Interim Reports │ Financial Information │ Investor Relations │ Samsung Global |
28 avr. 2023 — Samsung Electronics Business Report. 4 / 413. I. Corporate Overview ... Aug 10, 2022 Unpacked Galaxy Z Fold 4 and Flip 4 ... Rollout of Galaxy Watch 5.
SAMSUNG ELECTRONICS Co., Ltd.
2022 Business Report
For the year ended December 31, 2022
Certain statements in the document, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are "forward-looking statements." Forwardlooking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. A detailed discussion of risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in our financial reports available on our website.
See, also, Note on Forward-Looking Statements in preamble of IV. Management Discussion and Analysis.
Samsung Electronics Business Report
1 / 413
Table of Contents
Certification ........................................................................................................................................................................... 3 I. Corporate Overview ........................................................................................................................................................... 4 II. Businesses Overview...................................................................................................................................................... 21 III. Financial Affairs.............................................................................................................................................................. 51 IV. Management Discussion and Analysis....................................................................................................................... 240 V. Auditor's Report ............................................................................................................................................................ 255 VI. Corporate Governance ................................................................................................................................................ 260 VII. Information on Shareholders ..................................................................................................................................... 291 VIII. Executives and Employees ....................................................................................................................................... 300 IX. Affiliates and Subsidiaries .......................................................................................................................................... 316 X. Transactions with affiliates and subsidiaries ............................................................................................................. 337 XI. Other Information......................................................................................................................................................... 341 XII. Appendix...................................................................................................................................................................... 356
Samsung Electronics Business Report
2 / 413
Certification
Samsung Electronics Business Report
3 / 413
1. Overview
A. Legal, commercial name:
- Samsung Electronics Co., Ltd.
I. Corporate Overview
B. Date of establishment:
- Samsung Electronics Co., Ltd. ("SEC" or "the Company") was established as Samsung Electronics Industry Co., Ltd. on January 13, 1969, and held an initial public offering on June 11, 1975.
- SEC changed its name from Samsung Electronics Industry Co., Ltd. to Samsung Electronics Co., Ltd. following a resolution passed at the Annual General Meeting (AGM) of shareholders on February 28, 1984.
C. Address, phone number, and English language website of the corporate headquarters
- Address: 129, Samsung-ro, Yeongtong-gu, Suwon, Gyeonggi-do, Korea - Phone Number: +82-31-200-1114 - Website: https://www.samsung.com/sec
D. Core businesses
- The Company (defined below) is comprised of two business divisions DX (Device eXperience) and DS (Device Solutions) SDC (Samsung Display and its subsidiaries), which runs display panel business, and Harman (Harman International Industries, Inc. and its subsidiaries), which operates businesses related to automotive electronics components, etc.
SEC is a global electronics firm consisting of its headquarters in Korea and 232 subsidiaries (collectively, "Samsung Electronics", the "Company", or "we") across the world, including 9 regional headquarters for the DX Division, 5 regional headquarters, as well as production and sales subsidiaries, for the DS Division, and subsidiaries of SDC and Harman.
Key products by each organization are set forth below:
Organization DX Division DS Division
Key products
TVs, monitors, refrigerators, washing machines, air conditioners, hand held products (HHPs), telecommunications network systems, computers, etc.
DRAM, NAND flash, mobile APs, etc.
SDC
OLED panels for smartphones, etc.
Harman
Digital cockpits, telematics, speakers, etc.
In December 2021, the Company merged the CE and IM Divisions to create the DX Division; and it separated SDC and the DS Division to align with the corporate organizational structure.
[DX Division]
The DX Division manufactures TVs, monitors, refrigerators, washing machines, air conditioners, smartphones, tablets, and wearables. It is leading the global digital market with its differentiated technology, designs, and products, including premium TVs based on leading technologies such as Neo QLED TV; Lifestyle TVs that align with the lifestyles of customers who value experiences; and Bespoke products, which are customized to satisfy various needs of our customers. The Company has maintained its position as the leader in the TV market for 17 straight years. Moreover, for smartphones, a core product of the Division, we have developed a broad lineup ranging from low-end right through to premium models with the Galaxy series. Samsung will continue to innovate in the premium and Lifestyle TV markets while strengthening global sales of Bespoke products.
Samsung Electronics Business Report
4 / 413
Through the Galaxy Ecosystem, we will deliver top-notch Multi-Device experiences, allowing convenient and seamless use of not just mobile products, but also TV and home appliance products. At the same time, we will keep fortifying our status and market dominance as a global brand by continually releasing new products that reflect the needs of consumers and current trends; and we will lead the global 5G market based on our end-to-end solutions, which encompass handsets, chipsets, as well as our experience in commercializing initial 5G markets.
[DS Division]
The Memory Business, System LSI Business, Foundry Business, and Display Panel ("DP") Business make up the DS Division. The Memory Business manufactures and sells DRAM and NAND products; the System LSI Business designs and sells mobile application processors ("mobile APs" or "APs") and camera sensor chips; and the Foundry Business is in charge of consignment production of semiconductors.
The Memory Business continues to maintain its position at the top of the global memory market by focusing on qualitative growth, including by applying advanced process technology in DRAM and NAND Flash products; differentiating our products via centering our business portfolio on high-value solutions; and enhancing cost competitiveness.
The System LSI Business has not been complacent, extending its focus from mobile to include automotive chips, and it is expanding its market power through actions such as satisfying demand with differentiated products--such as APs and CISs--based on its advanced manufacturing process technology, and by diversifying foundry suppliers.
The Foundry Business is expanding by securing competitiveness via adopting core technologies and new structures in advanced processes, securing supply continuity of semiconductors amid global supply shortage and actively addressing continued strong demand for legacy processes.
[SDC]
In SDC, the mobile panel business's differentiated technology is a key factor behind the increased adoption of OLED panels, while our release of products in new applications--such as foldable devices, rollable devices, and automotives--has expanded the overall market. Meanwhile, the large panel business is focusing on premium products such as high-definition, ultra-large, Quantum Dot TVs and is enhancing its competitiveness through continuous improvements in technology and productivity.
[Harman]
Harman consists of the automotive component business, which designs and develops connected products and solutions for automakers; and the lifestyle audio business, which provides consumer audio products and professional audio solutions. Harman, as a leader in the automotive component market, supplies car manufacturers with products that apply innovative technologies. And in the audio market, it has been firmly establishing the brand reputation among consumers and audiophiles. Harman has established an internationally renowned brand and it offers diverse product lines, using internal development and strategic acquisitions to strengthen competitiveness in each business area. See II. Businesses Overview for more details about each Division.
E. Subsidiaries subject to consolidated accounting (summary)
As of December 31, 2022, and in accordance with Korean International Financial Reporting Standards (K-IFRS) 1110, Consolidated Financial Statements, Samsung Electronics, the controlling company, had 232 consolidated subsidiaries, with the addition of 8 subsidiaries and reduction of 4 subsidiary when compared to totals as of December 31, 2021.
Samsung Electronics Business Report
5 / 413
Classification
Number of subsidiaries subject to consolidated accounting
As of January 1, 2022
Added
Removed
As of December 31, 2022
Number of major subsidiaries
Listed
-
-
-
-
-
Unlisted
228
8
4
232
141
Total
228
8
4
232
141
See Appendix-1. Subsidiaries subject to consolidated accounting (detailed) for details.
[1H22: Changes in subsidiaries subject to consolidated accounting]
Classification
Subsidiary
Samsung R&D Institute Ukraine (SRUKR)
Samsung Electronics Uzbekistan Ltd. (SEUZ)
Apostera GmbH
Newly consolidated
Apostera UA, LLC DOWOOINSYS VINA COMPANY LIMITED
Red Brick Lane Marketing Solutions Pvt. Ltd.
SVIC #57 Venture Capital Union
Stellarforest
Dacor Canada Co
No longer consolidated
AMX UK Limited Harman International s.r.o
Apostera GmbH
Reason Establishment Establishment Acquisition of shares Acquisition of shares Establishment Acquisition of shares Establishment Establishment
Liquidation Liquidation Liquidation
Merger
Samsung Electronics Business Report
6 / 413
F. Whether the Company is an SME
The Company is not subject to Article 2 of the Framework Act on Small and Medium Enterprises.
Small and medium enterprise
No
Venture company
No
Medium-sized enterprise
No
G. Credit rating
SEC's credit rating is assessed by two external credit ratings agencies. As of December 31, 2022, SEC's credit ratings were Aa2 with a stable investment outlook as rated by Moody's (US); and AA- with a stable investment outlook as rated by S&P (US).
Securities
Date
Jul 2020
Corporate bond
Sep 2020 Jul 2021
(USD denominated; issued in 1997 and expire in 2027)
Aug 2021 Aug 2022
Sep 2022
Credit rating range: Moody's (Aaa-C), S&P (AAA-D)
Ratings AAAa3 AAAa3 AAAa2
Credit rating agency S&P
Moody's S&P
Moody's S&P
Moody's
Note Regular review
[Credit ratings definitions]
Moody's
Definition
S&P
Definition
Aaa
Superior ability to repay debt obligations; lowest level of credit risk
AAA
Extremely strong ability to meet financial commitments; highest rating
Aa1/Aa2/Aa3
High ability to repay debt obligations; very low credit risk
AA+/AA/AA-
Very strong capacity to meet financial commitments
Investment grade
A1/A2/A3
Upper-medium ability to repay debt obligations; low credit risk
A+/A/A-
Strong capacity to meet financial commitments; susceptible to adverse effects of changes in economic conditions
Baa1/Baa2/Baa3
Medium ability to repay debt obligations; moderate credit risk, speculative factors
BBB+/BBB/BBB-
Adequate capacity to meet financial commitments; relatively more susceptible to adverse economic conditions
Major ongoing uncertainties; exposure to
Ba1/Ba2/Ba3
Speculative; substantial credit risk
BB+/BB/BB-
adverse business, financial, or economic conditions can impair ability to meet financial
commitments
More vulnerable to nonpayment than those
rated BB; has capacity to meet financial
B1/B2/B3
Speculative; high credit risk
B+/B/B-
commitments but adverse financial or economic
conditions are likely to impair ability to continue
doing so
Speculative grade
Caa
Speculative; very high credit risk
CCC
Vulnerable to nonpayment; dependent upon favorable business, financial, and economic conditions
Highly speculative; likelihood of being in
Highly vulnerable to nonpayment; default has
Ca
or near default; some prospect for
CC
not yet occurred but expected to be a virtual
recovery of principal and interest
certainty
C
Typically in default; little prospect for recovery of principal or interest
C
Highly vulnerable to nonpayment; obligation is expected to have lower ultimate recovery vis-àvis higher rated obligations
In default or in breach of imputed promises,
D
upon the filing of a bankruptcy petition or the
taking of a similar action
Please refer toIII. Financial Affairs-7. Matters about financing through the issuance of securitiesfor credit ratings on corporate bonds and
commercial paper issued by the Company's subsidiaries.
Samsung Electronics Business Report
7 / 413
H. Whether the Company is listed (or registered or designated) and matters related to special listed companies
The Company listed on the Korea Stock Exchange on June 11, 1975.
