LD Display will also look to tap into the demand for foldable screens.
LD display is to invest $8.5bn in next generation OLED displays over the next three years, with the displays designed specifically for TVs, smartphones and wearables.
The largest LCD display maker will focus on production of OLED screens powered by organic light-emitting diodes.
LD Display is looking to tap the growth in demand for foldable screens, as well as demand from sectors like automotive, television and wearable devices.
LG Display chief executive officer Han Sang Beom was quoted by Bloomberg as saying: "The investment aims to make LG Display grow as a sustainable company.
"LG Display’s priority is to "pioneer this untapped OLED market to sustain our leadership in the display industry and keep the competitors at bay."
The company is looking to invest on next generation display technology as it is feeling the pinch from Chinese manufacturers and facing contraction in consumer electronics.
During the second quarter, LD Display reported an operating profit KRW 488bn ($412m), a year-on-year increase of 199% from the operating profit of KRW 163 billion in the second quarter of 2014.
Revenue during the quarter however dropped 4% to KRW 6,708bn ($5.6bn) from KRW 7,022bn ($5.93bn) compared to first quarter of 2015.
During the quarter, TFT-LCD panels for TVs accounted for 40% of revenue, mobile device panels accounted for 28%, tablet PCs and notebook PCs 16%, and monitors 16%.
LG Display CFO Don Kim then told: "Total net display area shipments in the third quarter are expected to remain flat compared to the second quarter.
"Panel prices in the third quarter are expected to continue on a downturn trend, although price fluctuations are expected to vary among panel makers because there will be differences in panel demand based on product segment and sizes. We will implement a flexible production operation and utilisation adjustment strategy based on market situations."