Samsung Life, Samsung Fire to Sell Samsung Electronics Shares Worth 1.5 Trillion Won

Samsung Life Insurance and Samsung Fire & Marine Insurance have decided to divest Samsung Electronics shares worth 1.5 trillion won, marking the full-scale implementation of measures to lower financial affiliates' stakes in non-financial affiliates below a certain legal threshold. This move is a preemptive measure to resolve the risk of violating the Act on the Structural Improvement of the Financial Industry (Geumsanbeop) due to Samsung Electronics' treasury stock retirement. The current Geumsanbeop prohibits financial affiliates from holding more than 10% of shares in non-financial affiliates. If Samsung Electronics retires its treasury shares in the first half of the year, Samsung Life and Samsung Fire's combined stake would exceed this 10% limit, necessitating an adjustment of shareholdings prior to the retirement. If Samsung Electronics completes its treasury stock retirement as planned within the first half of the year, the stakes held by Samsung Life and Samsung Fire in Samsung Electronics will remain within the legal limits.

Samsung Life announced on March 19th, through a regulatory filing and a board meeting, its decision to sell approximately 6.24 million shares (0.11%) of Samsung Electronics. Samsung Fire also decided to sell approximately 1.09 million shares (0.02%) of Samsung Electronics on the same day.

Separately, Samsung Life held its 72nd regular shareholders' meeting on the 19th at the Samsung Financial Campus in Seocho-gu, Seoul, and passed amendments to its articles of incorporation, including the deletion of clauses excluding the cumulative voting system.