REG - Samsung Electronics - Transactions with Affiliated Companies

Samsung Electronics CoAnnouncement

30/11/2023 08:00

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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:

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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