The Korea Display Industry Association (KDIA) will formally complain to the Chinese ambassador of South Korea on Wednesday of Jiangxi Infintech’s delayed payments due to local display equipment makers, TheElec learned on Tuesday.
They have invited ambassador Xing Haiming for a morning conference where the two parities will likely discuss possible solutions for the problem.
Multiple South Korean display equipment makers have won orders from Infintech in the past couple of years. But their contract deadlines have been pushed multiple times. Delivery of the ordered goods has also been delayed along with the payments.
The combined outstanding balance is expected to have exceeded 100 billion won, people familiar with the matter said.
For example, one such company, YEST Corporation, signed a 7.7 billion won contract with Infintech back in April, 2018. The contract’s initial deadline was October of that year __ but the deadline has been pushed back multiple times. The current deadline is May of 2021.
This is not the first time that South Korean display equipment makers are coming together to protest against delays in payment from companies in greater China. Last year in October, seven display equipment makers worked together to receive their delayed payments from Taiwanese manufacturing giant Foxconn for its 10.5th generation Liquid Crystal Display (LCD) factory line at Guangzhou.
The seven companies were: SFA, Top Engineering, DMS, DIT and Rorze Systems __ who are listed on KOSDAQ __ and the non-listed KC Innovation and Nanoprotech.
The companies initially planned for a press conference but this was canceled after Foxconn said they would contact the companies individually to settle the matter.
Taiwan Electronic Equipment Industry Association at the time said Foxconn’s outstanding balance to Taiwanese equipment makers totaled 10 billion Taiwanese dollars.