The world's largest cluster of LCD factories could be developed by LG in Korea, following changes to regulations in the country.

According to the Korean Times, the government has announced that it is to relax rules relating to the development of manufacturing plants in the cities surrounding Seoul.

"The government decided to accept conglomerates' requests to endorse the construction and expansion of production facilities on outskirts of Seoul," announced Kim Han-gill, head of the ruling Uri Party's special committee for development of the Seoul metropolitan area.

LG looks set to be the biggest beneficiary of the move, as it is now planning to create the biggest LCD factory in the world as demand for flat screens continues to grow at a rapid pace.

However, companies looking to take advantage of the rule changes will have to move quickly, as the relaxation will only be a temporary measure, with the return of the full regulations next year to prevent over-development of the areas surrounding Seoul.

The LCD industry has seen a massive increase in demand in recent months, as interest in flat screen televisions, as well as laptops and PDAs, has grown among consumers.


Ÿ Adfero Ltd