Transactions with Affiliated Companies

Samsung Electronics Co. Ld

30 November 2023

 

Transaction with Affiliate Company

Samsung Electronics Co., Ltd. (KS005930, KS005935, SMSN, SMSD) ("SEC"), on November 30, 2023, announced that its Board of Directors has authorized the following related-party transactions with affiliated companies.

Purchase of retirement pension policy from Samsung Life Insurance

- To ensure the stability of retirement benefit management and enhance overall profitability of the pension policy.

Insurer	Samsung Life Insurance
Policy premium	KRW 33.5 billion
Type of policy	Retirement Pension Policy - Defined Contribution
Terms of payment	Installment payments
Insurance	Pay retirement benefit at the time of retirement
Other	-  The insurance period ends on the contract end date -  Policy premiums are estimated amounts for the financial year 2024; actual amounts may differ -  Separate from the foregoing total premium amount for Samsung Life Insurance, an estimated KRW 106 billion in retirement benefits from its defined benefits plan is expected be transitioned to its defined contribution plan during FY24, although the actual amount may differ

Purchase of retirement pension policy from Samsung Securities

- To ensure the stability of retirement benefit management and enhance overall profitability of the pension policy.

Insurer	Samsung Securities
Policy premium	KRW 24.8 billion
Type of policy	Retirement Pension Policy - Defined Contribution
Terms of payment	Installment payments
Insurance	Pay retirement benefit at the time of retirement
Other	-  The insurance period ends on the contract end date -  Policy premiums are estimated amounts for the financial year 2024; actual amounts may differ -  Separate from the foregoing total premium amount for Samsung Securities, an estimated KRW 174 billion in retirement benefits from its defined benefits plan is expected be transitioned to its defined contribution plan during FY24, although the actual amount may differ

Purchase of retirement pension policy from Samsung Life Insurance

- To ensure the stability of retirement benefit management and enhance overall profitability of the pension policy.

Insurer	Samsung Life Insurance
Policy premium	KRW 2.5775 trillion
Type of policy	Retirement Pension Policy - Defined Benefit
Terms of payment	Lump sum payments
Insurance	Pay retirement benefit at the time of retirement
Other	-  The insurance period ends on the contract end date -  Policy premiums are estimated amounts for the financial year 2023; actual amounts may differ -  The entire amount of the Samsung Life Insurance premium is scheduled to be entrusted to asset management companies and managed as income investments

Purchase of retirement pension policy from Samsung Fire & Marine Insurance

- To ensure the stability of retirement benefit management and enhance overall profitability of the pension policy.

Insurer	Samsung Life Insurance
Policy premium	KRW 753.5 billion
Type of policy	Retirement Pension Policy - Defined Benefit
Terms of payment	-
Insurance	-
Other	-  The foregoing premium refers to the amount being transferred to Samsung Life Insurance from the accumulated retirement benefits (defined benefit) operated according to the insurance transaction with Samsung Fire & Marine Insurance -  The premiums for the defined benefit plan paid to Samsung Life Insurance in 2023 include the foregoing amount

Transaction with Samsung Asset Management.

Company	Samsung Asset Management
Date	December 30, 2023
Purpose	Retirement benefit (defined benefit) to be managed as income investment
Amount	KRW 2.1104 trillion
Other	-  The foregoing KRW 2.1104 trillion, a portion of the accumulated retirement benefit that SEC transferred to Samsung Life Insurance (including premiums transferred in FY23) to be entrusted to asset management companies, pursuant to SEC directives and designation, will be managed by Samsung Asset Management as income investments -  The foregoing date is SEC's estimate of the date when Samsung Life Insurance will entrust the funds to Samsung Asset Management to be managed as income investments; the actual date may differ -  The transaction period is determined in accordance with the agreement period stipulated for the retirement benefit (defined benefit) premium entrusted to Samsung Asset Management

Other Information:

ž Number of Independent Directors present at the Board of Directors meeting: 6

ž 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.

 

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