Listed (or registered or designated)
Stock market (KOSPI)
Date listed (or registered or designated)
June 11, 1975
Special listed company No
Subject to regulations for special exception companies
No
2. Company history
A. Company history
Jan 13, 1969 Jun 11, 1975 Feb 28, 1984 Nov 1, 1988 Apr 1, 2012 Mar 5, 2017 Mar 10, 2017 Jul 4, 2017 Nov 1, 2017 Aug 30, 2018 Apr 3, 2019 Jun 4, 2019 Sep 4, 2019 Sep 6, 2019 Jan 29, 2020 Feb 4, 2020 Feb 11, 2020 Aug 30, 2020 Jan 7, 2021 May 11, 2021 Jun 3, 2021
Aug 11, 2021 Oct 12, 2021 Nov 9, 2021 Nov 24, 2021 Feb 10, 2022 Feb 17, 2022 Jun 30, 2022 Aug 10, 2022 Aug 19, 2022 Sep 15, 2022 Nov 7, 2022 Dec 21, 2022
Samsung Electronics Manufacturing Incorporated Listed on the Korea Stock Exchange Renamed as Samsung Electronics Merged with Samsung Semiconductor and Communications Spun off the LCD division (established Samsung Display) Released advanced Quantum dot-based QLED TV SEA acquired shares of Harman International Industries, Inc. (100%) Started operations at semiconductor production fab in Pyeongtaek, the largest such facility in the world Sold Printing Solution business Launched QLED 8K TVs with Quantum Dot technology Launched Galaxy S10 5G, a 5G smartphone Released Bespoke, a refrigerator customized to customers' lifestyles Unveiled Exynos 980, 5G mobile processor Unveiled Galaxy Fold, a foldable phone with a new form factor Launched AI-technology-based Grande AI washer/dryer Launched world's first ultra-high speed DRAM for AI and next-generation super computers Unveiled Galaxy Z Flip, a foldable model with a new form factor Started operation of Pyeongtaek Line 2, the world's largest semiconductor line Unveiled Neo QLED TV Announced expansion to the global market for Bespoke Home Received certification for reducing carbon emissions, water use, and waste discharge for all of our semiconductor worksites, a first in the global semiconductor industry Unveiled Galaxy Z Fold 3 and Galaxy Z Flip 3 Started mass producing highly advanced 14-nano EUV DDR5 DRAM Developed industry's first LPDDR5X DRAM Announced investment in a new foundry production site in Taylor, Texas, USA Unveiled the Galaxy S22 series Unveiled the Bespoke Infinite Line Began mass production of the world's first 3-nano GAA chips Unpacked Galaxy Z Fold 4 and Flip 4 Held a groundbreaking ceremony for the next-generation semiconductor R&D complex Announced a new environmental strategy Mass produced 1Tb 8th-generation V-NAND Developed highly advanced 12nm-class 16Gb DDR5 DRAM
B. Company location and changes
The Company's head office is located at 129, Samsung-ro, Yeongtong-gu, Suwon, Gyeonggi-do. There were no changes in the Company's head office location over the past five fiscal years.
Samsung Electronics Business Report
8 / 413
C. Important changes in management executives
As of December 31, 2022, SEC's Board consisted of five Executive Directors (Jong-hee Han, Kye-hyun Kyung, Taemoon Roh, Hark-kyu Park and Jung-bae Lee) and six Independent Directors (Han-jo Kim, Sun-uk Kim, Jeong Kim and Jun-sung Kim, Eun-nyeong Heo, Myung-hee Yoo).
Date of change
Type of shareholder
meeting
Appointed Newly appointed
Reappointed
Mar 23, 2018 Mar 23, 2018
Executive Director Sang-hoon Lee
Executive Director Ki-nam Kim
Executive Director Hyun-suk Kim
AGM Executive Director Dong-jin Koh
-
Independent Director Jeong Kim
Independent Director Sun-uk Kim
Independent Director Byung-gook Park
CEO Ki-nam Kim
-
CEO Hyun-suk Kim
-
CEO Dong-jin Koh
Mar 20, 2019
AGM Independent Director Han-jo Kim Independent Director Curie Ahn
Independent Director Jae-wan Bahk
Oct 26, 2019 Feb 14, 2020 Mar 18, 2020
-
-
-
-
AGM Executive Director Jong-hee Han Executive Director Yoon-ho Choi
Mar 17, 2021
AGM -
Mar 17, 2021 Dec 31, 2021
-
-
-
-
-
-
-
Executive Director Ki-nam Kim Executive Director Hyun-suk Kim Executive Director Dong-jin Koh Independent Director Byung-gook Park Independent Director Jeong Kim Independent Director Sun-uk Kim CEO Ki-nam Kim CEO Hyun-suk Kim CEO Dong-jin Koh
-
Feb 15, 2022 Mar 16, 2022
-
CEO Jong-hee Han
Executive Director Kye-hyun Kyung
Executive Director Tae-moon Roh
Executive Director Hark-kyu Park
AGM
Executive Director Jung-bae Lee
Independent Director Wha-jin Han
Independent Director Jun-sung Kim
Independent Director Han-jo Kim
Mar 16, 2022
-
-
-
Mar 16, 2022
-
CEO Kye-hyun Kyung
-
Mar 19, 2022
-
-
-
Terms expired or dismissed
Executive Director Oh-hyun Kwon Executive Director Boo-keun Yoon (resigned) Executive Director Jong-kyun Shin (resigned) Independent Director Han-joong Kim Independent Director Byeong-gi Lee
-
Independent Director In-ho Lee Independent Director Kwang-soo Song Executive Director Jae-yong Lee Executive Director Sang-hoon Lee (resigned) -
-
-
Executive Director Yoon-ho Choi (resigned) CEO Ki-nam Kim (resigned) CEO Hyun-suk Kim (resigned) CEO Dong-jin Koh (resigned)
-
Executive Director Ki-nam Kim (resigned) Executive Director Hyun-suk Kim (resigned) Executive Director Dong-jin Koh (resigned) Independent Director Jae-wan Bahk Independent Director Curie Ahn
Samsung Electronics Business Report
9 / 413
Date of change
Type of shareholder
meeting
Appointed Newly appointed
Reappointed
Terms expired or dismissed
Apr 20, 2022
-
-
-
Independent Director Wha-jin Han (resigned)
May 17, 2022
-
-
-
Independent Director Byung-gook Park (position vacated)
Nov 3, 2022
EGM
Independent Director Eun-nyeong Heo Independent Director Myung-Hee Yoo
-
-
Mar 23, 2018: Executive Directors Ki-nam Kim, Hyun-suk Kim, and Dong-jin Koh were newly appointed as CEOs at the Board meeting. Mar 17, 2021: Ki-nam Kim, Hyun-suk Kim, and Dong-jin Koh were appointed as CEO at the Board meeting. Dec 31, 2021: Yoon-ho Choi resigned from his position as Executive Director. Feb 15, 2022: Executive Directors Ki-nam Kim, Hyun-suk Kim, and Dong-jin Koh resigned from their positions as CEO; and Executive Director Jonghee Han was appointed as CEO at the Board meeting held on the same date. Mar 16, 2022: Kye-hyun Kyung, Tae-moon Roh, Hark-kyu Park, and Jung-bae Lee were newly appointed as Executive Directors; Wha-jin Han and Jun-sung Kim as Independent Directors; and Han-jo Kim was reappointed as Independent Director at the Annual General Meeting of the shareholders. Mar 16, 2022: Ki-nam Kim, Hyun-suk Kim, and Dong-jin Koh resigned from their position as Executive Director. Mar 16, 2022: Executive Director Kye-hyun Kyung was appointed as CEO at the Board meeting. Mar 19, 2022: Jae-wan Bahk and Curie Ahn's terms as Independent Directors expired. Apr 20, 2022: Wha-jin Han resigned from her position as Independent Director. May 17, 2022: Independent Director Byung-gook Park passed away. Nov 3, 2022: Eun-nyeong Heo and Myung-hee Yoo were newly appointed as Independent Directors at the Extraordinary General Meeting of the shareholders.
D. Changes in the major shareholder
The major shareholder changed to Samsung Life Insurance as the shares of the previous major shareholder were inherited by beneficiaries on April 29, 2021.
[ As of December 31, 2022]
Name of major Number of shares
Date of Change
Share ratio
Reason for change
Note
shareholder
owned
Apr 29, 2021
Samsung Life Insurance
1,263,050,053
21.16%
Shares of the previous major shareholder were inherited by beneficiaries
-
Number of shares owned and share ratio are the sum of those of major shareholder and its related parties, and the number of shares is based on shares with voting rights (including those with limited voting rights in accordance with relevant laws).
Please refer to VII. Information on Shareholders for details on the major shareholder.
E. Company name changes
In 2018, Harman Connected Services Finland OY, and Harman Professional Singapore Pte. Ltd changed their names to Harman Finland Oy, and Harman Singapore Pte. Ltd., respectively.
In 2019, Samsung Electronics Greece S.A. (SEGR) changed its name to Samsung Electronics Greece S.M.S.A. (SEGR).
In 2021, Samsung Electronics Portuguesa S.A. (SEP) changed its name to Samsung Electronics Portuguesa, Unipessoal, Lda. (SEP).
Details are for SEC and major subsidiaries of SEC. See 1. Subsidiaries subject to consolidated accounting (detailed) in XII. Appendix for details.
F. Mergers and acquisitions
In 2018, Samsung Electronics America, Inc. merged with Samsung Pay, Inc.; and Harman Connected Services, Inc. merged with Harman Connected Services Holding Corp. In the same year, SEA sold its full stake in NexusDX, Inc.
Samsung Electronics Business Report
10 / 413
In 2019, Samsung Electronics Benelux B.V. (SEBN) acquired shares of Corephotonics Ltd. In the same year, SEC acquired a PLP business from affiliate Samsung Electro-Mechanics. In addition, Harman Becker Automotive Systems Manufacturing Kft merged with Duran Audio B.V.; and Samsung (China) Investment Co., Ltd. (SCIC) merged with Samsung Electronics (Beijing) Service Company Limited (SBSC).
In 2021, Samsung Research America, Inc. (SRA) merged with Viv Labs, Inc. Furthermore, Samsung Electronics America, Inc. (SEA) merged with Prismview, LLC. Details are for SEC and major subsidiaries of SEC. See 1. Subsidiaries subject to consolidated accounting (detailed) in XII.
Appendix for details.
G. Important changes in the Company's business
There were no changes over the past five fiscal years.
H. Other important matters related to the Company's business
In December 2021, the Company merged its CE and IM Divisions to form the DX Division and changed the Mobile Communications Business to the MX Division. Also, the Company separated SDC and the DS Division in alignment with the corporate organizational structure.
[As of December 2021]
Before
CE Division (Visual Display, Digital Appliances, Medical Devices)
Business organization
IM Division (Mobile, Network) DS Division (Memory, System LSI, Foundry, DP)
After
DX Division (Visual Display, Digital Appliances, Medical Devices, Mobile eXperience, Network)
DS Division (Memory, System LSI, Foundry) SDC (DP)
Regional headquarters
Harman Division
Korea, North America, Latin America, Europe, CIS, Southwest Asia, Southeast Asia, China, Middle East, Africa Americas (DS), Europe (DS), China (DS), Southeast Asia (DS), Japan (DS)
Harman
Korea, North America, Latin America, Europe, CIS, Southwest Asia, Southeast Asia, China, Middle East, Africa Americas (DS), Europe (DS), China (DS), Southeast Asia (DS), Japan (DS)
3. Changes in paid-in capital
There were no changes in paid-in capital over the past five fiscal years.
Due to the retirement of shares, the total par value of the shares issued is KRW 679,267 million (KRW 596,978 million in common stock and KRW 82,289 million in preferred stock), which is not equivalent to paid-in capital of KRW 897,514 million.
(KRW, shares)
Type of stock
Classification
December 31, 2022
Number of issued shares
5,969,782,550
Common
Par value
100
Paid-in capital
596,978,255,000
Preferred
Number of issued shares Par value
822,886,700 100
Samsung Electronics Business Report
11 / 413
Type of stock Total
Classification Paid-in capital Paid-in capital
December 31, 2022 82,288,670,000 679,266,925,000
4. Stock information
A. Total number of shares
As of December 31, 2022, SEC's issued shares on a cumulative basis totaled 7,780,466,850 registered common shares and 1,194,671,350 registered, non-voting preferred shares; and the Company had canceled 1,810,684,300 common shares and 371,784,650 preferred shares in accordance with resolutions of the Board of Directors (the Board). As of the same date, issued shares and shares outstanding totaled 5,969,782,550 for common shares and 822,886,700 for preferred shares.
