SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of March 2021

LG Display Co., Ltd.

(Translation of Registrant’s name into English)

LG Twin Towers, 128 Yeoui-daero, Yeongdeungpo-gu, Seoul 07336, Republic of Korea

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  ☒            Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submission to furnish a report or other document that the registration foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes  ☐            No  ☒

Submission of Audit Report

1. Name of external auditor: Samjong Accounting Corporation (KPMG)

2. Date of receiving external audit report: March 3, 2021

3. Auditor’s opinion    

	FY 2020		FY 2019
Audit Report on Separate Financial Statements		Unqualified		Unqualified

4. Financial Highlights of Separate Financial Statements    

Items	FY 2020			FY 2019
Total Assets		26,705,202,140,567			27,382,680,412,328
Total Liabilities		16,441,966,765,904			16,716,587,564,651
Total Shareholders’ Equity		10,263,235,374,663			10,666,092,847,677
Capital Stock		1,789,078,500,000			1,789,078,500,000
Revenues		22,799,272,740,610			21,658,329,317,337
Operating Income		-812,979,310,716			-1,784,245,041,499
Ordinary Income		-1,202,769,369,862			-3,344,780,911,234
Net Income		-513,262,046,420			-2,639,892,599,202
Total Shareholders’ Equity / Capital Stock		574	%		596	%

LG DISPLAY CO., LTD.

Separate Financial Statements

For the Years Ended December 31, 2020 and 2019

(With Independent Auditors’ Report Thereon)

Contents

	Page
Independent Auditors’ Report		1
Separate Statements of Financial Position		5
Separate Statements of Comprehensive Loss		6
Separate Statements of Changes in Equity		7
Separate Statements of Cash Flows		8
Notes to the Separate Financial Statements		10
Independent Auditors’ Report on Internal Control over Financial Reporting		93
Report on the Operation of Internal Control over Financial Reporting		95

Independent Auditors’ Report

Based on a report originally issued in Korean

To the Shareholders and Board of Directors

LG Display Co., Ltd.:

Opinion

We have audited the accompanying separate financial statements of LG Display Co., Ltd. (the “Company”), which comprise the separate statements of financial position of the Company as of December 31, 2020 and 2019, the related separate statements of comprehensive loss, changes in equity and cash flows for the years then ended, and notes to the separate financial statements comprising significant accounting policies and other explanatory information.

In our opinion, the accompanying separate financial statements present fairly, in all material respects, the separate financial position of the Company as of December 31, 2020 and 2019, and its separate financial performance and its separate cash flows for the years then ended in accordance with Korean International Financial Reporting Standards (“K-IFRS”).

We also have audited, in accordance with the Standards on Auditing, the Company’s Internal Control over Financial Reporting as of December 31, 2020, based on criteria established in Conceptual Framework for Designing and Operating Internal Control over Financial Reporting issued by the Operating Committee of Internal Control over Financial Reporting in Korea, and our report dated March 3, 2021 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.

Basis for Opinion

We conducted our audits in accordance with Korean Standards on Auditing. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Separate Financial Statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the separate financial statements in the Republic of Korea, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the separate financial statements as of and for the year ended December 31, 2020. These matters were addressed in the context of our audit of the separate financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

(i) Impairment test for Display CGU

As discussed in Notes 3(j), 9 and 10 to the separate financial statements, the goodwill of W14,593 million is allocated to the Company’s Display CGU. The Company’s non-financial assets as of December 31, 2020 amount to W12,624,104 million, and a large portion of which are related to the Display CGU. The recoverable amount used by the Company in impairment test of the Display CGU is value in use based on discounted cash flow model. As a result of impairment test for Display CGU, the Company concluded that recoverable amount exceeds the carrying amount.

We identified impairment test for Display CGU as a key audit matter. Revenue and operating expenditures for the forecast period, growth rates for subsequent years (“terminal growth rate”), and discount rate used to estimate value in use for impairment test of Display CGU involve significant judgement and minor changes would have a significant effect on the results of the Company’s impairment test of Display CGU.

The primary procedures we performed to address the impairment test for Display CGU include followings:

• We tested certain internal controls over the Company’s non-financial assets impairment test process, including controls related to development of the revenue and operating expenditures forecasts, terminal growth rate and discount rate assumptions for Display CGU.

• We compared the Company’s historical revenue and operating expenditures forecasts to actual results to assess the Company’s ability to accurately forecast.

• We evaluated the revenue and operating expenditures forecasts used to determine the value in use by comparison with the financial budgets approved by the board of directors.

• We performed sensitivity analysis over the terminal growth rate and discount rate assumptions to assess their impact on the Company’s impairment test.

• We involved our valuation professionals with specialized skills and knowledge who assisted us in the following:

• testing discount rate by comparing them against independently developed rates using publicly available market data for comparable entities; and

• testing revenue, operating expenditures forecasts and terminal growth rate by comparing them against analyst reports, and industry reports.

(ii) Assessment of recognition of deferred tax assets

As discussed in Note 24 to the separate financial statements, the deferred tax assets arise primarily due to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases, as well as, unused tax losses and tax credit carryforwards. The assessment of the recognition of these deferred tax assets is dependent on the generation of future taxable income of the Company. As of December 31, 2020, the Company had W1,971,787 million of deferred tax assets in the separate statement of financial position and W230,768 million of unrecognized tax credit carryforwards as of December 31, 2020.

We identified the assessment of the recognition of the deferred tax assets as a key audit matter because it involves high degree of subjective management judgment in estimating future taxable profits over the periods in which the above mentioned differences become deductible and within the periods before the unused tax losses and tax credit forwards expire and the feasibility of planned tax strategies. The subjectivity is primarily driven by the Company’s assumptions in revenue, operating expenditures and subsidiaries’ dividend distribution, which are used to estimate the forecasted taxable income in the future.

The primary procedures we performed to address the assessment of recognition of deferred tax assets include followings:

• We tested certain internal controls relating to the Company’s deferred tax assets recognition process, including controls related to the development of assumptions in determining the future taxable income and subsidiaries’ dividend distribution for each year.

• We analyzed the Company’s estimates of taxable income, including analyzing the Company’s forecasted revenue and operating expense by comparing them with the financial budgets approved by the board of directors and historical performance.

• We compared the forecasts of taxable income and timing of utilization of tax losses and tax credit carryforwards in prior years to actual results to assess the Company’s ability to accurately forecast.

• We also evaluated the Company’s assessment on the history of realizing deferred tax assets in connection with the unused tax losses carryforwards and collecting declared subsidiaries’ dividends in connection with the development of assumptions in determining subsidiaries’ dividend distribution.

• We involved tax professionals with specialized skills and knowledge who assisted in assessing the feasibility of planned tax strategies when recognizing deferred tax assets.

Other matter

The procedures and practices utilized in the Republic of Korea to audit such separate financial statements may differ from those generally accepted and applied in other countries.

2

Responsibilities of Management and Those Charged with Governance for the Separate Financial Statements

Management is responsible for the preparation and fair presentation of these separate financial statements in accordance with K-IFRS, and for such internal control as management determines is necessary to enable the preparation of separate financial statements that are free from material misstatement, whether due to fraud or error.

In preparing these separate financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Separate Financial Statements

Our objectives are to obtain reasonable assurance about whether theses separate financial statements as a whole are free from material misstatements, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance’ is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Korean Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these separate financial statements.

As part of an audit in accordance with Korean Standards on Auditing, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the separate financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, then we are required to draw attention in our auditors’ report to the related disclosures in the separate financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the separate financial statements, including the disclosures, and whether the separate financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

3

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the separate financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partner on the audit resulting in this independent auditors’ report is Sang Hyun Han.

KPMG Samjong Accounting Corp.

Seoul, Korea    

March 3, 2021

This report is effective as of March 3, 2021, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the accompanying separate financial statements and notes thereto. Accordingly, the readers of the audit report should understand that the above audit report has not been updated to reflect the impact of such subsequent events or circumstances, if any.

4

LG DISPLAY CO., LTD.

Separate Statements of Financial Position

As of December 31, 2020 and 2019

(In millions of won)	Note	December 31, 2020		December 31, 2019
Assets
Cash and cash equivalents	4, 26	W	1,220,098		1,105,245
Deposits in banks	4, 26		76,852		77,257
Trade accounts and notes receivable, net	5, 14, 26, 29		3,797,248		3,565,860
Other accounts receivable, net	5, 26		141,332		439,940
Other current financial assets	6, 26		43,151		55,665
Inventories	7		1,418,122		1,526,299
Prepaid income tax			110,388		111,129
Other current assets			140,863		199,833
Total current assets			6,948,054		7,081,228
Deposits in banks	4, 26		11		11
Investments	8		4,784,828		4,958,308
Other non-current accounts receivable, net	5, 26		5,797		19,899
Other non-current financial assets	6, 26		29,133		74,203
Property, plant and equipment, net	9,27		11,736,673		12,764,175
Intangible assets, net	10		887,431		708,047
Deferred tax assets	24		1,971,787		1,367,714
Defined benefits assets, net	12		224,997		127,252
Other non-current assets			116,491		281,843
Total non-current assets			19,757,148		20,301,452
Total assets		W	26,705,202		27,382,680
Liabilities
Trade accounts and notes payable	26, 29	W	4,591,319		2,682,403
Current financial liabilities	11, 26, 27		2,162,989		1,474,589
Other accounts payable	26		2,373,730		3,329,040
Accrued expenses			499,610		520,395
Provisions	13		196,107		188,238
Advances received	14		312,790		898,447
Other current liabilities			44,115		47,371
Total current liabilities			10,180,660		9,140,483
Non-current financial liabilities	11, 26, 27		6,072,225		7,094,405
Non-current provisions	13		89,633		67,118
Long-term advances received	14		—		328,677
Other non-current liabilities			99,449		85,904
Total non-current liabilities			6,261,307		7,576,104
Total liabilities			16,441,967		16,716,587
Equity
Share capital	15		1,789,079		1,789,079
Share premium			2,251,113		2,251,113
Retained earnings	16		6,223,043		6,625,901
Total equity			10,263,235		10,666,093
Total liabilities and equity		W	26,705,202		27,382,680

See accompanying notes to the separate financial statements.

5

LG DISPLAY CO., LTD.

Separate Statements of Comprehensive Loss

For the years ended December 31, 2020 and 2019

(In millions of won, except earnings per share)	Note	2020			2019
Revenue	17, 29	W	22,799,273			21,658,329
Cost of sales	7, 18, 29		(21,566,984	)		(20,834,648	)
Gross profit			1,232,289			823,681
Selling expenses	19		(517,023	)		(728,695	)
Administrative expenses	19		(447,738	)		(674,650	)
Research and development expenses			(1,080,507	)		(1,204,581	)
Operating loss			(812,979	)		(1,784,245	)
Finance income	22		304,344			204,966
Finance costs	22		(519,501	)		(371,856	)
Other non-operating income	21		1,265,604			835,514
Other non-operating expenses	21		(1,440,237	)		(2,229,160	)
Loss before income tax			(1,202,769	)		(3,344,781	)
Income tax benefit	23		(689,507	)		(704,888	)
Loss for the year			(513,262	)		(2,639,893	)
Other comprehensive income(loss)
Items that will never be reclassified to profit or loss
Remeasurements of net defined benefit liabilities	12, 23		148,436			128,640
Related income tax	12, 23		(38,032	)		(35,235	)
Other comprehensive income for the period, net of income tax			110,404			93,405
Total comprehensive loss for the period		W	(402,858	)		(2,546,488	)
Loss per share (In won)
Basic and diluted loss per share	25	W	(1,434	)		(7,378	)

See accompanying notes to the separate financial statements.    

6

LG DISPLAY CO., LTD.

Separate Statements of Changes in Equity

For the years ended December 31, 2020 and 2019

(In millions of won)	Share capital		Share premium		Retained earnings			Total equity
Balances at January 1, 2019	W	1,789,079		2,251,113		9,172,389			13,212,581
Total comprehensive loss for the period
Loss for the year		—		—		(2,639,893	)		(2,639,893	)
Other comprehensive income(loss)
Remeasurements of net defined benefit liabilities, net of tax		—		—		93,405			93,405
Total comprehensive loss for the period	W	—		—		(2,546,488	)		(2,546,488	)
Balances at December 31, 2019	W	1,789,079		2,251,113		6,625,901			10,666,093
Balances at January 1, 2020	W	1,789,079		2,251,113		6,625,901			10,666,093
Total comprehensive loss for the period
Loss for the year		—		—		(513,262	)		(513,262	)
Other comprehensive income(loss)
Remeasurements of net defined benefit liabilities, net of tax		—		—		110,404			110,404
Total comprehensive loss for the period	W	—		—		(402,858	)		(402,858	)
Balances at December 31, 2020	W	1,789,079		2,251,113		6,223,043			10,263,235

See accompanying notes to the separate financial statements.    

7

LG DISPLAY CO., LTD.    

Separate Statements of Cash Flows    

For the years ended December 31, 2020 and 2019    

(In millions of won)	Note		2020			2019
Cash flows from operating activities:
Loss for the year			W	(513,262	)		(2,639,893	)
Adjustments for:
Income tax benefit		23		(689,507	)		(704,888	)
Depreciation and amortization		9, 10, 18		2,519,199			2,549,770
Gain on foreign currency translation				(234,185	)		(60,963	)
Loss on foreign currency translation				175,434			140,683
Expenses related to defined benefit plans		12, 20		158,793			161,056
Gain on disposal of property, plant and equipment				(43,155	)		(54,756	)
Loss on disposal of property, plant and equipment				58,852			25,851
Impairment loss on property, plant and equipment				11,482			1,140,760
Gain on disposal of intangible assets				—			(552	)
Loss on disposal of intangible assets				368			18
Impairment loss on intangible assets				79,593			240,816
Reversal of impairment loss on intangible assets				(1,110	)		(960	)
Expense on increase of provisions				276,670			366,771
Finance income				(277,087	)		(172,260	)
Finance costs				458,358			331,475
Other income				(11,000	)		(20,432	)
Other expenses				—			9,078
				2,482,705			3,951,467
Changes in
Trade accounts and notes receivable				(756,684	)		(830,210	)
Other accounts receivable				38,701			(66,057	)
Inventories				108,177			424,856
Other current assets				56,883			(14,579	)
Other non-current assets				(57,421	)		(37,761	)
Trade accounts and notes payable				2,101,690			(447,803	)
Other accounts payable				(1,152,368	)		2,115,555
Accrued expenses				(12,299	)		(23,461	)
Provisions				(246,285	)		(240,734	)
Advances received				(410,811	)		(216,079	)
Other current liabilities				(3,958	)		8,046
Defined benefit liabilities, net				(108,102	)		(63,855	)
Long-term advances received				—			63,672
Other non-current liabilities				12,535			7,174
				(429,942	)		678,764
Cash generated from operating activities				1,539,501			1,990,338
Income taxes refunded				48,143			25,342
Interests received				9,364			13,481
Interests paid				(285,194	)		(236,936	)
Net cash provided by operating activities			W	1,311,814			1,792,225

See accompanying notes to the separate financial statements.

8

LG DISPLAY CO., LTD.

Separate Statements of Cash Flows

For the years ended December 31, 2020 and 2019

(In millions of won)	Note		2020			2019
Cash flows from investing activities:
Dividends received			W	8,239			18,622
Increase in deposits in banks				(76,852	)		(114,257	)
Proceeds from withdrawal of deposits in banks				77,257			114,200
Acquisition of financial asset at fair value through profit or loss				(200	)		—
Acquisition of financial assets at fair value through other comprehensive income				—			(21	)
Proceeds from disposal of financial assets at fair value through other comprehensive income				6			107
Acquisition of investments				(7,241	)		(1,224,836	)
Proceeds from disposal of investments				194,553			16,738
Acquisition of property, plant and equipment				(1,249,208	)		(2,173,535	)
Proceeds from disposal of property, plant and equipment				450,239			384,506
Acquisition of intangible assets				(331,423	)		(511,661	)
Proceeds from disposal of intangible assets				16,705			2,349
Government grants received				—			3,979
Receipt from settlement of derivatives				24,468			21,752
Proceeds from collection of short-term loans				13,720			19,881
Increase in short-term loans				—			(8,725	)
Increase in long-term loans				—			(6,465	)
Increase in deposits				(566	)		(4,949	)
Decrease in deposits				1,286			5,244
Proceeds from disposal of other assets				11,000			20,416
Net cash used in investing activities				(868,017	)		(3,436,655	)
Cash flows from financing activities:		28
Proceeds from short-term borrowings				1,075,095			1,264,915
Repayments of short-term borrowings				(1,070,356	)		(928,335	)
Proceeds from issuance of bonds				49,949			1,323,251
Proceeds from long-term borrowings				741,166			1,669,148
Repayments of current portion of long-term borrowings and bonds				(1,119,579	)		(1,043,649	)
Payment guarantee fee received				7,154			5,068
Repayments of lease liabilities				(12,373	)		(14,006	)
Net cash provided by (used in) financing activities				(328,944	)		2,276,392
Net increase in cash and cash equivalents				114,853			631,962
Cash and cash equivalents at January 1				1,105,245			473,283
Cash and cash equivalents at December 31			W	1,220,098			1,105,245

See accompanying notes to the separate interim financial statements.

9

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

1. Organization and Description of Business

LG Display Co., Ltd. (the “Company”) was incorporated in February 1985 and the Company is a public corporation listed in the Korea Exchange since 2004. The main business of the Company is to manufacture and sell displays and its related products. As of December 31, 2020, the Company is operating Thin Film Transistor Liquid Crystal Display (“TFT-LCD”) and Organic Light Emitting Diode (“OLED”) panel manufacturing plants in Gumi, Paju and China and TFT-LCD and OLED module manufacturing plants in Gumi, Paju, China and Vietnam. The Company is domiciled in the Republic of Korea with its address at 128 Yeouidae-ro, Yeongdeungpo-gu, Seoul, the Republic of Korea. As of December 31, 2020, LG Electronics Inc., a major shareholder of the Company, owns 37.9% (135,625,000 shares) of the Company’s common stock.

The Company’s common stock is listed on the Korea Exchange under the identifying code 034220. As of December 31, 2020, there are 357,815,700 shares of common stock outstanding. The Company’s common stock is also listed on the New York Stock Exchange in the form of American Depository Shares (“ADSs”) under the symbol “LPL”. One ADS represents one-half of one share of common stock. As of December 31, 2020, there are 23,525,460 ADSs outstanding.

2. Basis of Presenting Financial Statements

(a) Statement of Compliance

In accordance with the Act on External Audits of Stock Companies, Etc., these separate financial statements have been prepared in accordance with Korean International Financial Reporting Standards (“K-IFRS”).

