15th Feb 2022 11:24
Transaction with Affiliate Company
The Board of Directors of Samsung Electronics Co., Ltd. (KS005930, KS005935, SMSN,SMSD)("SEC"), on February 15, 2022, authorized the following related-party transaction with anaffiliated company.
Purchase of a product liability insurance policy from Samsung Fire & Marine Insurance Co., Ltd.
- Purchase of a product liability insurance policy to cover SEC from liabilities in connection withproperty damage or bodily injuries to a third party, caused by defect in SEC's products
□ Major transaction terms
Insurer | Samsung Fire & Marine Insurance Co., Ltd. |
Application date | April 1, 2022 |
Type of insurance | Product Liability |
Insurance premium | KRW 9,800 million |
Insurance benefit | - |
Insurance coverage period | April 1, 2022-March 31, 2023 (1 year) |
Total insurance premium | KRW 9,800 million |
Insurance coverage | Liability for property damage or bodily injuries to a third party caused by defect in SEC's products |
Method of insurance payment | Lump sum |
Interest rate (%) | - |
Other information:
ž The total amount for insurance premium is subject to changes in currency exchange rates
ž Number of Independent Directors present at the Board of Directors Meeting: 6 (100% attendance)
ž 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 that 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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