Transaction with Affiliate Company
Samsung Electronics Co., Ltd. (KS005930, KS005935, SMSN, SMSD) ("SEC") on April 29, 2020 announced that its Board of Directors has authorized the following related-party transaction with an affiliated company.
Real Estate Lease Agreement
□ Major Transaction Terms
| Owner of Property |
Samsung Electronics Co., Ltd. |
| Lessee |
Samsung Securities Co., Ltd. |
| Lease Period |
May 1, 2020-April 30, 2022 |
| Transaction Amount |
KRW 11,931 million/year |
| Purpose of Transaction |
Lease of office space |
| Terms and Conditions |
- Deposit: KRW 9,795 million - Annual rental payment: KRW 11,755 million - Transaction Amount is the sum of annual rental payment and deposit*interest rate of 1.8% (as per related act) |
Other Information:
Provision of Collateral Security
SEC to use a building and land as collateral to secure the deposit in the above transaction
□ Major Transaction Terms
| Owner of Property |
Samsung Electronics Co., Ltd. |
| Related party |
Samsung Securities Co., Ltd. |
| Collateral Security |
Land and building |
| Security Period |
May 1, 2020- (expires on the repayment of deposit) |
| Guaranteed Amount |
KRW 9,795 million |
| Maximum Guaranteed Amount |
KRW 11,755 million |
| Terms and Conditions |
- Security period is subject to change. - The maximum guaranteed amount is 120% of the guaranteed amount. |
Other Information:
※ 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 a financial affiliate of the party required to make the disclosure.