The global display industry is expected to pull out of a slump triggered by weak prices and excess supply in the second half of the year, local market analysts said Thursday.

The display industry has weathered the worst, with overall conditions likely to improve in the coming months, analysts from investor service firms and market researchers said in a meeting hosted by the Ministry of Knowledge Economy.

So Hyun-chul, an analyst at Shinhan Investment Corp., said worldwide demand has contracted recently, but problems caused by over-supply are easing, with prices likely to remain steady or move up modestly in the second half.

The average price for a 42-inch LCD display reached $279, up from just $267 in January.

He said global demand for smartphones, tablet PCs and other new information technology devices will fuel demand for high-end display products. The worldwide smartphone market is forecast to grow 38 percent on-year in 2012, while tablet PC demand could surge 98 percent.

“Such developments could help South Korean companies further increase their market share,” So said.

Korea is already the No. 1 manufacturer of displays in the world.

Others, however, said because improved conditions will not translate into immediate gains, there is a need for companies and the government to work together to push up growth. They said cooperation is vital because overseas rivals are stepping up effort to challenge Korean control.

Efforts should be centered on helping local companies to make inroads into overseas markets and shift production to new display technologies, such as organic light-emitting diode, that have growth potential.

Kwon Na-hyun, a researcher at Korea Investors Service Co. said Chinese display makers are continuing to increase capacity with the help of the government, while Taiwanese and Japanese companies are engaged in mergers to retain their market presence.

Related to the calls raised, the knowledge economy ministry said it will do its part to facilitate research and development and assist companies with finding new markets. (Yonhap News)