These financial statements are separate financial statements prepared in accordance with K-IFRS No.1027, Separate Financial Statements, presented by a parent, an investor in an associate or a venture in a joint ventures, in which the investments are accounted for on the basis of the direct equity interest rather than on the basis of the reported results and net assets of the investees.

The separate financial statements were authorized for issuance by the Board of Directors on January 26, 2021, which will be submitted for approval to the shareholders’ meeting to be held on March 23, 2021.

(b) Basis of Measurement

The separate financial statements have been prepared on the historical cost basis except for the following material items in the separate statement of financial position:

• derivative financial instruments at fair value, financial assets at fair value through profit or loss(“FVTPL”), financial assets at fair value through other comprehensive income (“FVOCI”), financial liabilities at fair value through profit or loss(“FVTPL”), and

• net defined benefit liabilities (defined benefit assets) recognized at the present value of defined benefit obligations less the fair value of plan assets

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LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

2. Basis of Presenting Financial Statements, Continued

(c) Functional and Presentation Currency

The separate financial statements are presented in Korean won, which is the Company’s functional currency.

(d) Use of Estimates and Judgments

The preparation of the separate financial statements in conformity with K-IFRSs requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

Information about critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the separate financial statements is included in the following notes:

• Financial instruments (Note 3(e))

• Impairment assessment of non-financial assets (Note 3(j), 10)

• Deferred tax assets and liabilities (Note3(q), 24)

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next 12 months is included in the following notes:

• Provisions (Note 3(l), 13)

• Inventories (Note 3(d), 7)

• Property, plant and equipment (Note 9)

• Intangible assets (Impairment assessment of non-financial assets) (Note 10)

• Employee benefits (Note 12)

• Deferred tax assets and liabilities (Note 24)

3. Summary of Significant Accounting Policies

The accounting policies applied in these separate financial statements are the same as those applied in the Company’s separate financial statements as of and for the year ended December 31, 2019 and the significant accounting policies followed by the Company in the preparation of its separate financial statements are as follows:

(a) Interest in subsidiaries, associates and joint ventures

These separate financial statements are prepared and presented in accordance with K-IFRS No.1027, Separate Financial Statements. The Company applied the cost method to investments in subsidiaries, associates and joint ventures. Dividends from subsidiaries, associates or joint ventures are recognized in profit or loss when the right to receive the dividend is established.

11

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

3. Summary of Significant Accounting Policies, Continued

(b) Foreign Currency Transaction and Translation

Transactions in foreign currencies are translated to the functional currency of the Company at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are retranslated to the functional currency at the exchange rate on the reporting date. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was originally determined. Foreign currency differences arising on retranslation are recognized in profit or loss, except for differences arising on an investment in equity instruments designated as at FVOCI and a financial asset and liability designated as a cash flow hedge, which are recognized in other comprehensive income. Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at which they were translated on initial recognition are recognized in profit or loss in the period in which they arise. Foreign currency differences arising from assets and liabilities in relation to the investing and financing activities including borrowings, bonds and cash and cash equivalents are recognized in finance income (costs) in the separate statement of comprehensive income (loss) and foreign currency differences arising from assets and liabilities in relation to activities other than investing and financing activities are recognized in other non-operating income (expense) in the separate statement of comprehensive income (loss). Foreign currency differences are presented in gross amounts in the separate statement of comprehensive income (loss).

(c) Cash and cash equivalents

Cash and cash equivalents include all cash balances and short-term highly liquid investments with an original maturity of three months or less that are readily convertible into known amounts of cash.

(d) Inventories

Inventories are measured at the lower of cost and net realizable value. The cost of inventories is based on the weighted-average method, and includes expenditures incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing them to their existing location and condition. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated selling expenses. In the case of manufactured inventories and work-in-process, cost includes an appropriate share of production overheads based on the actual capacity of production facilities. However, the normal capacity is used for the allocation of fixed production overheads if the actual level of production is lower than the normal capacity.

(e) Financial Instruments

(i) Non-derivative financial assets

Recognition and initial measurement

Trade receivables and debt instruments issued are initially recognized when they are originated. All other financial assets are recognized in statement of financial position when, and only when, the Company becomes a party to the contractual provisions of the instrument.

12

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

3. Summary of Significant Accounting Policies, Continued

(e) Financial Instruments, Continued

A financial asset (unless it is a trade receivable without a significant financing component) is initially measured at fair value plus, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price.

Classification and subsequent measurement

i) Financial assets

On initial recognition, a financial asset is classified as measured at: amortized cost; FVOCI – debt investment; FVOCI – equity investments; or FVTPL. Financial assets are not reclassified subsequent to their initial recognition unless the Company changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the subsequent reporting period following the change in the business model.

A financial asset is measured as at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:

• it is held within a business model whose objective is to hold assets to collect contractual cash flows; and

• its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:

• it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and

• the contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

On initial recognition of an equity investments that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investment’s fair value in OCI. This election is made on an investment-by-investment basis.

All financial assets not classified as measured at amortized cost or FVOCI as described above are measured as at FVTPL. This includes all derivative financial assets. At initial recognition, the Company may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortized cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

13

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

3. Summary of Significant Accounting Policies, Continued

(e) Financial Instruments, Continued

ii) Financial assets: business model

The Company makes an assessment of the objective of the business model in which a financial asset is held at a portfolio level because this best reflects the way the business is managed and information is provided to management. The information considered includes:

• the stated policies and objectives for the portfolio and the operation of those policies in practice (these include whether management’s strategy focuses on earning contractual interest income, maintaining a particular interest rate profile, matching the duration of the financial assets to the duration of any related liabilities or expected cash outflows or realizing cash flows through the sale of the assets);

• how the performance of the portfolio is evaluated and reported to the Company’s management;

• the risks that affect the performance of the business model (and the financial assets held within that business model) and how those risks are managed; and

• the frequency, volume and timing of sales of financial assets in prior periods, the reasons for such sales and expectations about future sales activity.

Transfers of financial assets to third parties in transaction that do not qualify for derecognition are not considered sale for this purpose.

A financial asset that is held for trading or is managed and whose performance is evaluated on a fair value basis is measured at FVTPL.

iii) Financial assets: Assessment whether contractual cash flows are solely payments of principal and interest

For the purpose of the assessment, “principal” is defined as the fair value of the financial asset on initial recognition. ‘Interest’ is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a particular period of time and for other basic lending risks and cost (e.g. liquidity risk and administrative costs), as well as profit margin.

In assessing whether the contractual cash flows are solely payments of principal and interest, the Company considers the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition. In making this assessment, the Company considers.

• contingent events that would change the amount or timing of cash flows:

• terms that may adjust the contractual coupon rate, including variable-rate features;

• prepayment and extension features; and

• terms that limit the Company’s claim to cash flows from specified assets (e.g. non-recourse features)

A prepayment feature is consistent with the solely payments of principal and interest criterion if the prepayment amount substantially represents unpaid amounts of principal and interest or the principal amount outstanding, which may include reasonable additional compensation for early termination of the contract.

14

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

3. Summary of Significant Accounting Policies, Continued

(e) Financial Instruments, Continued

Additionally, for a financial asset acquired at a discount or premium to its contractual par amount, a feature that permits or requires prepayment at an amount that substantially represents the contractual par amount plus accrued but unpaid contractual interest (which may also include reasonable additional compensation for early termination) is treated as consistent with this criterion if the fair value of the prepayment feature is insignificant at initial recognition.

iv) Financial assets: Subsequent measurement and gains and losses

Financial assets at   FVTPL	These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss.
Financial assets at   amortized cost	These assets are subsequently measured at amortized cost using the effective interest method. The amortized cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.
Debt investments at   FVOCI	These assets are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognized in profit or loss. Other net gains and losses are recognized in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss.

Derecognition

The Company derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, it transfers the rights to receive the contractual cash flows of the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred, or it transfers or does not retain substantially all the risks and rewards of ownership of a transferred asset, and does not retain control of the transferred asset.

If the Company has retained substantially all the risks and rewards of ownership of the transferred asset, the Company continues to recognize the transferred asset.

Offset

Financial assets and liabilities are offset and the net amount is presented in the separate statement of financial position when, and only when, the Company has a legal right to offset the amounts and intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously.

15

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

3. Summary of Significant Accounting Policies, Continued

(e) Financial Instruments, Continued

(ii) Non-derivative financial liabilities

The Company classifies financial liabilities into two categories, financial liabilities at FVTPL and other financial liabilities in accordance with the substance of the contractual arrangement and the definitions of financial liabilities, and recognizes them in the separate statement of financial position when the Company becomes a party to the contractual provisions of the instrument.

Financial liabilities at FVTPL include financial liabilities held for trading or designated as such upon initial recognition at FVTPL. After initial recognition, financial liabilities at FVTPL are measured at fair value, and changes therein are recognized in profit or loss. Upon initial recognition, transaction costs that are directly attributable to the issuance of financial liabilities are recognized in profit or loss as incurred.

Non-derivative financial liabilities other than financial liabilities classified as at FVTPL are classified as other financial liabilities and measured initially at fair value minus transaction costs that are directly attributable to the issuance of financial liabilities. Subsequent to initial recognition, these financial liabilities are measured at amortized cost using the effective interest method. As of December 31, 2020, non-derivative financial liabilities comprise borrowings, bonds, trade accounts and notes payable, other accounts payable and others.

The Company derecognizes a financial liability when its contractual obligations are discharged, cancelled or expired.

(iii) Share Capital

The Company issued common stocks and they are classified as equity. Incremental costs directly attributable to the issuance of common stocks are recognized as a deduction from equity, net of tax effects. Capital contributed in excess of par value upon issuance of common stocks is classified as share premium within equity.

(iv) Derivative financial instruments

Derivatives are initially recognized at fair value. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are accounted for as described below.

Hedge Accounting

If necessary, the Company designates derivatives as hedging items to hedge the risk of changes in the fair value of assets, liabilities or firm commitments (a fair value hedge) and foreign currency risk of highly probable forecasted transactions or firm commitments (a cash flow hedge).

On initial designation of the hedge, the Company’s management formally designates and documents the relationship between the hedging instrument(s) and hedged item(s), including the risk management objectives and strategy in undertaking the hedge transaction, together with the methods that will be used to assess the effectiveness of the hedging relationship, both at the inception of the hedge relationship as well as on an ongoing basis.

16

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

3. Summary of Significant Accounting Policies, Continued

(e) Financial Instruments, Continued

i) Fair value hedges

Change in the fair value of a derivative hedging instrument designated as a fair value hedge and the hedged item is recognized in profit or loss, respectively. The gain or loss from remeasuring the hedging instrument at fair value and the gain or loss on the hedged item attributable to the hedged risk are recognized in profit or loss in the same line item of the statement of comprehensive income (loss). The Company discontinues fair value hedge accounting if it does not designate the derivative hedging instrument and the hedged item as the hedge relationship between them anymore; if the hedging instrument expires or is sold, terminated or exercised; or if the hedge no longer meets the criteria for hedge accounting.

ii) Cash flow hedges

When a derivative designated as a cash flow hedging instrument meets the criteria of cash flow hedge accounting, the effective portion of changes in the fair value of the derivative is recognized in other comprehensive income and the ineffective portion of changes in the fair value of the derivative is recognized in profit or loss. The Company discontinues cash flow hedge accounting if it does not designate the derivative hedging instrument and the hedged item as the hedge relationship between them anymore; if the hedging instruments expires or is sold, terminated or exercised; or if the hedge no longer meets the criteria for hedge accounting. The cumulative gain or loss on the hedging instrument that has been recognized in other comprehensive income is reclassified to profit or loss in the periods during which the forecasted transaction occurs. If the forecasted transaction is no longer expected to occur, then the balance in other comprehensive income is recognized immediately in profit or loss.

Embedded derivative

Embedded derivatives are separated from the host contract and accounted for separately if the host contract is not a financial asset and certain criteria are met.

Other derivative financial instruments

Other derivative financial instruments are measured at fair value and changes of their fair value are recognized in profit or loss.

17

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

3. Summary of Significant Accounting Policies, Continued

(f) Property, Plant and Equipment

(i) Recognition and measurement

Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. Cost includes an expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and direct labor, any costs directly attributable to bringing the assets to a working condition for their intended use, the costs of dismantling and removing the items and restoring the site on which they are located and borrowing costs on qualifying assets.

The gain or loss arising from the derecognition of an item of property, plant and equipment is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item and recognized in other non-operating income or other non-operating expenses.

(ii) Subsequent costs

Subsequent expenditure on an item of property, plant and equipment is recognized as part of its cost only if it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The costs of the day-to-day servicing of property, plant and equipment are recognized in profit or loss as incurred.

(iii) Depreciation

Land is not depreciated and depreciation of other items of property, plant and equipment is recognized in profit or loss on a straight-line basis, reflecting the pattern in which the asset’s future economic benefits are expected to be consumed by the Company. The residual value of property, plant and equipment is zero.

Estimated useful lives of the assets are as follows:

	Useful lives (years)
Buildings and structures	20, 40
Machinery	4, 5
Furniture and fixtures	4
Equipment, tools and vehicles	2, 4, 12
Right-of-use assets	(*)

(*) The Company depreciates the right-of-use assets from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term.

Depreciation methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate and any changes are accounted for as changes in accounting estimates.

18

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

3. Summary of Significant Accounting Policies, Continued

(g) Borrowing Costs

The Company capitalizes borrowing costs, which includes interests and exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs, directly attributable to the acquisition, construction or production of a qualifying asset as part of the cost of that asset. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale. To the extent that the Company borrows funds specifically for the purpose of obtaining a qualifying asset, the Company determines the amount of borrowing costs eligible for capitalization as the actual borrowing costs incurred on that borrowing during the period less any investment income on the temporary investment of those borrowings. The Company immediately recognizes other borrowing costs as an expense.

(h) Government Grants

In case there is reasonable assurance that the Company will comply with the conditions attached to a government grant, the government grant is recognized as follows:

(i) Grants related to the purchase or construction of assets

A government grant related to the purchase or construction of assets is deducted in calculating the carrying amount of the asset. The grant is recognized in profit or loss over the life of a depreciable asset as a reduced depreciation expense and cash related to grant received is presented in investing activities in the statement of cash flows.

(ii) Grants for compensating the Company’s expenses incurred

A government grant that compensates the Company for expenses incurred is recognized in profit or loss as a deduction from relevant expenses on a systematic basis in the periods in which the expenses are recognized.

(iii) Other government grants

A government grant that becomes receivable for the purpose of giving immediate financial support to the Company with no compensation for expenses or losses already incurred or no future related costs is recognized as income of the period in which it becomes receivable.

19

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

3. Summary of Significant Accounting Policies, Continued

(i) Intangible Assets

Intangible assets are initially measured at cost. Subsequently, intangible assets are measured at cost less accumulated amortization and accumulated impairment losses.

(i) Goodwill

Goodwill arising from business combinations is recognized as the excess of the acquisition cost of a business over the net fair value of the identifiable assets acquired and liabilities assumed. Any deficit is a bargain purchase that is recognized in profit or loss. Goodwill is measured at cost less accumulated impairment losses.

(ii) Research and development

Expenditure on research activities, undertaken with the prospect of gaining new scientific or technical knowledge and understanding, is recognized in profit or loss as incurred.

Development activities involve a plan or design of the production of new or substantially improved products and processes. Development expenditure is capitalized as intangible assets only if the Company can demonstrate all of the following:

• the technical feasibility of completing the intangible asset so that it will be available for use or sale,

• its intention to complete the intangible asset and use or sell it,

• its ability to use or sell the intangible asset,

• how the intangible asset will generate probable future economic benefits (among other things, the Company can demonstrate the usefulness of the intangible asset by existence of a market for the output of the intangible asset or the intangible asset itself if it is to be used internally),

• the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset, and

• its ability to measure reliably the expenditure attributable to the intangible asset during its development.

Development projects are divided into research activities and development activities. Expenditures on research activities are recognized in profit or loss and qualifying development expenditures on development activities are capitalized.

The expenditure capitalized includes the cost of materials, direct labor and overhead costs that are directly attributable to preparing the asset for its intended use, and borrowing costs on qualifying assets.

(iii) Other intangible assets

Other intangible assets include intellectual property rights, software, customer relationships, technology, memberships and others.

20

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

3. Summary of Significant Accounting Policies, Continued

(i) Intangible Assets, Continued

(iv) Subsequent costs

Subsequent expenditures are capitalized only when they increase the future economic benefits embodied in the specific intangible asset to which they relate. All other expenditures, including expenditures on internally generated goodwill and brands, are recognized in profit or loss as incurred.

(v) Amortization

Amortization is calculated on a straight-line basis over the estimated useful lives of intangible assets, other than goodwill, from the date that they are available for use. The residual value of intangible assets is zero. However, as there are no foreseeable limits to the periods over which condominium and golf club memberships are expected to be available for use, these intangible assets are regarded as having indefinite useful lives and not amortized.

	Estimated useful lives (years)
Intellectual property rights	5, 10, (*1)
Rights to use electricity, water and gas supply facilities	10
Software	4, (*1)
Customer relationships	7, 10
Technology	10
Development costs	(*2)
Condominium and golf club memberships	Indefinite

(*1) Software license and patent royalty are amortized over the useful lives considering the contract period.

(*2) Capitalized development costs are amortized over the useful lives considering the life cycle of the developed products. Amortization of capitalized development costs are recognized in research and development expenses in the separate statement of comprehensive income (loss).

Amortization periods and the amortization methods for intangible assets with finite useful lives are reviewed at each financial year-end. The useful lives of intangible assets with indefinite useful lives are reviewed at each financial year-end to determine whether events and circumstances continue to support indefinite useful life assessments for those assets. If appropriate, the changes are accounted for as changes in accounting estimates.

21

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

3. Summary of Significant Accounting Policies, Continued

(j) Impairment

(i) Financial assets

Financial instruments and contract assets

The Company recognizes loss allowance for financial assets measured at amortized cost and debt investments at FVOCI at the ‘expected credit loss’ (ECL).

The Company recognizes a loss allowance for the life-time expected credit losses except for following, which are measured at 12-month ECLs:

• debt instruments that are determined to have low credit risk at the reporting date; and

• other debt instruments and bank deposits for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECLs, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both qualitative and quantitative information and analysis, based on the Company’s historical experience and informed credit assessment including forward-looking information.

Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument.

12-month ECLs are the portion of the ECLs that result from default events that are possible within the 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).

The maximum period considered when estimating ECLs is the maximum contractual period over which the Company is exposed to credit risk.

