Samsung Display Co. plans to spend 13.1 trillion won ($11 billion) developing and building next-generation displays, responding to a flood of supply and price pressure from fast-moving Chinese rivals.

In an announcement event attended by South Korean President Moon Jae-in and Samsung Electronics Co. Vice-Chairman Jay Y. Lee, the investment was presented as a move to reorganize the display industry while maintaining Samsung's global lead and Korea's established dominance.

The government will invest about 400 billion won into next-generation displays to propel that objective, Moon said.