Samsung Electronics Co. Ld Transactions with Affiliated Companies (2039V)

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RNS Number : 2039V

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:

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

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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November 30, 2023 02:54 ET (07:54 GMT)