2014 100% 100% Global OLED Technology LLC Managing intellectual property U.S.A. December 2009 100% 100% LG Display Guangzhou Trading Co., Ltd. Sales China April 2015 100% 100% LG Display Vietnam Haiphong Co., Ltd. Manufacturing and sales Vietnam May 2016 100% 100% Suzhou Lehui Display Co., Ltd. Manufacturing and sales China July 2016 100% 100% LG Display Fund I LLC Investing in new emerging companies U.S.A. May 2018 100% 100% LG Display High-Tech (China) Co., Ltd. Manufacturing and sales China July 2018 70% 70% N.B. See Note 1(b) of the notes to our financial statements for changes to our subsidiaries during the year ended December 31, 2025. Item 4.C. Organizational Structure These matters are discussed under Item 4.B. where relevant. 38 Table of Contents Item 4.D. Property, Plants and Equipment Current Facilities The following table sets forth the size, location and primary use of our current fabrication facilities. Fabrication Facility Generation(1) Mass Production Commencement Location Gross Floor Area (in square meters) Primary Types of Panels Produced Korea P62 (2) 6 April 2009 Gumi, Korea — TFT-LCD for IT products AP3 6 February 2014 Gumi, Korea 288,634 Plastic OLED for mobile and other products P8 (3) 8 March 2009 Paju, Korea 506,895 TFT-LCD for commercial displays and IT products OP1 (4) 8 January 2013 Paju, Korea See P8 above OLED for television and IT products P9 (5) 8 June 2012 Paju, Korea 534,777 TFT-LCD for IT products AP4 (6) 6 July 2019 Paju, Korea See P9 above Plastic OLED for mobile and other products AP5 6 February 2024 (7) Paju, Korea 915,482 (8) Glass OLED and plastic OLED for IT products and other applications Overseas CO 8 July 2020 Guangzhou, China 426,139 OLED for television (1)Based on internal reference to evolutions in facility design, material flows and input substrate sizes. There are several definitions of “generations” in the display industry. There has been no consensus in the display industry on a uniform definition. References to generations made in this annual report are based on our current definition of generations as indicated in the table below. Substrate Sizes (in millimeters) Gen 5 Gen 6 Gen 7 Gen 8 1,000 x 1,200 1,100 x 1,250 1,100 x 1,300 1,200 x 1,300 1,500 x 1,800 1,500 x 1,850 1,870 x 2,200 1,950 x 2,250 2,200 x 2,500 (2)We ceased production at, and closed, the P62 fabrication facility in June 2023. (3)Gross floor area of P8 fabrication facility includes the gross floor area of OP1 fabrication facility, which is located in the same complex. (4)The gross floor area of this fabrication facility is included within the P8 fabrication facility. (5)Gross floor area of P9 fabrication facility includes the gross floor area of AP4 fabrication facility, which is located in the same complex. (6)The gross floor area of this fabrication facility is included within the P9 fabrication facility. (7)Based on the construction completion date. (8)Represents the gross floor area for the overall P10 fabrication facility (in which AP5 facility is located), which is currently not yet completed. For input substrate size, initial design capacity and year-end input capacity as a result of ramp-up for each of our fabrication facilities, please see “Item 5.A. Operating Results—Overview—Manufacturing Productivity and Costs.” 39 Table of Contents We also operate module assembly facilities in China (Nanjing, Guangzhou and Yantai), Korea (Gumi and Paju) and Vietnam (Haiphong). In addition, we operate a research and development facility in Paju, Korea, which we refer to as the R&D Center. We opened the R&D Center in April 2012 to consolidate our research and development efforts for next-generation display technologies. The following table sets forth the size of our R&D Center and module assembly facilities. Facility Gross Floor Area (in square meters) Mass Production Commencement R&D Center 69,871 Not applicable (opened in April 2012) Gumi assembly facility 301,779 January 1995 Nanjing assembly facility (1) 159,448 May 2003 Paju assembly facility 225,093 January 2006 Guangzhou assembly facility 89,517 (2) December 2007 Yantai assembly facility 45,170 May 2010 Haiphong assembly facility 358,787 July 2017 (1)More recently, in February 2026, to further improve our overall operational efficiency and upgrade our business structure by outsourcing the in-house production of automotive display TFT-LCD modules, we entered into an agreement with Top Run Total Solution to transfer the automotive display TFT-LCD module business of LG Display Nanjing Co., Ltd., which transfer is expected to be completed in July 2026. (2)The gross floor area for this facility excludes the floor area attributable to the module assembly facility relating to TFT-LCD television panels, which we disposed of as part of the sale of the related businesses to TCL CSOT. Capital Expenditures In July 2017, we announced plans to make investments in an aggregate amount of up to W7.8 trillion mainly in new large-sized and plastic OLED production lines in Paju, Korea. In July 2019, we announced plans to make additional investments of W3.0 trillion in the previously announced new large-sized OLED production lines. Certain of such investments have already been completed with respect to plastic OLED panels and we commenced mass production of such panels in July 2019. However, our scheduled investments in large-sized OLED panels pursuant to the July 2017 and July 2019 announcements have been extended until the first quarter of 2028 due in part to increased uncertainties in the global economic environment. We are in the process of developing and assessing the specifics of such planned investments, including the timing. In August 2021, we announced plans to make investments in an aggregate amount of up to W3.3 trillion in a new fabrication complex in Paju, Korea, P10, which will be used for the production of small- and medium-sized OLED panels. We completed the construction of our AP5 fabrication facility located within such complex in February 2024 and have subsequently commenced mass production of medium-sized OLED panels at such facility. In June 2025, we announced plans to invest approximately W1.3 trillion in next-generation OLED technologies and infrastructure, primarily at our fabrication complex in Paju, Korea, and such investment is currently in progress. In addition, on April 22, 2026, we announced plans to make investments in an aggregate amount of W1.1 trillion in new facilities for the purpose of enhancing our technological competitiveness and strengthening our basis for growth through the advancement of OLED technologies, with an expected completion date of June 30, 2028. We currently expect that, in 2026, our total capital expenditures on a cash out basis will be higher compared to 2025 and will be used primarily to continue to fund our previously announced investments related to our continued and ongoing transition to an OLED-centric business structure, as well as other essential recurring investments. Such expected capital expenditures are subject to periodic assessment, and we cannot provide any assurance that such expected capital expenditures may not change materially after assessment. We may undertake further expansion projects in the future with respect to our existing facilities as our overall business strategy may require.

Overview Our results of operations are affected principally by overall market conditions, our manufacturing productivity and costs, and our product mix. Market Conditions The display industry in which we operate is affected by market conditions that are often outside the control of individual manufacturers. Our results of operations might fluctuate significantly from period to period due to market factors, such as seasonal variations in consumer demand, global economic conditions, external factors that impact the supply chain, surges in production capacity by competitors and changes in technology. Over the past decade, the display industry has been undergoing a transition from TFT-LCD panels to alternative display panels based on newer technologies, primarily OLED panels. While TFT-LCD panels account for a majority of the products supplied in the overall display industry, OLED technology is widely seen in the display industry as the successor technology to TFT-LCD technology and has continually gained wider market acceptance for use in display panels over the past decade. With respect to the TFT-LCD industry, sales volume decreased from 2,706 million units in 2012 to 2,526 million units in 2025, and market revenue decreased from US$92 billion to US$81 billion during the same period according to OMDIA. With respect to the OLED industry, sales volume significantly increased from 188 million units in 2012 to 1,063 million units in 2025, and market revenue also significantly increased from US$7 billion to US$52 billion during the same period, also according to OMDIA. Currently, small-sized panels for use in mobile devices such as smartphones make up the bulk of the OLED panel market, accounting for approximately 83% of industry revenue from global sales of OLED panels in 2025. While the OLED market has historically been significantly smaller than the TFT-LCD market, we believe that the market has been evolving steadily as OLED panels have continued to achieve broader adoption across a wider range of applications and sizes, supported by technological advances and improvements in manufacturing efficiency. We have been engaged in the development and commercialization of OLED technology for over a decade and have accumulated experience in the mass production of OLED panels across various product categories. In recent years, we have significantly expanded our investment and production capabilities to support the commercialization of OLED panels at scale. For example, in August 2021, we announced plans to make investments in an aggregate amount of up to W3.3 trillion in a new fabrication complex in Paju, Korea, P10, which will be used for the production of small- and medium-sized OLED panels. We completed the construction of our AP5 fabrication facility located within such complex in February 2024, and have subsequently commenced mass production of medium-sized OLED panels at such facility. In June 2025, we announced plans to invest approximately W1.3 trillion in next-generation OLED technologies and infrastructure, primarily at our fabrication complex in Paju, Korea, and such investment is currently in progress. In addition, on April 22, 2026, we announced plans to make investments in an aggregate amount of W1.1 trillion in new facilities for the purpose of enhancing our technological competitiveness and strengthening our basis for growth through the advancement of OLED technologies, with an expected completion date of June 30, 2028. At the same time, we have been strategically reducing the production level of our TFT-LCD panels, including through the disposal of our equity interest in our Chinese subsidiaries engaged in the manufacturing of TFT-LCD panels and modules for televisions. Following the completion of the sale, these entities were excluded from the scope of our consolidated subsidiaries effective April 1, 2025. See “Risk Factors — Risks Relating to Our Industry — A global economic downturn may result in reduced demand for our products and adversely affect our profitability.” While the display industry has shown periods of rapid growth in the past, it has also experienced business cycles with significant and rapid price declines from time to time. Historically, display panel manufacturers have increased display area fabrication capacity rapidly at times. Capacity expansion occurs especially rapidly when several manufacturers ramp-up new factories at the same time. Recently, Chinese display panel manufacturers have been increasingly making capital investments in OLED technology, especially with respect to small- and mid-sized OLED display panels. For example, BOE, China’s largest display panel manufacturer, has continued to make capital investments aimed at expanding its OLED production capabilities across multiple manufacturing facilities in China, including in Chengdu and other regions. Moreover, Samsung Display, one of our primary competitors based in Korea, has been making significant capital investments in a new OLED manufacturing facility in Asan, Korea. During periods of surges in the rate of supply growth, our customers are able to exert downward pricing pressure, leading to sharp declines in average selling prices and significant fluctuations in our gross margin. In addition, regardless of relative capacity expansion, we expect average selling prices of our existing products to decline as the cost of manufacturing declines due to technology advances and component cost reductions. Conversely, 41 Table of Contents constraints in the industry supply chain or increased demand for