What Happened?

Iljin Display announced on September 11, 2025, that it would halt operations of its Ingot and Wafer production facilities at the Eumseong plant. This represents a significant 22.6 billion KRW impact, equivalent to 25.4% of the company’s sales.

Why the Halt?

While official reasons haven’t been disclosed, the severe underperformance of the AD division (Sapphire Wafer) is likely the primary cause. The AD division’s sales plummeted by 56.7% year-on-year in the first half of 2025, with an operating rate of just 17.5%. The global economic slowdown and intensified competition likely contributed as well.

What’s the Impact?

  • AD Division: The production capacity reduction is expected to further exacerbate the decline in sales and worsen profitability due to increased fixed cost burden.
  • DS Division (Touch Screen Panel): The direct impact may be limited, but the overall financial deterioration of the company could pose an indirect burden.
  • Financial Health: The already high debt ratio (153.25%) could worsen, and uncertainties about the company’s viability as a going concern could deepen.
  • Investor Sentiment: With the possibility of business restructuring being raised, downward pressure on the stock price is expected to intensify.

What Should Investors Do?

Investing in Iljin Display currently carries significant risks. Further information verification and in-depth analysis are necessary. Investors should closely monitor the company’s self-rescue plans and business restructuring direction. A cautious wait-and-see approach is recommended over hasty investment decisions.