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Last checked at 
27 Oct 2016 10:56
Transaction with Affiliate Company
Samsung Electronics Co., Ltd. (KS005930, KS005935, SMSN, SMSD) ("SEC") announced today that its Board of Directors have authorized the following related-party transactions with an affiliated company.
Real Estate Lease Agreement
- Lease of Office Space to Samsung Securities
□ Major Transaction Terms
Owner of Property | Samsung Electronics Co., Ltd |
Lease Period | 10/27/2016 ~ 10/26/2018 |
Transaction Amount | KRW 8,663 million/year |
Purpose of Transaction | Lease of office space |
Terms and Conditions | 1. Security Deposit: KRW 7,817 million 2. Annual Rental Payment: KRW 9,380 million * The security deposit and annual rental payment (monthly payment x 12) is the rental amount for the first year of the lease. The payments shall increase by a minimum of 2.5% for the second year. * The transaction amount is equal to the annual rental payment amount plus an amount that is equal to the security deposit plus 1.8% interest (according to related law) on the security deposit and is the average amount per year during the lease period. (this amount excludes 2.5 months for construction and assumes an increase of 2.5% on the rental payment for the second year) |
Other Information:
ž Number of Independent Directors Present at the Board of Directors Meeting: 5
ž Attendance of Audit Committee: Y
Receipt of Security Interest
- Receipt of Security Interest (Collateral) from an Affiliated Company (Samsung Securities)
□ Major Transaction Terms
Owner of Property | Samsung Electronics Co., Ltd. |
Security Period | 10/27/2016 ~ expiration (expires on the repayment of down payment) |
Security Deposit | KRW 7,817 million |
Maximum Security Deposit | KRW 9,380 million |
Terms and Conditions | Security Interest (Collateral) Agreement for Lease \* The Maximum Security Deposit may equal up to 120% of the Security Deposit. \* The security deposit period and the starting date is subject to change. |
Other Information:
ž Number of Independent Directors Present at the Board of Directors Meeting: 5
ž 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 an affiliate of the party required to make the disclosure.
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