new technology products have led to increased prices for display panels in some past periods. According to OMDIA, the display industry for panels that are nine inches or larger expanded in 2025 compared to 2024, with total market revenue increasing from approximately US$71 billion in 2024 to US$72 billion in 2025. The average selling price of those panels decreased during the same period by approximately 4% from approximately US$80 in 2024 to US$76 in 2025. Moreover, according to OMDIA, the display industry for panels that are smaller than nine inches contracted in 2025 compared to 2024, with total market revenue decreasing from US$65 billion in 2024 to US$63 billion in 2025. The average selling price of those panels decreased during the same period by approximately 3% from approximately US$23 in 2024 to US$22 in 2025. We believe that these decreases in the average selling prices of display panels were partly attributable to intensified competition in the display panel industry. We strive to mitigate the effect of industry cyclicality and the resulting price fluctuations by planning capacity expansions and capacity allocations, or shifting our product mix, to capture premium prices in specific emerging, high-end product categories. As part of our strategy, we have been proceeding with additional investments to secure future technological competitiveness through timely development of new OLED technologies and related infrastructure, as well as upgrading and converting existing facilities and production lines to produce differentiated specialty display panels that command higher premiums. See “Item 4.D. Property, Plants and Equipment—Capital Expenditures.” In addition, we are vigorously pursuing our strategy to develop differentiated specialty products and technologies that better address our customers’ needs, thereby delivering greater value to our customers. In many cases, these efforts go hand-in-hand with our efforts to develop products based on new technologies that allow us to realize greater premiums. For example, we have allocated significant resources to the development and production of specialized OLED panels for televisions and commercial displays (such as our next-generation “META” display panels (which apply advanced technologies to offer brighter and more stable images), transparent OLED display panels as well as OLED display panels for gaming monitors), display panels utilizing Ultra HD technology, low power consumption and AH-IPS technology for various IT products and televisions and plastic OLED technology for smartphones, automotive products and wearable devices. In particular, we have deployed, and are continuing to deploy, significant resources into plastic OLED panels for mobile and other products and auto products, as well as medium-sized OLED panels for IT products, to further expand our market presence and maintain our early competitive edge in such market. Another key aspect of our strategy is to foster close cooperation with our customers and build on our strategic relationships with many of our key suppliers. Success of a new product depends on, among other things, working closely with our customers to gain insights into their product needs and to understand general trends in the market. At the same time, we often work with our equipment suppliers to design equipment that can enhance the efficiency of our production processes for such new products. Uncertainties in the global economy have increased in recent years, with global financial and capital markets experiencing substantial volatility. In particular, the COVID-19 pandemic that began in late 2019 and rapid increases in interest rates globally starting in the second half of 2021 to combat inflation have materially and adversely affected the global economy and financial markets. Such uncertainties have been, and continue to be, exacerbated by, among other things, a deterioration in economic and trade relations between the United States and its trading partners (including as a result of the imposition of significant tariffs by the United States on its trading partners) which has been followed by retaliatory tariffs in some cases, escalations in trade protectionism globally, Russia’s invasion of Ukraine and ensuing sanctions against Russia, the slowdown of economic growth in China and other major emerging market economies, adverse economic and political conditions in Europe and Latin America and continuing geopolitical and social instability in North Korea and various parts of the Middle East, including the military conflicts between Iran and other countries, including the United States and Israel. See “Item 3.D. Risk Factors—Risks Relating to Our Industry—A global economic downturn may result in reduced demand for our products and adversely affect our profitability” and “Item 3.D. Risk Factors—Risks Relating to Our Company—Earthquakes, tsunamis, floods, severe health epidemics and other natural calamities could materially adversely affect our business, results of operations or financial condition.” We cannot provide any assurance that demand for our products can increase or be sustained at current levels in future periods, or that the demand for our products will not decrease in the future due to such economic downturns, which may adversely affect our profitability. Manufacturing Productivity and Costs We seek to continually enhance our manufacturing productivity and thereby reduce the cost of producing each panel. Over the years, we have expanded our production capacity by investing in fabrication facilities that can process 42 Table of Contents larger-size glass substrates, which allows us to improve manufacturing efficiency and produce more panels and a variety of display sizes to accommodate evolving business and consumer demands. The following table shows the input substrate size, initial design capacity and year-end input capacity as a result of ramp-up for each of our fabrication facilities as of the dates indicated: Primary Input Substrates Size Year-end Input Capacity(1) Facility (in millimeters) 2023 2024 2025 (in thousands of input substrates per month) AP3 1,500 x 1,850 29 37 37 AP4 1,500 x 1,850 45 47 47 AP5 1,500 x 1,850 N/A (3) 17 15 OP1 2,200 x 2,500 39 58 35 P62(2) 1,500 x 1,850 N/A (3) N/A (3) N/A (3) P8 2,200 x 2,500 102 103 86 P9 2,200 x 2,500 70 70 69 CA(4) 2,200 x 2,500 114 190 N/A (3) CO 2,200 x 2,500 65 75 91 (1)Year-end input capacity is the total input substrates for the month that had the highest monthly input substrates during the fiscal year. (2)We ceased production at, and closed, the P62 fabrication facility in June 2023. (3)N/A means not applicable. (4)In September 2024, we entered into an agreement with TCL CSOT to dispose of our entire equity interest in LG Display (China) Co., Ltd., the company that owned and operated our CA fabrication facility. Following the completion of the sale, these entities were excluded from the scope of our consolidated subsidiaries effective April 1, 2025. Our cash outflows for capital expenditures amounted to W3,483 billion in 2023, W2,130 billion in 2024 and W1,348 billion (US$933 million) in 2025. Such capital expenditures related mainly to our investments in production facilities for medium-sized and plastic OLED panels and our ongoing efforts to secure future technological competitiveness through timely development of new OLED technologies and related infrastructure. Capital expenditures were also incurred for the acquisition of new equipment during the same period. Our depreciation expense as a percentage of revenue decreased from 17.0% in 2023 to 16.2% in 2024 and to 14.1% in 2025. Such decrease in 2025 compared to 2024 was a result of a relatively larger decrease in our depreciation expense compared to the decrease in our revenue. We currently expect that, in 2026, our total capital expenditures on a cash out basis will be higher compared to 2025 and will be used primarily to continue to fund our previously announced investments related to our continued and ongoing transition to an OLED-centric business structure, as well as other essential recurring investments. Such expected capital expenditures are subject to periodic assessment, and we cannot provide any assurance that such expected capital expenditures may not change materially after assessment. Since our inception, we have designed our fabrication facilities in-house and co-developed most equipment sets with our suppliers. These efforts have enabled us to gain valuable experience in designing and operating next-generation fabrication facilities capable of processing increasingly larger-size glass substrates. We have been able to leverage this experience to achieve and maintain high production output and yields at our fabrication facilities, thereby lowering costs. In addition, in recent years, we have substituted a portion of our equipment purchased from overseas vendors with purchases from local vendors to diversify our supply source and reduce costs. We also continue to make various process improvements at our fabrication facilities, including enhancing the performance of process equipment, efficiency of material flows and quality of process and product designs. Such process improvements result in increased unit output of our fabrication facilities without significant capital investment, thus enabling us to reduce fixed costs on a per panel basis. In addition, in commencing mass production of large-sized OLED products, we have made modifications to certain of our existing TFT-LCD production lines to convert them into OLED panel production lines. Because our large-sized OLED panels employ oxide TFT backplane technology, which can be produced using manufacturing processes similar to the processes used to manufacture TFT-LCD panels, relatively little modification has been necessary, thereby reducing the costs of additional investments needed for the conversion of our production lines. The size of our OLED manufacturing operations has also expanded considerably in recent years, enabling us to benefit from economies of scale. Raw materials comprise the largest component of our costs. We monitor the prices at which we can procure raw materials from suppliers and to the extent overseas suppliers are able to provide raw materials at competitive prices, we have diversified our supplier base by procuring raw materials from such overseas suppliers. We have also been able to leverage our scale and leading industry position to obtain competitive prices from our suppliers. 43 Table of Contents Our cost reduction efforts in recent years also include our decision to substantially reduce the production of TFT-LCD panels in Korea and China in light of the continued overcapacity in the global TFT-LCD market and capital investments by other suppliers, particularly from China. Between 2022 and 2023, we closed certain TFT-LCD fabrication facilities, including P5 (where we had produced TFT-LCD panels for notebook computers and mobile and other products), P7 (where we had produced TFT-LCD panels for televisions) and P62 (where we had produced TFT-LCD panels for notebook computers and desktop monitors), in light of our continued efforts to increase the proportion of OLED panels in our product mix and the production capacity for such panels and further reduce our production level of TFT-LCD panels, which we believe to be relatively more sensitive to market conditions and generally allow for fewer opportunities for product differentiation. In September 2024, as part of our efforts to accelerate the ongoing shift in our strategic direction to focus on OLED panels, we entered into an agreement with TCL CSOT to dispose of our entire equity interest in the China TFT-LCD Television Panel Subsidiaries, which engaged in TFT-LCD panel manufacturing and TFT-LCD module manufacturing for televisions, for approximately W2.2 trillion. Following the completion of the sale, these entities were excluded from the scope of our consolidated subsidiaries effective April 1, 2025. Assets and liabilities relating to such subsidiaries were accounted for as assets and liabilities held for sale in our consolidated statements of financial position as of December 31, 2024. See Note 1(c) of the notes to our financial statements for further discussion. In addition, we launched a voluntary retirement program in late 2023 for our manufacturing personnel in Korea, in late 2024 for our non-manufacturing personnel and in late 2025 for both manufacturing and non-manufacturing personnel, in each case to optimize the size of our workforce, partly in connection with the reduced production of TFT-LCD panels as mentioned above. More recently, in February 2026, to further improve our overall operational efficiency and upgrade our business structure by outsourcing the in-house production of automotive display TFT-LCD modules, we entered into an