Last checked at 28 Apr 2022 09:49
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:
Number of Independent Directors present at the BOD meeting: 5 (100%)
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:
Number of Independent Directors present at the BOD meeting: 5 (100%)
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:
Number of Independent Directors present at the BOD meeting: 5 (100%)
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:
Number of Independent Directors present at the BOD meeting: 5 (100%)
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:
Number of Independent Directors present at the BOD meeting: 5 (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 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:
Number of Independent Directors present at the BOD meeting: 5 (100%)
ttendance 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:
Number of Independent Directors present at the BOD meeting: 5 (100%)
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:
Number of Independent Directors present at the BOD meeting: 5 (100%)
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:
Number of Independent Directors present at the BOD meeting: 5 (100%)
Attendance of Audit Committee: Y
※ This disclosure is in accordance with the Korea Fair Trade Act, which mandates that a company must disclose financialand real estate transactions in the event the value of such a transaction is greater than or equal to KRW 5 billion and thecounterparty is a financial affiliate of the party required to make the disclosure.