Trial Court Judgment relating to Embezzlement

Trial Court Judgment relating to Embezzlement by Officer or Employee

Samsung Electronics Co., Ltd. (KS005930, KS005935, SMSN, SMSD) ("Company") disclosed, in accordance with the disclosure regulations for capital markets, that the Seoul Central District Court issued a judgment in the influence-peddling scandal trial resulting from the special prosecutor's February 28, 2017 indictment of the Company's executives (including former executives).

1. Relevant persons: Jae-Yong Lee (Vice Chairman), Gee-Sung Choi (former Vice Chairman), Choong-Ki Chang (former President), Sang-Jin Park (former President), Seong-Soo Hwang (former Senior Vice President)

2. Judgment on matters related to embezzlement: Found guilty on charges of violating the Act on the Aggravated Punishment, etc. of Specific Economic Crimes.

3. Amount of Embezzlement 

4. Company's Response

- The Company will check on the progress of the future court proceedings and relevant matters.

5. Date of occurrence: 08/25/2017

6. Date of disclosure: 08/28/2017

7. Other information

1) This disclosure is made based on the judgment from the first trial and is subject to change according to

the appeal and judgments of subsequent courts.

2) The relevant amounts by individuals are as follows:

- The persons relevant to the total amount of KRW 8,090,950,000: Jae-Yong Lee (Vice Chairman),

Gee-Sung Choi (former Vice Chairman), Choong-Ki Chang (former President)

- The persons relevant to KRW 6,462,950,000 as a portion of the above total amount: Sang-Jin Park

(former President), Seong-Soo Hwang (former Senior Vice President)

3) The total equity mentioned above is based on the consolidated financial statement as of the end of 2016.

4) The date of occurrence indicates the date on which the judgment was issued by the Seoul District Court.

The judgment is not a final determination of guilt and is pending appeal.