[As of December 31, 2022] Classification
I. Authorized shares II. Issued shares (cumulative) III. Decrease in number of shares (cumulative)
Common
Type of stocks Preferred
20,000,000,000
5,000,000,000
7,780,466,850
1,194,671,350
1,810,684,300
371,784,650
Total 25,000,000,000 8,975,138,200 2,182,468,950
(Shares) Note
-
1. Capital reduction
-
-
-
-
2. Cancellation
1,810,684,300
371,784,650 2,182,468,950 Treasury shares
3. Redemption 4. Other
-
-
-
-
-
-
-
-
IV. Issued shares (II-III)
5,969,782,550
822,886,700 6,792,669,250
-
V. Treasury shares
-
-
-
-
VI. Outstanding shares
5,969,782,550
822,886,700 6,792,669,250
-
Post-split basis; SEC conducted a 50:1 stock split effective from May 3, 2018, lowering par value of every common and preferred share from KRW 5,000 to KRW 100.
Samsung Electronics Business Report
12 / 413
B. Treasury shares
In 2018, SEC completed the cancellation of all shares held in treasury as a part of its shareholder return policy, and no acquisition/disposal transaction of treasury shares was made during the reporting period.
[As of Dec 31, 2022] Acquisition method
Intra-market direct acquisition (within dividend related capital gains limit)
Acquisition from a trust agreement (within dividend related capital gains limit)
Share type
Common Preferred Common Preferred
Periodstart
-
Acquisition (+)
-
Change
Disposal (-)
-
Cancellation (-)
-
(Shares) Period-end
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Common
-
-
-
-
-
Total
Preferred
-
-
-
-
-
C. Types of registered stock
SEC has two types of registered equity securities: 1) common stock; 2) non-voting and non-cumulative preferred stock.
The shareholders of preferred stock are entitled to dividend payments of an additional 1% of par value compared to shareholders of common stock.
As of December 31, 2022, the number of issued non-cumulative and non-voting preferred stock totaled 822,886,700.
[Current status of issued preferred stock]
(KRW, Shares)
Classification
Contents
Issued date
Aug 25, 1989 (first issued date)
Par value per share
100
Total amount issued (based on par value) / total number of shares issued to date
119,467,000,000
1,194,671,350
Amount to date / number of shares to date
82,289,000,000
822,886,700
Matters on dividend
Entitled to dividend payments of an additional 1% of par value compared to common shares
Matters on residuary distribution
-
Details
on stock
Redemption conditions
-
Matters on
Redemption method
-
redemption
Redemption period
-
Samsung Electronics Business Report
13 / 413
Classification
Contents
Redemption value per share
-
Redemption expected within a year
-
Conversion conditions (including changes in -
conversion ratio)
Conversion period
-
Matters on
conversion
Types of shares to be issued with the
-
conversion
Number of shares to be issued after the -
conversion
Matters on voting rights
No voting rights
Other factors to consider when making investment decisions (matters on -
shareholders' agreement and financial covenants, etc.)
Due to the cancellation of shares, the total par value of issued stocks is KRW 82,289 million and is thus different from the paid-in capital (KRW 119,467 million). The total number of shares issued to date and the number of shares to date above reflect the changes in the number of shares due to the stock split in 2018.
Samsung Electronics Business Report
14 / 413
[Preferred stock, by issued date]
Date
Change
Type
Aug 25, 1989 Aug 25, 1989 Oct 29, 1990 Mar 19, 1991 Mar 30, 1991 Apr 8, 1991 May 17, 1991 Jul 24, 1991 Jul 30, 1991 Jul 31, 1991
Rights issue Bonus issue Exercise of conversion rights Exercise of conversion rights Exercise of conversion rights Exercise of conversion rights DR issuance Exercise of conversion rights Exercise of conversion rights Exercise of conversion rights
Preferred Preferred Preferred Preferred Preferred Preferred Preferred Preferred Preferred Preferred
Details of increase/decrease
Number of shares
Par value per share
Total par value
3,400,000
5,000
17,000,000,000
340,000
5,000
1,700,000,000
Issue price per share
28,800 5,000
371,620
5,000
1,858,100,000
29,600
40,898
5,000
204,490,000
29,341
5,112
5,000
25,560,000
29,341
1,704 1,907,671
34,081
5,000 5,000 5,000
8,520,000 9,538,355,000
170,405,000
29,341 37,973 29,341
20,449
5,000
102,245,000
29,341
64,754
5,000
323,770,000
29,341
(KRW, shares)
Total issue price 97,920,000,000 1,700,000,000 10,999,952,000 1,199,988,218 149,991,192 49,997,064 72,439,990,883 999,970,621 599,994,109 1,899,947,114
Samsung Electronics Business Report
15 / 413
Date
Change
Type
Aug 30, 1991 Sep 30, 1991 Jun 17, 1993 Oct 29, 1993 Nov 12, 1993 Nov 29, 1993 Nov 30, 1993 Apr 6, 1994 Jun 3, 1994 Jun 6, 1994 Jun 13, 1994
Exercise of conversion rights
Exercise of conversion rights
DR issuance Exercise of conversion rights DR issuance Exercise of conversion rights Exercise of conversion rights DR issuance Exercise of conversion rights Exercise of conversion rights Exercise of conversion rights
Preferred Preferred Preferred Preferred Preferred Preferred Preferred Preferred Preferred Preferred Preferred
Number of shares
Details of increase/decrease
Par value per share
Total par value
Issue price per share
214,716
5,000
1,073,580,000
29,341
20,448 2,542,372
105,999 2,158,273
58,295
5,000 5,000 5,000 5,000 5,000
102,240,000 12,711,860,000
529,995,000 10,791,365,000
291,475,000
29,341 47,312 28,302 55,975 28,302
19,079 1,086,956
16,027
5,000 5,000 5,000
95,395,000 5,434,780,000
80,135,000
28,302 74,502 25,809
9,072
5,000
45,360,000
25,809
17,236
5,000
86,180,000
25,809
Total issue price 6,299,982,156 599,964,768
120,284,704,064 2,999,983,698
120,809,331,175 1,649,865,090 539,973,858 80,980,395,912 413,640,843 234,139,248 444,843,924
Samsung Electronics Business Report
16 / 413
Date
Change
Type
Jun 22, 1994 Jun 27, 1994 Jun 28, 1994 Jun 29, 1994 Jun 30, 1994 Jul 1, 1994 Jul 4, 1994 Jul 5, 1994 Jul 6, 1994
Exercise of conversion rights
Exercise of conversion rights
Exercise of conversion rights
Exercise of conversion rights
Exercise of conversion rights
Exercise of conversion rights
Exercise of conversion rights
Exercise of conversion rights
Exercise of conversion rights
Preferred Preferred Preferred Preferred Preferred Preferred Preferred Preferred Preferred
Number of shares
Details of increase/decrease
Par value per share
Total par value
Issue price per share
1,209
5,000
6,045,000
25,809
16,632
5,000
83,160,000
25,809
54,131
5,000
270,655,000
25,809
292,127
5,000
1,460,635,000
25,809
52,922
5,000
264,610,000
25,809
232,854
5,000
1,164,270,000
25,809
116,426
5,000
582,130,000
25,809
188,401
5,000
942,005,000
25,809
686,164
5,000
3,430,820,000
25,809
Total issue price 31,203,081 429,255,288
1,397,066,979 7,539,505,743 1,365,863,898 6,009,728,886 3,004,838,634 4,862,441,409 17,709,206,676
Samsung Electronics Business Report
17 / 413
Date
Change
Type
Jul 7, 1994
Jul 8, 1994
Jul 12, 1994
Jul 19, 1994
Jul 20, 1994
Aug 12, 1994 Mar 13, 1995 Mar 13, 1996 Apr 14, 2003 Jan 15, 2004 May 4, 2004 Jan 15, 2016
Exercise of conversion rights
Exercise of conversion rights
Exercise of conversion rights
Exercise of conversion rights
Exercise of conversion rights
Exercise of conversion rights
Bonus issue Bonus issue Share cancellation Share cancellation Share cancellation Share cancellation
Preferred
Preferred
Preferred
Preferred
Preferred
Preferred Preferred Preferred Preferred Preferred Preferred Preferred
Number of shares
Details of increase/decrease
Par value per share
Total par value
Issue price per share
270,349
5,000
1,351,745,000
25,809
977,068
5,000
4,885,340,000
25,809
6,048
5,000
30,240,000
25,809
68,040
5,000
340,200,000
25,809
4,232
5,000
21,160,000
25,809
944
3,028,525 5,462,593 -470,000 -330,000 -260,000 -1,240,000
5,000
5,000 5,000 5,000 5,000 5,000 5,000
4,720,000
15,142,625,000 27,312,965,000 -2,350,000,000 -1,650,000,000 -1,300,000,000 -6,200,000,000
25,502
5,000 5,000
-
Total issue price
6,977,437,341
25,217,148,012
156,092,832
1,756,044,360
109,223,688
24,073,888 15,142,625,000 27,312,965,000
-
Samsung Electronics Business Report
18 / 413
Date
Change
Type
Apr 20, 2016 Share cancellation
Jul 19, 2016 Share cancellation
Sep 28, 2016 Share cancellation
Apr 12, 2017 Share cancellation
May 2, 2017 Share cancellation
Jul 24, 2017 Share cancellation
Oct 25, 2017 Share cancellation
Jan 30, 2018 Share cancellation
May 3, 2018
Stock split
Dec 4, 2018 Share cancellation
Preferred stock total
Preferred Preferred Preferred Preferred Preferred Preferred Preferred Preferred Preferred Preferred
Details of increase/decrease
Number of shares
Par value per share
Total par value
-530,000
5,000
-2,650,000,000
-320,000
5,000
-1,600,000,000
-230,000
5,000
-1,150,000,000
-255,000
5,000
-1,275,000,000
-1,614,847
5,000
-8,074,235,000
-225,000
5,000
-1,125,000,000
-168,000
5,000
-840,000,000
-178,000
5,000
-890,000,000
885,556,420
100
-
-80,742,300
100
-8,074,230,000
822,886,700
82,288,670,000
Issue price per share
-
Total issue price
642,261,376,652
Samsung Electronics Business Report
19 / 413
5. Changes to Articles of Incorporation
The most recent changes to the Articles of Incorporation took place on March 23, 2018. There were no other changes in the Articles of Incorporation in the past three fiscal years or in 2022 as of the disclosure date of the Korean version of this report. Moreover, changes to the Articles of Incorporation were not included in the agenda for the 54th AGM, which was scheduled to be held after the disclosure date of the Korean version of this report.
For details of the agenda items for the 54th AGM, please refer to the "Announcement of Shareholders' Meeting" disclosed on Financial Supervisory Service's DART (https://dart.fss.or.kr) on February 14, 2023.
Samsung Electronics Business Report
20 / 413
II. Businesses Overview
1. Overview
In addition to our headquarters in Korea, Samsung Electronics consists of 232 subsidiaries across the world responsible for sales and production, which include 9 regional headquarters for the Device eXperience (DX) Division, 5 regional headquarters for the Device Solutions (DS) Division, and subsidiaries of Samsung Display (SDC) and Harman.
The Company's business divisions are organized in a two-pronged framework consisting of finished products and component businesses. The finished product business consists of the DX Division, which is responsible for the production and sales of TVs, monitors, refrigerators, washing machines, air conditioners, HHPs, which includes smartphones, as well as network systems, and computers. The component business consists of the DS Division, which manufactures and sells DRAM, NAND flash, and mobile APs, and SDC, which manufactures and sells display panels (DPs), including mobile OLED panels. Harman (acquired in 2017) manufactures and sells products such as Digital cockpits, telematics, and speakers.
In December 2021, the Company merged and restructured the CE and IM Divisions to form the DX Division and renamed the Mobile Communications Business to the Mobile eXperience (MX) Business. Also, SDC and the DS Division have been separated to align with the corporate organizational structure. See C. Current status of each division and D. Financial summary by organization in 7. Other information for more details
about each Division.