agreement with Top Run Total Solution to transfer the automotive display TFT-LCD module business of LG Display Nanjing Co., Ltd., which transfer is expected to be completed in July 2026. The above factors play significant roles in our efforts to manage our cost of sales per square meter of net display area, which is derived by dividing total costs of sales by total square meters of net display area shipped. Our cost of sales per square meter of net display area increased by 33.7% in 2025 compared to 2024, mainly due to changes in our product mix following the discontinuation of our TFT-LCD television panel production upon the sale of the China TFT-LCD Television Panel Subsidiaries in April 2025. As shipments of large-sized TFT-LCD television panels, which generally have a lower cost of sales per square meter, decreased significantly, and shipments of smaller-sized OLED panels, which require more expensive raw materials and are generally more costly to manufacture, accounted for a greater proportion of our products in 2025, our cost of sales per square meter of net display area increased. The increase was also partly attributable to the continued overall depreciation of the Korean Won against the U.S. dollar, in which a significant portion of our purchases of raw materials and components are denominated, during 2025. Our cost of sales per square meter of net display area decreased by 10.5% in 2024 compared to 2023, mainly due to the increased production efficiency of our manufacturing processes and our implementation of various cost reduction measures, which were partially offset by an overall depreciation of the Korean won against the U.S. dollar during 2024. Product Mix Our product mix reflects our strategic capacity allocation among various product markets, and is continually reviewed and adjusted based on the demand for, and our assessment of the profitability of, display panels in different markets and size categories. In recent years, we believe market demand has been shaped by a shift toward differentiated specialty products based on newer technologies, including OLED technology, especially in the display panel markets for Ultra HD televisions as well as various types of IT products and mobile and other products. In response to such market trends, we have increased our production capacity and sales of OLED panels, which accounted for 61% of our revenue in 2025, and have also developed and commercialized differentiated specialty products for a variety of applications. For example, with respect to our television display panel product portfolio, the proportion of sales of our television panels equipped with OLED technology increased between 2023 and 2025, and we have introduced various new products utilizing our differentiated technologies and features, such as Ultra HD and our next-generation “META” technologies, as well as large-sized display panels for gaming OLED monitors (which are included in our television display panel segment) featuring high resolutions, rapid response times, fast refresh rates, curved designs and other advanced performance features, in recent years. In addition, with respect to our IT products, we have expanded our product portfolio to offer desktop panels with Full HD and higher resolutions in a variety of screen aspect ratios and form factors. In recent years, we have also introduced and expanded our product offerings of panels for IT products utilizing OLED technology as well as AH-IPS technology with increasingly higher resolution and other features, and panels for smartphones, automotive products and wearable devices utilizing plastic OLED technology. 44 Table of Contents As part of our continued efforts to increase the proportion of OLED panels in our product mix, we have been reducing the production level of less profitable types of TFT-LCD panels in recent years, including by disposing of our entire equity interest in our Chinese subsidiaries engaged in the manufacturing of TFT-LCD panels and modules for televisions. Following the completion of the sale, these entities were excluded from the scope of our consolidated subsidiaries effective April 1, 2025. Additionally, we have been closing some of our fabrication facilities in Korea, where we had previously produced TFT-LCD panels, as described above. The following table sets forth our revenue by product category for the years indicated and revenue in each product category as a percentage of our total revenue: Year ended December 31, 2023 2024 2025 Sales % Sales % Sales Sales (1) % Panels for: (in billions of Won and millions of US$, except for percentages) Televisions W 4,331 20.3 % W 5,973 22.4 % W 4,791 US$ 3,317 18.6 % IT Products(2) 7,853 36.8 9,420 35.4 9,509 6,583 36.8 Mobile and other products(3) 7,071 33.1 8,782 33.0 9,132 6,321 35.4 Auto Products 1,999 9.4 2,281 8.6 2,136 1,479 8.3 Sales of goods W 21,254 99.6 % W 26,456 99.4 % W 25,568 US$ 17,700 99.1 % Royalties and others 77 0.4 159 0.6 242 167 0.9 Revenue W 21,331 100.0 % W 26,615 100.0 % W 25,810 US$ 17,867 100.0 % (1)For convenience, the Korean Won amounts are expressed in U.S. dollars at the rate of W1,444.55 to US$1.00, the noon buying rate in effect on December 31, 2025 as certified by the Federal Reserve Bank of New York for customs purposes. This translation should not be construed as a representation that the Korean Won amounts represent, have been or could be converted to U.S. dollars at that rate or any other rate. (2)Comprises notebook computers, desktop monitors and tablet computers. (3)Includes, among others, panels for mobile devices, including smartphones and other types of mobile phones, and industrial and other applications, including entertainment systems and medical diagnostic equipment. The following table sets forth our sales volume by product category for the years indicated and as a percentage of our total panels sold: Year ended December 31, 2023 2024 2025 Panels for Number of Panels % Number of Panels % Number of Panels % (in thousands, except for percentages) Televisions 13,932 7.2 % 20,512 9.1 % 10,498 4.7 % IT Products(1) 78,176 40.2 81,554 36.1 78,571 35.5 Mobile and other products(2) 84,855 43.6 103,803 46.0 113,826 51.6 Auto Products 17,414 9.0 19,745 8.8 18,153 8.2 Total 194,377 100.0 % 225,614 100.0 % 221,048 100.0 % (1)Comprises notebook computers, desktop monitors and tablet computers. (2)Includes, among others, panels for mobile devices, including smartphones and other types of mobile phones, and industrial and other applications, including entertainment systems and medical diagnostic equipment. Average Selling Prices Our product mix has an impact on our average selling prices. In addition to business cycles, industry-wide supply and demand balances and other market- or industry-wide variables, our product cost and price vary with the product display area, as well as the technology and specification of such product. Therefore, the average selling price of our products can vary over time as a result of business cycles and the choices we make in capacity allocation for specific products. The overall average selling price of our display panels can fluctuate significantly. Our average selling price per panel, which is derived by dividing total sales of goods by the total number of panels sold, increased by 7.3% from W109 thousand in 2023 to W117 thousand in 2024, but slightly decreased by 0.9% to W116 thousand (US$80) in 2025. 45 Table of Contents In 2024 compared to 2023, our average selling price increased mainly due to increases in the average selling price for certain IT products applying our tandem OLED technology, which allows for higher resolutions with lower power consumption and longer lifespan, and to a lesser extent, mobile and other products. Such increases were primarily attributable to our continued strategic focus to increase the proportion of high-end and differentiated products in our product mix as well as the overall depreciation of the Korean won against the U.S. dollar during 2024, in which substantially all of our sales are denominated. The impact of such increases was partially offset by a decrease in the average selling price for television products, which in turn was mainly due to continued weak demand in the overall television market, amid continued economic volatility and uncertainty globally. In 2025 compared to 2024, our average selling price decreased slightly, mainly due to changes in our product mix following the discontinuation of our TFT-LCD television panel production as discussed above. As we discontinued production of TFT-LCD television panels and increased the proportion of panels for mobile and other applications, which are typically smaller in size and generally sold at a lower price per panel compared to panels for televisions, IT and automotive products, our average selling price decreased. The decrease was also partly attributable to a decline in the average selling price for mobile and other applications, which primarily reflected changes in product mix within the mobile and other applications segment, including a higher proportion of panels with comparatively lower average selling prices, as well as continued pricing pressure in certain end markets. The impact of such changes was offset in part by a significant increase in the average selling price of television panel products, which was mainly attributable to our continued efforts to focus on and increase sales of higher-priced OLED television panels, as well as increases in the average selling prices of IT and automotive panel products, primarily reflecting a higher proportion of higher-end and differentiated products in these product segments and the overall depreciation of the Korean won against the U.S. dollar during 2025, in which substantially all of our sales are denominated. The following table sets forth our average selling price per panel by markets for the years indicated: Average Selling Price(1) Year ended December 31, 2023 2024 2025(2) (in thousands, except for US$) Televisions W 311 W 291 W 456 US$ 316 IT Products(3) 100 116 121 84 Mobile and other products (4) 83 85 80 55 Auto Products 115 116 118 82 All panels 109 117 116 80 (1)Average selling price for each market represents revenue per market divided by unit sales per market. (2)For convenience, the Korean Won amounts are expressed in U.S. dollars at the rate of W1,444.55 to US$1.00, the noon buying rate in effect on December 31, 2025 as certified by the Federal Reserve Bank of New York for customs purposes. This translation should not be construed as a representation that the Korean Won amounts represent, have been or could be converted to U.S. dollars at that rate or any other rate. (3)Comprises notebook computers, desktop monitors and tablet computers. (4)Includes, among others, panels for mobile devices, including smartphones and other types of mobile phones, and industrial and other applications, including entertainment systems and medical diagnostic equipment. Our average revenue per square meter of net display area, which is derived by dividing our total revenue by total square meters of net display area shipped, decreased by 2.5% from W1,103 thousand in 2023 to W1,076 thousand in 2024. In 2025, our average revenue per square meter of net display area shipped significantly increased by 38.9% to W1,495 thousand (US$1,035). Recent Accounting Changes For a discussion of new standards, interpretations and amendments to existing standards that have been published, see Note 3 of the notes to our financial statements. 