Purchase of Retirement Pension Policy

On December 15, 2009, the Board of Directors of Samsung Electronics authorized the purchase of a retirement pension policy.

Details

1. Insurer: Samsung Life Insurance

2. Type of Pension Policy: Retirement pension policy

3. Terms and Conditions
- Retirement Pension Premium: KRW 1,180.7 billion
1) The retirement pension premium comprises of KRW 892.0 billion in severance insurance owned by the Company, and additional payment of KRW 288.7 billion.
2) The additional payment of KRW 288.7 billion takes into account interest accruals of KRW 57.2 billion, and actual premium of KRW 231.5 billion.
- Retirement Pension Claim: Samsung Life will pay 70% of severance pay when a Samsung Electronics employee leaves the company

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