The Company's corporate headquarters--which oversees the DX and DS Divisions--as well as 33 consolidated subsidiaries are located in Korea. The Company's corporate headquarters is divided along Divisions and/or Businesses, which are located in Suwon, Gumi, Gwangju, Giheung, Hwaseong, Pyeongtaek, etc. The Company's unlisted domestic subsidiaries include Samsung Display for display panel production, Samsung Electronics Sales for domestic retail sales, Samsung Electronics Service for after-sales services, and Samsung Electronics Logitech for logistics.
We have 199 unlisted overseas subsidiaries for product manufacturing, sales, and R&D, with locations in the US, Europe/CIS, Middle East/Africa, and Asia, etc.
We have 45 subsidiaries in North America, including SEA (New Jersey; responsible for the sales of finished products including TV and HHPs), SII (California; manufacturing of TVs), SSI (California; sales of semiconductors and DPs), SAS (Texas; manufacturing of semiconductor products), SEDA (Brazil; manufacturing of multiple finished products) and Harman (Connecticut; automotive components) in the US.
In Europe and CIS, we operate 72 subsidiaries. These include SEUK (UK), SEG (Germany), SEF (France), SEI (Italy), SERC (Russia) for sales of finished products; SEH (Hungary) and SERK (Russia) for manufacturing TVs, and SEPM (Poland) for manufacturing home appliances.
We have 20 subsidiaries in Middle East and Africa, including SGE (UAE) and SSA (South Africa) for sales of finished products and SEEG (Egypt) and SSAP (South Africa) for manufacturing TVs.
We have 32 subsidiaries in Asia (ex China), including SESP (Singapore), SEAU (Australia), SEPCO (Philippines), and SME (Malaysia), which are responsible for regional sales. In addition, we operate numerous production sites including SEV and SEVT (Vietnam) for HHPs, SEHC (Vietnam) for TVs, SDV (Vietnam) for DPs, and SIEL (India) for multiple products.
We operate 30 subsidiaries in China, including SCIC (Beijing) and SEHK (Hong Kong) for the sales of finished products in those regions; and SSS (Shanghai) and SSCX (Xian) for semiconductors and DPs sales. Production sites for finished
Samsung Electronics Business Report
21 / 413
products include SSEC (Suzhou) and semiconductor production facilities are located in SCS (Xian) among others.
The Company' recorded total revenue of KRW 302,231.4 billion as of the year end, is an increase of 8.1% year-on-year. Major customers (listed in alphabetical order) included Apple, Best Buy, Deutsche Telekom, Qualcomm and Verizon.
2. Key products and services
A. Revenue
SEC is involved in the production and sales of finished products, including TVs, refrigerators, washers, air conditioners, HHPs and components such as semiconductors (DRAM, NAND Flash, mobile APs) and display panels. Through Harman, the Company also produces and sells products such as digital cockpits and telematics.
In 2022, reported revenue was KRW 182,489.7 billion (60.4% of total net sales) for DX; KRW 98,455.3 billion (32.6%) for DS; KRW 34,382.6 billion (11.4%) for SDC; and KRW 13,213.7 billion (4.4%) for Harman.
Organization
Major products
DX Division
TVs, monitors, refrigerators, washing machines, air conditioners, HHPs, network systems, computers, etc.
DS Division
DRAM, NAND flash, mobile APs, etc.
SDC
OLED smartphone panels, etc.
Harman
Digital cockpit, telematics, speakers, etc.
Others
Overlapping internal transactions between Divisions
Total
Includes inter-divisional transactions. See 4. Revenue and long-term contracts for information by each product.
Revenue
1,824,897
984,553 343,826 132,137 -263,099 3,022,314
(KRW 100 mil)
Portion
60.4%
32.6% 11.4% 4.4% -8.8% 100.0%
B. Average selling price changes
In 2022, TV ASP decreased approximately 7% and HHP ASP increased approximately 5% year-on-year. Memory-product ASP fell approximately 17% year-on-year, and display panel (OLED panels for smartphones) ASP increased approximately 20%. The ASP of digital cockpits declined approximately 0.5% year-on-year.
3. Production materials and production facilities
A. Key production materials
For the DX Division, key materials include mobile AP and camera modules, which are supplied by Qualcomm, Semco, etc.,
and display panels for TVs and monitors, which are supplied by CSOT, etc. For the DS Division, key materials include
chemicals and wafers, supplied by Soulbrain, SK Siltron, etc., and for SDC, key materials include FPCAs and windows,
with suppliers such as BH, Apple, etc. For Harman, key materials include SoC (system-on-chip) products and memory
products for in-vehicle solutions, which are supplied by Nvidia, Arrow, etc.
(KRW 100 mil)
Organization
Type of purchase
Item
Specific usage
Purchase price
Portion1)
Main supplier(s)
DX Division
Production materials
Mobile AP
CPU
93,138
12.8%
Qualcomm, MediaTek, etc.
Production Camera module Camera for HHP
61,180
8.4% Semco,
Samsung Electronics Business Report
22 / 413
Organization
Type of purchase materials
Production materials Production materials
Item
Specific usage
Display panel
Color picture signaler for TV, monitor
Others
-
Sub total
Purchase price
60,224 513,278 727,820
DS Division
Production materials
Production materials Production materials
Chemical
Disk processing
Wafer
Semiconductor disk
Others
-
Sub total
28,708
28,157 138,263 195,128
Production materials
FPCA
Circuit
29,795
SDC
Production materials
Window
Tempered glass
Production materials
Others
-
19,367 77,155
Sub total
126,317
Harman
Production materials Production materials
SoC Others
Chips for vehicles -
8,625 72,038
Sub total
80,663
Others
Production materials
-
-
589
Total
1,130,517
Purchase price does not include sales between Divisions. Semco is a subsidiary. 1) Portion of purchase price of each item compared to total purchase price for each Division's raw materials.
Portion1)
Main supplier(s) CammSys, etc
8.3%
CSOT, AUO, BOE, etc.
70.5%
100.0% 14.7% 14.4%
Soulbrain, DongWoo FineChem, etc. SK Siltron, Sumco etc.
70.9%
100.0% 23.6%
BH, YP Electronics, etc.
15.3% Apple, Biel, etc.
61.1%
100.0%
10.7%
Nvidia, Intel, etc.
89.3%
100.0%
-
-
Samsung Electronics Business Report
23 / 413
B. Production material price trends
On a year-on-year basis, the price of mobile AP and camera modules, which are major production materials for the DX Division, increased approximately 77% and 13%, respectively. The price of TV and monitor display panels, which are also major production materials for the DX Division, decreased approximately 51% year-on-year. The price of wafers for semiconductor disks, which are major production materials for the DS Division, was similar compared to the previous year, and FPCAs for SDC increased approximately 37% year-on-year, respectively. Prices of tempered glass windows also increased approximately 10% compared to last year. For Harman, the price of SoCs decreased approximately 3% and memory for vehicles increased approximately 10%.
C. Production capacity, output, utilization rate
(Capacity)
Organization
Item
2022
DX Division
Image devices HHP
55,747 332,170
DS Division
Memory
1,905,731,836
SDC
Display panel
2,700
Harman
Digital cockpit
Production capacity for major product categories on a consolidated basis.
11,257
Capacity
2021 54,235 319,550
1,756,009,941 3,604 9,066
(1,000 units)
2020 51,538 321,600
1,230,287,321 7,274 9,362
The DX Divisions' production capacity, by major product, is calculated as follows: the average number of lines (x) the average output per hour (x) the average operation hours per day (x) standard days of operation
Memory production capacity for the DS Division is calculated as follows: converted output (after packaging, 1Gb equivalent) ÷ the utilization rate
SDC's production capacity is calculated as follows: the total producible panel surface area ÷ the dimensions of eighth generation glass (2,200x2,500mm)
Harman's production capacity for Digital cockpit is calculated as follows: the number of production (assembly and test) cells for each customer/product (x) the production capacity per hour by production cell (x) the standard operation hours per day (x) standard days of operation
Samsung Electronics Business Report
24 / 413
(Output)
In 2022, the DX Division's image device output was 41,802 thousand units (major production sites: Mexico, Vietnam, Brazil, and Hungary), and HHP output was 229,180 thousand units (major production sites: Korea [Gumi], Vietnam, India, and Brazil). The DS Division's memory output (1Gb equivalent) was 1,905,732 million (major production sites: Korea [Hwaseong, Pyeongtaek, etc.] and China). SDC's output of display panels was 2,008 thousand units (major production sites: Korea [Cheonan, Asan]). Harman's Digital cockpit output was 8,334 thousand units.
(1,000 units)
Organization
Item
Output
2022
2021
2020
DX Division
Image devices HHP
DS Division
Memory
SDC
Display panel
Harman
Digital cockpit
Output for major product categories on a consolidated basis.
41,802 229,180 1,905,731,836
2,008 8,334
44,133 260,501 1,756,009,941
2,849 6,928
48,244 249,218 1,230,287,321
5,977 6,116
(Utilization rate)
DX utilization rates in 2022 were calculated as actual output relative to production capacity. The utilization rates were 75.0% for Image devices and 69.0% for HHPs.
(1,000 units)
Organization
Item
Production capacity
2022 Output
Utilization rate
DX Division
Image devices HHP
55,747 332,170
41,802 229,180
75.0% 69.0%
The DS Division and SDC respectively operate memory and display panel production in three shifts (24 hours a day). Cumulative operating days including holidays were 365 days in 2022. The utilization rate was calculated as the actual production time relative to the potential production capacity [operating days (x) number of production lines (x) 24 hours].
Organization
DS Division SDC
Item
Memory Display panel
Potential production time 83,016 47,280
2022 Actual production time
83,016 47,280
(Hours)
Utilization rate 100% 100%
In 2022, Harman's utilization rate was 74.0% and was calculated as actual output relative to production capacity.
Organization Harman
Item Digital cockpit
Production capacity 11,257
2022 Output
8,334
(1,000 units)
Utilization rate 74.0%
Samsung Electronics Business Report
25 / 413
D. Production facilities and investment
(Key facilities for production and operation)
The Company's operational activities include production, development, marketing, and sales. In Korea, operations are located in Suwon, Gumi, Gwangju, Hwaseong, Pyeongtaek, and Asan. Overseas operations in North America, Europe, and China include a total of nine regional headquarters under the DX Division, five regional headquarters under the DS Division, and subsidiaries of SDC and Harman.
[Operations]
Region
Operations
Location
Suwon
Suwon
Seocho
Seoul
Woomyeon
Seoul
Giheung
Yongin
Korea (DX Division, DS Division,
SDC 12 work sites)
Hwaseong Pyeongtaek
Cheonan Onyang
Hwaseong Pyeongtaek Cheonan
Onyang
Asan
Asan
Gumi1
Gumi
Gumi2
Gumi
Gwangju
Gwangju
North America
New Jersey, US
Europe
Surrey, UK
China
Beijing, China
Overseas (DX Division - 9 regional
headquarters)
Southeast Asia Southwest Asia
CIS
Singapore, Singapore Haryana, India Moscow, Russia
Middle East
Dubai, UAE
Africa
Johannesburg, South Africa
Latin America
Sao Paolo, Brazil
Americas
San Jose, US
Overseas (DS Division - 5 regional
headquarters)
Europe China Southeast Asia
Eschborn, Germany Shanghai, China
Singapore, Singapore
Japan
Tokyo, Japan
Harman
North America HQ
Connecticut, US
Harman's automotive business is mainly based in the US (Novi, MI) and in Germany (Garching), and its Lifestyle business is located in the US
(Northridge, CA)
Samsung Electronics Business Report
26 / 413
The Company's property, plant and equipment include land, buildings and structures, machinery and equipment, and construction in progress. As of December 31, 2022, the total book value was KRW 168,045.4 billion, which is an increase of KRW 18,116.9 billion from year-end 2021.
