Seoul – Samsung Electronics Co (F:), Ltd. (KS005930, KS005935, SMSN, SMSD) has authorized transactions with its related companies to secure retirement pension policies for its employees, with the objective of stabilizing retirement benefit management and increasing profitability. The Company disclosed these related-party transactions on November 29, 2024, which are in accordance with the requirements of the Korean Fair Trade Act.
The transaction involves 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 fiscal year 2025. In addition, a revised policy premium of KRW 31.8 billion for fiscal year 2024 was announced for Samsung Securities, representing an increase of more than 20% from last year’s estimate.
These are premium installment payments, with actual amounts to be confirmed. The period of insurance for these policies will end on the contract termination date. In addition, Samsung Electronics expects to transfer an estimated KRW 289.8 billion in retirement benefits from its defined benefit plan with Samsung Life Insurance and KRW 886.1 billion in Samsung Securities during FY25. Actual conversion amounts may differ from these estimates.
In a separate transaction, Samsung Electronics will sell land and building assets to another affiliate, Samsung SDS, in December 2024 for an expected KRW 21.5 billion. The transaction amount was determined based on the average of the appraised values.
The Board of Directors, including the presence of six independent directors and the Audit Committee, approved these transactions. This disclosure follows regulatory mandates for significant financial and real estate transactions with financial associates.
The information in this article is based on a press release statement.
This article was produced with support from AI and was reviewed by an editor. See our T&C for more information.
