Total investment in the plant, to be built in Paju near the border with North Korea, is expected to top KRW 10 trillion (roughly Rs. 58,036 crores), the company said.
Expenditure in the first stage has been set at KRW 1.84 trillion, with production scheduled to begin in the first half of 2018.
LG Display CEO Han Sang-Beom hailed what he called an "historical investment" that would make the plant the "centre of the global Oled industry."
Oled screens deliver a more vivid picture quality, consume less electricity and promise wider profit margins than the liquid crystal display (LCD) in common use.
LG Display is currently the world's largest LCD panel producer but has been signalling a major shift to the more advanced Oled technology for some time.
Citing market research firm IHS, the company said the global Oled panel market was forecast to grow to $29.1 billion (roughly Rs. 1,93,900 crores) in 2022 from $8.7 billion last year.
Much of the growth could be fuelled by reports that Apple plans to adopt Oled screens on its iPhone from 2018.
Apple is LG Display's biggest customer, accounting for about 25 percent of sales.
South Korean rival Samsung Display Co. currently dominates the market for smartphone Oleds, mainly supplying the ultra-thin screens to parent Samsung Electronics Co. and to Chinese smartphone makers.
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