46 Table of Contents Operating Results The following presents our consolidated results of operation information and as a percentage of our revenue for the years indicated: Year ended December 31, 2023 % 2024 % 2025 2025(1) % (in billions of Won and in millions of US$, except for percentages) Revenue W 21,331 100.0 % W 26,615 100.0 % W 25,810 US$ 17,867 100.0 % Cost of sales (20,986 ) 98.4 (24,040 ) 90.3 (22,434 ) (15,530 ) 86.9 Gross profit 345 1.6 2,575 9.7 3,376 2,337 13.1 Selling expenses (576 ) 2.7 (585 ) 2.2 (481 ) (333 ) 1.9 Administrative expenses (900 ) 4.2 (1,104 ) 4.1 (968 ) (670 ) 3.8 Research and development expenses (1,380 ) 6.5 (1,448 ) 5.4 (1,411 ) (977 ) 5.5 Other income 1,472 6.9 2,100 7.9 2,596 1,797 10.1 Other expenses (1,786 ) 8.4 (2,798 ) 10.5 (2,039 ) (1,412 ) 7.9 Finance income 1,122 5.3 883 3.3 578 400 2.2 Finance costs (1,635 ) 7.7 (1,822 ) 6.8 (1,153 ) (798 ) 4.5 Equity in income (loss) of equity accounted investees, net (3 ) 0.0 5 0.0 2 1 0.0 Profit (Loss) before income tax (3,339 ) (15.7 ) (2,192 ) (8.2 ) 502 348 1.9 Income tax benefit (expense) 763 3.6 (218 ) 0.8 (198 ) (137 ) 0.8 Profit (Loss) for the year (2,577 ) (12.1 ) (2,409 ) (9.1 ) 304 210 1.2 (1)For convenience, the Korean Won amounts are expressed in U.S. dollars at the rate of W1,444.55 to US$1.00, the noon buying rate in effect on December 31, 2025 as certified by the Federal Reserve Bank of New York for customs purposes. This translation should not be construed as a representation that the Korean Won amounts represent, have been or could be converted to U.S. dollars at that rate or any other rate. Comparison of 2025 to 2024 Revenue Our revenue decreased by 3.0% from W26,615 billion in 2024 to W25,810 billion (US$17,867 million) in 2025. The decrease in revenue resulted from decreases in revenue derived from sales of panels for televisions and auto products, which were in turn mainly due to decreases in the number of panels sold in both categories, offset in part by increases in revenue derived from sales of panels for mobile and other products and IT products. Revenue attributable to sales of panels for televisions decreased by 19.8% from W5,973 billion in 2024 to W4,791 billion (US$3,317 million) in 2025, resulting from a significant decrease in the number of units sold of panels in this category in 2025 compared to 2024, which was partially offset by a significant increase in the average selling price of panels in this category in 2025 compared to 2024. The total unit sales of panels for televisions decreased by 48.8% from 20.5 million panels in 2024 to 10.5 million panels in 2025, whereas the average selling price of panels in this category increased by 56.7% from W291 thousand in 2024 to W456 thousand (US$316) in 2025. The decrease in the sales volume of panels for televisions was mainly attributable to the discontinuation of our TFT-LCD television panel production following the sale of the China TFT-LCD Television Panel Subsidiaries in April 2025 as part of the continued implementation of our strategy to phase out the production of TFT-LCD television panels. The increase in the average selling price of panels for televisions was mainly due to an increase in the proportion of OLED television panels, which generally command higher selling prices than TFT-LCD television panels, in our product mix as we phased out the production of TFT-LCD television panels as described above, as well as the depreciation of the Korean Won against the U.S. dollar during 2025. Revenue attributable to sales of panels for auto products decreased by 6.4% from W2,281 billion in 2024 to W2,136 billion (US$1,479 million) in 2025, resulting from a decrease in the number of units sold of panels in this category in 2025 compared to 2024, which was partially offset by an increase in the average selling price of panels in this category in 2025 compared to 2024. The total unit sales of panels for auto products decreased by 7.6% from 19.7 million panels in 2024 to 18.2 million panels in 2025, whereas the average selling price of panels in this category increased slightly by 1.7% from W116 thousand in 2024 to W118 thousand (US$82) in 2025. The decrease in the sales volume of panels for auto products was attributable to a decrease in orders from certain global automotive downstream customers, reflecting reduced electric vehicle sales by those customers amid reductions in government subsidies in certain major countries and intensifying competition from Chinese downstream manufacturers in the electric vehicle market. The slight increase in the average selling price of our panels for auto products was mainly due to a higher proportion of differentiated automotive display products with specialty features and newer technologies in our product mix, as well as the depreciation of the Korean Won against the U.S. dollar during 2025, as discussed above. 47 Table of Contents Revenue attributable to sales of panels for mobile and other products increased by 4.0% from W8,782 billion in 2024 to W9,132 billion (US$6,321 million) in 2025, resulting from an increase in the number of units sold of panels in this category in 2025 compared to 2024, which was partially offset by a decrease in the average selling price of panels in this category in 2025 compared to 2024. The total unit sales of panels for mobile and other products increased by 9.6% from 103.8 million in 2024 to 113.8 million in 2025, whereas the average selling price of panels in this category decreased by 5.9% from W85 thousand in 2024 to W80 thousand (US$55) in 2025. The increase in the sales volume of panels for mobile and other products was primarily attributable to our timely development of new panels and our achievement of increased stability in the mass production of our panels in this category, which together strengthened our collaboration with our end-brand customers. The decrease in the average selling price of panels in this category was mainly due to changes in our product mix within this segment and increased price competition among suppliers in the market for smartphone display panels, particularly in China, partially offset by the depreciation of the Korean Won against the U.S. dollar during 2025. Revenue attributable to sales of panels for IT products slightly increased by 0.9% from W9,420 billion in 2024 to W9,509 billion (US$6,583 million) in 2025, resulting from an increase in the average selling price of panels in this category in 2025 compared to 2024, which was partially offset by a decrease in the number of units sold of panels in this category in 2025 compared to 2024. The average selling price of panels for IT products increased by 4.3% from W116 thousand in 2024 to W121 thousand (US$84) in 2025, whereas the total unit sales of panels in this category decreased by 3.7% from 81.6 million panels in 2024 to 78.6 million panels in 2025. The increase in the average selling price of our panels for IT products was mainly attributable to the depreciation of the Korean Won against the U.S. dollar during 2025, as discussed above, as well as changes in product mix, including an increased proportion of OLED panels and higher-end products and our continued efforts to improve profitability by discontinuing or reducing the production level of lower-margin models. The decrease in the sales volume of panels for IT products was mainly attributable to the discontinuation, or reduction in the production volume, of such lower-margin models as part of our profitability-focused business strategy. In addition, our revenue attributable to royalty and others increased by 52.2% from W159 billion in 2024 to W242 billion (US$167 million) in 2025. The increase was primarily attributable to a significant increase in royalty revenue, mainly relating to our display equipment technology, as well as an increase in other revenue, consisting primarily of sales of sample products and certain raw materials and components. Cost of Sales Cost of sales decreased by 6.7% from W24,040 billion in 2024 to W22,434 billion (US$15,530 million) in 2025. The decrease in our cost of sales in 2025 compared to 2024 was attributable primarily to a decrease in raw materials and component costs mainly relating to a decrease in the number of panels sold in 2025 compared to 2024, partially offset by an increase in the proportion of products with differentiated specialty features and newer technologies that require higher-cost raw materials and components in our product mix. In addition, decreases in depreciation and overhead costs, resulting mainly from certain large-sized and small- to medium-sized OLED production facilities becoming fully depreciated and, to a lesser extent, the discontinuation of our TFT-LCD television panel production following the sale of the China TFT-LCD Television Panel Subsidiaries in April 2025, which removed the depreciable asset base and personnel associated with such operations, contributed to the decrease in cost of sales in 2025 compared to 2024. As a percentage of our total cost of sales, raw materials and component costs, labor costs, overhead costs, depreciation and amortization costs and change in inventory costs constituted 56.7%, 10.8%, 13.7%, 17.2% and 1.7%, respectively, in 2024 and 57.6%, 11.1%, 12.7%, 15.6% and 2.9%, respectively, in 2025. As a percentage of revenue, cost of sales decreased from 90.3% in 2024 to 86.9% in 2025. The decrease in our cost of sales as a percentage of revenue in 2025 compared to 2024 was attributable mainly to our continued cost reduction efforts and activities seeking to optimize our cost structure, as well as increasing the proportion of higher value-added products with higher margins in our product mix. Cost of sales per square meter of net display area, which is derived by dividing total cost of sales by total square meters of net display area shipped, increased by 33.7% from W972 thousand in 2024 to W1,299 thousand (US$899) in 2025. Cost of sales per panel sold, which is derived by dividing total cost of sales by total number of panels sold, decreased by 4.8% from W107 thousand in 2024 to W101 thousand (US$70) in 2025. Such changes were due mainly to decreases in the proportion of our large-sized television and IT panels, which generally have higher cost of sales per panel, but lower cost of sales per square meter of net display area, relative to our small- and medium-sized panels primarily in the mobile and others product category, sold in our product mix during the same period. 48 Table of Contents Gross Profit and Gross Margin Mainly as a result of our continued cost reduction efforts and activities seeking to optimize our cost structure, including the impact of the discontinuation of our TFT-LCD television panel production following the sale of the China TFT-LCD Television Panel Subsidiaries in April 2025, which outpaced the decrease in our revenue, our gross profit increased by 31.1% from W2,575 billion in 2024 to W3,376 billion (US$2,337 million) in 2025. Our gross margin increased from 9.7% to 13.1% over the same period primarily as a result of such cost reduction efforts and cost structure optimization activities, as well as changes in our product mix toward a higher proportion of OLED and other higher value-added products, including high-end TFT-LCD IT products, that generally carry higher margins. Selling and Administrative Expenses Selling and administrative expenses decreased by 14.2% from W1,688 billion in 2024 to W1,449 billion (US$1,003 million) in 2025. As a percentage of revenue, our selling and administrative expenses decreased from 6.3% in 2024 to 5.6% in 2025. The decrease in selling and administrative expenses in 2025 compared to 2024 was attributable to a decrease in depreciation and amortization expenses, resulting mainly from the discontinuation of our TFT-LCD television panel production following the sale of the China TFT-LCD Television Panel Subsidiaries in April 2025, a decrease in warranty expenses, primarily reflecting improved product quality in panels equipped with newer technologies (including OLED), and a decrease in shipping expenses, primarily attributable to a decrease in the volume of panels we sold. The following are the major components of our selling and administrative expenses for each of the years in the two-year period ended December 31, 2025: Year ended December 31, 2024 2025(1) (in billions of Won and millions of US$) Salaries W 580 W 542 US$ 375 Expenses related to defined benefit plans 23 26 18 Other employee benefits 84 79 55 Shipping 119 77 53 Fees and commissions 246 229 159 Depreciation 266 222 154 Taxes and dues 63 31 21 Advertising 67 62 43 Warranty 114 71 49 Insurance 14 12 8 Travel 13 12 8 Training 9 8 6 Others 90 78 54 Total W 1,688 W 1,449 US$ 1,003 (1)For convenience, the Korean Won amounts are expressed in U.S. dollars at the rate of W1,444.55 to US$1.00, the noon buying rate in effect on December 31, 2025 as certified by the Federal Reserve Bank of New York for customs purposes. This translation should not be construed as a representation that the Korean Won amounts represent, have been or could be converted to U.S. dollars at that rate or any other rate. Research and Development Expenses Research and development expenses decreased by 2.6% from W1,448 billion in 2024 to W1,411 billion (US$977 million) in 2025. As a percentage of revenue, our research and development expenses slightly increased from 5.4% in 2024 to 5.5% in 2025. The research and development expenses in 2025 were incurred mainly in relation to research and development activities related to OLED and next generation technologies and products. Other Income (Expense), Net Other income includes primarily foreign currency gain, gain on disposal of assets held for sale and gain on disposal of property, plant and equipment, and other expenses include primarily foreign currency loss, impairment loss on property, plant and equipment, loss on disposal of property, plant and equipment, and impairment loss on intangible assets. We recognized total net other income of W557 billion (US$385 million) in 2025 compared to total net other expense of W698 49 Table of Contents billion in 2024. Such change was mainly attributable to a gain on disposal of assets held for