Transaction with Affiliate Company

Transaction with Affiliate Company

Samsung Electronics Co., Ltd. (KS005930, KS005935, SMSN, SMSD) ("SEC") announced that its Board of Directors have authorized the following related-party transactions with an affiliated company.

Compensation for the disposal of a property

- SEC intends to lease premises from Samsung Display ("SDC") in a separate transaction and is requesting SDC to dispose of the current property so SEC may invest in a new facility. This transaction is to compensate SDC for the disposal of the current property.

- Transaction Date: May 1, 2017

- Transaction Value: KRW 13,243 million

- Resolution Date: April 27, 2017

- Other Information:

ž The transaction date is the date of the contract closing, and may change upon consultation between the parties.

ž Attendance of Independent Directors at the BoD meeting: 5 (100%)

※ 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.