Insurance Policy Purchase

On October 30, 2009, the Board of Directors of Samsung Electronics authorized the purchase of a severance insurance policy.

Details

1. Insurer: Samsung Life Insurance

2. Type of Insurance Policy: Severance insurance policy

3. Terms and Conditions of Insurance
- Insurance Premium: KRW 290.4 billion
(Taking into account KRW 56.5 billion of interest accruals, the actual premium to be paid is KRW 223.9 billion)
- Insurance Claim: Samsung Life will pay 70% of severance pay when a Samsung Electronics employee leaves the company
- Insurance Period: From policy purchase date to severance payment date
- Premium Payment Mode: Payment in installments
- Interest Rate: 4.3% (Floating rate)

4. The purchase of insurance policy aims to manage severance pay in a stable manner and improve profitability of the asset.