sale of W759 billion (US$525 million) in 2025 compared to no such gain in 2024, primarily due to the gain recognized in connection with the sale of the China TFT-LCD Television Panel Subsidiaries in April 2025. See Note 20 of the notes to our financial statements. Such change was also attributable to a net foreign currency gain of W6 billion (US$4 million) in 2025 compared to a net foreign currency loss of W507 billion in 2024, reflecting the weakening of the Korean Won against the U.S. dollar in 2025 compared to 2024. Such changes were partially offset by an increase in net impairment loss on property, plant and equipment from W94 billion in 2024 to W159 billion (US$110 million) in 2025, primarily due to an increase in impairment loss associated with our construction-in-progress costs, mainly relating to certain production facilities and related assets. Finance Income (Costs), Net Our total net finance costs decreased by 38.9% from W939 billion in 2024 to W574 billion (US$397 million) in 2025. Such decrease was mainly attributable to a net foreign currency gain of W58 billion (US$40 million) in 2025 compared to a net foreign currency loss of W486 billion in 2024, primarily due to an overall depreciation of the Korean Won against major foreign currencies and higher exchange rate volatility in 2025 compared to 2024, and a 22.7% decrease in interest expense from W910 billion in 2024 to W703 billion (US$487 million) in 2025, which was mainly due to a decrease in the average amount of our long-term borrowings outstanding as well as decreases in market interest rates in 2025 compared to 2024. Such effects were offset in part by a net loss on valuation of derivatives of W123 billion (US$85 million) in 2025 compared to a net gain on valuation of derivatives of W139 billion in 2024, which change was also primarily attributable to an overall depreciation of the Korean Won against the U.S. dollar and higher exchange rate volatility in 2025 compared to 2024. Against such fluctuations, we also recognized net gains on transaction of derivatives of W274 billion in 2024 and W162 billion (US$112 million) in 2025. Income Tax Benefit (Expense) Our income tax expense decreased by 9.2% from W218 billion in 2024 to W198 billion (US$137 million) in 2025, primarily reflecting a decrease in unrecognized deferred tax assets of W273 billion (US$189 million) in 2025 compared to an increase in unrecognized deferred tax assets of W704 billion in 2024, which related to variations in our estimates of tax loss carryforwards and tax credit carryforwards that are deemed to be not realizable based on our estimates of future taxable profit. The effect of such change was partially offset by our recording of profit before income tax of W502 billion (US$348 million) in 2025 compared to loss before income tax of W2,192 billion in 2024, resulting in income tax expense using the statutory tax rate of each country in which we pay income tax of W80 billion (US$55 million) in 2025 compared to income tax benefit of W527 billion in 2024, as well as a significant increase in the expenses attributable to the effect on change in tax rate from W55 billion in 2024 to W338 billion (US$234 million) in 2025, which mainly reflected a decrease in deferred tax assets resulting from the extension of certain tax incentive brackets in Korea, which lowered the applicable effective tax rate for such brackets. Our effective tax rate was 39.4% in 2025, whereas our effective tax rate was not calculated in 2024 due to the loss before income tax we recorded in such year. See Notes 22 and 23 of the notes to our financial statements. Profit (Loss) for the Year As a result of the cumulative effect of the reasons explained above, we recorded a loss for the year of W2,409 billion in 2024 but recorded a profit for the year of W304 billion (US$210 million) in 2025. Our loss for the year as a percentage of revenue was (9.1)% in 2024 and our profit for the year as a percentage of revenue was 1.2% in 2025. Comparison of 2024 to 2023 Revenue Our revenue increased by 24.8% from W21,331 billion in 2023 to W26,615 billion in 2024. The increase in revenue resulted from increases in revenue derived from sales of panels for mobile and other devices, televisions, IT products and auto products, which were in turn mainly due to an increase in the number of panels sold in each of these categories and increases in the average selling price of panels for IT products, mobile and other products and auto products. Revenue attributable to sales of panels for mobile and other products increased by 24.2% from W7,071 billion in 2023 to W8,782 billion in 2024, resulting primarily from an increase in the number of units sold of panels in this category in 2024 compared to 2023, accompanied by an increase in the average selling price of panels in this category in 2024 compared to 2023. The total unit sales of panels for mobile and other products increased by 22.3% from 84.9 million in 2023 to 103.8 million in 2024, and the average selling price of panels in this category increased by 2.4% from W83 thousand in 2023 to 50 Table of Contents W85 thousand in 2024. The increase in the sales volume of panels for mobile and other products was primarily attributable to our timely development of new panels and our achievement of increased stability in the mass production of our panels in this category, which together strengthened our collaboration with our end-brand customers. The increase in the average selling price of panels in this category was mainly due to the depreciation of the Korean Won against the U.S. dollar during 2024, which was partially offset by increased price competition among suppliers in the market for smartphone display panels. Revenue attributable to sales of panels for televisions increased by 37.9% from W4,331 billion in 2023 to W5,973 billion in 2024, resulting from a significant increase in the number of units sold of panels in this category in 2024 compared to 2023, which was partially offset by a decrease in the average selling price of panels in this category in 2024 compared to 2023. The total unit sales of panels for televisions increased by 47.5% from 13.9 million panels in 2023 to 20.5 million panels in 2024, whereas the average selling price of panels in this category decreased by 6.4% from W311 thousand in 2023 to W291 thousand in 2024. The increase in the sales volume of panels for televisions was mainly attributable to an increase in the sales volume of our large-sized OLED panels in the premium television market, primarily reflecting our continued strategic focus to increase the proportion of high-end OLED television panels while decreasing the proportion of TFT-LCD television panels in our product mix. The decrease in the average selling price of television panels was mainly attributable to the continued weak demand in the overall television market, due in part to the continued economic volatility and uncertainty globally, which more than offset the positive effects of the depreciation of the Korean Won against the U.S. dollar on average selling price during 2024. Revenue attributable to sales of panels for IT products increased by 20.0% from W7,853 billion in 2023 to W9,420 billion in 2024, resulting primarily from an increase in the average selling price of panels in this category in 2024 compared to 2023, accompanied by an increase in the number of units sold of panels in this category in 2024 compared to 2023. The average selling price of panels in this category increased by 16.0% from W100 thousand in 2023 to W116 thousand in 2024, and the total unit sales of panels for IT products increased by 4.4% from 78.2 million panels in 2023 to 81.6 million panels in 2024. The increase in the average selling price of our panels for IT products was mainly attributable to the depreciation of the Korean Won against the U.S. dollar during 2024, as discussed above, and the commencement of mass production of display panels applying tandem OLED technology, which generally command higher selling prices. The increase in the sales volume of panels for IT products was mainly attributable to the commencement of mass production of display panels applying tandem OLED technology. Revenue attributable to sales of panels for auto products increased by 14.1% from W1,999 billion in 2023 to W2,281 billion in 2024, resulting primarily from an increase in the number of units sold of panels in this category in 2024 compared to 2023, accompanied by a slight increase in the average selling price of panels in this category in 2024 compared to 2023. The total unit sales of panels for auto products increased by 13.2% from 17.4 million panels in 2023 to 19.7 million panels in 2024, and the average selling price of panels in this category increased slightly by 0.9% from W115 thousand in 2023 to W116 thousand in 2024. The increase in the sales volume of panels for auto products was attributable to our timely development of new panels and our achievement of increased stability in the mass production of our panels in this category, which together strengthened our collaboration with our end-brand customers. The slight increase in the average selling price of our panels for auto products was mainly due to our introduction and maintenance of a diverse product portfolio with differentiated specialty features and newer technologies, as well as the depreciation of the Korean Won against the U.S. dollar during 2024, as discussed above, which were largely offset by sluggish market demand for new automobiles due in part to the continued economic volatility and uncertainty globally. In addition, our revenue attributable to royalty and others increased by 106.5% from W77 billion in 2023 to W159 billion in 2024. The increase was primarily attributable to a significant increase in royalty revenue, mainly relating to our newly developed display equipment technology, as well as an increase in other revenue, consisting primarily of sales of sample products and certain raw materials and components. Cost of Sales Cost of sales increased by 14.6% from W20,986 billion in 2023 to W24,040 billion in 2024. The increase in our cost of sales in 2024 compared to 2023 was attributable primarily to an increase in raw materials and component costs mainly relating to an increase in the number of panels sold in 2024 compared to 2023, as well as the increase in the proportion of products with differentiated specialty features and newer technologies that require higher-cost raw materials and components in our product mix. In addition, an increase in overhead costs as well as an increase in depreciation costs resulting mainly from recognition of depreciation costs in respect of newly purchased machinery and equipment, contributed to the increase in cost of sales in 2024 compared to 2023. 51 Table of Contents As a percentage of our total cost of sales, raw materials and component costs, labor costs, overhead costs, depreciation and amortization costs and change in inventory costs constituted 55.1%, 12.0%, 13.8%, 16.2% and 2.9%, respectively, in 2023 and 56.7%, 10.8%, 13.7%, 17.2% and 1.7%, respectively, in 2024. As a percentage of revenue, cost of sales decreased from 98.4% in 2023 to 90.3% in 2024. The decrease in our cost of sales as a percentage of revenue in 2024 compared to 2023 was attributable mainly to our continued cost reduction efforts and activities seeking to optimize our cost structure, as well as increasing the proportion of higher value-added products with higher margins in our product mix. Cost of sales per square meter of net display area, which is derived by dividing total cost of sales by total square meters of net display area shipped, decreased by 10.5% from W1,086 thousand in 2023 to W972 thousand in 2024. Such decrease was due mainly to the higher capacity utilization rates at our production facilities in 2024 compared to 2023. Cost of sales per panel sold, which is derived by dividing total cost of sales by total number of panels sold, decreased by 1.3% from W108 thousand in 2023 to W107 thousand in 2024. Such decrease was due mainly to an increase in the proportion of our display panels for mobile and other products, which generally have lower cost of sales per panel relative to our larger panels in other product categories, sold in our product mix during the same period. Gross Profit and Gross Margin Mainly as a result of our continued cost reduction efforts and activities seeking to optimize our cost structure, which outpaced the effect of the increase in our revenue, our gross profit increased significantly from W345 billion in 2023 to W2,575 billion in 2024. Our gross margin increased from 1.6% to 9.7% over the same period primarily as a result of such cost reduction efforts and cost structure optimization activities as well as the higher capacity utilization rates at our production facilities in 2024 