Estimation of expected credit losses

Expected credit losses are a probability-weighted estimate of credit losses. Credit losses are measured using the present value of the difference between the contractual cash flows and the expected contractual cash flows. The expected credit losses are discounted using effective interest rate of the financial assets.

22

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

3. Summary of Significant Accounting Policies, Continued

(j) Impairment, Continued

Credit-impaired financial assets

At each reporting period-end, the Company assesses whether financial assets carried at amortized cost and debt instruments at FVOCI are credit-impaired. A financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.

Evidence that a financial asset is credit-impaired includes the following observable data:

• significant financial difficulty of the issuer or the borrower;

• the lender(s) of the borrower, for economic or contractual reasons relating to the borrower’s financial difficulty, having granted to the borrower a concession(s) that the lender(s) would not otherwise consider;

• it is probable that the borrower will enter bankruptcy or other financial reorganization; or

• the disappearance of an active market for a security because of financial difficulties.

Presentation of loss allowance for ECL in the statement of financial position

Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets. For debt instruments at FVOCI, the loss allowance is charged to profit or loss and is recognized in OCI instead of reducing the carrying amount of financial assets in the separate statement of financial position.

Write-off

The gross carrying amount of a financial asset is written off when the Company has no reasonable expectations for recovering the financial asset in its entirety or a portion thereof. The Company assess whether there are reasonable expectations of recovering the contractual cash flows from customers and individually assess the timing and amount of write-off. The Company expects no significant recovery from the amount written-off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Company’s procedures for recovery of amounts due.

23

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

3. Summary of Significant Accounting Policies, Continued

(j) Impairment, Continued

(ii) Non-financial assets

The carrying amounts of the Company’s non-financial assets, other than assets arising from employee benefits, inventories and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. For goodwill, and intangible assets that have indefinite useful lives or that are not yet available for use, irrespective of whether there is any indication of impairment, the recoverable amount is estimated each year.

Recoverable amount is estimated for the individual asset. If it is not possible to estimate the recoverable amount of the individual asset, the Company determines the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit (“CGU”) is the smallest group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. Goodwill arising from a business combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the combination. The recoverable amount of an asset or cash-generating unit is determined as the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. Fair value less costs to sell is based on the best information available to reflect the amount that the Company could obtain from the disposal of the asset in an arm’s length transaction between knowledgeable, willing parties, after deducting the costs of disposal.

An impairment loss is recognized if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount. Impairment losses are recognized in profit or loss. Impairment losses recognized in respect of a CGU are allocated first to reduce the carrying amount of any goodwill allocated to the unit, and then to reduce the carrying amounts of the other assets in the unit on a pro rata basis.

In respect of assets other than goodwill, impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of accumulated depreciation or amortization, if no impairment loss had been recognized from the acquisition cost. An impairment loss in respect of goodwill is not reversed.

24

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

3. Summary of Significant Accounting Policies, Continued

(k) Leases

A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

(i) As a lessee

At commencement or on modification of a contract that contains a lease component, the Company allocates the consideration in the contract to each lease and non-lease component on the basis of its relative stand-alone price. For certain leases, the Company accounts for the lease and non-lease components as a single lease component by applying the practical expedient not to separate non-lease components.

The Company recognizes a right-of-use asset and lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at of before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term, unless the lease transfers ownership of the underlying asset to the Company by the end of the lease term or the cost of the right-of-use asset reflects that the Company will exercise a purchase option. In that case, the right-of-use asset will be depreciated over the useful life of the underlying asset, which is determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate.

The Company determines its incremental borrowing rate by obtaining interest rates from various external financing sources and makes certain adjustments to reflect the terms of the lease and type of the asset leased.

25

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

3. Summary of Significant Accounting Policies, Continued

(k) Lease, Continued

Lease payments included in the measurement of the lease liability comprise the following:

• fixed payments, including in-substance fixed payments;

• variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;

• amounts expected to be payable under a residual value guarantee; and

• the exercise price under a purchase option that the Company is reasonably certain to exercise, lease payments in an optional renewal period if the Company is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the Company is reasonably certain not to terminate early.

The lease liability is measured at amortized cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company’s estimate of the amount expected to be payable under a residual value guarantee, if the Company changes its assessment of whether it will exercise a purchase, extension or termination option or if there is a revised in-substance fixed lease payment.

When the lease liability is remeasured the Company recognizes the amount of the remeasurement of the lease liability as an adjustment to the right-of-use asset. However, if the carrying amount of the right-of-use asset is reduced to zero and there is a further reduction in the measurement of the lease liability, the Company recognizes any remaining amount of the remeasurement in profit or loss.

The Company presents right-of-use assets in ‘property, plant and equipment’ and lease liabilities in ‘financial liabilities’ in the separate statement of financial position.

The Company has elected not to recognize right-of-use assets and lease liabilities for leases of low-value assets and short-term leases. The Company recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

(ii) As a lessor

When the Company acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease.

To classify each lease, the Company makes an overall assessment of whether the lease transfers substantially all of the risks and rewards incidental to ownership of the underlying asset. If the lease transfers substantially all of the risks and rewards incidental to ownership of the underlying asset, then the lease is a finance lease; if not, then it is an operating lease. As part of this assessment, the Company considers certain indicators such as whether the lease is for the major part of the economic life of the asset.

When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. If a head lease is a short-term lease to which the Company applies the exemption described above, then it classifies the sub-lease as an operating lease.

26

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

3. Summary of Significant Accounting Policies, Continued

(k) Lease, Continued

If an arrangement contains lease and non-lease components, then the Company applies K-IFRS No. 1115 to allocate the consideration in the contract.

At the commencement date, the Company recognizes assets held under a finance lease in its statement of financial position and present them as a receivable at an amount equal to the net investment in the lease and recognize finance income over the lease term, based on a pattern reflecting a constant periodic rate of return on the lessor’s net investment in the lease.

The Company recognizes lease payments received under operating leases as income on a straight-line basis over the lease term as part of ‘other revenue’.

(l) Provisions

A provision is recognized, as a result of a past event, if the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.

The risks and uncertainties that inevitably surround events and circumstances are taken into account in reaching the best estimate of a provision. Where the effect of the time value of money is material, provisions are determined at the present value of the expected future cash flows. The unwinding of the discount is recognized as finance cost.

Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provision is reversed.

The Company recognizes a liability for warranty obligations based on the estimated costs expected to be incurred under its basic limited warranty. This warranty covers defective products and is normally applicable for a warranty period from the date of purchase. These liabilities are accrued when product revenues are recognized. Factors that affect the Company’s warranty liability include historical and anticipated rates of warranty claims on those repairs and cost per claim to satisfy the Company’s warranty obligation. Warranty costs primarily include raw materials and labor costs. As these factors are impacted by actual experience and future expectations, management periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. Accrued warranty obligations are included in the current and non-current provisions.

Liabilities for loss contingencies arising from claims, assessments, litigation, fines, penalties and other sources, are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated.

27

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

3. Summary of Significant Accounting Policies, Continued

(m) Employee Benefits

(i) Short-term employee benefits

Short-term employee benefits that are due to be settled within twelve months after the end of the period in which the employees render the related service are recognized in profit or loss on an undiscounted basis. The expected cost of profit-sharing and bonus plans and others are recognized when the Company has a present legal or constructive obligation to make payments as a result of past events and a reliable estimate of the obligation can be made.

(ii) Other long-term employee benefits

The Company’s net obligation in respect of long-term employee benefits other than pension plans is the amount of future benefit that employees have earned in return for their service in the current and prior periods.

(iii) Defined contribution plan

A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognized as an employee benefit expense in profit or loss in the period during which services are rendered by employees.

(iv) Defined benefit plan

A defined benefit plan is a post-employment benefit plan other than defined contribution plans. The Company’s net obligation in respect of its defined benefit plan is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value. The fair value of any plan assets is deducted.

The calculation is performed annually by an independent actuary using the projected unit credit method. The discount rate is the yield at the reporting date on high quality corporate bonds that have maturity dates approximating the terms of the Company’s obligations and that are denominated in the same currency in which the benefits are expected to be paid. The Company recognizes all actuarial gains and losses arising from defined benefit plans in retained earnings immediately.

The Company determines the net interest expense (income) on the net defined benefit liability (employee benefits asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (employee benefits asset), taking into account any changes in the net defined benefit liability (employee benefits asset) during the period as a result of contributions and benefit payments. Consequently, the net interest on the net defined benefit liability (defined benefit asset) now comprises: interest cost on the defined benefit obligation, interest income on plan assets, and interest on the effect on the asset ceiling.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognized immediately in profit or loss. The Company recognizes gains and losses on the settlement of a defined benefit plan when the settlement occurs.

28

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

3. Summary of Significant Accounting Policies, Continued

(m) Employee Benefits, Continued

(v) Termination benefits

The Company recognizes expense for termination benefits at the earlier of the date when the entity can no longer withdraw the offer of those benefits and when the entity recognizes costs for a restructuring involving the payment of termination benefits. If the termination benefits are not expected to be settled wholly before twelve months after the end of the annual reporting period, the Company measures the termination benefit with present value of future cash payments.

(n) Revenue from contracts with customers

Revenue from the sale of goods in the course of ordinary activities is measured at the fair value of the consideration received or receivable, net of estimated returns, trade discounts, volume rebates and other cash incentives paid to customers.

The Company recognizes revenue according to the five-stage revenue recognition model (① Identifying the contractg ② Identifying performance obligationsg ③ Determining transaction priceg ④ Allocating the transaction price to performance obligationsg ⑤ Recognizing revenue for performance obligations).

The Company generates revenue primarily from sale of display panels. Product revenue is recognized when a customer obtains control over the Company’s products, which typically occurs upon shipment or delivery depending on the terms of the contracts with the customer.

The Company includes return option in the sales contract of display panels with its customers and the consideration receivable from the customer is subject to change due to returns. The Company estimates an amount of variable consideration by using the expected value method which the Company expects to better predict the amount of consideration. The Company includes in the transaction price an amount of variable consideration estimated only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur during the return period when the uncertainty associated with the variable consideration is subsequently resolved. The Company recognizes a refund liability and an asset for its right to recover products from customers if the Company receives consideration from a customer and expects to refund some or all of that consideration to the customer. Sales taxes or value-added taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and are excluded from revenues in the separate statement of comprehensive income (loss).

(o) Operating Segments

In accordance with K-IFRS No. 1108, Operating Segments, entity wide disclosures of geographic and product revenue information are provided in the separate financial statements.

(p) Finance Income and Finance Costs

Finance income comprises interest income on funds invested (including debt instruments measured at FVOCI), dividend income, gains on disposal of debt instruments measured at FVOCI, changes in fair value of financial assets at FVTPL, and gains on hedging instruments that are recognized in profit or loss. Interest income is recognized as it accrues in profit or loss, using the effective interest method. Dividend income is recognized in profit or loss on the date that the Company’s right to receive payment is established.

29

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

3. Summary of Significant Accounting Policies, Continued

(p) Finance Income and Finance Costs, Continued

Finance costs comprise interest expense on borrowings, unwinding of the discount on provisions, gain and losses from financial assets measured at FVTPL, impairment losses recognized on financial assets, and losses on hedging instruments that are recognized in profit or loss. Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost of that asset.

(q) Income Tax

Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognized in profit or loss except to the extent that it relates to a business combination, or items recognized directly in equity or in other comprehensive income.

(i) Current tax

Current tax comprises the expected tax payable or receivable on the taxable profit or loss for the year, using tax rates enacted or substantively enacted at the reporting date and any adjustment to tax payable in respect of previous years. The amount of current tax payable or receivable is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. The taxable profit is different from the accounting profit for the period since the taxable profit is calculated excluding the temporary differences, which will be taxable or deductible in determining taxable profit (tax loss) of future periods, and non-taxable or non-deductible items from the accounting profit.

(ii) Deferred tax

Deferred tax is recognized, using the liability method, in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and deferred tax assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

The Company recognizes a deferred tax liability for all taxable temporary differences associated with investments in subsidiaries, associates, and interests in joint ventures, except to the extent that the Company is able to control the timing of the reversal of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable future. A deferred tax asset is recognized for all deductible temporary differences to the extent that it is probable that the differences relating to investments in subsidiaries, associates and joint ventures will reverse in the foreseeable future and taxable profit will be available against which the temporary difference can be utilized.

Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

The Company offsets deferred tax assets and deferred tax liabilities if, and only if, the Company has a legally enforceable right to set off current tax assets against current tax liabilities and the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority.

30

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

3. Summary of Significant Accounting Policies, Continued

(r) Earnings (Loss) Per Share

The Company presents basic and diluted earnings (loss) per share (“EPS”) data for its common stocks. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of common stocks outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of common stocks outstanding, adjusted for the effects of all dilutive potential common stocks such as convertible bonds and others.

(s) Business Combinations

The Company accounts for business combinations using the acquisition method when control is transferred to the Company. The consideration transferred in the acquisition and the identifiable net assets acquired from business combinations are measured at fair value. If the consideration transferred exceeds the fair value of identifiable net asset, the Company recognizes goodwill; if not, then the Company recognizes gain on a bargain purchase. Any goodwill that arises is tested annually for impairment. Transaction costs are expensed as incurred, except if related to the issue of debt or equity instruments in accordance with K-IFRS No. 1032 and K-IFRS No. 1109. The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts are generally recognized in profit or loss.

(t) New Standards and Amendments Not Yet Adopted

A number of amended standards are effective for annual periods beginning after January 1, 2020 and earlier application is permitted; however, the Company has not early adopted the amended standards in preparing these separate financial statements.

(i) Interest Rate Benchmark Reform – Phase 2 (Amendments to K-IFRS No. 1109, Financial Instruments, K-IFRS No. 1039, Financial Instruments: Recognition and Measurement, K-IFRS No. 1107, Financial Instruments: Disclosures, K-IFRS No. 1104, Insurance Contracts and K-IFRS No. 1116, Leases)

The amendments clarify the following accounting requirements according to market-wide reform of an interest rate:

• application of practical expedient to account for a change in the basis;

• temporary exceptions from applying specific hedge accounting requirements; and

• additional disclosures related to interest rate benchmark reform.

(ii) COVID-19-Related Rent Concessions (Amendment to K-IFRS No. 1116, Leases)

The amendment provides a practical expedient that permits a lessee not to assess whether rent concessions that occur as a direct consequence of the COVID-19 pandemic are lease modification if they meet the following conditions:

• any reduction in lease payments affects only payments originally due on or before 30 June 2021;

• the change in lease payments results in revised consideration for the lease that is substantially the same as, or less than, the consideration for the lease immediately preceding the change; and

• there is no substantive change to other terms and conditions of the lease.

31

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

3. Summary of Significant Accounting Policies, Continued

(t) New Standards and Amendments Not Yet Adopted, Continued

(iii) Property, Plant and Equipment: Proceeds before Intended Use (Amendments to K-IFRS No. 1016, Property, Plant and Equipment);

This amendments require an entity to recognize the proceeds from selling items produced in the manner intended by management (such as samples produced when testing whether the asset is functioning properly) and the cost of those items in profit or loss and prohibit an entity from deducting the proceeds from selling items produced before that asset is available for use from the cost of an items of property, plant and equipment.

(iv) Amendment of Reference to the Definition of an Asset and a Liability in the Conceptual Framework (Amendments to K-IFRS No. 1103, Business Combinations);

These amendments replace the reference to the definitions of an asset and a liability in the Conceptual Framework issued in 2007 to 2018 and added an exception to the recognition principle in K-IFRS No. 1103, Business Combinations, for liabilities and contingent liabilities that would be within the scope of K-IFRS No. 1037, Provisions, Contingent Liabilities and Contingent Assets, and K-IFRS No. 2121, Levies, to apply the recognition criteria specified in those standards.

(v) Classification of Liabilities as Current or Non-current (Amendments to K-IFRS No. 1001, Presentation of Financial Statements)

These amendments clarify that an entity has a right to defer settlement of the liability at the end of the reporting period if it complies with the conditions at that date and classification of a liability is unaffected by the likelihood that the entity will exercise its right to defer settlement of the liability for at least 12 months after the reporting period.

(vi) Onerous Contracts – Cost of Fulfilling a Contract (Amendments to K-IFRS No. 1037, Provisions, Contingent Liabilities and Contingent Assets)

These amendments specify the scope of “the unavoidable costs of meeting the obligations under the contract” is “the costs that relate directly to the contracts” (the incremental costs of fulfilling the contract and an allocation of other costs that relate directly to fulfilling contracts).

The Company is currently assessing the impacts of adoption of above amended standards on the Company’s financial position and business performance and management believes that the adoption of the amended standards are expected to have no significant impact on the separate financial statements of the Company, except for the amendments to K-IFRS No. 1016, Property, Plant and Equipment.

32

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

4. Cash and Cash Equivalents and Deposits in Banks

Cash and cash equivalents and deposits in banks as of December 31, 2020 and December 31, 2019 are as follows:

(In millions of won)
	December 31, 2020		December 31, 2019
Current assets
Cash and cash equivalents
Demand deposits	W	1,220,098		1,105,245
Deposits in banks
Restricted deposits (*)	W	76,852		77,257
Non-current assets
Deposits in banks
Restricted deposits (*)	W	11		11
	W	1,296,961		1,182,513

(*) Includes funds deposited under agreements on mutually beneficial cooperation to aid LG Group companies’ suppliers, restricted deposits pledged to enforce the Company’s investment plans upon the receipt of grants from Gumi city and Gyeongsangbuk-do, and others.

5. Trade Accounts and Notes Receivable and Other Accounts Receivable

(a) Trade accounts and notes receivable as of December 31, 2020 and December 31, 2019 are as follows:

(In millions of won)
	December 31, 2020		December 31, 2019
Due from third parties	W	201,640		221,243
Due from related parties		3,595,608		3,344,617
	W	3,797,248		3,565,860

(b) Other accounts receivable as of December 31, 2020 and December 31, 2019 are as follows:

(In millions of won)
	December 31, 2020		December 31, 2019
Current assets
Non-trade receivables, net	W	130,217		438,659
Accrued income		11,115		1,281
	W	141,332		439,940
Non-current assets
Long-term non-trade receivables	W	5,797		19,899
	W	147,129		459,839

Due from related parties included in other accounts receivable, as of December 31, 2020 and 2019 are W59,620 million and W45,518 million, respectively.

