Company Announcements

Transactions with Affiliated Companies

Source: RNS
RNS Number : 7038J
Samsung Electronics Co. Ld
28 April 2022
 

Transactions with Affiliated Companies

 

Samsung Electronics Co., Ltd. (KS005930, KS005935, SMSN, SMSD) ("SEC"), on April 28, 2022, 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 Securities

Lease period

May 1, 2022-April 30, 2024

Transaction amount

1,211/year

Purpose of transaction

Lease of office space

Terms and conditions

- Deposit: 999

- Annual rental payment: 1,199

- 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 1.2%

- The foregoing deposit and the annual rental payment refer to the amount applicable in the first year; the corresponding figures in the second year may vary as they are adjusted for inflation

Other information:

ž Number of Independent Directors present at the BOD meeting: 5 (100%)

ž Attendance of Audit Committee: Y

 

Major Transaction Terms

(KRW 10 mil)

Owner of property

Samsung Electronics

Lessee

Samsung Life Insurance

Lease period

May 1, 2022-April 30, 2024

Transaction amount

1,905/year

Purpose of transaction

Lease of office space

Terms and conditions

- Deposit: 1,572

- Annual rental payment: 1,887

- 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 1.2%

- The foregoing deposit and the annual rental payment refer to the amount applicable in the first year; the corresponding figures in the second year may vary as they are adjusted for inflation

Other information:

ž Number of Independent Directors present at the BOD meeting: 5 (100%)

ž Attendance of Audit Committee: Y

 

Major Transaction Terms

(KRW 10 mil)

Owner of property

Samsung Electronics

Lessee

Samsung Asset Management

Lease period

May 1, 2022-April 30, 2024

Transaction amount

573/year

Purpose of transaction

Lease of office space

Terms and conditions

- Deposit: 473

- Annual rental payment: 567

- 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 1.2%

- The foregoing deposit and the annual rental payment refer to the amount applicable in the first year; the corresponding figures in the second year may vary as they are adjusted for inflation

Other information:

ž Number of Independent Directors present at the BOD meeting: 5 (100%)

ž Attendance of Audit Committee: Y

 

Major Transaction Terms

(KRW 10 mil)

Owner of property

Samsung Electronics

Lessee

Samsung SDI

Lease period

May 1, 2022-April 30, 2024

Transaction amount

761/year

Purpose of transaction

Lease of research lab and office space

Terms and conditions

- Deposit: 788

- Annual rental payment: 751

- 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 1.2%

Other information:

ž Number of Independent Directors present at the BOD meeting: 5 (100%)

ž Attendance of Audit Committee: Y

 

Major Transaction Terms

(KRW 10 mil)

Owner of property

Samsung Electronics

Lessee

Samsung SDI

Lease period

May 1, 2022-April 30, 2024

Transaction amount

549/year

Purpose of transaction

Lease of land

Terms and conditions

- Annual rental payment: 549

Other information:

ž Number of Independent Directors present at the BOD meeting: 5 (100%)

ž 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 Securities

Collateral security

Land and building

Security period

May 1, 2022~ (expires at the repayment of deposit)

Guaranteed amount

999

Maximum guaranteed amount 

1,199

Terms and conditions

- Security period is subject to change.

- The maximum guaranteed amount is 120% of the guaranteed amount.

Other information:

ž Number of Independent Directors present at the BOD meeting: 5 (100%)

ž Attendance of Audit Committee: Y

 

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, 2022~ (expires at the repayment of deposit)

Guaranteed amount

1,572

Maximum guaranteed amount 

1,887

Terms and conditions

- Security period is subject to change.

- The maximum guaranteed amount is 120% of the guaranteed amount.

Other information:

ž Number of Independent Directors present at the BOD meeting: 5 (100%)

ž Attendance of Audit Committee: Y

 

Major Transaction Terms

(KRW 10 mil)

Owner of property

Samsung Electronics

Related party

Samsung Asset Management

Collateral security

Land and building

Security period

May 1, 2022~ (expires at the repayment of deposit)

Guaranteed amount

473

Maximum guaranteed amount 

567

Terms and conditions

- Security period is subject to change.

- The maximum guaranteed amount is 120% of the guaranteed amount.

Other information:

ž Number of Independent Directors present at the BOD meeting: 5 (100%)

ž Attendance of Audit Committee: Y

 

3. Purchase of Employee Insurance Policy from Samsung Fire & Marine Insurance

Major Transaction Terms

(KRW bil)

Insurer

Samsung Fire & Marine Insurance

Application date

May 2, 2022

Type of insurance

Employee insurance policy

Insurance premium

21.52

Insurance period

May 2, 2022-May 2, 2025 (3 years)

Purpose of transaction

Insure eligible employees for unforeseen health costs, as part of the Company's employee welfare program

Method of insurance payment

Annual installment payment (3 years)

Other information:

ž Number of Independent Directors present at the BOD meeting: 5 (100%)

ž Attendance of Audit Committee: Y

 

 

This disclosure is in accordance with the Korea 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 than 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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