compared to 2023 and an increase in the average selling price of our panels in 2024 compared to 2023. High capacity utilization rates allow us to allocate fixed costs over a greater number of panels produced and thereby increase our gross margin. Selling and Administrative Expenses Selling and administrative expenses increased by 14.4% from W1,476 billion in 2023 to W1,688 billion in 2024. As a percentage of revenue, our selling and administrative expenses decreased from 6.9% in 2023 to 6.3% in 2024. The increase in selling and administrative expenses in 2024 compared to 2023 was attributable primarily to an increase in salaries, resulting mainly from a one-time retirement allowance incurred in connection with our voluntary retirement program implemented in 2024 in order to optimize our workforce and, to a much lesser extent, an increase in shipping costs, resulting mainly from an increase in our overall shipment volume (especially the volume of large-sized television product shipments) in 2024 compared to 2023. The following are the major components of our selling and administrative expenses for each of the years in the two-year period ended December 31, 2024: Year ended December 31, 2023 2024 (in billions of Won) Salaries W 373 W 580 Expenses related to defined benefit plans 25 23 Other employee benefits 87 84 Shipping 92 119 Fees and commissions 253 246 Depreciation 265 266 Taxes and dues 66 63 Advertising 76 67 Warranty 102 114 Insurance 14 14 Travel 18 13 Training 10 9 Others 95 90 Total W 1,476 W 1,688 52 Table of Contents Research and Development Expenses Research and development expenses increased by 4.9% from W1,380 billion in 2023 to W1,448 billion in 2024. As a percentage of revenue, our research and development expenses decreased from 6.5% in 2023 to 5.4% in 2024. The research and development expenses in 2024 were incurred mainly in relation to research and development activities related to OLED and next generation technologies and products. Other Income (Expense), Net Other income includes primarily foreign currency gain and gain on disposal of property, plant and equipment, and other expenses include primarily foreign currency loss, impairment loss on property, plant and equipment, loss on disposal of property, plant and equipment, and impairment loss on intangible assets. Our total net other expense increased by 122.2% from W314 billion in 2023 to W698 billion in 2024. Such increase was primarily due to an increase in net foreign currency loss from W118 billion in 2023 to W507 billion in 2024, reflecting higher exchange rate volatility in 2024 compared to 2023. Such increase was enhanced by an increase in net impairment loss on property, plant and equipment from W60 billion in 2023 to W94 billion in 2024, primarily due to an increase in impairment loss associated with our machinery and equipment, as well as an increase in net impairment loss on intangible assets from W55 billion in 2023 to W72 billion in 2024, primarily due to an increase in impairment loss associated with our development costs. Such increases were partially offset by a decrease in net loss on disposal of property, plant and equipment from W67 billion in 2023 to W25 billion in 2024, which primarily reflected a lower volume of manufacturing equipment disposed of in 2024 compared to 2023. Finance Income (Costs), Net Our total net finance costs increased by 83.3% from W512 billion in 2023 to W939 billion in 2024. Such increase was mainly attributable to a net foreign currency loss of W486 billion in 2024 compared to a net foreign currency gain of W48 billion in 2023, primarily due to higher exchange rate volatility in 2024 compared to 2023, and a 25.9% increase in interest expense from W723 billion in 2023 to W910 billion in 2024, which was mainly due to a decrease in capitalized interest in 2024 compared to 2023. Such increases were offset in part by net gain on valuation of derivatives of W139 billion in 2024 compared to net loss on valuation of derivatives of W76 billion in 2023, which change was primarily attributable to the general appreciation of the U.S. dollar against the Korean Won in 2024 and higher exchange rate volatility in 2024 compared to 2023. Against such fluctuations, we also recognized net gains on transaction of derivatives of W179 billion in 2023 and W274 billion in 2024. Income Tax Benefit (Expense) We recognized income tax expense of W218 billion in 2024 compared to income tax benefit of W763 billion in 2023, primarily due to a significant increase in unrecognized deferred tax assets, which related to tax loss carryforwards and tax credit carryforwards that are deemed to be not realizable based on our estimates of future taxable profit. We recognized an increase in unrecognized deferred tax assets of W704 billion in 2024 compared to an increase of W157 billion in 2023. The effect of such increase in 2024 was further enhanced by a 33.3% decrease in our income tax benefit using the statutory tax rate of each country in which we pay income tax from W790 billion in 2023 to W527 billion in 2024, as our loss before income tax decreased from W3,339 billion in 2023 to W2,192 billion in 2024, and a significant decrease in tax credits from W208 billion in 2023 to W23 billion in 2024, which mainly reflected a decrease in our capital expenditure level. Our effective tax rates were not calculated in 2023 and 2024 due to the loss before income tax we recorded in such years. See Notes 22 and 23 of the notes to our financial statements. Loss for the Year As a result of the cumulative effect of the reasons explained above, our loss for the year decreased by 6.5% from W2,577 billion in 2023 to W2,409 billion in 2024. Our loss for the year as a percentage of revenue was (12.1)% in 2023 and (9.1)% in 2024. Item 5.B. Liquidity and Capital Resources Our principal sources of liquidity have been net cash flows generated from our operating activities and debt financing activities. We had cash and cash equivalents of W2,258 billion, W2,022 billion and W1,572 billion (US$1,088 million) as of December 31, 2023, 2024 and 2025, respectively. 53 Table of Contents Our cash and cash equivalents was held in the following currencies as at December 31, 2025: (in billions of Won) Korean Won W 141 Chinese Yuan 150 U.S. Dollar 1,261 Other currencies 20 Total W 1,572 We also had short-term deposits in banks of W906 billion, W0.6 billion and W0.6 billion (US$0.4 million), respectively, as of December 31, 2023, 2024 and 2025. The significant decrease in short-term deposits in 2024 compared to 2023 was mainly due to a decrease in restricted cash deposits in connection with secured borrowings from our subsidiaries. Our primary use of cash historically has been to fund capital expenditures related to the expansion and improvement of our production capacity with respect to existing and newly developed products, including the construction and ramping-up of new, or in certain cases, expansion or conversion of existing, fabrication facilities and production lines and the acquisition of new equipment. We also use cash flows from operations for our working capital requirements and servicing our debt payments. We expect our cash requirements for 2026 to be primarily for repayment of maturing debt, working capital requirements and, to a lesser extent, capital expenditures. As of December 31, 2023, we had current assets of W9,503 billion and current liabilities of W13,885 billion, resulting in a working capital deficit of W4,382 billion. As of December 31, 2024, we had current assets of W10,123 billion and current liabilities of W15,859 billion, resulting in a working capital deficit of W5,736 billion. As of December 31, 2025, we had current assets of W6,982 billion (US$4,833 million) and current liabilities of W9,596 billion (US$6,643 million), resulting in a working capital deficit of W2,614 billion (US$1,810 million). The increase in working capital deficit as of December 31, 2024, compared to the working capital deficit as of December 31, 2023, was primarily attributable to our recognition of liabilities held for sale of W1,657 billion in 2024, resulting from our agreement with TCL CSOT to dispose of our entire equity interest in the China TFT-LCD Television Panel Subsidiaries as discussed above, a W1,265 billion increase in current financial liabilities, which mainly reflected an increase in our current portion of long-term borrowings payable as of the end of 2024 compared to the end of 2023, and a W905 billion decrease in deposits in banks, which was primarily attributable to a decrease in restricted cash deposits in connection with secured borrowings from our subsidiaries. The effects of such changes were partially offset by a W1,198 billion decrease in other accounts payable, which mainly reflected a decrease in our capital expenditures in 2024 compared to 2023, and a W983 billion increase in assets held for sale, which was attributable to our agreement with TCL CSOT as discussed above. The decrease in working capital deficit as of December 31, 2025, compared to the working capital deficit as of December 31, 2024, was primarily attributable to a W2,729 billion decrease in current financial liabilities, which mainly reflected a decrease in our current portion of long-term borrowings payable as of the end of 2025 compared to the end of 2024, the W1,657 billion of liabilities held for sale recognized in 2024 in connection with the sale of our TFT-LCD television panel business in China to TCL CSOT in April 2025, as discussed above, compared to no such liabilities held for sale recognized in 2025, and a W848 billion decrease in trade accounts and notes payable, which was primarily attributable to differences in the timing of settlement of trade accounts and notes payable between the respective year-ends. The effects of such changes were partially offset by a W1,265 billion decrease in net trade accounts and notes receivable, which was mainly caused by a decrease in our sales revenue as described above, and the W983 billion of assets held for sale recognized in 2024 in connection with the sale of our TFT-LCD television panel business in China to TCL CSOT in April 2025, as discussed above, compared to no such assets held for sale recognized in 2025. Our management constantly monitors our working capital, and we have historically been able to satisfy our cash requirements from cash flows from operations and debt financing. We believe that we have sufficient sources of working capital, including in the form of debt financing, for at least the next 12 months following the date of this annual report. In 2025, we entered into a number of short-term and long-term facility loan agreements, from which we have drawn down the full aggregate principal amount of US$150 million and CNY 500 million in short-term loans, and W1,005 billion (US$696 million), US$450 million and CNY 7,383 million in long-term loans, in each case as of December 31, 2025, primarily to fund our capital expenditures and refinance our existing borrowings maturing in 2025. Our ability to satisfy our cash requirements from cash flows from operations and financing activities will be affected by our ability to maintain and improve our margins and, in the case of external financing, market conditions, which in turn may be affected by various factors outside of our control. Therefore, we re-evaluate our capital requirements regularly in light of our cash flows from operations, the progress of our expansion plans and market conditions. To the extent that we do not generate sufficient cash flows from our operations to meet our capital requirements, we may rely on other financing activities, such as external borrowings and securities offerings, including the issuance of equity, equity-linked and other debt 54 Table of Contents securities. In March 2024, as part of our ongoing efforts to improve our financial condition and liquidity, we issued 142,184,300 new shares of common stock (including 1,038,078 new shares represented by 2,076,156 ADSs) at a subscription price of W9,090 per share (and US$3.450019 per ADS) pursuant to a preemptive rights offering to our existing shareholders, including ADS holders, followed by a public offering in Korea. We have used the proceeds of such offering to fund our capital investments, general corporate purposes (including purchases of raw materials) and the repayment of certain of our outstanding debt. Immediately following the completion of such offering, the number of issued and outstanding shares of our common stock increased to 500,000,000. Our net cash provided by operating activities amounted to W1,683 billion in 2023, W2,412 billion in 2024 and W2,352 billion (US$1,628 million) in 2025. The increase in net cash provided by operating activities in 2024 compared to 2023 was mainly due to an increase in cash collected from our customers primarily as