Kolon Industries signs MOU with IMM PE to sell functional and imaging materials businesses

Kolon Industries said Monday it has signed a memorandum of understanding with IMM PE, the preferred bidder for its functional materials and imaging materials businesses.

Under the MOU, Kolon Industries will pursue the transfer of its overcoat (OC), OLED encapsulant and dry film resist (DFR) businesses — along with related stakes — which fall under its specialty business division. The company has granted IMM PE exclusive negotiating rights and plans to discuss key terms before signing a definitive agreement.

OC is a material that improves liquid crystal performance and panel reliability by planarizing the surface of color filters inside display panels. OLED encapsulant protects the light-emitting layer of OLED panels from oxygen and moisture. DFR is a photosensitive film used to form electrical circuits on printed circuit boards.

The divestiture is part of a broader effort to streamline operations. Kolon Industries plans to use the proceeds to improve its financial structure and fund new investments, with a particular focus on accelerating the development of mPPO, a material drawing attention as a key component for AI semiconductors.

"This business transfer follows our long-term development plan to concentrate on Kolon Industries' core competencies," a company official said. "We will continue to nurture high-value flagship businesses such as mPPO and CPI, while pressing ahead with efforts to identify new growth engines."