Samsung Life Insurance and Fire & Marine Insurance Sell Samsung Electronics Shares to "Resolve Financial Industry Regulation Risk"

Impact of Samsung Electronics' Value-Up Policy
Samsung Life to Sell Shares Worth 236.4 Billion KRW,
Samsung Fire & Marine Insurance to Sell Shares Worth 41.3 Billion KRW

Samsung Life Insurance and Samsung Fire & Marine Insurance will sell Samsung Electronics shares worth 280 billion KRW on the 12th. This is to prevent potential violations of the "Act on the Structural Improvement of the Financial Industry" (Financial Industry Structural Improvement Act) due to Samsung Electronics' treasury stock cancellation.

Samsung Life Insurance held a board meeting on the 11th and announced that it will sell 4,252,305 shares of Samsung Electronics for 236.428148 billion KRW. Samsung Life Insurance plans to sell the shares through a block deal before the market opens on the 12th. After the sale, Samsung Life Insurance's stake in Samsung Electronics will decrease from 8.51% to 8.44%.

Samsung Fire & Marine Insurance also held a board meeting on the same day and decided to sell 743,104 shares of Samsung Electronics for 41.3165824 billion KRW. After the disposal, Samsung Fire & Marine Insurance's stake in Samsung Electronics will decrease to 1.48%. Samsung Fire & Marine Insurance will also dispose of the shares through a block deal on the 12th. The disposal price will be additionally disclosed on the day.

Samsung Life Insurance and Samsung Fire & Marine Insurance are simultaneously adjusting their Samsung Electronics stakes to meet regulatory requirements under the Financial Industry Structural Improvement Act. According to the Act, financial affiliates can only hold up to 10% of non-financial affiliates' shares. Exceptions allowing holdings exceeding 10% require approval from the Financial Services Commission.

Samsung Electronics announced a plan to repurchase treasury shares worth 10 trillion KRW in November last year. It plans to sell and cancel treasury shares worth 3 trillion KRW by the 17th. When shares are canceled, the total number of issued shares decreases, which increases the shareholding ratio of Samsung Life Insurance and Samsung Fire & Marine Insurance in Samsung Electronics. Since this could exceed regulatory limits, they have taken preemptive measures. Samsung Electronics plans to repurchase and cancel the remaining 7 trillion KRW worth of treasury shares by November.