Transactions with Affiliate Company

Samsung Electronics Co. Ld

29 October 2026

 

Transaction with Affiliate Company

Samsung Electronics Co., Ltd. (KS005930, KS005935, SMSN, SMSD) ("SEC"), on October 29, 2026, announced that its Board of Directors has authorized the following related-party transactions with affiliated companies.

1. Participation in rights offering

-      Participation in the new stock issuance of Samsung Biologics ("Biologics")

□ Major transaction terms

Transaction items	567,503 common shares of Biologics
Transaction date	November 17, 2026
Transaction value	KRW 666.2 billion (total invested capital of KRW 2,665 billion)
Purpose of transaction	To purchase new shares issued by Biologics allotted to existing shareholders
Terms and conditions	- This transaction involves participation in the existing shareholders' subscription for the rights offering by Biologics, and it is disclosed as a large-scale internal transaction with a related party. -  The transaction date is the scheduled payment date for the shares. - The transaction item represents 100% of the shares allotted to the existing shareholders.  - The transaction value is based on the issue price per share in Biologics' Issue Price of New Shares in a Paid-in Capital Increase (Notice) on October 1, 2026. The amount is subject to change upon determination of the final issue price. - The total invested capital is SEC's cumulative investment in Biologics' including the transaction set forth herein. - The terms above are subject to changes in the process of Biologics' capital increase. - The CEO has been delegated authority to execute the detailed matters relating to this transaction.

Other Information:

• Number of Independent Directors present at the Board of Directors meeting: 5
• Attendance of Audit Committee: Y

2. Purchase of savings-type insurance from Samsung Life Insurance

□ Major Transaction Terms

(Unit: KRW 100 million)

1. Name of insurance company		Samsung Life Insurance Co., Ltd.	Relationship with the Company	Affiliate
2. Insurance subscription date		October 29, 2026
3. Type of insurance		Savings-type insurance
4. Insurance details	a. Insurance premium	50,000
	b. Insurance proceeds	-
	c. Contract period	3 years
	d. Total premiums payable during the contract period	50,000
	e. Insured property	-
	f. Premium payment method	Lump-sum payment
	g. Interest rate (%)	4.25% (simple interest equivalent, after deducting expenses from premiums paid)
5. Date of Board resolution		October 29, 2026
6. Purpose of transaction		To enhance profitability and ensure stable fund management
7. Other information		- This transaction involves the subscription to a savings-type insurance product offered by Samsung Life Insurance (product name: Samsung Platinum Savings Insurance)
※Date of related disclosure		-

Other Information:

• Number of Independent Directors present at the Board of Directors meeting: 5
• Attendance of Audit Committee: Y

3. Donation to Samsung Life Public Welfare Foundation

(Unit: KRW million)

1. Recipient	Samsung Life Public Welfare Foundation, Social Welfare Corporation	Relationship with the Company	Non-profit organization
2. Subject of donation	Cash
3. Donation amount	24,430
4. Cumulative donation amount	24,430
5. Date of donation	-
6. Date of Board resolution	October 29, 2026
7. Total assets at the end of the previous fiscal year	358,902,051	Percentage of Total Assets (%)	0.01
8. Other information	In item 5 above, the donation is scheduled to be made within 2026. In item 7 above, total assets at the end of the previous fiscal year are based on the Company's separate financial statements as of year-end 2025.
※ Date of related disclosure	-

Other Information:

• Number of Independent Directors present at the Board of Directors meeting: 5
• Attendance of Audit Committee: Y

4. Donation to Sungkyunkwan University

(Unit: KRW million)

1. Recipient	Sungkyunkwan University Foundation	Relationship with the Company	Non-profit organization
2. Subject of donation	Cash
3. Donation amount	38,690
4. Cumulative donation amount	38,690
5. Date of donation	-
6. Date of Board resolution	October 29, 2026
7. Total assets at the end of the previous fiscal year	358,902,051	Percentage of Total Assets (%)	0.01
8. Other information	In item 5 above, the donation is scheduled to be made within 2026. The total assets at the end of the previous fiscal year under Item 7 are based on the Company's separate financial statements as of year-end 2025.
※ Date of related disclosure	-

Other Information:

• Number of Independent Directors present at the Board of Directors meeting: 5
• Attendance of Audit Committee: Y

5. Donation to Sungkyunkwan University Research & Business Foundation

(Unit: KRW million)

1. Recipient	Sungkyunkwan University Research & Business Foundation	Relationship with the Company	Non-profit organization
2. Subject of donation	Cash and the right to use real estate free of charge
3. Donation amount	11,800
4. Cumulative donation amount	11,800
5. Date of donation	-
6. Date of Board resolution	October 29, 2026
7. Total assets at the end of the previous fiscal year	358,902,051	Percentage of Total Assets (%)	0.003
8. Other information	The donation amount under Item 3 is the sum of the cash contribution to the recipient (KRW 7.8 billion) and the value equivalent to the free use of buildings and ancillary facilities (approximately KRW 4.0 billion). Regarding the date of donation under Item 5, the Company plans to enter into an agreement with the recipient, make the cash payment, and provide access to the buildings and ancillary facilities within 2026. The total assets at the end of the previous fiscal year under Item 7 are based on the Company's separate financial statements as of year-end 2025.
※ Date of related disclosure	-

Other Information:

• Number of Independent Directors present at the Board of Directors meeting: 5
• Attendance of Audit Committee: Y

6. Donation to the Korea Inclusive Finance Agency

    (Unit: KRW million)

1. Recipient	Korea Inclusive Finance Agency	Relationship with the Company	Non-related party
2. Subject of donation	Cash
3. Donation amount	150,000
4. Cumulative donation amount	150,000
5. Date of donation	-
6. Date of Board resolution	October 29, 2026
7. Total assets at the end of the previous fiscal year	358,902,051	Percentage of total assets (%)	0.04
8. Other information	After receiving the funds specified in Item 3 above, the Korea Inclusive Finance Agency will transfer them to the Samsung Miso Finance Foundation, a related party of the Company. Regarding Item 5 above, the amount specified in Item 3 will be paid in installments over five years starting in 2026. The payment for 2026 is scheduled to be completed within 2026. The total assets at the end of the previous fiscal year under Item 7 are based on the Company's separate financial statements as of year-end 2025.
※ Date of related disclosure	-

Other Information:

• Number of Independent Directors present at the Board of Directors meeting: 5
• Attendance of Audit Committee: Y

* Note: Pursuant to the Korea Fair Trade Act, a donor is required to disclose its donation to charitable organizations if such donation amount exceeds KRW 10 billion and the recipient is an affiliated entity of the donor.

 

END