Classification
Land
Buildings and Machinery and
structures
equipment
Under construction
Book value
98,302
388,694
795,263
180,093
Dec 31, 2021
- Acquisition cost
- Accumulated depreciation (including impairment loss)
General acquisition and capital expenditure
99,436 -1,134 1,389
626,515 -237,821
53,021
2,749,096 -1,953,833
310,101
180,093 -
166,757
Depreciation1)
-495
-35,339
-307,617
Change
Disposal/discard/impair ment
-576
-1,302
-469
-2
Others2)
302
1,995
-132
-10,772
Book value
98,922
407,069
797,146
336,076
Dec 31, 2022
- Acquisition cost
- Accumulated depreciation (including impairment
100,246 -1,324
677,138 -270,069
3,030,006 -2,232,860
loss)
Market value of major tangible assets is omitted as objective assessment is difficult.
1) Land-depreciation is depreciation expense of right-of-use asset as per K-IFRS 1116 (Lease).
2) Includes effects of FX rates and government subsidies.
336,076
(KRW 100 mil)
Other tangible assets
Total
36,933 1,499,285
119,580 3,774,720
-82,647 -2,275,435
21,002 -16,070
-465 -159 41,241 132,485
552,270 -359,521
-2,814 -8,766 1,680,454 4,275,951
-91,244 -2,595,497
(Capex)
The Company's capex in 2022 was KRW 53.1 trillion, with investments concentrating on capacity expansions and migration of advanced nodes as well as on infrastructure for the DS Division and SDC. Amid market uncertainties in 2023, the Company will continue to invest to secure competitiveness for next-generation technology and to prepare for future demand, at the same time, the Company will concentrate on boosting investment efficiency to ensure stable growth.
[Capex, by organization] Organization
Purpose
Period
Assets
(KRW 100 mil)
Investment
DS division
Establishment, addition, upgrade JanuaryDecember 2022 Buildings, facilities, etc.
478,717
SDC
Establishment, addition, upgrade JanuaryDecember 2022 Buildings, facilities, etc.
24,958
Other
Establishment, addition, upgrade JanuaryDecember 2022 Buildings, facilities, etc.
27,478
Total
531,153
Samsung Electronics Business Report
27 / 413
4. Revenue and long-term contracts
A. Revenue
In 2022, the Company recorded total revenue of KRW 302,231.4 billion, an increase of 8.1% year-on-year. By organization, when compared to the same period last year, revenue of the DX Division, DS Division, SDC, and Harman increased by 9.8%, 3.2%, 8.4% and 31.6%, respectively.
Organization DX Division DS Division
SDC Harman Others
Revenue types
Product categories
Goods, products, services, other
TVs, monitors, refrigerators, washing machines, air conditioners, HHPs, Network systems, computers, etc.
Goods, products, services, other
DRAM, NAND flash, mobile APs, etc.
Goods, products, services, other
OLED panels for smartphones, etc.
Goods, products, services, other
Digital cockpit, telematics, speakers, etc.
Overlapping internal transactions between Divisions
2022 1,824,897
2021 1,662,594
984,553
953,872
343,826
317,125
132,137 -263,099
100,399 -237,942
Total
3,022,314
2,796,048
Includes inter-divisional transactions. Figures for 2020 and 2021 were adjusted to align with those of 2022, reflecting the organizational changes in December 2021.
(KRW 100 mil)
2020 1,489,135
740,540
305,857
91,837 -259,299 2,368,070
(1) Sales, by major product (on a consolidated basis)
Classification Image devices Mobile devices
Memory Display panels
Includes inter-divisional transactions.
2022 332,795
1,154,254 685,349 343,826
2021 314,974
1,046,806 726,022 317,125
(KRW 100 mil)
2020 277,118 960,217 555,442 305,857
Samsung Electronics Business Report
28 / 413
(2) Revenue, by type
Classification
Products Services and other revenue
Total
Other revenue consists of royalty income, etc.
2022
2,903,461 118,853
3,022,314
(3) Revenue, by region (on a separate basis)
2021
2,658,785 137,263
2,796,048
Classification
2022
Domestic
Americas
Export
Europe Asia and Africa
China
Total
Domestic consumption and exports on a separate basis.
221,799 659,617 265,147 425,114 546,998 2,118,675
B. Sales channels
(1) Domestic
2021
221,497 583,805 258,227 336,671 597,247 1,997,447
Seller
Manufacturer and buyer
Sales channel Exclusive agencies
Distributor (general merchandise stores, discount stores, department stores, home-shopping, online, etc.)
Telecommunication service provider (SKT Co., Ltd., KT Corp., LG Uplus Corp.) Direct Sales (B2B and online channels)
(2) Overseas
Seller
Production subsidiaries
Regional sales office Regional distribution office
Sales channel
Retailer
Dealer
Retailer
Distributor
Dealer
Retailer
Telecommunication service provider, automotive OEM
Direct sales (B2B and online channels)
Regional sales office
Dealer Distributor
Retailer
Retailer
Dealer
Retailer
(KRW 100 mil)
2020 2,235,963 132,107 2,368,070
(KRW 100 mil)
2020 198,331 476,768 235,012 315,598 437,403
1,663,112
Consumer
Consumer
Consumer
Consumer
Samsung Electronics Business Report
29 / 413
(3) Sales ratio (global), by channel
Channel Ratio
Wholesale 19%
C. Sales methods and conditions
(1) Domestic
Retail
Special/direct sales
27%
51%
Others 3%
Classification
Channel
Exclusive
Distributor
Telecommunication service provider B2B and online channels
Retailer
General merchandise store, discount store, department store,
home shopping, online, etc. SKT Co., Ltd., KT Corp. LG Uplus Corp.
Corporate clients, etc.
(2) Overseas
Collection
Credit specific Case specific and contract specific Case specific and contract specific Case specific and contract specific
Incidental expense sharing
Case specific cost sharing as determined by mutual agreement
Case specific cost sharing as determined by mutual agreement
Case specific cost sharing as determined by mutual agreement (joint marketing)
N/A
Classification
Retailer
Dealer
Distributor B2B and online
channels
Channel
Retail store General merchandise store, discount store, department store Direct sales to local distributors
Corporate clients, etc.
Collection
Case specific and contract specific Case specific and contract specific Case specific and contract specific Case specific and contract specific
Incidental expense sharing
Case specific cost sharing as determined by mutual agreement
Case specific cost sharing as determined by mutual agreement
Case specific cost sharing as determined by mutual agreement
N/A
D. Sales strategy
- Expand market leadership based on premium products - Provide differentiated value to customers through brand, products, and services - Strengthen marketing activities to boost demand from customer/market
E. Major customers
In 2022, major customers (listed alphabetically) included Apple, Best Buy, Deutsche Telekom, Qualcomm, and Verizon. Sales to the five major customers accounted for approximately 16% of total sales.
F. Long-term contracts
As of December 31, 2022, there were no long-term contracts that have a significant impact on the Company's financial statement.
Samsung Electronics Business Report
30 / 413
5. Risk management and derivative trading
A. Financial risk management policy
The Company's financial risk management focuses on minimizing market risk, credit risk, and liquidity risk arising from operating activities. To mitigate these risks, the Company closely monitors each risk factor and operates corresponding financial risk management policies and program. The Company's use of derivative instruments for hedging risks are included in this program.
The finance team mainly carries out the Company's financial risk management. After implementing the global financial risk management policies, the finance team periodically measures, evaluates, and hedges financial risks.
Meanwhile, the Company manages exchange rate risk via monitoring exchange rates and conducting transactions through local finance centers in each major region (United States, United Kingdom, Singapore, China, Brazil, and Russia). Liquidity risk is managed by managing capital as a whole by each region.
The Company's assets that are under financial risk management consist of cash and cash equivalents, short-term financial instruments, financial assets at amortized cost, trade receivables and others. The Company's liabilities under financial risk management consist of trade payables, borrowings, and others.
B. Major financial risks
(1) Market risk
(Foreign exchange risk)
The Company operates internationally and is exposed to foreign exchange risks as it conducts transactions in currencies other than the functional currency. Major currencies that are exposed to foreign exchange risk include USD, EUR, INR, and others.
The Company focuses on minimizing the impact of foreign exchange fluctuation by maintaining the equal amount of assets and liabilities denominated in each foreign currency, irrespective of foreign exchange fluctuation considerations. To prevent exchange position, the Company's foreign exchange management policy requires normal business transactions, including import and export, as well as financing transactions such as depositing and borrowing, to be in local currency or for the cash-in currency to be matched up with the cash-out currency.
In order to effectively manage foreign exchange risk, the Company periodically monitors and evaluates exchange rate risk and strictly prohibits speculative foreign exchange transactions.
The impacts of a 5% change in currency rates on the profits or losses (before income tax) arising from financial assets and liabilities denominated in foreign currencies other than functional currency as of the reporting date are as follows:
Classification
USD EUR INR
December 31, 2022
Increase
Decrease
258,655
-258,655
92,546
-92,546
52,096
-52,096
December 31, 2021
(KRW mil)
Increase
Decrease
250,489
-250,489
107,519
-107,519
24,216
-24,216
Samsung Electronics Business Report
31 / 413
(Interest rate risk)
Risk of changes in interest rates for floating interest rate financial instruments is defined as the risk that the fair value of components of the consolidated statement of financial position, and future cash flows of interest income (expenses) of a financial instrument, will fluctuate because of changes in market interest rates. The Company's position with regard to interest rate risk exposure is mainly driven by its floating interest rate debt obligations and interest-bearing deposits. The Company implemented policies and operates to minimize uncertainty arising from changes in interest rates and financial expenses.
The impacts of a 1% change in interest rates on profit or loss (before income tax) arising from floating-rate financial assets and liabilities as of the reporting date are as follows:
(KRW mil)
Classification
December 31, 2022
Increase
Decrease
December 31, 2021
Increase
Increase
Financial assets
72,750
-72,750
71,131
-71,131
Financial liabilities
-8,427
8,427
-18,779
18,779
Net effect
64,323
-64,323
52,352
-52,352
(Price risk)
The Company's investment portfolio consists of direct and indirect investments in equity securities classified as financial assets at fair value through other comprehensive income and financial assets at fair value through profit or loss, which is in line with the Company's strategy.
As of December 31, 2022, a price fluctuation of marketable equity securities (listed stocks) of 1% changes `other comprehensive income' (before income tax) by KRW 92,073 million and `profit before tax' by KRW 3,144 million. The figures as of the same date in 2021 were KRW 116,087 million and KRW 4,784 million, respectively.
(2) Credit risk
Credit risk arises during the normal course of transactions and investing activities where clients or other parties fail to discharge an obligation. The Company sets and manages the client's and counterparty's credit limit, and evaluates their financial credit rating on a periodic basis based on the client's and counterparty's financial conditions, default history and other important factors. Adequate insurance coverage is maintained for trade receivables related to trading partners situated in higher risk countries.
Credit risk can arise from transactions with financial institutions, which include financial instrument transactions such as cash and cash equivalents, savings, and derivative instruments. To minimize such risk, the Company transacts only with banks which have strong international credit rating (S&P A and above), and all new transactions with financial institutions with no prior transaction history are approved, managed and monitored by the Company's finance team and the local finance center. The Company generally enters into a financial agreement with no restrictions, such as debt ratio covenants, provision of collateral, and loans or borrowings repayment. The Company requires separate approval for contracts with restrictions.
Samsung Electronics Business Report
32 / 413
The Company estimates that its maximum exposure to credit risk is the carrying amount of its financial assets, net of impairment losses.
(3) Liquidity risk
Due to the nature of the Company's business that requires making large investments, maintaining adequate level of liquidity risk is crucial. The Company maintains and manages adequate level of liquidity by periodically forecasting its capital balances, estimating required cash, managing income and expenses, and others.
The Company effectively manages its liquidity risk by periodically forecasting projected cash flows and by utilizing regional cash pooling, which allows for the use of internal funds when an entity in a region lacks liquidity. The cash-pooling program allows sharing of surplus funds among entities and contributes to minimizing liquidity risk and strengthening the Company's competitive position by reducing capital operation expenses and financial expenses.