33

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

5. Trade Accounts and Notes Receivable and Other Accounts Receivable, Continued

(c) The aging of trade accounts and notes receivable and other accounts receivable as of December 31, 2020 and December 31, 2019 are as follows:

(In millions of won)	December 31, 2020
	Book value				Allowance for impairment
	Trade accounts and notes receivable		Other accounts receivable		Trade accounts and notes receivable			Other accounts receivable
Current	W	3,796,830		146,153		(27	)		(1,466	)
1-15 days past due		415		919		—			(7	)
16-30 days past due		30		521		—			—
31-60 days past due		—		782		—			(8	)
More than 60 days past due		—		257		—			(22	)
	W	3,797,275		148,632		(27	)		(1,503	)

(In millions of won)	December 31, 2019
	Book value				Allowance for impairment
	Trade accounts and notes receivable		Other accounts receivable		Trade accounts and notes receivable			Other accounts receivable
Current	W	3,565,795		184,991		(5	)		(2,952	)
1-15 days past due		70		3,488		—			(1	)
16-30 days past due		—		94		—			—
31-60 days past due		—		61		—			—
More than 60 days past due		—		274,183		—			(25	)
	W	3,565,865		462,817		(5	)		(2,978	)

The movement in the allowance for impairment in respect of trade accounts and notes receivable and other accounts receivable for the years ended December 31, 2020 and 2019 are as follows:

(In millions of won)	2020					2019
	Trade accounts and notes receivable		Other accounts receivable			Trade accounts and notes receivable		Other accounts receivable
Balance at the beginning of the year	W	5		2,978			5		989
(Reversal of) bad debt expense		22		(411	)		—		1,989
Write-off		—		(1,064	)		—		—
Balance at the end of the year	W	27		1,503			5		2,978

34

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

6. Other Financial Assets

Other financial assets as of December 31, 2020 and 2019 are as follows:

(In millions of won)	December 31, 2020		December 31, 2019
Current assets
Financial assets at fair value through profit or loss
Derivatives(*)	W	9,252		34,036
Financial assets at fair value through other comprehensive income
Debt instruments
Government bonds	W	24		6
Financial assets carried at amortized cost
Short-term loans	W	28,491		21,623
Deposits		5,384		—
	W	43,151		55,665
Non-current assets
Financial assets at fair value through profit or loss
Equity instruments	W	1,381		2,997
Convertible bonds		1,289		1,544
Derivatives(*)		111		15,640
	W	2,781		20,181
Financial assets at fair value through other comprehensive income
Debt instruments
Government bonds	W	48		70
Financial assets carried at amortized cost
Deposits	W	12,405		13,125
Long-term loans		13,899		40,827
	W	26,304		53,952
	W	29,133		74,203

(*) Represents valuation gain from cross currency interest rate swap related to foreign currency denominated borrowings and bonds. The contracts are not designated as hedging instruments.

35

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

7. Inventories

Inventories as of December 31, 2020 and December 31, 2019 are as follows:

(In millions of won)	December 31, 2020		December 31, 2019
Finished goods	W	372,864		394,069
Work-in-process		539,747		696,993
Raw materials		411,165		341,004
Supplies		94,346		94,233
	W	1,418,122		1,526,299

For the years ended December 31, 2020 and 2019, the amount of inventories recognized as cost of sales including inventory write-downs and usage of inventory write-downs are as follows:

(In millions of won)
	2020			2019
Inventories recognized as cost of sales	W	21,566,984			20,834,648
Inventory write-downs		178,155			408,567
Usage of inventory write-downs		(408,567	)		(280,323	)

There were no significant reversals of inventory write-downs recognized during the years ended December 31, 2020 and 2019.

36

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

8. Investments

(a) Investments in subsidiaries consist of the following:

(In millions of won)
					December 31, 2020					December 31, 2019
Subsidiaries	Location		Business		Percentage of ownership			Book Value		Percentage of ownership			Book Value
LG Display America, Inc.		San Jose, U.S.A.		Sell display products		100	%	W	36,815		100	%	W	36,815
LG Display Germany GmbH		Eschborn, Germany		Sell display products		100	%		19,373		100	%		19,373
LG Display Japan Co., Ltd.		Tokyo, Japan		Sell display products		100	%		15,686		100	%		15,686
LG Display Taiwan Co., Ltd.		Taipei, Taiwan		Sell display products		100	%		35,230		100	%		35,230
LG Display Nanjing Co., Ltd.		Nanjing, China		Manufacture display products		100	%		593,726		100	%		593,726
LG Display Shanghai Co., Ltd.		Shanghai, China		Sell display products		100	%		9,093		100	%		9,093
LG Display Poland Sp. z o.o.(*1)		Wroclaw, Poland		Manufacture display products		—			—		100	%		160,361
LG Display Guangzhou Co., Ltd.		Guangzhou, China		Manufacture display products		100	%		293,557		100	%		293,557
LG Display Shenzhen Co., Ltd.		Shenzhen, China		Sell display products		100	%		3,467		100	%		3,467
LG Display Singapore Pte. Ltd.		Singapore		Sell display products		100	%		1,250		100	%		1,250
L&T Display Technology (Fujian) Limited		Fujian, China		Manufacture and sell LCD module and LCD monitor sets		51	%		10,123		51	%		10,123
LG Display Yantai Co., Ltd.		Yantai, China		Manufacture display products		100	%		169,195		100	%		169,195
Nanumnuri Co., Ltd.		Gumi, South Korea		Provide janitorial services		100	%		800		100	%		800
LG Display (China) Co., Ltd.		Guangzhou,China		Manufacture and sell display products		51	%		723,086		51	%		723,086
Unified Innovative Technology, LLC		Wilmington, U.S.A.		Manage intellectual property		100	%		9,489		100	%		9,489
LG Display Guangzhou Trading Co., Ltd.		Guangzhou, China		Sell display products		100	%		218		100	%		218
Global OLED Technology LLC		Sterling, U.S.A		Manage OLED intellectual property		100	%		164,322		100	%		164,322
LG Display Vietnam Haiphong Co., Ltd.		Haiphong, Vietnam		Manufacture display products		100	%		672,658		100	%		672,658
Suzhou Lehui Display Co., Ltd.		Suzhou, China		Manufacture and sell LCD module and LCD monitor sets		100	%		121,640		100	%		121,640
LG DISPLAY FUND I LLC(*2)		Wilmington, U.S.A		Invest in venture business and acquire technologies		100	%		13,564		100	%		6,322
LG Display High-Tech (China) Co., Ltd.(*3)		Guangzhou, China		Manufacture and sell display products		69	%		1,794,547		74	%		1,794,547
Money Market Trust		Seoul, Korea		Money market trust		100	%		11,300		100	%		34,700
								W	4,699,139				W	4,875,658

37

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

8. Investments, Continued

(*1) In May 2020, LG Display Poland Sp. z o.o. completed the liquidation process and the Company recognized a gain on disposal of investments of W8,392 million.

(*2) For the year ended December 31, 2020, the Company contributed W7,242 million in cash for the capital increase of LG DISPLAY FUND I LLC. There was no change in the Company’s ownership percentage in LG DISPLAY FUND I LLC as a result of this additional investment.

(*3) For the year ended December 31, 2020, non-controlling shareholders contributed W172,966 million in cash for the stocks issued by LG Display High-Tech (China) Co., Ltd. (“LGDCO”). The Company’s ownership percentage in LGDCO decreased from 74% to 69% as a result.

(b) Investments in associates consist of the following:

(In millions of won)
			December 31, 2020				December 31, 2019
Associates	Location	Business	Percentage of ownership			Book Value	Percentage of ownership			Book Value
Paju Electric Glass Co., Ltd.	Paju, South Korea	Manufacture glass for display		40	%	W45,089		40	%	W45,089
WooRee E&L Co., Ltd.(*1)	Ansan, South Korea	Manufacture LED back light unit packages		14	%	10,540		14	%	7,310
YAS Co., Ltd.	Paju, South Korea	Develop and manufacture deposition equipment for OLEDs		15	%	10,000		15	%	10,000
AVATEC Co., Ltd.	Daegu, South Korea	Process and sell glass for display		14	%	8,000		14	%	8,000
Arctic Sentinel, Inc.	Los Angeles, U.S.A.	Develop and manufacture tablet for kids		10	%	—		10	%	—
Cynora GmbH(*2)	Bruchsal Germany	Develop organic emitting materials for displays and lighting devices		12	%	2,609		12	%	4,714
Material Science Co., Ltd.(*3)	Seoul, South Korea	Develop, manufacture and sell material for display		10	%	3,791		10	%	2,354
Nanosys Inc.(*4)	Milpitas, U.S.A.	Develop, manufacture and sell material for display		3	%	5,660		4	%	5,183
						W85,689				W82,650

38

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

8. Investments, Continued

(*1) For the year ended December 31, 2020, the Company recognized a reversal of impairment loss of W3,230 million as finance income for the investments in WooRee E&L Co., Ltd.

(*2) For the year ended December 31, 2020, the Company recognized an impairment loss of W2,105 million as finance cost for the investments in Cynora GmbH. As of December 31, 2020, the Company’s ownership percentage in Cynora GmbH decreased from 12.2% to 11.6% as the Company did not participate in the rights issue.

(*3) For the year ended December 31, 2020, the Company recognized a reversal of impairment loss of W1,437 million as finance income for the investments in Material Science Co., Ltd.

(*4) For the year ended December 31, 2020, the Company recognized a reversal of impairment loss of W477 million as finance income for the investments in Nanosys Inc. As of December 31, 2020, the Company’s ownership percentage in Nanosys Inc. decreased from 4% to 3% as the Company did not participate in the rights issue.

Dividends income recognized from subsidiaries and associates for the years ended December 31, 2020 and 2019 amounted to W8,239 million and W18,622 million, respectively.

39

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

9. Property, Plant and Equipment

(a) Changes in property, plant and equipment for the year ended December 31, 2020 are as follows:

(In millions of won)
	Land			Buildings and structures			Machinery and equipment			Furniture and fixtures			Construction -in-progress (*1)			Right-of-use asset			Others			Total
Acquisition cost as of January 1, 2020	W	454,035			4,839,806			36,694,704			668,956			4,491,455			19,078			632,773			47,800,807
Accumulated depreciation as of January 1, 2020		—			(2,596,845	)		(30,263,872	)		(601,071	)		—			(12,354	)		(400,341	)		(33,874,483	)
Accumulated impairment loss as of January 1, 2020		—			(68,091	)		(986,297	)		(5,037	)		(75,474	)		(309	)		(26,941	)		(1,162,149	)
Book value as of January 1, 2020	W	454,035			2,174,870			5,444,535			62,848			4,415,981			6,415			205,491			12,764,175
Additions		—			—			—			—			1,319,984			11,193			—			1,331,177
Depreciation		—			(205,736	)		(1,708,850	)		(32,711	)		—			(12,176	)		(187,148	)		(2,146,621	)
Disposals		(11,266	)		(32,519	)		(104,997	)		(3,024	)		—			—			(48,770	)		(200,576	)
Impairment loss		—			1,074			(4,203	)		8			(3,424	)		—			(4,937	)		(11,482	)
Others(*2)		53			36,079			373,823			43,658			(712,690	)		—			259,077			—
Book value as of December 31, 2020	W	442,822			1,973,768			4,000,308			70,779			5,019,851			5,432			223,713			11,736,673
Acquisition cost as of December 31, 2020	W	442,822			4,816,013			36,778,107			492,022			5,096,488			27,680			762,013			48,415,145
Accumulated depreciation as of December 31, 2020	W	—			(2,775,252	)		(31,787,378	)		(416,215	)		—			(22,001	)		(515,671	)		(35,516,517	)
Accumulated impairment loss as of December 31, 2020	W	—			(66,993	)		(990,421	)		(5,028	)		(76,637	)		(247	)		(22,629	)		(1,161,955	)

(*1) As of December 31, 2020, construction-in-progress mainly relates to construction of manufacturing facilities.

(*2) Others are mainly amounts transferred from construction-in-progress.

40

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

9. Property, Plant and Equipment, Continued

(b) Changes in property, plant and equipment for the year ended December 31, 2019 are as follows:

(In millions of won)
	Land			Buildings and structures			Machinery and equipment			Furniture and fixtures			Construction- in-progress (*1)			Right-of-use asset			Others			Total
Acquisition cost as of January 1, 2019	W	461,828			4,860,942			34,433,030			652,723			8,469,901			—			479,594			49,358,018
Accumulated depreciation as of January 1, 2019		—			(2,444,534	)		(31,062,229	)		(569,823	)		—			—			(250,977	)		(34,327,563	)
Accumulated impairment loss as of January 1, 2019		—			—			(28,001	)		—			(17,890	)		—			—			(45,891	)
Book value as of January 1, 2019	W	461,828			2,416,408			3,342,800			82,900			8,452,011			—			228,617			14,984,564
Recognition of right-of-use assets on initial application of K-IFRS No. 1116		—			—			—			—			—			16,332			—			16,332
Adjusted book value as of January 1,2019,		461,828			2,416,408			3,342,800			82,900			8,452,011			16,332			228,617			15,000,896
Additions		—			—			—			—			1,647,209			3,874			—			1,651,083
Depreciation		—			(210,827	)		(1,700,851	)		(39,222	)		—			(13,482	)		(190,220	)		(2,154,602	)
Disposals		(7,844	)		(4,947	)		(557,241	)		(1,519	)		—			—			(16,912	)		(588,463	)
Impairment loss(*2)		—			(72,902	)		(960,587	)		(5,037	)		(74,984	)		(309	)		(26,941	)		(1,140,760	)
Others(*3)		51			47,138			5,324,621			25,726			(5,608,483	)		—			210,947			—
Government grants received		—			—			(4,207	)		—			228			—			—			(3,979	)
Book value as of December 31, 2019	W	454,035			2,174,870			5,444,535			62,848			4,415,981			6,415			205,491			12,764,175
Acquisition cost as of December 31, 2019	W	454,035			4,839,806			36,694,704			668,956			4,491,455			19,078			632,773			47,800,807
Accumulated depreciation as of December 31, 2019	W	—			(2,596,845	)		(30,263,872	)		(601,071	)		—			(12,354	)		(400,341	)		(33,874,483	)
Accumulated impairment loss as of December 31, 2019	W	—			(68,091	)		(986,297	)		(5,037	)		(75,474	)		(309	)		(26,941	)		(1,162,149	)

(*1) As of December 31, 2019, construction-in-progress mainly relates to construction of manufacturing facilities.

(*2) During 2019, Display(AD PO) and Lighting CGUs were assessed for impairment, and impairment losses amounting to W1,108,500 million(W986,579 million and W121,921 million for Display(AD PO) and Lighting CGUs, respectively) were recognized as other non-operating expenses.

(*3) Others are mainly amounts transferred from construction-in-progress.

(c) Capitalized borrowing costs and capitalization rate for the years ended December 31, 2020 and 2019 are as follows:

(In millions of won)
	2020			2019
Capitalized borrowing costs	W	77,087			135,004
Capitalization rate		2.85	%		2.88	%

41

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

10. Intangible Assets and Non-current Asset Impairment

(a) Changes in intangible assets for the year ended December 31, 2020 are as follows:

(In millions of won)	Intellectual property rights			Software			Member- ships			Development costs			Construction -in-progress			Customer relationships			Technology			Good- will			Others (*2)			Total
Acquisition cost as of January 1, 2020	W	715,104			975,739			55,988			2,580,777			14,203			59,176			11,074			72,588			13,079			4,497,728
Accumulated amortization as of January 1, 2020		(593,155	)		(809,994	)		—			(2,073,881	)		—			(37,491	)		(10,704	)		—			(13,079	)		(3,538,304	)
Accumulated impairment loss as of January 1, 2020		(21,690	)		(7,733	)		(10,561	)		(131,713	)		—			(21,685	)		—			(57,995	)		—			(251,377	)
Book value as of January 1, 2020	W	100,259			158,012			45,427			375,183			14,203			—			370			14,593			—			708,047
Additions - internally developed		—			—			—			284,487			—			—			—			—			—			284,487
Additions - external purchases		304,252			7,788			—			—			50,988			—			—			—			3			363,031
Amortization (*1)		(23,860	)		(69,546	)		—			(278,799	)		—			—			(370	)		—			(3	)		(372,578	)
Disposals		—			—			(17,073	)		—			—			—			—			—			—			(17,073	)
Impairment loss (*3)		—			(675	)		—			(78,918	)		—			—			—			—			—			(79,593	)
Reversal of impairment loss		—			—			1,110			—			—			—			—			—			—			1,110
Transfer from construction-in-progress		—			55,074			—			—			(55,074	)		—			—			—			—			—
Book value as of December 31, 2020	W	380,651			150,653			29,464			301,953			10,117			—			—			14,593			—			887,431
Acquisition cost as of December 31, 2020	W	979,514			1,041,468			38,915			2,865,264			10,117			59,176			11,074			72,588			13,082			5,091,198
Accumulated amortization as of December 31, 2020	W	(577,290	)		(882,407	)		—			(2,352,680	)		—			(37,491	)		(11,704	)		—			(13,082	)		(3,874,024	)
Accumulated impairment loss as of December 31, 2020	W	(21,573	)		(8,408	)		(9,451	)		(210,631	)		—			(21,685	)		—			(57,995	)		—			(329,743	)

(*1) The Company has classified the amortization as manufacturing overhead costs, selling expenses, administrative expenses, and research and development expenses.

(*2) Others mainly consist of rights to use electricity and gas supply facilities.

(*3) The Company recognized an impairment loss amounting to W78,918 million for development projects with low feasibility to result in revenue generation after the impairment review.

42

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

10. Intangible Assets and Non-current Asset Impairment, Continued

(b) Changes in intangible assets for the year ended December 31, 2019 are as follows:

(In millions of won)
	Intellectual property rights			Software			Member- ships			Development costs			Construction -in-progress			Customer relationships			Technology			Good will			Others (*2)			Total
Acquisition cost as of January 1, 2019	W	686,707			895,186			56,959			2,142,832			33,867			59,176			11,074			72,588			13,077			3,971,466
Accumulated amortization as of January 1, 2019		(570,476	)		(739,211	)		—			(1,775,922	)		—			(34,854	)		(9,597	)		—			(13,077	)		(3,143,137	)
Accumulated impairment loss as of January 1, 2019		—			—			(11,521	)		—			—			—			—			—			—			(11,521	)
Book value as of January 1, 2019	W	116,231			155,975			45,438			366,910			33,867			24,322			1,477			72,588			—			816,808
Additions - internally developed		—			—			—			437,945			—			—			—			—			—			437,945
Additions - external purchases		28,397			—			845			—			60,889			—			—			—			2			90,133
Amortization (*1)		(22,679	)		(70,783	)		—			(297,959	)		—			(2,637	)		(1,107	)		—			(2	)		(395,167	)
Disposals		—			—			(1,816	)		—			—			—			—			—			—			(1,816	)
Impairment loss (*3)(*4)		(21,690	)		(7,733	)		—			(131,713	)		—			(21,685	)		—			(57,995	)		—			(240,816	)
Reversal of impairment loss		—			—			960			—			—			—			—			—			—			960
Transfer from construction-in-progress		—			80,553			—			—			(80,553	)		—			—			—			—			—
Book value as of December 31, 2019	W	100,259			158,012			45,427			375,183			14,203			—			370			14,593			—			708,047
Acquisition cost as of December 31, 2019	W	715,104			975,739			55,988			2,580,777			14,203			59,176			11,074			72,588			13,079			4,497,728
Accumulated amortization as of December 31, 2019	W	(593,155	)		(809,994	)		—			(2,073,881	)		—			(37,491	)		(10,704	)		—			(13,079	)		(3,538,304	)
Accumulated impairment loss as of December 31, 2019	W	(21,690	)		(7,733	)		(10,561	)		(131,713	)		—			(21,685	)		—			(57,995	)		—			(251,377	)

43

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

10. Intangible Assets and Non-current Asset Impairment, Continued

(*1) The Company has classified the amortization as manufacturing overhead costs, selling expenses, administrative expenses, and research and development expenses.