a result of an increase in our sales revenue, as well as a decrease in cash outflow from trade accounts and notes receivable from W1,014 billion in 2023 to W396 billion in 2024. The increase in net cash provided by operating activities in 2024 compared to 2023 was offset in part by the long-term advances received in 2023 discussed above compared to no such advances received in 2024. The decrease in net cash provided by operating activities in 2025 compared to 2024 was mainly due to a decrease in cash collected from our customers primarily as a result of a decrease in our sales revenue, as well as a significant increase in cash outflow from trade accounts and notes payable from W47 billion in 2024 to W2,601 billion (US$1,801 million) in 2025, which principally reflected the settlement of trade payables following the sale of the China TFT-LCD Television Panel Subsidiaries. The decrease in net cash provided by operating activities in 2025 compared to 2024 was offset in part by a decrease in trade accounts and notes receivable of W24 billion (US$17 million) in 2025 compared to an increase of W396 billion in 2024, which primarily reflected an increase in the amount of trade accounts and notes receivable sold to financial institutions without recourse towards the end of 2025 compared to the end of 2024, as well as a decrease in other accounts receivable of W262 billion (US$181 million) in 2025 compared to an increase of W143 billion in 2024. The cyclical market conditions that are characteristic of our industry, as well as the regular ramp-up of our new fabrication facilities and production lines and our cost reduction measures, contribute to the fluctuations in our inventory levels from period to period. As of December 31, 2024, our inventory levels increased by 5.7% compared to December 31, 2023. As of December 31, 2025, our inventory levels decreased by 4.7% compared to December 31, 2024. Inventories consisted of the following for the dates indicated: As of December 31, 2023 2024 2025(1) 2025 (in billions of Won and millions of US$) Finished goods W 751 W 945 W 746 US$ 516 Work-in-process 1,146 1,102 1,114 771 Raw materials 457 460 504 349 Supplies 174 164 182 126 Total W 2,528 W 2,671 W 2,546 US$ 1,762 (1)For convenience, the Korean Won amounts are expressed in U.S. dollars at the rate of W1,444.55 to US$1.00, the noon buying rate in effect on December 31, 2025, as certified by the Federal Reserve Bank of New York for customs purposes. This translation should not be construed as a representation that the Korean Won amounts represent, have been or could be converted to U.S. dollars at that rate or any other rate. Our net cash used in investing activities amounted to W2,589 billion in 2023, W1,363 billion in 2024 and W979 billion (US$678 million) in 2025. Net cash used in investing activities primarily reflected the substantial capital expenditures we have made in connection with the expansion and improvement of our OLED-focused production capacity in recent years, mainly relating to construction of our new, or in certain cases, expansion or conversion of existing, fabrication and module assembly facilities and acquisition of new equipment. These cash outflows from capital expenditures amounted to W3,483 billion, W2,130 billion and W1,348 billion (US$933 million) in 2023, 2024 and 2025, respectively. We intend to fund our capital requirements associated with our expansion and construction projects with cash flows from operations and financing activities, including external long-term borrowings and bond issuances. 55 Table of Contents We currently expect that, in 2026, our total capital expenditures on a cash out basis will be higher compared to 2025 and will be used primarily to continue to fund our previously announced investments related to our continued and ongoing transition to an OLED-centric business structure, as well as other essential recurring investments. However, our overall expenditure levels and our allocation among projects are subject to many uncertainties. We review the amount of our capital expenditures and may make adjustments from time to time based on cash flows from operations, the progress of our expansion plans and market conditions. As of December 31, 2025, our commitments in relation to future acquisitions of property, plant and equipment and intangible assets amounted to W908 billion (US$629 million). Our net cash provided by financing activities amounted to W1,351 billion in 2023, and our net cash used in financing activities amounted to W1,334 billion in 2024 and W1,963 billion (US$1,359 million) in 2025. The net cash used in financing activities in 2024 compared to net cash provided by financing activities in 2023 primarily reflected decreases in net proceeds from issuance of long-term borrowings and short-term borrowings in 2024 compared to 2023 as well as an increase in our repayment of current portion of long-term borrowings in 2024 compared to 2023, partially offset by our capital increase through a preemptive rights offering in March 2024. The increase in net cash used in financing activities in 2025 primarily reflected an increase in our repayment of current portion of long-term borrowings in 2025 compared to 2024, a capital increase in 2024 compared to no such capital increase in 2025 and a decrease in net proceeds from short-term borrowings in 2025 compared to 2024, partially offset by an increase in proceeds from long-term borrowings as well as a decrease in our repayment of short-term borrowings. At each of our annual general meeting of shareholders that was held on March 21, 2023, March 22, 2024, March 20, 2025 and March 19, 2026, we did not declare any cash dividend to our shareholders. We had a total of W1,876 billion, W970 billion and W811 billion (US$561 million) of short-term borrowings outstanding as of December 31, 2023, 2024 and 2025, respectively. Approximately 27% of our outstanding short-term borrowings as of December 31, 2025 were subject to floating interest rates. For further information regarding our short-term borrowings, including their interest rate and currency structure, please see Note 12 of the notes to our financial statements. As of December 31, 2025, we maintained accounts receivable discount agreements with several banks for up to an aggregate amount of US$1,000 million at the parent company level in connection with our export sales transaction with our subsidiaries. In addition, we and our subsidiaries have also entered into various receivable transfer agreements with financial institutions for up to an aggregate amount of W3,867 billion. For further information regarding these facilities, please see Note 15 of the notes to our financial statements. As of December 31, 2025, we had outstanding long-term debt including current portion in the amount of W11,854 billion (US$8,206 million) and prior to deducting discounts on bonds, consisting of W380 billion of Korean Won denominated bonds, US$100 million of U.S. dollar denominated bonds, US$2,350 million of U.S. dollar denominated long-term borrowings, CNY19,332 million of CNY denominated long-term borrowings and W4,000 billion of Korean Won denominated long-term borrowings. As of December 31, 2025, 17% of our outstanding long-term debt were subject to fixed interest rates. The terms of some of our long-term debt contain provisions that would trigger a requirement for early repayment. The principal and interest under these obligations may be accelerated if there is a default, including defaults triggered by failure to comply with financial covenants and cross defaults triggered under our other debt obligations. We believe we were in compliance with the covenants under our debt obligations at December 31, 2025. For further information about our short- and long-term debt obligations as of December 31, 2025, including their interest rate and currency structure, see Note 12 of the notes to our financial statements. As of December 31, 2025, we have entered into an agreement to guarantee the payment obligations of our subsidiary LG Display Vietnam Haiphong Co., Ltd. in the aggregate amount of US$938 million under credit facilities and payables facilities with various financial institutions, including Citibank, Export-Import Bank of Korea and Bank of Australia and New Zealand, among other lenders. We also utilize cross-currency swap contracts and forward exchange contracts to hedge our foreign currency risk. See “Item 11. Quantitative and Qualitative Disclosures about Market Risk – Foreign Currency Risk.” 56 Table of Contents The following table summarizes our material short- and long-term cash requirements as of December 31, 2025: Payments Due by Period (in billions of Won) Total Less than 6 months 6 months-1 year 1-2 years 2-5 years More than 5 years Unsecured bank borrowings W 11,245 2,462 1,162 4,160 3,461 — Secured bank borrowings 1,701 75 74 465 1,087 — Unsecured bond issues 539 199 214 126 — — Trade accounts and notes payable 3,308 3,308 — — — — Other accounts payable(1) 1,463 1,433 30 — — — Long-term other accounts payable 248 — — 67 181 — Securities deposits received 147 0 4 143 0 — Lease liabilities 63 23 15 11 14 0 Derivatives 7 3 2 2 (0 ) — Total contractual cash obligations W 18,721 7,503 1,501 4,974 4,743 0 (1)Includes the amount of utility expenses and other expenses paid using the enterprise procurement cards. For further information, please see Note 25 of the notes to our financial statements. We intend to fund our cash commitments with cash flows generated from our operations as well as debt financing activities. In addition, we also have continuing obligations to make cash royalty payments under our technology license agreements, the amount of which are generally determined based on a percentage of sales of our display products. Expenses relating to our license fees and royalty payments under existing license agreements were W146 billion in 2023, W145 billion in 2024 and W141 billion (US$98 million) in 2025, representing 6.1%, 6.5% and 6.4% of our research and development related expenditures in 2023, 2024 and 2025, respectively. We expect to make additional license fee payments as we enter into new technology license agreements from time to time with third parties. Taxation In 2025, the statutory corporate income tax rate applicable to us was 9.9% (including local income surtax) for the first W200 million of our taxable income, 20.9% (including local income surtax) for our taxable income between W200 million and W20 billion, 23.1% (including local income surtax) for our taxable income between W20 billion and W300 billion, and 26.4% (including local income surtax) for our taxable income in excess of W300 billion. In recent years, the Organization for Economic Cooperation and Development has introduced and implemented the Base Erosion and Profit Shifting 2.0 framework (“BEPS 2.0”), which imposes a minimum tax for multinational enterprise groups with total consolidated group revenue of €750 million or more in at least two of the four most recent fiscal years (the “global minimum tax requirement”). Under the model rules of BEPS 2.0, a multinational enterprise group meeting the above-described criteria are required to pay a top-up tax on excess profits realized by a consolidated entity in any jurisdiction in which the effective tax rate for the jurisdiction is below a 15% minimum rate. The top-up tax must be paid to the tax authority of the country in which the responsible entity (either the controlling company or the local entity, depending on the jurisdiction) is located and meets certain requirements. In 2023, the Korean government enacted a new tax legislation, which is effective for fiscal years that begin on or after January 1, 2024, that reflects the global minimum tax requirement. Based on our assessment, we recognized income tax expense of W7.6 billion for the year ended December 31, 2025 in connection with the global minimum tax requirement. Tax Credits We are entitled to a number of tax credits relating to certain investments in tangible assets for business use (excluding certain assets for which tax credits are not permitted under Korean tax laws) and facilities used for research and development and human resources development. For example, in 2025, under the Restriction of Special Taxation Act, we were entitled to a tax credit of 15% of our qualifying capital investments in certain national strategic technology facilities in 2025. Under the same law, we are also entitled to a tax credit on a percentage of our research and development expenses incurred for procuring certain national strategic technologies, which include OLED display technology. The applicable amount of such tax credit is calculated by multiplying the applicable research and development expenses by the sum of (x) 30% and (y) three times the proportion of such research and development expenses as a percentage of revenue. 