Samsung Electronics has announced that plans to spin off the company's LCD display business have been approved by its board of directors. The new body will be 100%-held by Samsung, concentrating on developing future display technologies such as OLEDs.

"The display market is undergoing rapid chances with OLED panels expected to fast replace LCD panels to become the mainstream. Amid this structural change of the display industry, adopting measures for change and innovation, including business restructuring, are essential to improve our competitiveness for our display business," Samsung said in a statement.

The spin-off is scheduled to take effect on April 1, 2012, subject to approval by company shareholders, according to Samsung.

Samsung indicated that running its LCD unit separately will also allow it to make investment and other business decisions efficiently, while strengthening its technological capability and competitiveness.

Tentatively named Samsung Display Company, the new company will be built with paid-in capital of KRW750 billion (US$667.8 million), Samsung disclosed. Going forward, the entity will consider adopting various restructuring measures including a merger with Samsung Mobile Display (SMD) and S-LCD, Samsung indicated.

Samsung's display panel unit - including its LCD business and subsidiary SMD - reported KRW750 billion in operating losses for 2011, while its other businesses stayed profitable. The firm saw its overall operating profits slip 6% to KRW16.25 trillion in 2011.

Samsung also makes memory chips and mobile phones.