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Contingent Liabilities and Commitments
 12 Months Ended
Dec. 31, 2019
Text block [abstract]  
Contingent Liabilities and Commitments
15.
Contingent Liabilities and Commitments
 
 (a)
Legal Proceedings
Anti-trust litigations
Some individual claimants filed
“follow-on”
damages claims against the Group and other
TFT-LCD
manufacturers alleging violations of EU competition law. While the Group continues its vigorous defense of the various pending proceedings described above, as of December 31, 2019, the Group cannot reliably estimate the timing and amount of outflows of resources embodying economic benefits relating to the proceedings.
Solas OLED Ltd. Litigations
In April 2019, Solas OLED Ltd. filed patent infringement actions against the Controlling Company and television manufacturers in the United States District Court for the Western District of Texas as well as the Controlling Company and its subsidiary, LG Display Germany GmbH, and television manufactures in Mannheim District Court in Germany. As of December 31, 2019, the Group cannot reliably estimate the timing and amount of outflows of resources embodying economic benefits relating to the proceedings.
Others
The Group is involved in various disputes in addition to pending proceedings described above. The Group cannot reliably estimate the timing and amount of outflows of resources embodying economic benefits relating to the disputes.
 
 (b)
Commitments
Factoring and securitization of accounts receivable
The Controlling Company has agreements with Korea Development Bank and several other banks for accounts receivable sales negotiating facilities of up to an aggregate of USD 1,360 million (
W
1,574,608 million) in connection with the Controlling Company’s export sales transactions with its subsidiaries. As of December 31, 2019, there are no outstanding short-term borrowings that are past due in connection with these agreements. In connection with all of the contracts in this paragraph, the Controlling Company has sold its accounts receivable with recourse.
The Controlling Company and overseas subsidiaries entered into agreements with financial institutions for accounts receivables sales negotiating facilities. The respective maximum amount of accounts receivables that could be sold under the agreement and the amount of sold, but not yet due, accounts receivables by contract are as follows:
 
(In millions of USD and KRW)
                   
Classification
  
Financial institutions
  
Credit limit
   
Not yet due
 
      
Contractual
amount
   
KRW
equivalent
   
Contractual
amount
   
KRW
equivalent
 
Controlling Company
  
Shinhan Bank
  KRW
USD
 90,000
 25
 
 
   
90,000
28,945
 
 
   
—  
—  
 
 
   
—  
—  
 
 
  
Sumitomo Mitsui Banking Corporation
  USD20    23,156    —      —   
  
Bank of Tokyo-Mitsubishi UFJ
  KRW 130,000    130,000    —      —   
    USD70    81,046   USD 4    4,640 
  
BNP Paribas
  USD125    144,725   USD 18    20,888 
  
ING Bank
  USD150    173,670    —      —   
    
 
 
   
 
 
   
 
 
   
 
 
 
    USD390     USD 22   
    KRW 220,000    671,542    —      25,528 
    
 
 
   
 
 
   
 
 
   
 
 
 
Subsidiaries
          
LG Display Singapore Pte. Ltd.
  
Standard Chartered Bank
  USD300    347,340    —      —   
    
 
 
   
 
 
   
 
 
   
 
 
 
LG Display Taiwan Co., Ltd.
  
BNP Paribas
  USD15    17,367    —      —   
  
Australia and New Zealand Banking Group Ltd.
  USD70    81,046    —      —   
  
Taishin International Bank
  USD280    324,184   USD20    23,157 
    
 
 
   
 
 
   
 
 
   
 
 
 
LG Display Germany GmbH
  
Citibank
  USD80    92,624    —      —   
  
BNP Paribas
  USD75    86,835    —      —   
  
DZ Bank AG
  USD4    4,229   USD2    1,859 
  
Commerzbank AG
  USD3    4,030   USD4    4,142 
  
UniCredit Bank
  USD23    26,099   USD3    3,827 
    
 
 
   
 
 
   
 
 
   
 
 
 
LG Display America, Inc.
  
Hong Kong & Shanghai Banking Corp.
  USD 800    926,240   USD 749    867,424 
  
Standard Chartered Bank
  USD600    694,680    —      —   
  
Sumitomo Mitsui Banking Corporation
  USD200    231,560    —      —   
    
 
 
   
 
 
   
 
 
   
 
 
 
    USD2,450    2,836,234   USD778    900,409 
    
 
 
   
 
 
   
 
 
   
 
 
 
    USD2,840     USD800   
    KRW 220,000    3,507,776    —      925,937 
    
 
 
   
 
 
   
 
 
   
 
 
 
In connection with all of the contracts in the above table, the Group has sold its accounts receivable without recourse.
Letters of credit
As of December 31, 2019, the Controlling Company has agreements in relation to the opening of letters of credit up to USD 150 million (
W
173,670 million) with KEB Hana Bank, USD 50 million (
W
57,890 million) with Sumitomo Mitsui Banking Corporation, USD 100 million (
W
115,780 million) with Industrial Bank of Korea and USD 100 million (
W
115,780 million) with Industrial and Commercial Bank of China.
Payment guarantees
The Controlling Company obtained payment guarantees amounting to USD 1,075 million (
W
1,244,635 million) from KEB Hana Bank and others for advances received related to the long-term supply agreements
.
The Controlling Company also obtained payment guarantees amounting to
USD 306 million (
W
354,070 million) from
Korea Development Bank for
foreign currency denominated bonds.
LG Display (China) Co., Ltd. and others are provided with payment guarantees from the China Construction Bank and other various banks amounting to CNY 778 million (
W
128,863 million), JPY 900 million (
W
9,571 million), EUR 2.5 million (
W
3,244 million), VND 46,394 million (
W
2,320 million) and USD 0.5 million (
W
579 million), respectively, for their local tax payments and utility payments.
License agreements
As of December 31, 2019, the Group has technical license agreements with Hitachi Display, Ltd. and others in relation to its LCD business and patent cross license agreement with Universal Display Corporation in relation to its OLED business. Also, the Group has a trademark license agreement with LG Corp. as of December 31, 2019.
Long-term supply agreement
As of December 31, 2019, in connection with
long-term
supply agreements with customers, the Controlling Company recognized USD 875 million (
W
1,013,075 million) in advances received. The advances received will be offset against outstanding accounts receivable balances after a given period of time, as well as those arising from the supply of products thereafter. The Controlling Company received payment guarantees amounting to USD 1,075 million (
W
1,244,635 million) from KEB Hana Bank and other various banks relating to advances received (see
n
ote 1
5
(b) payment guarantees).