The new venture will be based in Hamburg, Germany and will commence operation in the first half of 2019.
The new joint venture will combine LG's advanced, lightweight and flexible OLED display technology with Lufthansa Technik's aviation business capabilities to create new markets for on-board aircraft applications such as welcome board screens and interior linings.
"We are very excited to be joining hands with Lufthansa Technik to expand the reach of LG's innovative consumer electronic technologies to commercial aircrafts," said Kwon Soon-hwang, president of LG's Business-to-Business Company.
"Both partners contribute a globally recognized reputation in their respective business areas to create a new flying experience for the passengers," added Dr. Johannes Bussmann, chairman of Lufthansa Technik's executive board.
Closing of the agreement, which was inked earlier this week in Hamburg, is subject to regulatory approval.