Insurance Policy Purchase

12 Oct 2007 08:30

Samsung Electronics Co. Ld12 October 2007 Insurance Policy Purchase On October 12, 2007, the Board of Directors of Samsung Electronics authorizedthe purchase of an insurance policy. • Details 1. Insurer: Samsung Life Insurance 2. Insurance Policy Purchase Date: December 31, 2007 3. Type of Insurance Policy: Severance insurance policy 4. Terms and Conditions of Insurance - Insurance Premium: KRW 338.4 billion (Taking into account KRW 49.2 billion of interest accruals, the actual premium to be paid is KRW 289.2 billion) - Insurance Claim: Samsung Life will pay 64% of severance pay when a Samsung Electronics employee leaves the company. - Insurance Period: From policy purchase date to severance payment date - Premium Payment Mode: Payment in full - Interest Rate: 4.3% (floating rate) 5. The purchase of insurance policy aims to manage severance pay in a stable manner and improve profitability of the asset. This information is provided by RNS The company news service from the London Stock Exchange