The LED market is bleak and South Korean companies are complaining

South Korea's leading LED makers Samsung LED and Seoul Semiconductor suffered a sluggish market. Their performance in the third quarter was satisfactory. The current situation of the LED market was deteriorating and the future prospects were dull.

Samsung LED's revenue for the third quarter was 358.2 billion won (approximately US$325 million). From the beginning of 2011 to the third quarter, accumulated revenue was only K562.2 billion (approximately US$866 million), which is expected to include the fourth quarter. The total revenue in 2011 was about 1.32 trillion won (about 1.197 billion U.S. dollars) in 2010. Samsung LED did not disclose its operating profit for the third quarter, but it can be determined that the amount is far below the balance of profit and loss. The high growth rate expected at the beginning of 2011 has only reached less than half the target.

Seoul Semiconductor also announced its third-quarter performance, with revenue and operating profit of 161.6 billion won (approximately 151 million U.S. dollars) and 6.8 billion won (approximately 6.1608 million U.S. dollars), respectively, which is 40% and 85 percent lower than the same period in 2010. %, a decrease of 20% and 62% from the second quarter. Seoul Semiconductor's annual revenue expectations were revised downwards from 1.1 trillion won (about 998 million U.S. dollars) at the beginning of the year to 735 billion won (about 667 million U.S. dollars), and business interests are from 130 billion won (about 118 million U.S. dollars). It was substantially revised to 34 billion won (approximately US$30.838 million). Although turnover increased by nearly 20% compared to 2010, the operating benefit was reduced to one-third.

The poor performance of Samsung's LED and Seoul Semiconductor's operating status has nothing to do with the deterioration of the backlight module market. In particular, the global economic crisis is still rippling in the aftermath, and the lighting market has had to reduce consumer demand. Seoul Semiconductor’s general manager Shinsei-Hoon (translation) stated that the current lighting business accounted for the rising proportion of Seoul’s overall revenue, and it is expected that the future revenue and revenue will gradually balance. However, it is difficult to predict the market economy. It is necessary to develop revolutionary new technologies and improve production patterns so as to truly promote the growth of corporate performance.

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