In addition, the Company's headquarters provides payment guarantees to overseas subsidiaries to secure credit limit to brace for potential large-scale liquidity needs.
The following table is an undiscounted cash flow analysis for financial liabilities according to their remaining contractual maturity from the end of the reporting date to the contractual maturity date.
(1) As of December 31, 2022
(KRW mil)
Less than 3 months
~6 months
~12 months
1--5 years
More than 5 years
Financial liabilities
42,990,570
733,984
1,925,448
5,402,672
1,562,274
(2) As of December 31, 2021
Financial liabilities
Less than 3 months 55,185,809
~6 months 1,814,271
~12 months 1,674,980
(KRW mil)
1--5 years
More than 5 years
5,462,057
944,232
Samsung Electronics Business Report
33 / 413
(4) Capital risk
The purpose of capital management is to protect our capability of continuously providing profit to our shareholders and stakeholders and to maintain a sound capital structure. To this end, the Company monitors capital on the basis of credit rating and the ratio of total liabilities to total equity.
As of December 31, 2022, the Company has an AA- and Aa2 credit rating from S&P and Moody's, respectively, and the figures for total liabilities and total equity are as follows:
Total liabilities Total equity Total liabilities to equity ratio
Dec 31, 2022
93,674,903 354,749,604
26.4%
(KRW mil)
Dec 31, 2021
121,721,227 304,899,931
39.9%
C. Derivative instruments and put options
The Company hedges foreign currency positions by trading currency forward contracts of currencies other than won for the purpose of managing foreign exchange risk. Currency forwards are bought through a bank in the purpose of trade and hedging.
As of December 31, 2022, the Company had 2,545 currency forward contracts involving 35 foreign currencies, including USD,EUR, JPY and the book value of assets and liabilities as well as valuation gain and loss were as follows:
Assets
Liabilities
Valuation gain
(KRW mil)
Valuation loss
Currency forwards
166,087
158,686
1,351,390
1,450,638
Samsung Display (a subsidiary of the Company) may exercise its put option to sell part of its shares of Corning Incorporated back to Corning, according to the stock trade contract with Corning on April 8, 2021.
Furthermore, Samsung Display may exercise its put option to sell all or part of its shares of TCL China Star Optoelectronics Technology Co. Ltd. (CSOT) to TCL Technology Group Corporation (TCL), if CSOT remains unlisted within the listing period, according to the shareholders' agreement executed with TCL and CSOT on April 1, 2021.
Fair value of the above put option as of December 31, 2022 was evaluated by Earnest & Young Global Limited.
Samsung Electronics Business Report
34 / 413
6. Major contracts and research and development activities
A. Major contracts
Account Cisco
Google
GlobalFoundries Inc.
InterDigital Qualcomm
Apple Nokia Microsoft
Contract information Type Date
Purpose and contents Type Date
Purpose and contents Other Type Date
Purpose and contents Type Date
Purpose and contents Type Date
Purpose and contents Type Date
Purpose and contents Type Date
Purpose and contents Type Date
Contents Patent cross-license agreement Jan 23, 2014 Eliminate risk of patent disputes and lawsuits through mutual patent licensing Patent cross-license agreement Jan 25, 2014 / indefinite term Eliminate risk of patent disputes and lawsuits through mutual patent licensing Permanent license contract (including patent applications in the next 10 years) Process technology license agreement Feb 28, 2014 Expand customer base of 14nm process Patent license agreement Jun 3, 2014 Eliminate risk of patent disputes and lawsuits through patent licensing Patent cross-license agreement Jan 1, 2018Dec 31, 2023 Eliminate risk of patent disputes and lawsuits through mutual patent licensing and signing of covenant not to sue Withdrawal of lawsuit agreement Jun 26, 2018 Withdraw from all lawsuits in the United States Patent license agreement Oct 19, 2018 Eliminate risk of patent disputes and lawsuits through patent licensing Patent cross-license agreement Feb 11, 2019
Samsung Electronics Business Report
35 / 413
Account
Contract information
Contents
Purpose and contents Eliminate risk of patent disputes and lawsuits through mutual patent licensing
Type
EMADA
Google
Date Purpose and contents
Type
Feb 27, 2019Dec 31, 2022 (extended)
Licensing agreement for using Google apps (Play Store, YouTube, etc.) in 31 European countries (EEA)
Patent cross-license agreement
Huawei
Date
Feb 28, 2019
Purpose and contents Eliminate risk of patent disputes and lawsuits through mutual patent licensing
Type
Technology licensing agreement
AMD
Date
May 30, 2019
Purpose and contents Secure mobile graphics design for mobile products and other applications
Type
Patent cross-license agreement
Sharp
Date
July 30, 2019
Purpose and contents Eliminate risk of patent disputes and lawsuits through mutual patent licensing
Type
Patent cross-license agreement
Ericsson
Date
May 7, 2021
Purpose and contents Eliminate risk of patent disputes and lawsuits through mutual patent licensing
Information that may be referenced or used in other IP disputes, including contract amount, is excluded.
Samsung Electronics Business Report
36 / 413
B. Summary of R&D activities and expenditures
The Company is leading the global market by continuously developing creative and innovative products and the future technology through shifting its way of thinking and understanding customer demand. The Company is doing its utmost to cement its position in the global IT industry and become a worldwide leader in industrial technology by creating and securing next-generation technology.
As of December 31, 2022, the Company's R&D expenses were KRW 24,929.2 billion year-to-date. Among this, KRW 24,919.2 billion was recognized as expenditures, excluding government subsidies and capitalized expenses.
(R&D expenses)
2022
Total R&D expenditures
24,929,171
(Government subsidies)
-9,973
R&D expenditures
Accounting
Capitalization of development expenses (intangible asset)
R&D costs (expenses)
24,919,198 -
24,919,198
R&D expenses/revenue ratio1)
8.2%
On a consolidated basis. 1) Calculated using total R&D expenditures, which includes government subsidies.
2021 22,596,487 -1,053 22,595,434 -193,708 22,401,726 8.1%
(KRW mil)
2020 21,229,200 -8,228 21,220,972
-109,482
21,111,490 9.0%
C. R&D organization and operations
(Domestic)
The Company operates three levels of R&D organizations: R&D teams of business units under each Division that develop market-ready technologies with a 12 year outlook; research institutes of each Division that develop mid- to long-term technology with a 35 year outlook; and the Samsung Advanced Institute of Technology, which develops core technology as seeds for future growth engines.
Samsung Advanced Institute of Technology is the central research institute of Samsung Electronics that has been established to lead the Company into the future and serve as an incubator of cutting-edge technology. It has a creative R&D system and provides R&D direction for promising growth sectors at the Company level, exploring future growth engines and strengthening technological competitiveness of core businesses.
(Overseas)
The Company operates R&D organizations in the US (SRA), China (SSCR, SRC-Beijing, SRC-Nanjing, SRC-Guangzhou, SRC-Shenzen), India (SRI-Bangalore and SRI-Delhi), Bangladesh (SRBD), Israel (SRIL and SIRC), Russia (SRR), and Japan (SRJ), to carry out research activities for product development and basic technological research.
The Company has established AI centers in Cambridge (United Kingdom), Moscow (Russia), Toronto (Canada), Montreal (Canada), and New York (United States), so our global team of researchers can collaborate with international experts to strengthen capabilities in AI technology.
Samsung Electronics Business Report
37 / 413
CEO
Digital Image Research Lab
Digital Appliances Research Lab 1
Digital Appliances Research Lab 2
Health & M edical Research Lab
M obile Research Lab
M obile Communication
Research Lab
Network Research Lab
Samsung Research
Design Research Lab
Production Technology Research Lab
Reliability Research Lab
Semiconductor Research Lab
Equipment Technology Research Lab
M emory Research Lab
System LSI Research Lab
Foundry Research Lab
PKG Research Lab
Environment & Safety Research Center
Innovation Center Research Lab
LED Research Lab
Disp lay Research Lab
Samsung Advanced Institute of Technology
SRA SRC-Beijing SRC-Nanjing SRC-Guangzhou SRC-Shenzhen
SSCR SRI-Bangalore,
Delhi SRBD
SIRC, SRIL
SRR
SRJ
As of December 31, 2022.
See 1. Subsidiaries subject to consolidated financial statements (detailed) in XII. Appendix for more details about the current status of the overseas R&D (companies).
D. R&D results
The Company's key R&D results by organization in 2022 are as follows:
DX Division
Research project Details
Neo QLED 8K
· Release of ultra-high-definition, slim 8K TV based on mini LED
Neo QLED 4K
· Rollout of three series and seven sizes based on mini LED
Grande AI Washer · Release of 24kg Grande AI Washer that features a pet-care cycle / 20kg Grande AI Dryer
Galaxy Foldable
· Launch of Galaxy Z Fold 4 · Release of Galaxy Z Flip 4
Galaxy S22
· Rollout of Galaxy S22 S22+ S22 Ultra
Galaxy Tab
· Release of Galaxy Tab S8 S8+ S8 Ultra
Galaxy A
· Rollout of A73 5G · Release of A53 5G · Launch of A33 5G · Release of Galaxy A23 LTE 5G · Launch of Galaxy A13 LTE 5G
Galaxy Book
· Rollout of Galaxy Book2 Pro 360 · Release of Galaxy Book2 Pro · Launch of Galaxy Book2 Go 5G
Samsung Electronics Business Report
38 / 413
Wearable
Research project DRAM for mobile
· Rollout of Galaxy Watch 5 · Release of Galaxy Buds 2 Pro
DS Division
Details · Development of industry's first LPDDR5X DRAM
Exynos
· Release of Exynos 2200, a premium mobile AP
LSI
· Release of single-chip fingerprint security IC (S3B512C) for biometric payment cards
Foundry
· Adoption of GAA for the 3-nano process for the first time in the world
SDC
Research project Details
QD-Display
· QD-Display (55" UHD, 65" UHD) for TV
· QD-Display (34" QHD) for monitor
Please refer to Appendix-4. R&D results (detailed) for more details.
Samsung Electronics Business Report
39 / 413
7. Other information
A. Intellectual property
Intellectual property activities are an integral part of our R&D strategies--SEC registered its first US patent in 1984 and currently holds 225,910 patents around the world. The Company holds the highest number of its patents in the US and aims to address conflicts in the US more effectively.
(Number of patents registered in each country)
[As of December 31, 2022] Korea
Number
52,044
US 88,024
Europe 41,915
China 20,762
Japan 8,901
(Unit: No. of patents)
Others
Total
14,264 225,910
In 2022, the Company invested KRW 24.9 trillion in R&D and registered 9,136 domestic and 8,490 US patents.
(Number of patent registrations per year)
Korea US
2022 9,136 8,490
2021 8,437 8,565
(Unit: No. of patents)
2020 6,648 8,520
These patents are mostly related to smartphones, smart TVs, memory, and system LSI products for the Company's strategic business products or for future use. These patents not only protect the Company's business but also play a role in keeping similar technology and patents, as well as competitors, in check. Additionally, the Company is focusing on securing early patents in new technologies ahead of others, in order to protect opportunities and have the freedom to operate when entering new businesses.
The Company has signed licensing agreements with Cisco (signed in January 2014), Google (January 2014), Qualcomm (January 2018), Nokia (October 2018), Microsoft (February 2019), Sharp (July 2019), and Ericsson (May 2021) through which the Company has secured an extensive patent protection in mainstay businesses as well as in the fields of new business.
The Company has also been focusing on securing design patents to protect its original design applied to smartphones and smart TVs. In 2022, the Company acquired 468 US design patents, in part for the aforementioned purposes.
B. Environmental regulations
The Company strictly abides by environmental regulations on products and in the workplace, as prescribed by law. In addition, in accordance with "the low carbon green growth policy" of the Korean government, the Company reports "the amount of greenhouse gas emission and energy use" to the government and provides related information to stakeholders by providing various reports, including the Samsung Sustainability Report.
