Transaction with Affiliate Company
The Board of Directors of Samsung Electronics Co., Ltd. (KS005930, KS005935, SMSN, SMSD) on July 31, 2025, authorized the following related-party transaction with an affiliated company.
Long-term loans from Samsung Display
□ Major transaction terms
Loan type |
Long-term loans |
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Loan agreement date |
February 16, 2023 |
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Lender |
Samsung Display |
Relationship with the lender |
Affiliate |
Loan period |
February 17, 2023-February 16, 2028 |
Maturity Date |
February 16, 2028 |
Loan amount |
KRW 20 trillion |
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Total equity of borrower as of the end of the previous business year |
KRW 236,396,657 million |
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Percentage of loan to total equity |
8.46% |
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Interest rate |
3.90%/year |
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Method of loan payment |
Lump sum at the maturity date (early payment is possible) |
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Purpose |
Operational costs |
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Total amount of loans (in the business year the agreement was signed) |
KRW 20 trillion |
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Total assets of borrower as of the end of the previous business year |
KRW 324,966,127 million |
Percentage of loan to total assets |
6.15% |
Other information:
- This borrowing is intended to secure operating funds
- The above loan agreement date refers to the original agreement; and a contract extension is scheduled to be signed on August 14, 2025.
- Regarding the above interest rate, the interest rate for the original contract period (2023.02.17-2025.08.16) is 4.6% per year, and the interest rate for the extended contract period (2025.08.17-2028.02.16) is 3.9% per year
- The above 'Total amount of loans' includes the value of the loan that is the subject of this disclosure.
- The above values for total equity and total assets are from the end-2024 separate financial statements written
in accordance with K-IFRS.
- This disclosure is a correction related to the extension of the loan agreement disclosed on February 14, 2023.
- Number of Independent Directors present at the BOD Meeting: 6 (100%)
- Attendance of Audit Committee: Y
- Date of a relevant disclosure: February 14, 2023
※ 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 10 billion and the counterparty is a financial affiliate of the party required to make the disclosure.