29th Nov 2016 09:50
Transaction with Affiliate Company
Samsung Electronics Co., Ltd. (KS005930, KS005935, SMSN, SMSD) ("SEC") announced today that its Board of Directors has authorized the following related-party transactions with an affiliated company.
Purchase of retirement pension policy from Samsung Life Insurance Company
- Deposit the estimated required amount of retirement benefits of employees to ensure the stability of retirement benefit management and enhance overall profitability
□ Major Transaction Terms
Insurer | Samsung Life Insurance Company |
Type of Policy | Retirement Pension Policy |
Policy Premium | KRW 261,900 million |
Terms of Payment | Immediately |
Insurance | Pay retirement benefit at the time of retirement |
Terms and Conditions | * The insurance period ends on the contract end date. |
※ Severance pay reserves of KRW 736,900 million of KRW 1,200,000 million managed by Samsung Securities under the transaction
announced on 27 November 2014, shall be transferred to Samsung Life Insurance Company in order to ensure stable benefits
management and profitability.
Other Information:
ž Number of Independent Directors Present at the Board of Directors Meeting: 5
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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