Samsung Electronics Has 2.15 Million Small Shareholders... First Ever Simultaneous Online and Offline General Meeting of Shareholders

Samsung Electronics 52nd Annual General Meeting
Electronic Voting System Adopted for 2nd Consecutive Year
Online Pre-Question Collection and Q&A Conducted
2.15 Million Donghak Ants... Only About 900 Attended the Meeting

[Asia Economy Reporters Kim Hyewon and Suwon-based Woo Suyeon] Around 8:30 a.m. on the 17th, the process of shareholders entering the main hall on the 3rd floor of the Suwon Convention Center in Gyeonggi-do, where Samsung Electronics' 52nd Annual General Meeting (AGM) was held, was quite complex but had become a familiar scene. With half of their faces covered by masks, shareholders took their own temperature checks and hand sanitization, and filled out health questionnaires smoothly. Unlike last year, this year's AGM was held concurrently with an online live broadcast for the first time in Samsung Electronics' history, so personal information consent was carefully obtained considering identity exposure. Unlike last year, when masks were scarce and precious, it was rare to see shareholders happy to receive masks and hand sanitizers as gifts this year.

At exactly 9 a.m., the host's remarks announcing the start of the AGM showed signs of careful COVID-19 prevention measures. The large exhibition hall with a total of 1,200 seats?1,000 on the 1st floor and 200 on the 3rd floor?was thoroughly managed as a sterile building with daily disinfection for two weeks starting from the 5th. A designated seating system with 2-meter spacing was also operated. For the first time, the live broadcast of the AGM venue was streamed online, and sign language interpretation was placed at the bottom of the screen, opening a new culture of AGMs. The situations at the Samsung SDI and Samsung Electro-Mechanics AGMs held simultaneously at different locations were similar.

Kim Ki-nam, Vice Chairman and CEO of Samsung Electronics, is speaking at the 52nd Samsung Electronics Annual General Meeting held on the 17th at the Suwon Convention Center in Suwon, Gyeonggi Province. Photo by Kim Hyun-min, Suwon kimhyun81@

Although the curtain rose on the AGMs of the three major Samsung Group affiliates, the atmosphere inside was somewhat subdued. In the case of Samsung Electronics, due to the introduction of electronic voting for two consecutive years amid COVID-19 and the addition of online AGMs, only about 900 shareholders actually attended the AGM venue. Thanks to the 'Donghak Ants' who massively accumulated Samsung Electronics shares, the total number of shareholders based on common stock surged to 2,154,081 in one year. This also indicates that the electronic voting system, which allows shareholders to exercise their voting rights on each agenda item in advance without attending in person, contributes to enhancing shareholder convenience. Samsung SDI and Samsung Electro-Mechanics also introduced electronic voting systems starting this year.

The AGM proceeded with the CEO answering shareholders' pointed questions from each business division before the agenda items were presented. Shareholders sharply inquired about specific strategies such as measures to address production disruptions caused by the semiconductor supply crisis, plans to launch TVs on par with competitors, and mergers and acquisitions (M&A) to maintain the semiconductor super-gap, attracting attention.

On this day, Samsung Electronics presented business reports by division, including Device Solutions (DS), Consumer Electronics (CE), and IT & Mobile (IM), followed by the approval of financial statements, appointment of inside and outside directors, appointment of outside directors as audit committee members, and approval of director remuneration limits, with all agenda items passing as originally proposed. Kim Ki-nam, Vice Chairman of Samsung Electronics and chairman of the AGM, revealed the future vision, stating, "To take a step further, we will prepare future capabilities such as 5G, Artificial Intelligence (AI), Internet of Things (IoT), Cloud, and Security, and establish a culture of autonomous compliance to lay the foundation for a trusted 100-year company."

Regarding dividend policy, the company has implemented a policy of returning 50% of free cash flow over the past three years and plans to maintain this policy for the next three years while raising the regular dividend amount to about 9.8 trillion KRW annually. The large-scale M&A plan announced in the January earnings report is difficult to specify in terms of timing, but the company reiterated its emphasis on strategic M&A. Vice Chairman Kim said, "We are carefully exploring targets regardless of the field, but focusing more on areas that can strengthen existing business dominance and create synergy."

Additionally, civic groups such as People's Solidarity for Participatory Democracy and Economic Reform Solidarity attended the venue, engaging in debates over Samsung Electronics Vice Chairman Lee Jae-yong's employment restrictions and reappointment as an inside director. The civic groups argued that Lee, who is serving a prison sentence, maintaining his vice chairman position under current laws such as the Act on the Aggravated Punishment of Specific Economic Crimes is illegal and that the board should recommend his dismissal. In response, Vice Chairman Kim said, "The company will fully consider Lee's role in global networks and future business decisions and comprehensively review the company's situation and legal provisions."

Kim Ki-nam, Vice Chairman and CEO of Samsung Electronics, is speaking at the 52nd Samsung Electronics Annual General Meeting held at the Suwon Convention Center in Suwon, Gyeonggi Province on the 17th. Photo by Kim Hyun-min, Suwon kimhyun81@

Meanwhile, Samsung SDI, which held its AGM simultaneously with Samsung Electronics, passed three agenda items: approval of financial statements, appointment of directors, and approval of director remuneration limits. Samsung SDI President Jeon Young-hyun cited key focus areas for this year, including securing differentiated technology to become a game changer, enhancing absolute quality competitiveness, and ESG management aimed at growing together with society.

Samsung Electro-Mechanics set up a separate exhibition booth at the AGM venue to showcase its next-generation core products such as multilayer ceramic capacitors (MLCC) and camera modules, and provided shareholders with a comprehensive view of the company's vision and goals, including progress on ESG (Environmental, Social, and Governance) management. All agenda items submitted at the AGM, including approval of financial statements, appointment of inside directors, appointment of outside directors as audit committee members, and approval of director remuneration limits, were passed as originally proposed.