SEOUL – Samsung Electronics Co (F:)., Ltd. (KS005930, KS005935, SMSN, SMSD) has authorized transactions with its affiliated companies to secure retirement pension policies for its employees, aiming to stabilize retirement benefit management and enhance profitability. The company disclosed these related-party transactions, which are in line with the Korean Fair Trade Act requirements, on November 29, 2024.
The transactions involve the purchase of defined contribution retirement pension policies from two affiliates: Samsung Life (KS:) Insurance (NS:) and Samsung Securities (KS:). Samsung Electronics (KS:) will pay an estimated policy premium of KRW 36.0 billion to Samsung Life Insurance and KRW 57.5 billion to Samsung Securities for the financial year 2025. Additionally, a revised policy premium of KRW 31.8 billion for the financial year 2024 was announced for Samsung Securities, marking an increase of more than 20% from the previous year’s estimate.
These premiums are installment payments, with the actual amounts to be confirmed. The insurance period for these policies will conclude on the contract end date. Furthermore, Samsung Electronics expects to transition an estimated KRW 289.8 billion in retirement benefits from its defined benefits plan to its defined contribution plan with Samsung Life Insurance and KRW 886.1 billion with Samsung Securities during FY25. The actual transition amounts may differ from these estimates.
In a separate transaction, Samsung Electronics will sell land and building assets to another affiliate, Samsung SDS, for an expected KRW 21.5 billion in December 2024. The transaction amount was determined based on the average of appraised values.
The Board of Directors, including six independent directors and the attendance of the Audit Committee, approved these transactions. This disclosure complies with regulatory mandates for significant financial and real estate transactions with financial affiliates.
The information in this article is based on a press release statement.
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