REG - Samsung Electronics - Transactions with Affiliated Companies

Samsung Electronics CoAnnouncement

28/04/2022 10:00

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RNS Number : 6990J  Samsung Electronics Co. Ld  28 April 2022

Transactions with Affiliated Companies

 

Samsung Electronics Co., Ltd. (KS005930, KS005935, SMSN, SMSD) ("SEC"), on
April 28, 2022, announced that its Board of Directors has authorized the
following related-party transactions with affiliated companies.

 

1. Real Estate Lease Agreement

□ Major Transaction Terms

 

(KRW 10 mil)

 Owner of property       Samsung Electronics
 Lessee                  Samsung Securities
 Lease period            May 1, 2022-April 30, 2024
 Transaction amount      1,211/year
 Purpose of transaction  Lease of office space
 Terms and conditions    - Deposit: 999

                         - Annual rental payment: 1,199

                         - Transaction amount is the sum of the annual rental payment and converted
                         annual rental payment, where the converted annual rental payment is calculated
                         by multiplying the deposit amount and the interest rate provided for by the
                         applicable Act, currently set at 1.2%

                         - The foregoing deposit and the annual rental payment refer to the amount
                         applicable in the first year; the corresponding figures in the second year may
                         vary as they are adjusted for inflation

Other information:

  Number of Independent Directors present at the BOD meeting: 5 (100%)

  Attendance of Audit Committee: Y

 

□ Major Transaction Terms

 

(KRW 10 mil)

 Owner of property       Samsung Electronics
 Lessee                  Samsung Life Insurance
 Lease period            May 1, 2022-April 30, 2024
 Transaction amount      1,905/year
 Purpose of transaction  Lease of office space
 Terms and conditions    - Deposit: 1,572

                         - Annual rental payment: 1,887

                         - Transaction amount is the sum of the annual rental payment and converted
                         annual rental payment, where the converted annual rental payment is calculated
                         by multiplying the deposit amount and the interest rate provided for by the
                         applicable Act, currently set at 1.2%

                         - The foregoing deposit and the annual rental payment refer to the amount
                         applicable in the first year; the corresponding figures in the second year may
                         vary as they are adjusted for inflation

Other information:

  Number of Independent Directors present at the BOD meeting: 5 (100%)

  Attendance of Audit Committee: Y

 

□ Major Transaction Terms

 

(KRW 10 mil)

 Owner of property       Samsung Electronics
 Lessee                  Samsung Asset Management
 Lease period            May 1, 2022-April 30, 2024
 Transaction amount      573/year
 Purpose of transaction  Lease of office space
 Terms and conditions    - Deposit: 473

                         - Annual rental payment: 567

                         - Transaction amount is the sum of the annual rental payment and converted
                         annual rental payment, where the converted annual rental payment is calculated
                         by multiplying the deposit amount and the interest rate provided for by the
                         applicable Act, currently set at 1.2%

                         - The foregoing deposit and the annual rental payment refer to the amount
                         applicable in the first year; the corresponding figures in the second year may
                         vary as they are adjusted for inflation

Other information:

  Number of Independent Directors present at the BOD meeting: 5 (100%)

  Attendance of Audit Committee: Y

 

□ Major Transaction Terms

(KRW 10 mil)

 Owner of property       Samsung Electronics
 Lessee                  Samsung SDI
 Lease period            May 1, 2022-April 30, 2024
 Transaction amount      761/year
 Purpose of transaction  Lease of research lab and office space
 Terms and conditions    - Deposit: 788

                         - Annual rental payment: 751

                         - Transaction amount is the sum of the annual rental payment and converted
                         annual rental payment, where the converted annual rental payment is calculated
                         by multiplying the deposit amount and the interest rate provided for by the
                         applicable Act, currently set at 1.2%

Other information:

  Number of Independent Directors present at the BOD meeting: 5 (100%)

  Attendance of Audit Committee: Y

 

□ Major Transaction Terms

(KRW 10 mil)

 Owner of property       Samsung Electronics
 Lessee                  Samsung SDI
 Lease period            May 1, 2022-April 30, 2024
 Transaction amount      549/year
 Purpose of transaction  Lease of land
 Terms and conditions    - Annual rental payment: 549

Other information:

  Number of Independent Directors present at the BOD meeting: 5 (100%)

  Attendance of Audit Committee: Y

 

2. Provision of Collateral Security

 SEC to use a building and land as collateral to secure the deposit in the
above transaction

□ Major Transaction Terms

(KRW 10 mil)

 Owner of property            Samsung Electronics
 Related party                Samsung Securities
 Collateral security          Land and building
 Security period              May 1, 2022~ (expires at the repayment of deposit)
 Guaranteed amount            999
 Maximum guaranteed amount    1,199
 Terms and conditions         - Security period is subject to change.

                              - The maximum guaranteed amount is 120% of the guaranteed amount.

Other information:

  Number of Independent Directors present at the BOD meeting: 5 (100%)

  ttendance of Audit Committee: Y

 

□ Major Transaction Terms

(KRW 10 mil)

 Owner of property            Samsung Electronics
 Related party                Samsung Life Insurance
 Collateral security          Land and building
 Security period              May 1, 2022~ (expires at the repayment of deposit)
 Guaranteed amount            1,572
 Maximum guaranteed amount    1,887
 Terms and conditions         - Security period is subject to change.

                              - The maximum guaranteed amount is 120% of the guaranteed amount.

Other information:

  Number of Independent Directors present at the BOD meeting: 5 (100%)

  Attendance of Audit Committee: Y

 

□ Major Transaction Terms

(KRW 10 mil)

 Owner of property            Samsung Electronics
 Related party                Samsung Asset Management
 Collateral security          Land and building
 Security period              May 1, 2022~ (expires at the repayment of deposit)
 Guaranteed amount            473
 Maximum guaranteed amount    567
 Terms and conditions         - Security period is subject to change.

                              - The maximum guaranteed amount is 120% of the guaranteed amount.

Other information:

  Number of Independent Directors present at the BOD meeting: 5 (100%)

  Attendance of Audit Committee: Y

 

3. Purchase of Employee Insurance Policy from Samsung Fire & Marine
Insurance

□ Major Transaction Terms

 

(KRW bil)

 Insurer                      Samsung Fire & Marine Insurance
 Application date             May 2, 2022
 Type of insurance            Employee insurance policy
 Insurance premium            21.52
 Insurance period             May 2, 2022-May 2, 2025 (3 years)
 Purpose of transaction       Insure eligible employees for unforeseen health costs, as part of the
                              Company's employee welfare program
 Method of insurance payment  Annual installment payment (3 years)

Other information:

  Number of Independent Directors present at the BOD meeting: 5 (100%)

  Attendance of Audit Committee: Y

 

 

※ This disclosure is in accordance with the Korea 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 than 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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