Samsung Electronics Business Report
40 / 413
(Environmental regulation of products)
Environmental regulation of products are becoming stricter, reflecting the concerns of governments and regulators about potential direct and indirect impact of products to consumers' health and safety as consumers. Accordingly, the Company is working to minimize the environmental impact throughout the entire life cycle of products from the development stage of components and products to manufacturing, distribution, use, and disposal. The Company offers "Eco-Partner Certification" to suppliers for components free of harmful substances, and runs an "eco-design evaluation" system to reflect eco-friendly elements on products (reduced use of resources, energy and harmful substances, and the use of eco-friendly materials) at the development stage, and operates a "waste electronics collection recycle system" in Europe, North America, Korea, and India for collecting and recycling waste electronics. These activities are in line with domestic and foreign environmental laws on electronics and are a differentiation factor for the Company and its products.
Relevant laws are as follows:
1. law on collection and· recycle of waste electronics (e.g., EU WEEE Directive)
2. limit on the use of harmful substances (e.g., EU RoHS Directive, REACH Regulation)
3. regulation on energy efficiency (e.g., EU ErP Directive)
(Environmental regulations in the workplace)
The Company operates environmental pollution prevention facilities to reduce air pollution, water pollution, and waste disposal, and to minimize the discharge of pollutants, thereby minimizing impact on the surrounding environment.
Environmental management of workplace is supervised by the relevant government authorities. All production facilities, domestic and overseas, have acquired the International Occupational Health and Safety Management System Certification (ISO 14001, ISO 45001) to strengthen compliance.
Major Relevant Domestic and International Laws are as follows:
1. Regulations related to emission of pollutants: Water Quality and Ecosystem Conservation Act, Clean Air Conservation Act, Wastes Control Act, Noise and Vibration Control Act, Environmental Impact Assessment Act
2. Management of greenhouse gas emission: Act on Allocation and Trading of Greenhouse Gas Emission, Framework Act on Low Carbon, Green Growth
3. Others: Toxic Chemicals Control Act, Act on the Registration and Evaluation, etc. of Chemical Substances, Odor Control Law, Soil Environment Conservation Act
Samsung Electronics Business Report
41 / 413
(Greenhouse gas emission and energy consumption management)
The Company is a "controlled entity" according to Article 42 (Coping with Climate Change and Management of Targets for Energy) Paragraph 6 of Korea's "Framework Act on Low Carbon, Green Growth". Thus, the Company has been reporting the amount of greenhouse gas emission and energy consumption, verified by a third-party, to the authorities and disclosing it to stakeholders according to Article 44 (Reporting on Quantity of Greenhouse Gases Emitted and Quantity of Energy Consumed) of the same Act since May 2011.
The reported amount of greenhouse gas emission and energy use are provided below:
2022
2021
Greenhouse gas (tCO2-eq)
19,566,237
19,267,835
Energy (TJ)
277,270
274,298
On a consolidated basis. Domestic manufacturing facilities, office buildings, buildings owned by the Company, leased buildings, etc. Reported Greenhouse gas emission excludes ozone depletion substances (ODS). Amounts may differ based on results of governmental evaluations on emissions.
(Unit: tCO2-eq, TJ)
2020 17,234,522 255,990
From 2015, in accordance with the Article 8 (Designation of Business Entities Eligible for Allocation) of the Act on the Allocation and Trading of Greenhouse-Gas Emission Permits, the Company is an eligible business entity under the Act.
C. Current status of each division
[DX Division]
Industry overview
TVs are key products of the DX Division, and the TV industry went through continual technological developments. The black-and-white TV was first developed in 1926, and in 1954, RCA started mass production and sales of 21" color TVs. Such developments have led to the creation of products such as the Trinitron CRT (1967) and flat CRT (1996). As the penetration rate in major countries reached over 90%, the growth of the CRT TV industry stagnated. The industry regained strong growth momentum following the launch of flat panel TVs ("FPTVs") like LCDs and PDPs, especially with the expansion of digital broadcasting. FPTVs replaced CRT sets on the back of their enhanced design, picture quality, etc., combined with releases of competitively priced products.
The year 2010 saw the launch of 3D TVs, and the rise of internet video services along with increased consumer interest in smart devices from 2011 to 2012 led to the birth of the smart TV market. The evolution continued with the launches of Quantum Dot QLED TVs in 2017, boasting significantly enhanced resolution and picture quality, and with commercialization of 8K and Micro LED TVs.
The mobile phone industry started with first generation analogue devices in the early 1980s that only supported voice communication and evolved to second generation digital ones, using technology such as CDMA and GSM, where users could send voice and text messages. Third generation mobile communication standards such as WCDMA allowed users to send photos and videos. Today, fourth generation LTE mobile communication technology with ultra-high-speed data transmission is becoming commonplace and was used in 75% of phones sold in 2021 (Strategy Analytics, November 2022).
Fifth generation mobile communication services, which will lead innovation alongside the fourth industrial revolution, was successfully launched in Korea and the US, and is now commercialized globally. As a result, 5G smartphones are accelerating the development of an ecosystem of mashup services and related industries, with the sales increasing sharply to 610 million units in 2021 from 270 million units in 2020 (Strategy Analytics, November 2022).
Samsung Electronics Business Report
42 / 413
The smartphone industry has grown significantly since 2007. In 2021, the smartphone portion of total HHP sales volume was approximately 77%, and the feature phone portion of the total was approximately 23%, with the latter related to demand in emerging markets (Strategy Analytics, December 2022). For 2022, the penetration rate of smartphones is expected to have reached 52%, rising slightly from 51% in 2021 (Strategy Analytics, December 2022). Also, as the smartphone market shows high saturation, the importance of competitive software for applications, UX, games, media, advertisements, digital wallets, AI, security, etc., is rising alongside that of competitive hardware, which includes high-performance APs, large screen AMOLED displays, foldable form factors, multiple cameras, sensors, waterproof & dustproof features, biometric recognition, and more.
Market condition
In 2021, market players continued to strive for innovations in picture quality, sound, and form factor to create demand for premium TVs, but TV demand decreased year-on-year to approximately 213.54 million units due to the impacts of disruptions in global supply chains and logistics. Moreover, in 2022, TV demand declined compared to the previous year, falling to 203.26 million units sold due to the impacts of a decline in real household income triggered by the Russia-Ukraine war, increased supply instability of raw materials and energy, and expanded global inflation (Omdia, February 2023).
< Market share of TV >
Product
2022
2021
2020
TV
29.7%
Global market share in revenue; from Omdia
29.5%
31.9%
Moreover, the smartphone market is expected to have declined from 1.36 billion units in 2021 to 1.22 billion units in 2022 due to uncertainties such as continued geopolitical instability and inflation (Strategy Analytics, December 2022). Meanwhile, the tablet market grew to 180 million units in 2021 thanks to an increase in contactless demand triggered by COVID-19. It then started trending downward due to weak replacement demand, and it is expected to have dropped slightly to 160 million units in 2022 (Strategy Analytics, November 2022).
< Market share of Smartphone >
Product
2022
2021
2020
Smartphone
21.8%
20.0%
19.6%
Global market share in quantity; data from research firm Strategy Analytics. (Figure for 2022 is estimate from Strategy Analytics.)
Business condition
We have maintained the top position in the overall TV market for seventeen straight years since claiming the number one spot in 2006.
In 2018, we released world's first 8K TV in the global market, once again leading the premium segment in the TV industry. Our QLED lineup includes sizes ranging from mid-sized to ultra-large screens, giving customers a variety of choices. In addition, the significantly improved picture quality was well received by consumers and experts alike. We achieved solid results by introducing ultra-large screens in the UHD lineup as well as in the QLED lineup.
In 2020, we enhanced our leadership and dominance in the market with 4K and 8K QLED TVs and new Lifestyle TVs such as The Terrace, The Premiere and The Sero despite a global economic crisis due to COVID-19.
Samsung Electronics Business Report
43 / 413
In 2021, we expanded our premium product lineup by launching Neo QLED TVs featuring significantly upgraded contrast and picture quality. Moreover, the sales portion of Lifestyle products and sound bars has increased, and a rising number of companies have participated in various smart ecosystems, including TV plus, home training, and games. Since 2021, we have been particularly strengthening our efforts toward becoming a more eco-friendly business, from raw materials to packaging, and we are enhancing accessibility to help the visually impaired and hard of hearing to conveniently use our products.
In 2022, we increased our market share in the premium, ultra-large, over 75" TV market centering on innovative Neo QLED 8K technologies and further reinforced our Lifestyle TV lineups by introducing The Freestyle. In 2023, we will increase our market share by focusing on premium, flagship products, such as Neo QLED and Super Big TVs; and for Lifestyle TVs, we will expand our lineups and improve product performance to continue to provide our customers with products tailored to their needs. Furthermore, in line with the Company's new environmental strategy, we will increase adoption of recycled plastic materials in our eco-friendly remote controls and roll out TV products that apply ultra-low power technologies.
Furthermore, SEC has always been at forefront of the HHP market, and for smartphones in particular, we have maintained leadership in the global market for eleven consecutive years.
To solidify our status in the overall mobile market, we always strive to improve our current products--including tablets, wearables, and accessories--while growing businesses in areas with high potential, such as digital health, digital wallet, etc.
For smartphones, we are establishing optimal portfolios for each region, accounting for varying market conditions and the competitive environment, offering a wide smartphone lineup ranging from mass-market to premium devices. We have been providing premium smartphones and delivering differentiated user experiences that can meet customer needs via our cuttingedge technology, which includes Dynamic AMOLED 2X (120Hz) displays, digital key and content sharing using UWB (ultra wideband), water- and dust-proofing, high-speed cable and wireless charging, ultrasonic fingerprint-on-display (FoD), high-resolution and optical zoom/night mode camera with AI technology, 8K video recording, on top of large-screen Infinity Displays.
In 2019, we secured early leadership in the 5G market with the release of the world's first 5G smartphone while also creating a new market with Galaxy Fold, enabled by foldable displays. In 2020, we continued to lead the foldable market with the launch of Galaxy Z Flip, a new form factor that folds from top down, and a further evolved edition Galaxy Z Fold 2. In 2021, we released the third generation Galaxy Z Series with significantly enhanced durability based on unrivaled craftsmanship, leading the foldable market.
In 2022, the market embraced the releases of Galaxy Z Fold 4 and Galaxy Z Flip 4, which featured further enhancements to the completeness of their respective core experiences--multi-tasking and Flex Mode. We continue to target achieving higher sales of foldable products relative to previous releases of Note models, with our mainstreaming of the new foldable series.
To respond to an ever-changing market as well as customer needs, we are strengthening product competitiveness by introducing innovative features such as 5G, quad cameras, large infinity displays, and high-capacity batteries even to midrange-and-below products.
In addition, we provide richer experiences for our smartphone users with our Galaxy Eco products, including tablets that help boost productivity via virtual meetings, multitasking, and note-taking with large-screen display and S Pen; and wearables such as smart watches that provide sophisticated fitness and wellness functions--thanks to the adoption of innovative biosensor technologies--and wireless earphones that provide rich, clear sound.
Not content to dwell on our achievements in hardware, we have been focusing on delivering new and helpful services like
Samsung Electronics Business Report
44 / 413
Samsung Pay, Samsung Health, and SmartThings. To deliver a consistent and high-quality Multi-Device Experience, we are adding Bixby features to a suite of products in addition to smartphones, including TVs, refrigerators, air conditioners, etc.
Moreover, we are strengthening strategic partnerships to expand our ecosystem, and we are securing new and innovative technologies by sustaining investments in fields with growth potential, including digital health and digital wallets, by utilizing SmartThings, Bixby, and Cloud, and by reinforcing our Service Business.
Furthermore, we continue to innovate eco-friendly technologies, including ones to expand adoption of recycled materials in our products. A prime example is the adoption of materials repurposed from discarded fishing nets in our key products, including Galaxy S22 and S23 series and Galaxy Z Fold 4.