(*2) Others mainly consist of rights to use electricity and gas supply facilities.

(*3) During 2019, Display(AD PO) and Lighting CGUs were assessed for impairment, and the impairment losses amounting to W122,994 million(W17,650 million and W105,344 million for Display(AD PO) and Lighting CGUs, respectively) were recognized as other non-operating expenses. The impairment amount is reduced in goodwill, customer relationships and others.

(*4) The Company recognized an impairment loss amounting to W117,822 million for development projects with low feasibility to result in revenue generation after the impairment review.

(c) Development costs as of December 31, 2020 and 2019 are as follows:

(i) As of December 31, 2020

(In millions of won and in years)
Classification	Product type		Book Value
Development completed		TV	W	20,803
		IT		51,784
		Mobile		33,097
			W	105,684
Development in process		TV	W	49,773
		IT		42,762
		Mobile		103,734
			W	196,269
			W	301,953
(ii) As of December 31, 2019
(In millions of won and in years)
Classification	Product type		Book Value
Development completed		TV	W	22,597
		IT		26,834
		Mobile		53,350
			W	102,781
Development in process		TV	W	42,587
		IT		72,332
		Mobile		157,483
			W	272,402
			W	375,183

44

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

10. Intangible Assets and Non-current Asset Impairment, Continued

(d) Impairment assessment on CGU with allocated goodwill

As of December 31, 2020, goodwill is allocated to the Company’s Display CGU which has a large portion of the Company’s non-current financial assets. The carrying amount of goodwill allocated to Display CGU is as follows:

(In millions of won)
	December 31, 2020		December 31, 2019
Display CGU	W	14,593		14,593

The recoverable amount of Display CGU is estimated based on its value in use. Value in use is calculated using the estimated pre-tax cash flow based on 5-year business plan approved by management. The estimated sales of the Company’s products used in the forecast was determined considering external sources and the Company’s past experience. Management estimated the future pre-tax cash flows based on its past performance and forecasts on market growth. The key assumptions used in the estimation of value in use for Display CGU include revenue and operating expenditures for the forecast period, growth rates for subsequent years (“terminal growth rate”), and discount rate. For Display CGU, the terminal growth rate and the discount rate in the estimation of value in use as of December 31, 2020 are as follows.

(In millions of won)
	Discount rate(*)			Terminal growth rate
Display CGU	W	7.0	%		1.0	%

(*) The discount rate was calculated using the weighted average cost of equity capital and debt and the beta of equity capital was calculated as the average of five global listed companies in the same industry and the Company. Cost of debt was calculated using the yield rate of non-guaranteed corporate bond considering the Company’s credit rating and debt ratio was determined using the average of the debt ratios of the five global listed companies in the same industry and the Company.

As a result of impairment test, the Company concluded that there was no impairment to Display CGU. The value in use determined for this CGU is sensitive to the discount rate and terminal growth rate used in the discounted cash flow model.

45

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

11. Financial Liabilities

(a) Financial liabilities as of December 31, 2020 and 2019 are as follows:

(In millions of won)	December 31, 2020		December 31, 2019
Current
Short-term borrowings	W	326,400		347,340
Current portion of long-term borrowings and bonds		1,769,735		1,117,218
Current portion of payment guarantee liabilities		4,576		5,674
Derivatives(*)		58,875		—
Lease liabilities		3,403		4,357
	W	2,162,989		1,474,589
Non-current
Won denominated borrowings	W	2,435,000		2,692,560
Foreign currency denominated borrowings		1,572,160		1,626,709
Bonds		1,948,541		2,741,516
Payment guarantee liabilities		5,797		10,828
Derivatives(*)		108,750		20,592
Lease liabilities		1,977		2,200
	W	6,072,225		7,094,405

(*) Represents cross currency interest rate swap contracts and others entered into by the Company to hedge currency and interest rate risks with respect to foreign currency denominated borrowings and bonds. The contracts are not designated as hedging instruments.

(b) Short-term borrowings as of December 31, 2020 and 2019 are as follows.

(In millions of won and USD)
Lender	Annual interest rate as of December 31, 2020 (%)(*)		December 31, 2020		December 31, 2019
Standard Chartered Bank Korea Limited		12ML + 0.98	W	326,400		347,340
Foreign currency equivalent				USD 300		USD 300

(*) ML represents Month LIBOR (London Inter-Bank Offered Rates).

46

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

11. Financial Liabilities, Continued

(c) Won denominated long-term borrowings as of December 31, 2020 and 2019 are as follows :

(In millions of won)
Lender	Annual interest rate as of December 31, 2020 (%)(*)		December 31, 2020			December 31, 2019
Woori Bank		2.75	W	60			608
Korea Development Bank and others		CD rate (91days) + 1.00~1.60, 2.21~3.40		3,272,500			3,330,000
Less current portion of long-term borrowings				(837,560	)		(638,048	)
			W	2,435,000			2,692,560

(*) CD represents certificate of deposit.

(d) Foreign currency denominated long-term borrowings as of December 31, 2020 and 2019 are as follows :

(In millions of won and USD)
Lender	Annual interest rate as of December 31, 2020 (%)		December 31, 2020			December 31, 2019
The Export-Import Bank of Korea and others		3ML+0.75 ~ 2.40 6ML+1.25 ~1.35	W	1,680,960			1,696,177
Foreign currency equivalent				USD 1,545			USD 1,465
Less current portion of long-term borrowings				(108,800	)		(69,468	)
			W	1,572,160			1,626,709

47

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

11. Financial Liabilities, Continued

(e) Details of bonds issued and outstanding as of December 31, 2020 and 2019 are as follows :

(In millions of won and USD)
	Maturity		Annual interest rate as of December 31, 2020 (%)		December 31, 2020			December 31, 2019
Won denominated bonds at amortized cost(*1)
Publicly issued bonds		February 2021~ February 2024		1.95~2.95	W	1,320,000			1,730,000
Privately issued bonds		May 2022~ May 2033		3.25~4.25		160,000			110,000
Less discount on bonds						(1,798	)		(3,404	)
Less current portion						(499,796	)		(409,702	)
					W	978,406			1,426,894
Foreign currency denominated bonds at amortized cost(*2)
Publicly issued bonds		November 2021		3.88	W	326,400			347,340
Privately issued bonds		April 2023		3ML+1.47		108,800			115,780
Foreign currency equivalent						USD 400			USD 400
Less discount on bonds						(3,161	)		(6,883	)
Less current portion						(323,579	)		—
					W	108,460			456,237
Financial liabilities at fair value through profit or loss
Foreign currency denominated convertible bonds		August 2024		1.50	W	861,675			858,385
Foreign currency equivalent						USD 792			USD 741
					W	1,948,541			2,741,516

(*1) Principal of the won denominated bonds is to be repaid at maturity and interests are paid quarterly.

(*2) Principal of the foreign currency denominated bonds is to be repaid at maturity and interests are paid quarterly or semi-annually.

48

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

11. Financial Liabilities, Continued

(f) Details of the convertible bonds issued and outstanding as of December 31, 2020 are as follows:

(In won, USD)
	Description
Type	Unsecured foreign currency denominated convertible bonds
Issuance amount	USD 687,800,000
Annual interest rate (%)	1.50
Issuance date	August 22, 2019
Maturity date	August 22, 2024
Interest payment	Payable semi-annually in arrear until maturity date
Principal redemption	1.  Redemption at maturity: Redeemed on the maturity date, at their outstanding principal amount, which has not been early redeemed or converted. 2.  Early redemption: The Company has a right to redeem before maturity (call option) or the bondholders have a right to require the Company to redeem before maturity (put option). At exercise of each option, the outstanding principal amount together with accrued but unpaid interest are to be redeemed.
Conversion price	W 19,845 per common share (subject to adjustment based on diluted effects of certain events)
Conversion period	From August 23, 2020 to August 12, 2024
Redemption at the option of the issuer (Call option)	-   On or at any time after 3 years from the issuance, if the closing price of the shares for any 20 trading days out of the 30 consecutive trading days is at least 130% of the applicable conversion price -   The aggregate principal amount of the convertible bonds outstanding is less than 10% of the aggregate principal amount originally issued, or -   In the event of certain changes in laws and other directives resulting in additional taxes for the holders
Redemption at the option of the bondholders (Put option)	On the day of third anniversary from issuance date

The Company designated the convertible bonds as financial liabilities at fair value through profit of loss and recognized the change in fair value in profit or loss. The Company measures the convertible bond at fair value using the market price of convertible bonds disclosed on Bloomberg. The number of convertible shares as of December 31, 2020 is as follows:

(In won and No. of shares)
	December 31, 2020
Aggregate outstanding amount of the convertible bonds	W	813,426,670,000
Conversion price	W	19,845
Number of common shares to be issued at conversion		40,988,998

49

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

12. Employee Benefits

The Company’s defined benefit plans provide a lump-sum payment to an employee based on final salary rates and length of service at the time the employee leaves the Company.

The defined benefit plans expose the Company to actuarial risks, such as the risk associated with expected periods of service, interest rate risk, market (investment) risk, and others.

(a) Net defined benefit liabilities (defined benefit plan assets) recognized as of December 31, 2020 and 2019 are as follows:

(In millions of won)	December 31, 2020			December 31, 2019
Present value of partially funded defined benefit obligations	W	1,392,293			1,476,866
Fair value of plan assets		(1,617,290	)		(1,604,118	)
	W	(224,997	)		(127,252	)

(b) Changes in the present value of the defined benefit obligations for the years ended December 31, 2020 and 2019 are as follows:

(In millions of won)	2020			2019
Defined benefit obligations at January 1	W	1,476,866			1,592,366
Current service cost		161,898			192,528
Past service cost		—			(32,006	)
Interest cost		35,490			42,360
Remeasurements (before tax)		(155,700	)		(137,464	)
Benefit payments		(123,616	)		(95,099	)
Curtailment of plans		—			(80,470	)
Net transfers from (to) related parties		(2,645	)		(5,349	)
Defined benefit obligations at December 31	W	1,392,293			1,476,866

Weighted average remaining maturity of defined benefit obligations as of December 31, 2020 and 2019 are 15.06 years and 15.12 years, respectively.

50

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

12. Employee Benefits, Continued

(c) Changes in fair value of plan assets for the years ended December 31, 2020 and 2019 are as follows:

(In millions of won)
	2020			2019
Fair value of plan assets at January 1	W	1,604,118			1,548,179
Expected return on plan assets		38,595			41,826
Remeasurements (before tax)		(7,264	)		(8,824	)
Contributions by employer directly to plan assets		100,000			185,000
Benefit payments		(118,159	)		(81,876	)
Net transfers from (to) related parties		—			280
Curtailment of plans		—			(80,467	)
Fair value of plan assets at December 31	W	1,617,290			1,604,118

(d) Plan assets as of December 31, 2020 and 2019 are as follows:

(In millions of won)
	December 31, 2020		December 31, 2019
Guaranteed deposits in banks	W	1,617,290		1,604,118

As of December 31, 2020, the Company maintains the plan assets primarily with Mirae Asset Daewoo Co., Ltd., KB Insurance Co., Ltd. and others.

(e) Expenses recognized in profit or loss for the years ended December 31, 2020 and 2019 are as follows:

(In millions of won)
	2020			2019
Current service cost	W	161,898			192,528
Past service cost		—			(32,006	)
Net interest cost		(3,105	)		534
	W	158,793			161,056

Expenses are recognized as following in the separate statements of comprehensive income (loss):

(In millions of won)
	2020		2019
Cost of sales	W	122,245		119,147
Selling expenses		8,129		10,221
Administrative expenses		16,499		16,798
Research and development expenses		11,920		14,890
	W	158,793		161,056

51

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

12. Employee Benefits, Continued

(f) Remeasurements of net defined benefit liabilities (assets) included in other comprehensive income (loss) for the years ended December 31, 2020 and 2019 are as follows:

(In millions of won)	2020			2019
Balance at January 1	W	(72,208	)		(165,613	)
Remeasurements
Actuarial profit or loss arising from:
Experience adjustment		36,769			43,644
Demographic assumptions		(2,584	)		(19,952	)
Financial assumptions		121,515			113,772
Return on plan assets		(7,264	)		(8,824	)
	W	148,436			128,640
Income tax	W	(38,032	)		(35,235	)
Balance at December 31	W	38,196			(72,208	)

(g) Principal actuarial assumptions as of December 31, 2020 and 2019 (expressed as weighted averages) are as follows:

	December 31, 2020			December 31, 2019
Expected rate of salary increase		2.9	%		3.4	%
Discount rate for defined benefit obligations		2.6	%		2.4	%

Assumptions regarding future mortality are based on published statistics and mortality tables. The current mortality underlying the values of the liabilities in the defined benefit plans are as follows:

		December 31, 2020			December 31, 2019
Teens	Males Females		0.00 0.00	%  %		0.00 0.00	%  %
Twenties	Males Females		0.01 0.00	%  %		0.01 0.00	%  %
Thirties	Males Females		0.01 0.00	%  %		0.01 0.00	%  %
Forties	Males Females		0.02 0.01	%  %		0.02 0.01	%  %
Fifties	Males Females		0.04 0.02	%  %		0.04 0.02	%  %

52

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

12. Employee Benefits, Continued

(h) Reasonably possible changes to respective relevant actuarial assumptions would have affected the defined benefit obligations by the following amounts as of December 31, 2020:

(In millions of won)	Defined benefit obligations
	1% increase			1% decrease
Discount rate for defined benefit obligations	W	(182,556	)		221,953
Expected rate of salary increase		218,924			(183,720	)

13. Provisions

Changes in provisions for the year ended December 31, 2020 are as follows:

(In millions of won)	Warranties (*)			Others			Total
Balance at January 1, 2020	W	228,975			26,381			255,356
Additions (reversal)		277,448			(10,697	)		266,751
Usage		(235,589	)		(778	)		(236,367	)
Balance at December 31, 2020	W	270,834			14,906			285,740
Current	W	181,201			14,906			196,107
Non-current	W	89,633			—			89,633

(*) Product warranties on defective products are normally applicable for warranty periods from the date of customer’s purchase. The provision is calculated by using historical and anticipated rates of warranty claims and costs per claim to satisfy the Company’s warranty obligation.

53

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

14. Contingent Liabilities and Commitments

(a) Legal Proceedings

Anti-trust litigations

Some individual claimants filed “follow-on” damages claims against the Company and other TFT-LCD manufacturers alleging violations of EU competition law. While the Company continues its vigorous defense of the various pending proceedings described above, as of December 31, 2020, the Company cannot reliably estimate the timing and amount of outflows of resources embodying economic benefits relating to the proceedings.

Solas OLED Ltd. Litigations

Solas OLED Ltd. filed patent infringement actions in the United States District Court for the Western District of Texas and the Mannheim District Court in Germany in April 2019, in the Beijing Intellectual Property Court in China in May 2019 and in the United States District Court for the Western District of Texas in September 2020 against the Company, television manufacturers and others. In November 2020, the Mannheim District Court issued a decision in favor of the plaintiff and at the same month the Company appealed Mannheim District Court’s November decision. The Company reached an agreement with the plaintiff for the above lawsuits in December 2020, and they are expected to be withdrawn in early 2021 through follow-up procedures.

Others

The Company is involved in various lawsuits and disputes in addition to pending proceedings described above. The Company 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 Company has agreements with Korea Development Bank and several other banks for accounts receivable sales negotiating facilities of up to an aggregate of USD 1,115 million (W1,213,120 million) in connection with the Company’s export sales transactions with its subsidiaries. As of December 31, 2020, there are no short-term borrowings that are outstanding but past due in connection with these agreements. In connection with all of the contracts in this paragraph, the Company has sold its accounts receivable with recourse.

The Company has a credit facility agreement with Shinhan Bank and several other banks pursuant to which the Company could sell its accounts receivables up to an aggregate of W602,040 million in connection with its domestic and export sales transactions and, as of December 31, 2020, W86,956 million accounts and notes receivable sold to Shinhan Bank were outstanding in connection with the agreement. In connection with the contract above, the Company has sold its accounts receivable without recourse.

54

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

14. Contingent Liabilities and Commitments, Continued

Letters of credit

As of December 31, 2020, the Company entered into agreements with financial institutions in relation to the opening of letters of credit and the respective credit limits under the agreements are as follows:

(In millions of won and USD)
	Contractual amount		KRW equivalent
KEB Hana Bank		USD 150	W	163,200
Sumitomo Mitsui Banking Corporation		USD 50		54,400
Industrial Bank of Korea		USD 100		108,800
Industrial and Commercial Bank of China		USD 200		217,600
Shinhan Bank		USD 200		217,600
KB Kookmin Bank		USD 100		108,800
MUFG Bank		USD 100		108,800
The Export–Import Bank of Korea		USD 200		217,600
		USD 1,100	W	1,196,800

Payment guarantees

The Company provides payment guarantees to LG Display Vietnam Haiphong Co., Ltd. in connection with the principal amount of term loan credit facilities amounting to USD 1,197 million (W1,302,810 million).

In addition, the Company obtained payment guarantees amounting to USD 338 million (W367,200 million) from KB Kookmin Bank and others for advances received related to the long-term supply agreements. The Company also obtained payment guarantees amounting to USD 306 million (W332,724 million) from Korea Development Bank for foreign currency denominated bonds and USD 2 million (W2,176 million) from Shinhan Bank for value added tax payments in Poland.

License agreements

As of December 31, 2020, the Company 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 Company has a trademark license agreement with LG Corp. and other intellectual property license agreements with various companies as of December 31, 2020.

