Transaction with Affiliate Company

Samsung Electronics Co. Ld

27 July 2023

 

Transaction with Affiliate Company

Samsung Electronics Co., Ltd. (KS005930, KS005935, SMSN, SMSD) on July 27, 2023, announced that its Board of Directors authorized the following related-party transaction with an affiliated company.

Purchase of Mobile device insurance policy from Samsung Fire & Marine Insurance

□ Major transaction terms

Insurer	Samsung Fire & Marine Insurance
Application date	August 2023
Type of insurance	Mobile device insurance
Insurance premium	KRW 5.91 billion
Insurance benefit	-
Insurance coverage period	1 year from the application date
Total insurance premium	KRW 5.91 billion
Insurance coverage	Smartphone liability (for models designated by SEC)
Method of insurance payment	Installments in accordance with the application date
Interest rate (%)	-
Purpose of transaction	To comprehensively insure against the risks and potential losses caused by unpredictable accidents associated with SEC's mobile devices

Other information:

- The application date refers to the date on which the Company purchases a mobile device insurance policy, and the Company plans to complete the purchase in August 2023.

- The total amount for insurance premium is an estimate, and such amount may change in relation to the number of smartphones sold.

- Number of Independent Directors present at the Board of Directors Meeting: 6 (100% attendance)

- Attendance of Audit Committee: Y

※ This disclosure is in accordance with the Korean Fair Trade Act, which mandates that a company must

disclose financial and real estate transactions in the event the value of such a transaction is greater or

equal to KRW 5 billion and the counterparty is a financial affiliate of the party required to make the

disclosure.

 

END