Samsung Display Co. along with other 14 display and electric vehicle parts makers have become eligible for government support and tax incentives for migrating to new growth businesses.

The Ministry of Trade, Industry and Energy said Thursday that it has approved 15 companies in display and automotive parts manufacturing sectors on business restructuring to back their transition to more competitive fields through deregulatory and tax support.

The endorsement comes from a special law on revitalizing companies, aimed at enhancing competitiveness of industries and companies through voluntary restructuring. Under the special law, companies approved by authorities are given benefits such as simplified procedure for corporate restructuring and extended grace periods for holding company regulations.

Six companies from the display sector, including Samsung Display, have been approved to enjoy the special benefits. Others beneficiaries are automotive cars makers who are seeking repositioning in EV sector.

Samsung Display, marking the first large company to make the special list in three years, will be shifting its business focus from LCD to next-generation quantum-dot display amid flood of cheap LCD products from Chinese makers.

Other firms undergoing a reform include Woosu AMS Co., a Kosdaq-listed car parts maker that has newly entered compact EV market.

The trade ministry said the 15 companies will invest combined 1.5 trillion won ($1.3 billion) on their new ventures.

The Korean government plans to earmark 20 billion won for the companies subject to benefits under the special law, and another 10 billion won for R&D projects. It will also expand the special supports to greater number of firms, such as those hit hard by the COVID-19 crisis and those with innovative business models.

By Oh Chan-jong and Cho Jeehyun

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]