Long-term supply agreement

As of December 31, 2020, in connection with long-term supply agreements with customers, the Company recognized USD 200 million (W217,600 million) in advances received. The advances received are offset against outstanding accounts receivable balances after a given period of time, as well as those arising from the supply of products thereafter. The Company received payment guarantees amounting to USD 338 million (W367,200 million) from KB Kookmin Bank and other various banks relating to advances received (see note 14(b) payment guarantees).

55

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

15. Share Capital

The Company is authorized to issue 500,000,000 shares of capital stock (par value W5,000), and as of December 31, 2020 and December 31, 2019, the number of issued common shares is 357,815,700. There have been no changes in the capital stock from January 1, 2019 to December 31, 2020.

16. Retained earnings

(a) Retained earnings as of December 31, 2020 and 2019 are as follows:

(In millions of won)
	December 31, 2020		December 31, 2019
Legal reserve	W	212,158		212,158
Other reserve		68,251		68,251
Defined benefit plan actuarial income (loss)		38,196		(72,208	)
Unappropriated retained earnings		5,904,438		6,417,700
	W	6,223,043		6,625,901

(b) For the years ended December 31, 2020 and 2019, details of the Company’s appropriations of retained earnings are as follows:

(In millions of won, except for cash dividend per common stock)
	2020			2019
Retained earnings before appropriations
Unappropriated retained earnings carried over from prior year	W	6,417,700			9,057,593
Loss for the year		(513,262	)		(2,639,893	)
Unappropriated retained earnings carried forward to the following year	W	5,904,438			6,417,700

For the years ended December 31, 2020 and 2019, the date of appropriation is March 23, 2021 and March 20, 2020, respectively.

17. Revenue

Details of revenue for the years ended December 31, 2020 and 2019 are as follows:

(In millions of won)
	2020		2019
Sales of goods	W	22,719,575		21,593,333
Royalties		50,681		40,271
Others		29,017		24,725
	W	22,799,273		21,658,329

56

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

18. The Nature of Expenses and Others

The classification of expenses by nature for the years ended December 31, 2020 and 2019 are as follows:

(In millions of won)
	2020		2019
Changes in inventories	W	108,177		424,856
Purchases of raw materials, merchandise and others		8,539,506		8,616,802
Depreciation and amortization		2,519,199		2,549,770
Outsourcing		7,612,513		6,377,774
Labor		2,116,004		2,398,422
Supplies and others		643,432		615,620
Utility		664,869		711,890
Fees and commissions		370,041		466,415
Shipping		55,959		65,986
Advertising		112,678		192,333
Warranty		277,448		365,993
Travel		57,210		85,091
Taxes and dues		57,199		58,899
Impairment loss on property, plant and equipment		11,482		1,140,760
Impairment loss on intangible assets		79,593		240,816
Others		545,996		560,225
	W	23,771,306		24,871,652

Total expenses consist of cost of sales, selling, administrative, research and development expenses and other non-operating expenses, excluding foreign exchange differences.

57

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

19. Selling and Administrative Expenses

Details of selling and administrative expenses for the years ended December 31, 2020 and 2019 are as follows:

(In millions of won)
	2020		2019
Salaries(*)	W	191,932		410,355
Expenses related to defined benefit plans		24,697		27,109
Other employee benefits		42,475		47,976
Shipping		38,106		48,256
Fees and commissions		125,125		129,209
Depreciation		88,315		107,571
Taxes and dues		3,099		2,478
Advertising		112,678		192,333
Warranty		277,448		365,993
Insurance		7,806		6,026
Travel		6,070		17,338
Training		6,941		9,535
Others		40,069		39,166
	W	964,761		1,403,345

(*) Expenses recognized in relation to employee termination benefits for the years ended December 31, 2020 and 2019 amount to W1,380 million and W218,826 million, respectively.

20. Personnel Expenses

Details of personnel expenses for the years ended December 31, 2020 and 2019 are as follows:

(In millions of won)
	2020		2019
Salaries and wages	W	1,765,366		2,062,943
Other employee benefits		257,427		285,794
Contributions to National Pension plan		67,241		73,149
Expenses related to defined benefit plans and defined contribution plans(*)		159,409		161,848
	W	2,249,443		2,583,734

(*) Expenses recognized in relation to employee defined contribution plan for the years ended December 31, 2020 and 2019 amount to W616 million and W792 million, respectively.

58

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

21. Other Non-operating Income and Other Non-operating Expenses

(a) Details of other non-operating income for the years ended December 31, 2020 and 2019 are as follows:

(In millions of won)
	2020		2019
Foreign currency gain	W	1,204,657		752,629
Gain on disposal of property, plant and equipment		43,155		54,756
Gain on disposal of intangible assets		—		552
Reversal of impairment loss on intangible assets		1,110		960
Rental income		1,692		1,832
Others		14,990		24,785
	W	1,265,604		835,514

(b) Details of other non-operating expenses for the years ended December 31, 2020 and 2019 are as follows:

(In millions of won)
	2020		2019
Foreign currency loss	W	1,281,183		800,082
Other bad debt expense		—		1,349
Loss on disposal of property, plant and equipment		58,852		25,851
Impairment loss on property, plant and equipment		11,482		1,140,760
Loss on disposal of intangible assets		368		18
Impairment loss on intangible assets		79,593		240,816
Donations		378		592
Others		8,381		19,692
	W	1,440,237		2,229,160

59

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

22. Finance Income and Finance Costs

Finance income and costs recognized in profit or loss for the years ended December 31, 2020 and 2019 are as follows:

(In millions of won)
	2020		2019
Finance income
Interest income	W	8,614		13,633
Dividend income		8,239		18,622
Foreign currency gain		243,071		77,502
Gain on disposal of investments		8,392		5,408
Reversal of impairment loss on investments		5,144		2,564
Gain on transaction of derivatives		24,759		21,752
Gain on valuation of derivatives		—		59,781
Gain on valuation of financial assets at fair value through profit or loss		58		402
Others	W	6,067		5,302
		304,344		204,966
Finance costs
Interest expense	W	221,131		134,894
Foreign currency loss		65,404		104,153
Loss on repayment of borrowings		794		—
Impairment loss on investments		2,104		39,884
Loss on sale of trade accounts and notes receivable		1,870		1,769
Loss on valuation of financial assets at fair value through profit or loss		2,130		4,531
Loss on valuation of financial liabilities at fair value through profit or loss		36,798		56,384
Loss on transaction of derivatives		291		—
Loss on valuation of derivatives		187,344		17,999
Others		1,635		12,242
	W	519,501		371,856

60

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

23. Income Tax Expense (Benefit)

(a) Details of income tax expense (benefit) for the years ended December 31, 2020 and 2019 are as follows:

(In millions of won)
	2020			2019
Current tax expense (benefit)
Current year	W	5,172			9,328
Adjustment for prior years		(52,574	)		(163,203	)
	W	(47,402	)		(153,875	)
Deferred tax expense (benefit)
Origination and reversal of temporary differences and others	W	(361,075	)		(875,314	)
Change in unrecognized deferred tax assets(*)		(281,030	)		324,301
	W	(642,105	)		(551,013	)
Income tax benefit	W	(689,507	)		(704,888	)

(*) The 2020 amount includes tax effect from recognizing previously unrecognized deferred tax assets in relation to tax credit carry forwards due to amendments to tax laws (extension of tax credit carry forward period from 5 years to 10 years and others) resulting in increase of probability for utilization of tax credits.

(b) Income taxes recognized directly in other comprehensive income or loss for the years ended December 31, 2020 and 2019 are as follows:

(In millions of won)	2020							2019
	Before tax		Tax expense			Net of tax		Before tax		Tax expense			Net of tax
Remeasurements of net defined benefit liabilities (assets)	W	148,436		(38,032	)		110,404		128,640		(35,235	)		93,405

61

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

23. Income Taxes, Continued

(c) Reconciliation of the actual effective tax rate for the years ended December 31, 2020 and 2019 is as follows:

(In millions of won)	2020					2019
Loss for the year	W			(513,262	)				(2,639,893	)
Income tax benefit				(689,507	)				(704,888	)
Loss before income tax				(1,202,769	)				(3,344,781	)
Income tax benefit using the Company’s statutory tax rate		25.53	%	(307,067	)		25.67	%	(858,605	)
Non-deductible expenses (Non-taxable income)		0.27	%	(3,270	)		(0.53	%)	17,870
Tax credits		6.06	%	(72,884	)		1.35	%	(45,237	)
Change in unrecognized deferred tax assets(*1)		22.18	%	(266,771	)		(9.70	%)	324,301
Adjustment for prior years(*2)		3.93	%	(47,229	)		4.88	%	(163,203	)
Effect on change in tax rate		(0.61	%)	7,386			(0.66	%)	22,201
Others		(0.03	%)	328			0.07	%	(2,215	)
Income tax benefit	W			(689,507	)				(704,888	)
Effective tax rate				(*3)					(*3)

(*1) The 2020 amount includes tax effect from recognizing previously unrecognized deferred tax assets in relation to tax credit carry forwards due to amendments to tax laws (extension of tax credit carry forward period from 5 years to 10 years and others) resulting in increase of probability for utilization of tax credits.

(*2) Adjustment for prior years in 2020 consist of additional use of tax credits in amended tax returns and others. Adjustment for prior years in 2019 consist of additional use of tax credits in amended tax returns and expected amount of income tax refund in relation to the transfer price investigation and others.

(*3) Actual effective tax rate are not calculated due to loss before income tax.

(d) Tax uncertainties

In relation to transfer price investigations conducted in subsidiaries located in China, the mutual agreement procedures between tax authorities of the Republic of Korea and China are in progress since 2019. Upon completion of the above process, double taxation is expected to be eliminated. During the year ended December 31, 2019, the Company recognized current tax assets of W109,222 million in connection with the above and there is no change for the year ended December 31, 2020.

62

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

24. Deferred Tax Assets and Liabilities

(a) Unrecognized deferred tax liabilities

As of December 31, 2020, in relation to the taxable temporary differences on investments in subsidiaries amounting to W308,402 million, the Company did not recognize deferred tax liabilities since the Company is able to control the timing of the reversal of the temporary difference and it is probable that the temporary differences will not reverse in the foreseeable future.

(b) Unused tax credit carryforwards for which no deferred tax asset is recognized

Realization of deferred tax assets related to tax credit carryforwards is dependent on whether sufficient taxable income will be generated prior to their expiration and planned tax strategies are feasible. As of December 31, 2020, the amount of unused tax credit carryforwards for which no deferred tax asset is recognized and their expiration dates are as follows:

(In millions of won)
	Total		December 31, 2026		December 31, 2027		December 31, 2028		December 31, 2029		December 31, 2030
Tax credit carryforwards	W	230,768		10,278		48,578		48,293		82,707		40,912

(c) Deferred tax assets and liabilities are attributable to the following:

(In millions of won)	Assets				Liabilities						Total
	December 31, 2020		December 31, 2019		December 31, 2020			December 31, 2019			December 31, 2020			December 31, 2019
Other accounts receivable, net	W	—		—		(13	)		(4,364	)		(13	)		(4,364	)
Inventories, net		38,700		78,730		—			—			38,700			78,730
Defined benefit liabilities		—		—		(35,617	)		—			(35,617	)		—
Accrued expenses		115,762		120,854		—			—			115,762			120,854
Property, plant and equipment		476,162		465,883		—			—			476,162			465,883
Intangible assets		16,226		19,422		—			—			16,226			19,422
Provisions		70,125		59,875		—			—			70,125			59,875
Other temporary differences		81,585		52,293		(2,045	)		—			79,540			52,293
Tax loss carryforwards		819,133		536,684		—			—			819,133			536,684
Tax credit carryforwards		391,769		38,337		—			—			391,769			38,337
Deferred tax assets (liabilities)	W	2,009,462		1,372,078		(37,675	)		(4,364	)		1,971,787			1,367,714

63

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

24. Deferred Tax Assets and Liabilities, Continued

(d) Changes in deferred tax assets and liabilities for the years ended December 31, 2020 and 2019 are as follows:

(In millions of won)	January 1, 2019			Profit or loss			Other comprehensive loss			December 31, 2019			Profit or loss			Other comprehensive loss			December 31, 2020
Other accounts receivable, net	W	(1,013	)		(3,351	)		—			(4,364	)		4,351			—			(13	)
Inventories, net		53,882			24,848			—			78,730			(40,030	)		—			38,700
Defined benefit liabilities, net		—			35,235			(35,235	)		—			2,415			(38,032	)		(35,617	)
Accrued expenses		121,508			(654	)		—			120,854			(5,092	)		—			115,762
Property, plant and equipment		191,073			274,810			—			465,883			10,279			—			476,162
Intangible assets		925			18,497			—			19,422			(3,196	)		—			16,226
Provisions		32,468			27,407			—			59,875			10,250			—			70,125
Gain or loss on foreign currency translation, net		13			(13	)		—			—			—			—			—
Others		17,932			34,361			—			52,293			27,247			—			79,540
Tax loss carryforwards		126,755			409,929			—			536,684			282,449			—			819,133
Tax credit carryforwards		308,393			(270,056	)		—			38,337			353,432			—			391,769
Deferred tax assets (liabilities)	W	851,936			551,013			(35,235	)		1,367,714			642,105			(38,032	)		1,971,787

64

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

25. Loss per Share

(a) Basic loss per share for the years ended December 31, 2020 and 2019 are as follows:

(In won and No. of shares)	2020			2019
Loss for the year	W	(513,262,046,420	)		(2,639,892,599,202	)
Weighted-average number of common stocks outstanding		357,815,700			357,815,700
Basic loss per share	W	(1,434	)		(7,378	)

For the years ended December 31, 2020 and 2019, there were no events or transactions that resulted in changes in the number of common stocks used for calculating basic loss per share.

(b) Diluted loss per share is not different from basic loss per share. As of December 31, 2020, 40,988,998 shares of potential common stock to be issued from conversion were excluded from the calculation of weighted-average number of common stocks due to antidilution.

26. Financial Risk Management

The Company is exposed to credit risk, liquidity risk and market risks. The Company identifies and analyzes such risks, and controls are implemented under a risk management system to monitor and manage these risks at below an acceptable level.

(a) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Company’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

(i) Currency risk

The Company is exposed to currency risk on sales, purchases and borrowings that are denominated in a currency other than the functional currency of the Company, Korean won (KRW). The currencies in which these transactions primarily are denominated are USD, JPY, etc.

Interest on borrowings is accrued in the currency of the borrowing. Generally, borrowings are denominated in currencies that match the cash flows generated by the underlying operations of the Company, primarily KRW and USD.

In respect of other monetary assets and liabilities denominated in foreign currencies, the Company adopts policies to ensure that its net exposure is kept to an acceptable level by buying or selling foreign currencies at spot rates when necessary to address short-term imbalances. Meanwhile, the Company entered into cross currency interest rate swap contracts to hedge currency risk with respect to foreign currency denominated borrowings and bonds.

65

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

26. Financial Risk Management, Continued

i) Exposure to currency risk

The Company’s exposure to foreign currency risk based on notional amounts as of December 31, 2020 and 2019 are as follows:

(In millions)	December 31, 2020
	USD			JPY			CNY			PLN		EUR			GBP
Cash and cash equivalents		1,112			7			41			2		—			—
Trade accounts and notes receivable		3,425			1,782			—			—		—			—
Non-trade receivables		79			90			—			—		6			—
Trade accounts and notes payable		(3,035	)		(8,853	)		—			—		—			—
Other accounts payable		(266	)		(4,765	)		(25	)		—		(1	)		(2	)
Financial liabilities		(3,034	)		—			—			—		—			—
		(1,719	)		(11,739	)		16			2		5			(2	)
Cross currency interest rate swap contracts		2,225			—			—			—		—			—
Net exposure		506			(11,739	)		16			2		5			(2	)

(In millions)	December 31, 2019
	USD			JPY			CNY		PLN		EUR
Cash and cash equivalents		907			3			2		1		2
Trade accounts and notes receivable		2,880			3,974			—		—		—
Non-trade receivables		306			452			—		—		—
Trade accounts and notes payable		(1,035	)		(7,346	)		—		—		—
Other accounts payable		(145	)		(3,619	)		—		—		(9	)
Financial liabilities		(2,900	)		—			—		—		—
		13			(6,536	)		2		1		(7	)
Cross currency interest rate swap contracts		2,085			—			—		—		—
Net exposure		2,098			(6,536	)		2		1		(7	)

66

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

26. Financial Risk Management, Continued

Average exchange rates applied for the years ended December 31, 2020 and 2019 and the exchange rates at December 31, 2020 and December 31, 2019 are as follows:

(In won)	Average rate				Reporting date spot rate
	2020		2019		December 31, 2020		December 31, 2019
USD	W	1,180.46		1,165.46	W	1,088.00		1,157.80
JPY		11.05		10.70		10.54		10.63
CNY		170.90		168.56		166.96		165.74
PLN		302.95		303.62		292.02		304.87
EUR		1,345.71		1,304.52		1,338.24		1,297.43
GBP		1,513.48		1,487.46		1,482.40		1,420.32

ii) Sensitivity analysis

A weaker won, as indicated below, against the following currencies which comprise the Company’s assets or liabilities denominated in a foreign currency as of December 31, 2020 and 2019, would have increased (decreased) equity and profit or loss by the amounts shown below. This analysis is based on foreign currency exchange rate variances that the Company considers to be reasonably possible at the end of the reporting period. The analysis assumes that all other variables, in particular interest rates, would remain constant. The changes in equity and profit or loss would have been as follows:

(In millions of won)	December 31, 2020						December 31, 2019
	Equity			Profit or loss			Equity			Profit or loss
USD (5 percent weakening)	W	19,957			19,957		W	88,054			88,054
JPY (5 percent weakening)		(4,486	)		(4,486	)		(2,520	)		(2,520	)
CNY (5 percent weakening)		97			97			12			12
PLN (5 percent weakening)		21			21			11			11
EUR (5 percent weakening)		243			243			(329	)		(329	)
GBP (5 percent weakening)		(107	)		(107	)		—			—

A stronger won against the above currencies as of December 31, 2020 and 2019 would have had the equal but opposite effect on the above currencies to the amounts shown above, on the basis that all other variables remain constant.

67

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

26. Financial Risk Management, Continued

(ii) Interest rate risk

Interest rate risk arises principally from the Company’s variable interest-bearing bonds and borrowings. The Company establishes and applies its policy to reduce uncertainty arising from fluctuations in the interest rate and to minimize finance cost and manages interest rate risk by monitoring of trends of fluctuations in interest rate and establishing plan for countermeasures. Meanwhile, the Company entered into cross currency interest rate swap contracts amounting to USD 1,925 million (W2,094,400 million) and interest rate swap contracts amounting to W170,000 million in notional amount to hedge interest rate risk with respect to variable interest bearing borrowings.

i) Profile

The interest rate profile of the Company’s interest-bearing financial instruments as of December 31, 2020 and 2019 is as follows:

(In millions of won)	December 31, 2020			December 31, 2019
Fixed rate instruments
Financial assets	W	1,297,022			1,182,579
Financial liabilities		(5,792,416	)		(6,066,554	)
	W	(4,495,394	)		(4,883,975	)
Variable rate instruments
Financial liabilities	W	(2,259,420	)		(2,458,789	)

ii) Equity and profit or loss sensitivity analysis for variable rate instruments

As of December 31, 2020 and 2019, a change of 100 basis points in interest rates at the reporting date would have increased (decreased) equity and profit or loss by the amounts shown below for each 12-month period following the reporting dates. This analysis assumes that all other variables, in particular foreign currency rates, remain constant.

(In millions of won)	Equity					Profit or loss
	1%p increase			1%p decrease		1%p increase			1%p decrease
December 31, 2020
Variable rate instruments (*)	W	(2,333	)		2,333		(2,333	)		2,333
December 31, 2019
Variable rate instruments (*)	W	(2,847	)		2,847		(2,847	)		2,847

(*) Financial instruments related to non-hedging interest rate swaps are excluded.

68

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

26. Financial Risk Management, Continued

(b) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers.

The Company’s exposure to credit risk of trade and other receivables is influenced mainly by the individual characteristics of each customer. However, management believes that the default risk of the country in which each customer operates, do not have a significant influence on credit risk since the majority of the customers are global electronic appliance manufacturers operating in global markets.

The Company establishes credit limits for each customer and each new customer is analyzed quantitatively and qualitatively before determining whether to utilize third party guarantees, insurance or factoring as appropriate.

In relation to the impairment of financial assets subsequent to initial recognition, the Company recognizes the changes in expected credit loss (“ECL”) in profit or loss at each reporting date.

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposures to credit risk as of December 31, 2020 and 2019 are as follows:

(In millions of won)
	December 31, 2020		December 31, 2019
Financial assets carried at amortized cost
Cash and cash equivalents	W	1,220,098		1,105,245
Deposits in banks		76,863		77,268
Trade accounts and notes receivable, net		3,797,248		3,565,860
Non-trade receivables		130,217		438,659
Accrued income		11,115		1,281
Deposits		17,789		13,125
Short-term loans		28,491		21,623
Long-term loans		13,899		40,827
Long-term non-trade receivables		5,797		19,899
	W	5,301,517		5,283,787
Financial assets at fair value through profit or loss
Convertible bonds	W	1,289		1,544
Derivatives		9,363		49,676
	W	10,652		51,220
Financial assets at fair value through other comprehensive income
Debt instruments	W	72		76
	W	5,312,241		5,335,083

69

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

26. Financial Risk Management, Continued

In addition to the financial assets above, as of December 31, 2020, the Company provides payment guarantees in connection with the principal amount of credit facilities amounting to USD 1,197 million (W1,302,810 million) (see note 14).

Trade accounts and notes receivable are insured in order for the Company to manage credit risk if they do not meet the Company’s internal credit ratings. Uninsured trade accounts and notes receivables are managed by continuous monitoring of internal credit rating standards established by the Company and seeking insurance coverage, if necessary.

(c) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or other financial assets. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

The Company has historically been able to satisfy its cash requirements from cash flows from operations and debt and equity financing. To the extent that the Company does not generate sufficient cash flows from operations to meet its capital requirements, the Company may rely on other financing activities, such as external long-term borrowings and offerings of debt instruments, equity-linked and other debt instruments. In addition, the Company maintains a line of credit with various banks.

70

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

26. Financial Risk Management, Continued

The following are the contractual maturities of financial liabilities, including estimated interest payments, as of December 31, 2020.

(In millions of won)			Contractual cash flows in
	Carrying amount		Total		6 months or less		6-12 months		1-2 years		2-5 years		More than 5 years
Non-derivative financial liabilities
Borrowings	W	5,279,920		5,536,931		1,130,998		256,362		1,451,352		2,698,219		—
Bonds		2,771,916		2,786,822		327,489		551,540		1,379,750		435,757		92,286
Trade accounts and notes payable		4,591,319		4,591,319		4,472,817		118,502		—		—		—
Other accounts payable		1,295,580		1,295,580		1,295,580		—		—		—		—
Other accounts payable (enterprise procurement cards) (*1)		1,078,150		1,078,150		473,511		604,639		—		—		—
Payment guarantee (*2)		10,373		1,338,654		112,049		165,928		402,090		658,587		—
Security deposits received		12,350		12,350		—		1,430		10,920		—		—
Lease liabilities		5,380		5,483		2,144		1,376		1,532		431		—
Derivative financial liabilities
Derivatives	W	167,625		153,487		26,332		22,861		39,277		65,017		—
	W	15,212,613		16,798,776		7,840,920		1,722,638		3,284,921		3,858,011		92,286

(*1) Represents liabilities payable to credit card companies for utility expenses and others paid using enterprise procurement cards and the outstanding payables are settled at the end of the billing cycle. The Company presented the payable to credit card companies as other accounts payable and disclosed related cash flow as operating activities since the Company is using the enterprise procurement cards through agreements with suppliers for transactions arising from purchasing of goods and services, the payment term is within a year from the purchase, as part of the normal operating cycle, and no security is provided in connection with the above agreement. Change in liabilities related to procurement cards for the year ended December 31, 2020 is as follows:

(In millions of won)
	January 1, 2020		Change (Cash flows from operation activities)			December 31, 2020
Other accounts payable (enterprise procurement cards)	W	2,353,355		(1,275,205	)		1,078,150

(*2) Contractual cash flows of payment guarantee is identical to timing of principal and interest payment and represent the maximum amount that the Company could be required to pay the guarantee amount.

It is not expected that the cash flows included in the maturity analysis could occur significantly earlier, or at significantly different amounts.

71

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

26. Financial Risk Management, Continued

(d) Capital Management

Management’s policy is to maintain a capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Liabilities to equity ratio, net borrowings to equity ratio and other financial ratios are used by management to achieve an optimal capital structure. Management also monitors the return on capital as well as the level of dividends to ordinary shareholders.

(In millions of won)
	December 31, 2020			December 31, 2019
Total liabilities	W	16,441,967			16,716,587
Total equity		10,263,235			10,666,093
Cash and deposits in banks (*1)		1,296,950			1,182,502
Borrowings (including bonds)		8,051,836			8,525,343
Total liabilities to equity ratio		160	%		157	%
Net borrowings to equity ratio (*2)		66	%		69	%

(*1) Cash and deposits in banks consist of cash and cash equivalents and current deposits in banks.

(*2) Net borrowings to equity ratio is calculated by dividing total borrowings (including bonds and excluding lease liabilities and others) less cash and current deposits in banks by total equity.

72

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

26. Financial Risk Management, Continued

(e) Determination of fair value

(i) Measurement of fair value

A number of the Company’s accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes based on the following methods. When applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability.

i) Current assets and liabilities

The carrying amounts approximate their fair value because of the short maturity of these instruments.

ii) Trade receivables and other receivables

The fair value of trade and other receivables is estimated as the present value of future cash flows, discounted at the market rate of interest at the reporting date. This fair value is determined for disclosure purposes. The carrying amounts of current receivables approximate their fair value.

iii) Investments in equity and debt instruments

The fair value of marketable financial assets at FVTPL and at FVOCI is determined by reference to their quoted closing bid price at the reporting date. The fair value of non-marketable instruments is determined using the results of fair value assessment performed by external valuation institution and others.

iv) Non-derivative financial liabilities

Fair value, which is determined for disclosure purposes, except for the liabilities at FVTPL, is calculated based on the present value of future principal and interest cash flows, discounted at the market rate of interest at the reporting date.

73

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

26. Financial Risk Management, Continued

(ii) Fair values versus carrying amounts

The fair values of financial assets and liabilities, together with the carrying amounts shown in the separate statement of financial position as of December 31, 2020 and 2019 are as follows:

(In millions of won)	December 31, 2020					December 31, 2019
	Carrying amounts		Fair values			Carrying amounts		Fair values
Financial assets carried at amortized cost
Cash and cash equivalents	W	1,220,098		(	*)		1,105,245		(	*)
Deposits in banks		76,863		(	*)		77,268		(	*)
Trade accounts and notes receivable		3,797,248		(	*)		3,565,860		(	*)
Non-trade receivables		130,217		(	*)		438,659		(	*)
Accrued income		11,115		(	*)		1,281		(	*)
Deposits		17,789		(	*)		13,125		(	*)
Short-term loans		28,491		(	*)		21,623		(	*)
Long-term loans		13,899		(	*)		40,827		(	*)
Long-term non-trade receivables		5,797		(	*)		19,899		(	*)
Financial assets at fair value through profit or loss
Equity instruments	W	1,381		1,381			2,997		2,997
Convertible bonds		1,289		1,289			1,544		1,544
Derivatives		9,363		9,363			49,676		49,676
Financial assets at fair value through other comprehensive  income
Debt instruments	W	72		72			76		76
Financial liabilities at fair value through profit or loss
Derivatives	W	167,625		167,625			20,592		20,592
Convertible bonds		861,675		861,675			858,385		858,385
Financial liabilities carried at amortized cost
Borrowings	W	5,297,920		5,311,440			5,374,125		5,438,952
Bonds		1,910,241		1,923,517			2,292,833		2,345,867
Trade accounts and notes payable		4,591,319		(	*)		2,682,403		(	*)
Other accounts payable		2,373,730		(	*)		3,329,040		(	*)
Long-term other accounts payable		—		(	*)		1,062		(	*)
Payment guarantee liabilities		10,373		(	*)		16,502		(	*)
Security deposits received		12,350		(	*)		11,000		(	*)
Lease liabilities		5,380		(	*)		6,557		(	*)

(*) Excluded from disclosures as the carrying amount approximates fair value.

74

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

26. Financial Risk Management, Continued

(iii) Fair values of financial assets and liabilities

i) Fair value hierarchy

Financial instruments carried at fair value are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques. The different levels have been defined as follows:

• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities

• Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly

• Level 3: inputs for the asset or liability that are not based on observable market data

ii) Financial instruments measured at fair value

Fair value hierarchy classifications of the financial instruments that are measured at fair value as of December 31, 2020 and 2019 are as follows:

(In millions of won)	December 31, 2020
	Level 1		Level 2		Level 3		Total
Financial assets at fair value through profit or loss
Equity instruments	W	—		—		1,381		1,381
Convertible bonds		—		—		1,289		1,289
Derivatives		—		—		9,363		9,363
Financial assets at fair value through other comprehensive income
Debt instruments	W	72		—		—		72
Financial liabilities at fair value through profit or loss
Derivatives	W	—		—		167,625		167,625
Convertible bonds		861,675		—		—		861,675

(In millions of won)	December 31, 2019
	Level 1		Level 2		Level 3		Total
Financial assets at fair value through profit or loss
Equity instruments	W	—		—		2,997		2,997
Convertible bonds		—		—		1,544		1,544
Derivatives		—		—		49,676		49,676
Financial assets at fair value through other comprehensive income
Debt instruments	W	76		—		—		76
Financial liabilities at fair value through profit or loss
Derivatives	W	—		—		20,592		20,592
Convertible bonds		858,385		—		—		858,385

75

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

26. Financial Risk Management, Continued

iii) Financial instruments not measured at fair value but for which the fair value is disclosed

Fair value hierarchy classifications, valuation technique and inputs for fair value measurements of the financial instruments not measured at fair value but for which the fair value is disclosed as of December 31, 2020 and December 31, 2019 are as follows:

(In millions of won)	December 31, 2020						Valuation technique		Input
Classification	Level 1		Level 2		Level 3
Liabilities
Borrowings	W	—		—		5,311,440		Discounted cash flow		Discount rate
Bonds		—		—		1,923,517		Discounted cash flow		Discount rate

(In millions of won)	December 31, 2019						Valuation technique		Input
Classification	Level 1		Level 2		Level 3
Liabilities
Borrowings	W	—		—		5,438,952		Discounted cash flow		Discount rate
Bonds		—		—		2,345,867		Discounted cash flow		Discount rate

iv) The interest rates applied for determination of the above fair value as of December 31, 2020 and 2019 are as follows:

	December 31, 2020	December 31, 2019
Borrowings, bonds and others	2.15~4.46%	1.87~3.56%

76

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

27. Leases

The Company leases buildings, vehicles, machinery and equipment and others. Information about leases for which the Company is a lessee is presented below.

(i) Right-of-use assets

Right-of-use assets are presented as property, plant and equipment as of December 31, 2020 and December 2019(see Note 9(a)).

Changes in right-of-use assets for the years ended December 31, 2020 and 2019 are as follows:

(In millions of won)
	2020
	Buildings			Land			Machinery and equipment			Vehicles			Others			Total
Balance at January 1	W	922			1			1,180			4,282			30			6,415
Additions		7,748			39			1,163			2,241			2			11,193
Depreciation		(7,988	)		(4	)		(1,130	)		(3,022	)		(32	)		(12,176	)
Balance at December 31	W	682			36			1,213			3,501			—			5,432

(In millions of won)
	2019
	Buildings			Land			Machinery and equipment			Vehicles			Others			Total
Balance at January 1	W	9,338			—			1,021			5,922			51			16,332
Additions		307			2			1,271			2,253			41			3,874
Depreciation		(8,602	)		(1	)		(1,091	)		(3,726	)		(62	)		(13,482	)
Impairment		(121	)		—			(21	)		(167	)		—			(309	)
Balance at December 31	W	922			1			1,180			4,282			30			6,415

(ii) Amounts recognized in profit or loss not from right-of-use assets for the years ended December 31, 2020 and 2019 are as follows:

(In millions of won)
	2020			2019
Interest on lease liabilities	W	(590	)		(357	)
Expenses relating to short-term leases		(976	)		(417	)
Expenses relating to leases of low-value assets		(70	)		(257	)

(iii) Changes in lease liabilities for the years ended December 31, 2020 and December 31, 2019 are as follows:

(In millions of won)
	2020			2019
Balance at January 1	W	6,557			16,332
Additions		10,606			3,874
Interest expense		590			357
Repayment of liabilities		(12,373	)		(14,006	)
Balance at December 31	W	5,380			6,557

77

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

28. Changes in liabilities arising from financing activities

Changes in liabilities arising from financing activities for the year ended December 31, 2020 are as follows:

(In millions of won)
	January 1, 2020					Non-cash transactions
			Cash flows from financing activities			Reclassification			Gain or loss on foreign currency translation			Effective interest adjustment		Others			December 31, 2020
Short-term borrowings	W	347,340		4,739			—			(25,679	)		—		—			326,400
Current portion of long-term borrowings and bonds		1,117,218		(1,119,579	)		1,781,141			(10,602	)		763		794			1,769,735
Payment guarantee liabilities		16,502		7,154			—			—			—		(13,283	)		10,373
Long-term borrowings		4,319,269		741,166			(953,340	)		(99,935	)		—		—			4,007,160
Bonds		2,741,516		49,949			(827,801	)		(72,129	)		20,207		36,799			1,948,541
Lease liabilities		6,557		(12,373	)		—			—			—		11,196			5,380
	W	8,548,402		(328,944	)		—			(208,345	)		20,970		35,506			8,067,589

78

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

29. Related Parties and Others

(a) Related parties

Related parties as of December 31, 2020 are as follows:

Classification	Description
Subsidiaries(*)	LG Display America, Inc. and others
Associates(*)	Paju Electric Glass Co., Ltd. and others
Entity that has significant influence over the Company	LG Electronics Inc.
Subsidiaries of the entity that has significant influence over the Company	Subsidiaries of LG Electronics Inc.

(*) Details of subsidiaries and associates are described in Note 8.

79

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

29. Related Parties and Others, Continued

(b) Significant transactions such as sales of goods and purchases of raw material and outsourcing service and others, which occurred in the normal course of business with related parties for the years ended December 31, 2020 and 2019 are as follows:

(In millions of won)	2020
					Purchase and others
	Sales and others		Dividend income		Purchase of raw material and others		Acquisition of property, plant and equipment		Outsourcing fees		Other costs
Subsidiaries
LG Display America, Inc.	W	11,375,998		—		—		—		—		—
LG Display Japan Co., Ltd.		1,905,919		—		—		—		—		12
LG Display Germany GmbH		1,427,576		—		—		—		—		6,006
LG Display Taiwan Co., Ltd.		1,423,566		—		—		—		—		972
LG Display Nanjing Co., Ltd.		10,276		—		5,319		650		1,444,703		26,526
LG Display Shanghai Co., Ltd.		758,404		—		—		—		—		—
LG Display Poland Sp. z o.o.		8,392		—		—		—		—		—
LG Display Guangzhou Co., Ltd.		14,805		—		9,554		—		1,859,853		29,725
LG Display Shenzhen Co., Ltd.		550,715		—		—		—		—		—
LG Display Yantai Co., Ltd.		146		—		10,469		622		930,420		28,359
LG Display (China) Co., Ltd.		4,937		—		1,569,563		3,564		—		2,189
LG Display Singapore Pte. Ltd.		1,159,958		—		—		—		—		624
L&T Display Technology (Fujian) Limited		330,760		—		—		—		—		439
Nanumnuri Co., Ltd.		208		—		—		—		—		18,745
Global OLED Technology, LLC		—		—		—		—		—		5,472
LG Display Guangzhou Trading Co., Ltd.		1,361,805		—		—		—		—		—
LG Display Vietnam Haiphong Co., Ltd.		17,355		—		67,607		—		1,743,814		24,378
Suzhou Lehui Display Co., Ltd.		272,678		—		21,680		—		—		—
LG Display High-Tech (China) Co., Ltd.		39,488		—		2,627		—		1,292,870		6,251
	W	20,662,986		—		1,686,819		4,836		7,271,660		149,698

80

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

29. Related Parties and Others, Continued

(In millions of won)	2020
					Purchase and others
	Sales and Others		Dividend income		Purchase of raw material and others		Acquisition of property, plant and equipment		Outsourcing fees		Other costs
Associates	W
WooRee E&L Co., Ltd.		—		—		50		—		—		35
AVATEC Co., Ltd.		22		200		80		—		74,070		1,112
Paju Electric Glass Co., Ltd.		—		7,739		299,739		—		—		2,862
YAS Co., Ltd.		—		300		6,648		11,981		—		3,790
Material Science Co., Ltd.		—		—		93		—		—		—
	W	22		8,239		306,610		11,981		74,070		7,799
Entity that has significant influence over the Company
LG Electronics Inc.	W	641,579		—		9,644		76,947		—		137,921

81

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

29. Related Parties and Others, Continued

(In millions of won)	2020
					Purchase and others
	Sales and others		Dividend income		Purchase of raw material and others		Acquisition of property, plant and equipment		Outsourcing fees		Other costs
Subsidiaries of the entity that has significant influence over the Company
LG Electronics India Pvt. Ltd.	W	53,441		—		—		—		—		173
LG Electronics Vietnam Haiphong Co., Ltd.		332,977		—		—		—		—		1,125
LG Electronics Reynosa S.A. DE C.V.		—		—		—		—		—		1,044
LG Electronics Mexicali, S.A. DE C.V.		29,565		—		—		—		—		52
LG Electronics RUS, LLC		—		—		—		—		—		303
LG Electronics Egypt S.A.E.		69,853		—		—		—		—		375
LG Innotek Co., Ltd.		4,599		—		664		—		—		76,530
Qingdao LG Inspur Digital Communication Co., Ltd.		7,065		—		—		—		—		—
P.T. LG Electronics Indonesia		157,820		—		—		—		—		164
Others		26,673		—		12		—		—		10,911
	W	681,993		—		676		—		—		90,677
	W	21,986,580		8,239		2,003,749		93,764		7,345,730		386,095

82

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

29. Related Parties and Others, Continued

(In millions of won)	2019
					Purchase and others
	Sales and others		Dividend income		Purchase of raw material and others		Acquisition of property, plant and equipment		Outsourcing fees		Other costs
Subsidiaries
LG Display America, Inc.	W	9,425,243		—		—		—		—		6
LG Display Japan Co., Ltd.		2,229,825		—		—		—		—		5
LG Display Germany GmbH		1,676,418		—		—		—		—		4,452
LG Display Taiwan Co., Ltd.		1,433,672		—		—		—		—		595
LG Display Nanjing Co., Ltd.		9,791		—		3,671		—		1,423,501		28,206
LG Display Shanghai Co., Ltd.		978,886		—		—		—		—		—
LG Display Poland Sp. z o.o.		47		—		—		—		7,535		1,717
LG Display Guangzhou Co., Ltd.		111,242		—		11,987		—		2,105,906		33,014
LG Display Shenzhen Co., Ltd.		407,115		—		—		—		—		—
LG Display Yantai Co., Ltd.		2,156		—		14,047		—		1,250,772		11,175
LG Display (China) Co., Ltd.		15		11,120		1,399,183		—		—		2,550
LG Display Singapore Pte. Ltd.		1,133,923		—		—		—		—		1,305
L&T Display Technology (Fujian) Limited		355,887		—		2		—		—		1,119
Nanumnuri Co., Ltd.		191		—		—		—		—		22,001
Global OLED Technology, LLC		—		—		—		—		—		5,859
LG Display Guangzhou Trading Co., Ltd.		1,181,187		—		—		—		—		—
LG Display Vietnam Haiphong Co., Ltd.		18,797		—		122,807		—		1,114,903		26,668
Suzhou Lehui Display Co., Ltd.		158,065		—		239		—		—		—
LG Display High-Tech (China) Co., Ltd.		40,951		—		1,190		—		41,612		182
	W19,163,411		11,120		1,553,126		—		5,944,229		138,854

83

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

29. Related Parties and Others, Continued

(In millions of won)	2019
					Purchase and others
	Sales and Others		Dividend income		Purchase of raw material and others		Acquisition of property, plant and equipment		Outsourcing fees		Other costs
Associates
WooRee E&L Co., Ltd.	W	—		—		27		—		—		5
INVENIA Co., Ltd.(*1)		—		180		1,024		8,700		—		297
AVATEC Co., Ltd.		2,639		265		—		—		73,323		891
Paju Electric Glass Co., Ltd.		—		6,057		342,958		—		—		4,416
YAS Co., Ltd.		—		1,000		6,764		13,949		—		3,655
Material Science Co., Ltd.		—		—		59		—		—		313
	W	2,639		7,502		350,832		22,649		73,323		9,577
Entity that has significant influence over the Company
LG Electronics Inc.	W	942,455		—		10,568		224,854		—		138,789

84

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

29. Related Parties and Others, Continued

(In millions of won)	2019
					Purchase and others
	Sales and others		Dividend income		Purchase of raw material and others		Acquisition of property, plant and equipment		Outsourcing fees		Other costs
Subsidiaries of the entity that has significant influence over the Company
LG Electronics India Pvt. Ltd.	W	87,116		—		—		—		—		194
LG Electronics Vietnam Haiphong Co., Ltd.		277,743		—		—		—		—		924
LG Electronics Reynosa S.A. DE C.V.		—		—		—		—		—		1,155
LG Electronics S.A. (Pty) Ltd.		2,384		—		—		—		—		21
LG Electronics Mexicalli, S.A. DE C.V.		1,848		—		—		—		—		85
LG Electronics RUS, LLC		770		—		—		—		—		1,698
LG Electronics Egypt S.A.E.		97,359		—		—		—		—		241
LG Electronics (Kunshan) Computer Co., Ltd.		385		—		—		—		—		—
LG Innotek Co., Ltd.		6,954		—		34,194		—		—		79,155
LG Hitachi Water Solutions Co., Ltd.(*2)		—		—		—		68,282		—		—
Inspur LG Digital Mobile Communications Co., Ltd.		36,182		—		—		—		—		—
Qingdao LG Inspur Digital Communication Co., Ltd.		21,377		—		—		—		—		—
Hi Entech Co., Ltd.(*2)		47		—		—		—		—		21,576
Others		41,662		—		—		—		—		12,155
	W	573,827		—		34,194		68,282		—		117,204
	W	20,682,332		18,622		1,948,720		315,785		6,017,552		404,424

(*1) Represents transactions occurred prior to the Company’s disposal of the entire investments

(*2) Represents transactions occurred prior to LG Electronics Inc.’s disposal of the entire investments

85

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

29. Related Parties and Others, Continued

(c) Trade accounts and notes receivable and payable as of December 31, 2020 and 2019 are as follows:

(In millions of won)
	Trade accounts and notes receivable and others				Trade accounts and notes payable and others
	December 31, 2020		December 31, 2019		December 31, 2020		December 31, 2019
Subsidiaries
LG Display America, Inc.	W	1,341,210		937,409		5		—
LG Display Japan Co., Ltd.		344,276		274,964		12		5
LG Display Germany GmbH		287,359		382,463		7		2,794
LG Display Taiwan Co., Ltd.		296,556		454,563		95		104
LG Display Nanjing Co., Ltd.		2,465		1,358		385,925		220,327
LG Display Shanghai Co., Ltd.		319,033		172,259		11		3
LG Display Guangzhou Co., Ltd.		1,337		12,465		341,389		313,756
LG Display Guangzhou Trading Co., Ltd.		498,483		351,322		—		—
LG Display Shenzhen Co., Ltd.		27,327		116,494		—		2
LG Display Yantai Co., Ltd.		—		—		140,076		149,715
LG Display (China) Co., Ltd.		1,394		22		314,934		112,053
LG Display Singapore Pte. Ltd.		218,280		298,132		10		21
L&T Display Technology (Fujian) Limited		41,971		46,375		149,845		199,349
Nanumnuri Co., Ltd.		—		—		1,773		3,866
LG Display Vietnam Haiphong Co., Ltd.		16,632		24,385		605,531		395,429
Suzhou Lehui Display Co., Ltd.		46,760		24,830		16,047		46
LG Display High-Tech (China) Co., Ltd.		10,821		1,722		388,053		54,662
	W3,453,904		3,098,763		2,343,713		1,452,132

86

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

29. Related Parties and Others, Continued

(In millions of won)
	Trade accounts and notes receivable and others				Trade accounts and notes payable and others
	December 31, 2020		December 31, 2019		December 31, 2020		December 31, 2019
Associates
WooRee E&L Co., Ltd.	W	—		—		18		8
AVATEC Co., Ltd.		—		—		2,714		1,029
Paju Electric Glass Co., Ltd.		—		—		84,095		62,853
YAS Co., Ltd.		—		—		9,134		4,533
Material Science Co., Ltd.		—		—		—		8
	W	—		—		95,961		68,431
Entity that has significant influence over the Company
LG Electronics Inc.	W	93,749		208,870		75,290		110,784

87

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2020 and 2019

29. Related Parties and Others, Continued

(In millions of won)
	Trade accounts and notes receivable and others				Trade accounts and notes payable and others
	December 31, 2020		December 31, 2019		December 31, 2020		December 31, 2019
Subsidiaries of the entity that has significant influence over the Company
LG Innotek Co., Ltd.	W	80		4		25,330		29,613
LG Electronics Reynosa S.A. DE C.V		—		—		50		62
LG Electronics India Pvt. Ltd.		3,697		6,113		—		—
LG Electronics Vietnam Haiphong Co., Ltd.		36,417		47,740		16		29
LG Electronics RUS, LLC		—		—		—		67
LG Electronics Egypt S.A.E		13,359		9,432		—		—
Qingdao LG Inspur Digital Communication Co., Ltd.		—		6,456		—		—
P.T. LG Electronics Indonesia		48,677		7,696		—		16
Others		5,345		5,061		1,197		1,752
	W	107,575		82,502		26,593		31,539
	W	3,655,228		3,390,135		2,541,557		1,662,886

88

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2019 and 2018

29. Related Parties and Others, Continued

(d) Details of significant financing transactions such as grant and collection of loans, which occurred in the normal course of business with related parties for the year ended December 31, 2019 are as follows:

(In millions of won)
	Loans (*1)
Associates	January 1, 2019		Increase		Decrease (*2)			December 31, 2019
INVENIA Co., Ltd.	W	2,000		1,000		(3,000	)		—

(*1) Loans are presented based on nominal amounts.

(*2) Excluded from related parties due to disposal of equity investments during the year ended December 31, 2019.

89

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2019 and 2018

29. Related Parties and Others, Continued

(e) Conglomerate Transactions

Transactions, trade accounts and notes receivable and payable, and others between the Company and certain companies and their subsidiaries included in LG Group, a conglomerates according to the Monopoly Regulation and Fair Trade Act as of and for the years ended December 31, 2020 and 2019 are as follows. These entities are not related parties according to K-IFRS No. 1024, Related Party Disclosures.

(In millions of won)
	For the year ended December 31, 2020				December 31, 2020
	Sales and others		Purchase and others		Trade accounts and notes receivable and others		Trade accounts and notes payable and others
LG International Corp. and its subsidiaries	W	376,848		88,437		81,353		13,104
LG Uplus Corp.		—		2,121		—		151
LG Chem Ltd. and its subsidiaries		1,071		440,577		2		81,929
S&I Corp. and its subsidiaries		324		180,027		5,864		56,014
Silicon Works Co., Ltd.		36		460,009		—		74,419
LG Corp.		—		57,200		6,799		1,417
LG Management Development Institute		—		8,294		3,480		351
LG CNS Co., Ltd. and its subsidiaries		228		144,408		251		79,708
LG Household & Health Care Ltd. and its subsidiaries		—		63		—		—
G2R Inc. and its subsidiaries		—		38,487		—		8,851
Robostar Co., Ltd.		—		1,132		—		814
	W	378,507		1,420,755		97,749		316,758

90

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2019 and 2018

29. Related Parties and Others, Continued

(In millions of won)
	For the year ended December 31, 2019				December 31, 2019
	Sales and others		Purchase and others		Trade accounts and notes receivable and others		Trade accounts and notes payable and others
LG International Corp. and its subsidiaries	W	625,575		113,913		93,622		45,363
LG Uplus Corp.		—		2,352		—		208
LG Chem Ltd. and its subsidiaries		149		594,264		23		53,428
S&I Corp. and its subsidiaries(*)		867		360,023		21,307		85,312
Silicon Works Co., Ltd.		92		671,822		—		88,355
LG Corp.		—		55,059		8,781		—
LG Management Development Institute		—		8,606		3,480		231
LG CNS Co., Ltd. and its subsidiaries		—		166,820		—		58,967
LG Hausys Ltd.		3		1		—		—
G2R Inc. and its subsidiaries		—		72,639		—		29,540
Robostar Co., Ltd.		—		2,155		—		—
Others(*)		11		106,045		—		—
	W	626,697		2,153,699		127,213		361,404

(*) Due to S&I Corp.’s disposal of partial investments in Serveone in May 2019, Serveone was reclassified from one of the S&I Corp.’s subsidiaries to associates. Accordingly, transactions with S&I Corp. after the disposal are classified as others. In addition, due to LG Electronics Inc.’s disposal of entire investments in HiEntech Co., Ltd. and its subsidiaries and LG Hitachi Water Solutions Co., Ltd. in September 2019, transactions after the disposal are presented as others.

91

LG DISPLAY CO., LTD.

Notes to the Separate Financial Statements

For the years ended December 31, 2019 and 2018

29. Related Parties and Others, Continued

(f) Key management personnel compensation    

Compensation costs of key management for the years ended December 31, 2020 and 2019 are as follows:

(In millions of won)
	2020		2019
Short-term benefits	W	2,233		2,664
Expenses related to the defined benefit plan		346		553
	W	2,579		3,217

Key management refers to the registered directors who have significant control and responsibilities over the Company’s operations and business.

30. Supplemental Cash Flow Information

Supplemental cash flow information for the years ended December 31, 2020 and 2019 is as follows:

(In millions of won)
	2020			2019
Non-cash investing and financing activities:
Changes in other accounts payable arising from the purchase of property, plant and equipment	W	(8,824	)		(661,330	)
Changes in other receivable arising from the investments of dividends received from subsidiaries		—			(177,509	)
Recognition of right-of-use assets and lease liabilities		11,193			3,874

92

Independent Auditors’ Report on Internal Control over Financial Reporting

Based on a report originally issued in Korean

To the Shareholders and Board of Directors

LG Display Co., Ltd.:

Opinion on Internal Control over Financial Reporting

We have audited the Internal Control over Financial Reporting (“ICFR”) of LG Display Co., Ltd. (the “Company”) as of December 31, 2020, based on the criteria established in Conceptual Framework for Designing and Operating ICFR issued by the Operating Committee of ICFR.

In our opinion, the Company maintained, in all material respects, effective ICFR as of December 31, 2020, based on the criteria established in Conceptual Framework for Designing and Operating ICFR issued by the Operating Committee of ICFR in the Republic of Korea.

We also have audited, in accordance with Korean Standards on Auditing (“KSAs”), the separate statement of financial position of the Company as of December 31, 2020, the related separate statements of comprehensive loss, changes in equity, and cash flows for the year then ended and notes including significant accounting policies and other explanatory information (collectively, the separate financial statements), and our report dated March 3, 2021 expressed an unmodified opinion on those separate financial statements.

Basis for Opinion

We conducted our audit in accordance with KSAs. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the ICFR section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the ICFR in the Republic of Korea, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of Management and Those Charged with Governance for the Internal Control over Financial

Reporting

Management is responsible for designing, implementing, and maintaining effective ICFR, and for its assessment about the effectiveness of ICFR, included in the accompanying Report on the Operation of Internal Control over Financial Reporting.

Those charged with governance are responsible for overseeing the Company’s ICFR.

Auditors’ Responsibilities for the Audit of the Internal Control over Financial Reporting

Our responsibility is to express an opinion on the Company’s ICFR based on our audit. We conducted our audit in accordance with KSAs. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective ICFR was maintained in all material respects.

An audit of ICFR involves performing procedures to obtain audit evidence about whether a material weakness exists. The procedures selected depend on the auditor’s judgment, including the assessment of the risks that a material weakness exists. An audit includes obtaining an understanding of ICFR and testing and evaluating the design and operating effectiveness of ICFR based on the assessed risk.

93

Definition and Inherent Limitations of Internal Control over Financial Reporting

An entity’s ICFR is a process effected by those charged with governance, management, and other personnel, designed to provide reasonable assurance regarding the preparation of reliable separate financial statements in accordance with Korean International Financial Reporting Standards (“K-IFRS”). An entity’s ICFR includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the entity; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of separate financial statements in accordance with K-IFRS and that receipts and expenditures of the entity are being made only in accordance with authorizations of management and those charged with governance; and (3) provide reasonable assurance regarding prevention, or timely detection and correction of unauthorized acquisition, use, or disposition of the entity’s assets that could have a material effect on the separate financial statements.

Because of its inherent limitations, ICFR may not prevent, or detect and correct, misstatements. Also, projections of any assessment of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

The engagement partner on the audit resulting in this independent auditors’ report is Han, Sang Hyun.

KPMG Samjong Accounting Corp.

Seoul, Korea

March 3, 2021

This report is effective as of March 3, 2021, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the Company’s internal control over financial reporting. Accordingly, the readers of the audit report should understand that the above audit report has not been updated to reflect the impact of such subsequent events or circumstances, if any.

94

Report on the Operation of Internal Control over Financial Reporting

English translation of a Report Originally Issued in Korean

To the Shareholders, Board of Directors and Audit Committee of LG Display Co., Ltd.

We, as the Internal Control over Financial Reporting (“ICFR”) Officer and Chief Executive Officer (“CEO”) of LG Display (“the Company”), assessed the effectiveness of the design and operation of the Company’s ICFR as of December 31, 2020.

The Company’s management, including myself, is responsible for designing and operating an IACS.

We assessed the design and operational effectiveness of the ICFR in the prevention and detection of an error or fraud which may cause a misstatement in the preparation and disclosure of reliable separate financial statements.

We used the ‘Conceptual Framework for Designing and Operating Internal Control over Financial Reporting’ established by the Operating Committee of Internal Control over Financial Reporting in Korea (the “ICFR Committee”) as the criteria for design and operation of the Company’s ICFR. And, we conducted an evaluation of ICFR based on the ‘Management Guideline for Evaluating and Reporting Effectiveness of Internal Control over Financial Reporting’ established by the ICFR Committee.

Based on our assessment, we concluded that the Company’s ICFR is effectively designed and operated as of December 31, 2020, in all material respects, in accordance with the ‘Conceptual Framework for Designing and Operating Internal Control over Financial Reporting.

We certify that this report does not contain any untrue statement of a fact, or omit to state a fact necessary to be presented herein. We also certify that this report does not contain or present any statements which might cause material misunderstandings of the readers, and we have reviewed and verified this report with sufficient care.

January 22, 2021

Ho Young Jeong

Chief Executive Officer

Dong Hee Seo

Internal Control over Financial Reporting Officer

95

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	LG Display Co., Ltd.
	(Registrant)
Date: March 4, 2021	By:     /s/ Daniel Lee
	(Signature)
	Name: Daniel Lee
	Title:  Head of IR / Vice President