Transactions with Affiliated Companies
Samsung Electronics Co., Ltd. (KS005930, KS005935, SMSN, SMSD) ("SEC"), on March 20, 2024, announced that its Board of Directors has authorized the following related-party transactions with affiliated companies.
1. Real Estate Lease Agreement
? Major Transaction Terms
(KRW 10 mil)
| Owner of property | Samsung Electronics |
| Lessee | Samsung Life Insurance |
| Lease period | May 1, 2024-April 30, 2029 |
| Transaction amount | 2,134/year |
| Purpose of transaction | Lease of office space |
| Terms and conditions | - Deposit: 1,736 - Annual rental payment: 2,084 - Transaction amount is the sum of the annual rental payment and converted annual rental payment, where the converted annual rental payment is calculated by multiplying the deposit amount and the interest rate provided for by the applicable Act, currently set at 2.9% - The foregoing deposit and the annual rental payment refer to the amount applicable in the first year; the corresponding figures in the subsequent contract years may vary as they are adjusted for inflation |
Other information:
? Number of Independent Directors present at the BOD meeting: 6 (100%)
? Attendance of Audit Committee: Y
? Major Transaction Terms
(KRW 10 mil)
| Owner of property | Samsung Electronics |
| Lessee | Samsung Securities |
| Lease period | May 1, 2024-April 30, 2029 |
| Transaction amount | 1,334/year |
| Purpose of transaction | Lease of office space |
| Terms and conditions | - Deposit: 1,085 - Annual rental payment: 1,303 - Transaction amount is the sum of the annual rental payment and converted annual rental payment, where the converted annual rental payment is calculated by multiplying the deposit amount and the interest rate provided for by the applicable Act, currently set at 2.9% - The foregoing deposit and the annual rental payment refer to the amount applicable in the first year; the corresponding figures in the subsequent contract years may vary as they are adjusted for inflation |
Other information:
? Number of Independent Directors present at the BOD meeting: 6 (100%)
? Attendance of Audit Committee: Y
2. Provision of Collateral Security
SEC to use a building and land as collateral to secure the deposit in the above transaction
? Major Transaction Terms
(KRW 10 mil)
| Owner of property | Samsung Electronics |
| Related party | Samsung Life Insurance |
| Collateral security | Land and building |
| Security period | May 1, 2024~ (expires at the repayment of deposit) |
| Guaranteed amount | 1,736 |
| Maximum guaranteed amount | 2,084 |
| Terms and conditions | - Security period is subject to change. - The maximum guaranteed amount is 120% of the guaranteed amount. |
Other information:
? Number of Independent Directors present at the BOD meeting: 6 (100%)
? Attendance of Audit Committee: Y
? Major Transaction Terms
(KRW 10 mil)
| Owner of property | Samsung Electronics |
| Related party | Samsung Securities |
| Collateral security | Land and building |
| Security period | May 1, 2024~ (expires at the repayment of deposit) |
| Guaranteed amount | 1,085 |
| Maximum guaranteed amount | 1,303 |
| Terms and conditions | - Security period is subject to change. - The maximum guaranteed amount is 120% of the guaranteed amount. |
Other information:
? Number of Independent Directors present at the BOD meeting: 6 (100%)
? Attendance of Audit Committee: Y
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