57 Table of Contents Tax credits may be utilized for an amount up to the tax payable using the minimum tax rate for a given fiscal year. Tax credits not utilized in the fiscal year during which the relevant investment was made may be carried forward over the next ten years. As of December 31, 2025, we had recognized deferred tax assets related to these credits of W155 billion (US$107 million), which may be utilized against future income tax liabilities through 2035. See Note 23(b) of the notes to our financial statements. Item 5.C. Research and Development, Patents and Licenses, etc. Research and Development The display panel industry is subject to rapid technological changes. We believe that effective research and development is essential to maintaining our position as one of the industry’s leading technology innovators. To meet the demands of the future trends, we have formulated a long-term research and development strategy aimed at improving the process, performance and design of the existing products and diversifying the use of display panels as new opportunities arise with the development of communication systems and information technology. The following are examples of products and technologies that have been developed through our research and development activities in recent years: •In 2023, we developed the world’s first medium-sized transparent WOLED display product (30-inch HD) with a transparency rate of 45% and luminance of 600/200 nit. In addition, we produced the world’s first 17-inch foldable pen touch notebook display panel applying tandem OLED technology. For gaming display products, we developed the world’s first 34-inch and 39-inch ultra-wide, full-size 240Hz gaming monitor display product that applies high-speed, fast response time, high-luminance and curved OLED technology. •In 2024, we developed our first notebook panel based on the ATO (Advanced Thin OLED) structure, a 13.4-inch model that incorporates Touch on Encap technology. We also introduced Micro LED display products, including a 22.3-inch module for 136-inch 4K business-to-consumer products and a 22.3-inch module for infinitely expandable business-to-business applications. Additionally, we produced large WOLED desktop monitors applying the first-ever “4Stack” technology in various sizes ranging from 48-inches to 83-inches, offering superior brightness, color accuracy and fast response times, while also achieving greater cost efficiency. For gaming display products, we launched the world’s first Gaming OLED QHD 480Hz monitor product (27-inch), along with the world’s first gaming DFR (Dynamic Frequency & Resolution) product, which allows the implementation of both high resolution (UHD 240Hz) and high refresh rate (FHD 480Hz) on a single display panel while providing maximized sound effects. Additionally, we developed our first dual-resolution gaming LCD monitor product (27-inch), which supports both fast-paced (FHD 330Hz) and high-resolution (UHD 165Hz) gaming on a single screen. •In 2025, we developed the world’s first 45WUHD 165Hz Gaming OLED panel, which applies DFR (Dynamic Frequency & Resolution) technology to enable both high resolution (WUHD 165Hz) and high refresh rate (WFHD 330Hz) on a single display panel, and features an 800R curved screen. Additionally, we developed the world’s first 27-inch QHD 540Hz OLED gaming monitor (DFR 720Hz), achieving industry-leading refresh rates and ultra-fast response time to provide a smoother and more immersive gaming experience. We also developed the world’s first medium-sized (14-inch) OLED notebook panel based on LTPO and Tandem technology and the world’s first 1Hz low-power notebook display panels (14-inch and 16-inch), delivering low power consumption, variable refresh rate functionality and enhanced design efficiency for high-end notebook applications. Furthermore, we developed the world’s first 51.5-inch high-resolution IPS curved monitor, reinforcing our leadership in the high-end large-sized desktop monitor market. For television panel products, we introduced our first large OLED television display panels based on the DRD (Double Rate Driving) platform, enhancing cost competitiveness and structural innovation. In the automotive segment, we developed our first 8.5th-generation large-sized display panel (38.9 inches) using oxide technology, featuring pillar-to-pillar full-dashboard products and expanding automotive TFT-LCD panel production beyond the existing 6th-generation line. In line with our overall business strategy to focus on the development and production of OLED and other high-end differentiated specialty display products, we plan to continue to concentrate on the research and development of OLED and other newer display technologies, while also exploring new growth opportunities in the application of display panels, such as automotive displays and life displays. Life displays include gaming displays and transparent displays, among others. 58 Table of Contents In order to maintain our position as one of the industry’s technology leaders, we believe it is important not only to increase direct spending on research and development, but also to manage our research and development capability effectively in order to successfully implement our long-term strategy. In connection with our efforts to enhance our research and development capability with respect to next-generation display technologies, we opened the R&D Center in Paju, Korea in April 2012. In addition, we have further expanded our research and development resources by allocating some of our research and development personnel to LG Science Park, which is located in western Seoul and commenced its operations in December 2017. LG Science Park accommodates researchers from various LG Group-affiliated companies with expertise in a broad range of disciplines, including electronics, chemistry, nanotechnology, display, fabrication, life sciences and new materials, to focus on developing and testing innovative new technologies. We complement our in-house research and development capability through collaborations with universities and other third parties. For example, we provide project-based funding to both domestic and overseas universities as a means to recruit promising engineering students and to research and develop new technologies. As part of our such efforts, we operate cooperation centers within various universities, including Korea University and Korea Advanced Institute of Science and Technology, in order to promote the research and development of various technologies for use in future display panels. In 2021 and 2022, we entered into agreements with Yonsei University, Hanyang University and Sungkyunkwan University to establish a “Display Convergence Engineering Department” at each of these universities that offers specialized classes in technical fields such as electronics, electricity, physics, chemistry and materials with the aim to cultivate next-generation talents. We also enter into joint research and development agreements from time to time with third parties for the development of technologies in next-generation display fields. In addition, we belong to several display industry consortia, and we receive annual government funding to support our research and development efforts. While we primarily rely on our own capacity for the development of new technologies in the display panel design and manufacturing process, we rely on third parties for certain key technologies to enhance our technology leadership, as further described in “—Intellectual Property” below. Intellectual Property Overview Our business has benefited from our patent portfolio, which includes patents for display technologies, manufacturing processes, products and applications related to the production of TFT-LCD and OLED panels. We hold a large number of patents in Korea and in other countries, including in the United States, China, Japan, Germany, France, Great Britain, Taiwan, India and Vietnam. These patents will expire at various dates upon the expiration of their respective terms ranging from 2026 to 2045. In March 2014, we formed Unified Innovative Technology, LLC in the United States, a limited liability company solely owned by us for the purpose of patent portfolio management. As part of our ongoing efforts to prevent infringements on our intellectual property rights and to keep abreast of critical technology developments by our competitors, we closely monitor patent applications in Korea and various other countries in which we sold our products. We intend to continue to file patent applications, where appropriate, to protect our proprietary technologies. We also enter into confidentiality agreements with each of our employees and consultants upon the commencement of an employment or consulting relationship. These agreements generally provide that all inventions, ideas, discoveries, improvements and copyrightable material made or conceived by the individual arising out of the employment or consulting relationship and all confidential information developed or made known to the individual during the term of the relationship are our exclusive property. In addition, we have increased our efforts to safeguard our propriety information by engaging in in-house information protection awareness activities with our employees. For a discussion of risks related to our reliance on trade secrets and the potential unauthorized disclosure of proprietary information, see “Item 3.D. Risk Factors—Risks Related to Our Business and Industry—We rely upon trade secrets and other unpatented proprietary know-how to maintain our competitive position in the display panel industry and any loss of our rights to, or unauthorized disclosure of, our trade secrets or other unpatented proprietary know-how could negatively affect our business.” License Agreements We enter into license or cross-license agreements from time to time with third parties with respect to various device and process technologies to complement our in-house research and development. We engage in regular discussions with third parties to identify potential areas for additional licensing of key technologies. 59 Table of Contents Expenses relating to our license fees and royalty payments under existing license agreements were W146 billion in 2023, W145 billion in 2024 and W141 billion (US$98 million) in 2025, representing 6.1%, 6.5% and 6.4% of our research and development related expenditures in 2023, 2024 and 2025, respectively. The following are examples of license agreements we have entered into: •We have a license agreement with each of Columbia University, Penn State University, Honeywell International, Honeywell Intellectual Properties, Plasma Physics Corporation and Fergason Patent Properties. Each license agreement provides for a non-exclusive license under certain patents relating to TFT-LCD technologies. •We have a license agreement with Universal Display Corporation for a non-exclusive license under certain patents relating to OLED technologies. •We have a license agreement with Semiconductor Energy Laboratory for a non-exclusive license under certain patents relating to TFT-LCD and OLED technologies. •We have a cross-license agreement with each of Hitachi, HannStar and Hydis for a non-exclusive license under certain patents relating to display technologies. •We have separate cross-license agreements with each of NEC and AU Optronics in connection with the settlement of certain patent infringement lawsuits. Under the agreements, each party grants the other party a license under certain patents relating to TFT-LCD technologies. •We are licensed to use certain patents for our TFT-LCD products pursuant to a cross-license agreement between Philips Electronics and Toshiba Corporation. In addition to the above, we have also entered into license or cross-license agreements with other third parties in the course of our business operations in connection with certain patents, which such third parties own or control. As well as licensing key technologies from third parties, we aim to benefit from our own patents and other intellectual property rights by granting licenses to third parties from time to time in return for royalty payments. We have also entered into certain patent purchase and license agreements with third parties, where we receive a portion of the license payments. Item 5.D. Trend Information These matters are discussed under Item 5.A. and Item 5.B. above where relevant. Item 5.E. Critical Accounting Estimates Our financial statements are prepared in accordance with IFRS Accounting Standards as issued by the IASB. See Note 3 of the notes to our financial statements for a discussion on the accounting policies critical to an understanding of our consolidated financial statements. Item 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES