30th Nov 2022 07:55
Transaction with Affiliate Company
The Board of Directors of Samsung Electronics Co., Ltd. (KS005930, KS005935, SMSN,
SMSD), on November 30, 2022, authorized the following related-party transactions with
affiliated companies:
1. Purchases of retirement pension policies from Samsung Life Insurance and Samsung Fire &
Marine Insurance
- To ensure stability of retirement benefit management and to enhance overall profitability of employee pension
policies.
Insurer | Samsung Life Insurance | Samsung Fire & Marine Insurance |
Policy premium | KRW 954.2 billion | KRW 204.2 billion |
Type of policies | Retirement Pension Policies - Defined Benefit | |
Terms of payment | Lump sum payments | |
Insurance | Pay retirement benefit at the time of each eligible employee's retirement | |
Other | - The insurance period ends on the contract end date - Policy premiums are estimated amounts for the financial year 2022; actual amounts may differ - Samsung Life Insurance premium includes KRW 750 billion to be entrusted to asset management companies and managed as income investments | |
2. Purchases of retirement pension policies from Samsung Life Insurance and Samsung
Securities
- To ensure stability of retirement benefit management and to enhance overall profitability of employee pension
policies.
Insurer | Samsung Life Insurance | Samsung Securities |
Policy premium | KRW 28.5 billion | KRW 14.3 billion |
Type of policies | Retirement Pension Policies - Defined Contribution | |
Terms of payment | Installment payments | |
Insurance | Pay retirement benefit at the time of each eligible employee's retirement | |
Other | - The insurance period ends on the contract end date - Policy premiums are estimated amounts for the financial year 2022; actual amounts may differ - Separately from the foregoing total premium amount for Samsung Life Insurance, an estimated KRW 73.2 billion in retirement benefits from its defined benefits plan is expected be transitioned to its defined contribution plan during FY23, though actual amount may differ. - Separately from the foregoing total premium amount for Samsung Securities, an estimated KRW 103.7 billion in retirement benefits from its defined benefit plan is expected to be transitioned to its defined contribution plan during FY23, though actual amount may differ. | |
3. Transaction with Samsung Asset Management
Company | Samsung Asset Management |
Date | December 30, 2022 |
Purpose | Retirement benefit (defined benefit) to be managed as income investment |
Amount | KRW 450 billion |
Other | - The foregoing KRW 450 billion, a portion of the KRW 750 billion that SEC transferred to Samsung Life Insurance in FY22 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 the estimated date on which defined benefits retirement fund premiums is expected to be made in FY22; the date of the transaction may differ from the actual date. |
Other Information:
∙ Number of Independent Directors Present at the Board of Directors Meeting: 6
∙ 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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