We will continue to leverage our superior R&D capabilities to be fully prepared to keep delivering new value to customers.
Samsung Electronics Business Report
45 / 413
[DS Division]
Industry overview
In general, our Semiconductor business is divided into Memory (storage) and System LSI (logical processing). Memory semiconductor is divided into RAM products (random access memory, ones that can be both written on and read) and ROM products (read only memory).
RAM is called volatile memory as the information is deleted when the power is turned off. It is used for temporary loading and storage of application programs. ROM is nonvolatile and holds memory even when power is removed; it is used in input/output system, IC cards, and more.
For System LSI products, there are many categories for various applications. SoCs for mobile devices that are equipped with CPUs, GPUs, ISPs (image signal processors), and modems are our major products. The Company manufactures mobile SoCs for smartphones and tablets, image sensors, and DDIs (display driver ICs) for OLED.
The Foundry Business makes customized semiconductors for other companies based on customer designs. The business resembles OEMs in the traditional manufacturing industry in the sense that companies consign the manufacturing of their products to fabrication plants, also called foundries or fabs. Due to increasing difficulty in semiconductor process and growing investment cost, the number of fabless semiconductor companies is growing, and the Foundry Business is in charge of consignment semiconductor production for such fabless companies.
Market condition
For the memory market, overall memory demand remained weak, as our customers further constrained their spending due to concerns over shrinking consumer sentiment as a result of persistent external uncertainties, such as potential for a global economic recession. Demand from consumer products such as PC and mobile continued to contract, and demand from servers was partially weak due to delays in set builds and an inventory reduction trend.
Amid a likely further slowdown in memory demand led by a the sluggish macro economy, the Company will focus on securing profitability by selling high-value-added, high-capacity products and continuing to lead the memory market with our differentiated, next-generation solution products.
The foundry market was expected to gradually recover from the beginning of 2022 on the back of the alleviated pandemic and easing of COVID-19 restrictions, but growth has been slower than expected in the second half of the year due to the Russia-Ukraine War, China's large-scale lockdown, and accelerated rate hikes in the US. As a result, growth in 1Q23 is projected to decelerate in consideration of weak demand, but we expect the market to gradually rebound from 2H thanks to a boost in demand, including ones related to alleviated monetary tightening in major economies and normalized conditions in the supply chain. Growth in the mid to long term is likely to continue thanks to increased penetration of 5G for mobile and heightened demand for high performance automotive-use SoCs and high performance computing.
< Market share of DRAM >
Product
2022
2021
2020
DRAM
43.0%
43.0%
Global market share in revenue; data from research firm DRAMeXchange. (Data for 2022 is an estimate from the Company.)
42.7%
Business condition
In the memory business, in 1Q23, customers may continue to adjust inventories due to weak seasonality and persistent global macro uncertainties. In response, we are thoroughly preparing for DDR5 demand for server and PC following the release of a new CPU and actively addressing demand for high-density products for server and mobile applications. Also,
Samsung Electronics Business Report
46 / 413
we are strengthening our competitiveness by increasing the portion of high-value products centering on profitability. Furthermore, we preemptively established mass production of DRAM featuring multi-layer EUV, and by strengthening cost competitiveness via our lineups of advanced products, such as SSDs with 8th-generation V-NAND, we will further solidify our market leadership in next-generation growth sectors.
System LSI is striving to overcome the global market slowdown via stronger cooperation with customers, and it is endeavoring to enhance its technological capabilities and product competitiveness through advanced development of next-generation products. For SoCs, we are strengthening the development of products that apply mobile 5G SoCs and those from advanced nodes based on our technological capabilities in AP and modem. We are expanding our lineups via custom SoCs for mobile and SoCs for automotives; and we are bolstering cooperation with customers for the development of next-generation products.
In the Foundry business, we are leveraging the recent downturn as an opportunity to strengthen our business structure and enable continued growth and to improve our fundamentals. For advanced nodes, aiming to enhance completeness and to increase competitiveness in technology services for our customers, we are focusing our capabilities on the timely development of 2nd generation 3-nano products, and we are preparing to mass produce 2nd and 3rd generation 4-nano products in the first half of 2023 by securing stable yield. Moreover, we will address customer demand through timely additions of capacity via establishing new fabs, including in Pyeongtaek and Taylor, and by improving our supply capabilities. For mature nodes, we are working to enhance the performance, power efficiency, size, and cost efficiency of 8-nano and 14-nano products to upgrade technological competitiveness and leverage the nodes for the long term. Furthermore, along with improving our technological competitiveness, we are increasing penetration into the market for high-performance, low-power semiconductors for HPC, automotives, 5G, IoT, etc. by developing specialty processes that our customers need. Finally, we are reinforcing the structure of the business overall by pushing to diversify our non-mobile customer base to bolster stability and sustain growth in all market conditions.
[SDC]
Industry overview
Display refers to screens in electronic devices. Active matrix technology is most commonly used in displays, including OLED (organic light emitting diode), QD-OLED (quantum dot organic light emitting diode), and TFT-LCD (thin film transistor liquid crystal display).
OLED panels use organic materials, which offer sharp contrast and color, high color gamut, and fast response rates. Such differentiating features provide advantages for use in smartphones where display features (multimedia contents, online experience, etc.) are important, and as a result, OLED adoption in the smartphone market is growing rapidly.
The market had raised concerns over the production of high-resolution, durable panels, but we overcame various technological challenges and advanced the business. OLED panels make up for the shortcomings of LCD panels, and they can be increasingly adopted into other applications in foldables, rollables, automotives, etc. The OLED market is forecasted to keep growing. QD-OLED, a self-emissive display with quantum dots (semiconductor particles a few nanometers in size) in the panel to maximize color gamut and viewing angle, is capturing attention under expectations that it will lead the premium TV and monitor markets.
Market condition
The market for smartphone display panels is expected to have decreased to 1.38 billion units in 2022 from 1.75 billion units in 2021 due to weakening consumer sentiment triggered by inflation and concerns over an economic slowdown. For smartphone-use OLED panels, the market is expected to have declined to 0.57 billion units in 2022 from 0.62 billion units in 2021, but the OLED portion of smartphone panels in 2022 likely increased to 41% from 35% in 2021 (Omdia January 2023).
Samsung Electronics Business Report
47 / 413
The market size for large display panels is also expected to have declined, falling from 0.98 billion units in 2021 to 0.88 billion units in 2022 amid a slumping market (Omdia, January 2023).
< Market share of smartphone panel >
Product
2022
2021
2020
Smartphone panels
56.7%
Global market share in revenue; figure for 2022 is estimate from research firm Omdia.
51.4%
44.8%
Business condition
The Company has continued to stay atop the mobile OLED market in terms of market share since it successfully commercialized OLED products in 2007, marking a world's first. We diversified our product group to include displays for foldable products, tablets, watches, laptops, and automotive applications, solidifying our position as the top player in the OLED display market.
With both flexible and rigid OLED, our optimal smartphone product portfolio ranges from mass-market to premium devices as we proactively address customers' specific needs; and we are recognized as having best-in-class technology through our introduction of foldable and OLED IT products with differentiated technologies and designs.
In 2022, a decline in the smartphone market was inevitable due to persistent macro uncertainties. We endeavored to expand the application of new technologies, such as UPC (under panel camera), high refresh rate, and tech related to energy efficiency and performance, in line with the needs of our customers while also enhancing cost competitiveness to continue to increase adoption of OLED panels.
Furthermore, we are diversifying our mobile panel business, which is concentrated on smartphones, to expand into IT, gaming, and automotive products and further solidify our business leadership.
In the large panel business, we will continue to increase our market share in the premium market by expanding the lineup of QD-OLED products and diversifying distributors.
[Harman] Industry overview
Harman competes in the automotive and lifestyle audio industries.
As consumers want cutting-edge technologies for automotive components (digital cockpit, telematics, car audio, etc.), car makers demand latest technologies in areas such as car sharing and autonomous driving. As a result, competition is particularly fierce in the connectivity and entertainment solution markets between dominant players (e.g., Alpine, Aptiv, Continental, Mitsubishi, and Panasonic).
Harman provides not only system solutions but also audio components (including speakers and amplifiers), and it is another segment where fierce competition between several major players (e.g., Bose, Pioneer, and Panasonic) is expected to drive technological advances as each firm introduces unique sound-management solutions. Competition is expected to remain intense.
Lifestyle audio business has two segments: consumer audio and professional audio solutions. Consumer audio (portable speakers, headphones, connected audio solutions, etc.) is fragmented and a handful of companies (Amazon, Beats, Bose, Ultimate Ears, etc.) are showing early signs of dominance. We expect competition to remain intense as new players try to make inroads, given the saturated market for connected homes and smart speakers. In particular, for True Wireless headphones, for which smartphone manufacturers dominate market share, is expected to grow explosively.
The professional audio solution industry (commercial audio, audio for large venues, etc., special lighting, video control solutions, etc.), led by QSC and Yamaha, is segmented by product and has seen the entrance of numerous companies offering
Samsung Electronics Business Report
48 / 413
a wide range of products and applications.
Market condition
The COVID-19 pandemic was projected to ease gradually into the end of 2022, but progress has been slower than expected, while business uncertainties have been mounting due to impacts of the Russia-Ukraine war. Against this backdrop, uncertainties in the macro economy were extremely high in 2022, including increased economic risks stemming from tightened monetary policies from central banks.
Considering such factors, global automobile production in 2023 is forecast to grow 4% year-on-year (S&P Global Light Vehicle Production Forecast, December 2022).
< Market share of digital cockpit >
Product
2022
2021
2020
Digital cockpits
24.7%
25.3%
27.5%
Digital cockpits refer to the digital automotive component which enables safe driving environment via infotainment system, etc. Company estimates based on I.H.S and LMC data (by unit).
Business condition
Harman is positioned to stay at the forefront of the automotive market and plans to continue to leverage its wide variety of brands to outfit vehicles ranging from mass-market thorough to luxury models, while also maintaining the quality that is synonymous with Harman brands. Additionally, Harman's relentless pursuit of innovation in the audio and connectivity spaces will help ensure the development of thriving relationships with automakers.
The same factors that Harman relies on within the automotive market will also be used in the consumer audio and professional audio solution market. Having won three Grammy Awards and two Academy Awards, Harman's brands have earned a strong reputation amongst everyday consumers and audiophiles alike. New offerings in up-and-coming segments such as connected wireless and smart audio continue to help bring in new consumers and further enhance brand reputation.
The COVID-19 pandemic created a challenging business environment, marked by halt in automobile production, a decline in daily travel and thus potential consumers, the closing of retailers, etc. The professional audio solution business, in particular, had adverse impacts of a reduction in the number of large-scale gatherings and events. Harman has adopted various ways to reduce costs from the onset of the COVID-19 pandemic, and we will redirect savings to other investments to compete more effectively in the market.
Samsung Electronics Business Report
49 / 413
D. Financial summary, by organization
In 2022 by organization, DX accounted for 60.4% of revenue with reported revenue of KRW 182,489.7 billion; DS contributed approximately 32.6% with revenue of KRW 98,455.3 billion; SDC was responsible for 11.4% with revenue of KRW 34,382.6 billion; and Harman contributed 4.4% with revenue of KRW 13,213.7 billion.
In 2022, DX accounted for 29.4% of total operating profit with an operating profit of KRW 12,746.1 billion; DS contributed 54.9% with KRW 23,815.8 billion; SDC accounted for 13.7% with a total operating profit of KRW 5,953.0 billion; and Harman contributed 2.0% with an operating profit of KRW 880.5 billion.
Organization Classification
DX Division
Revenue
Operating profit
Total assets
2022
Amount
Portion of corresponding
total
1,824,897
60.4%
127,461
29.4%
2,279,669
38.6%
2021
Amount
Portion of corresponding
total
1,662,594
59.5%
173,866
33.7%
2,479,832
42.0%
(KRW 100 mil)
2020
Amount
Portion of corresponding
total
1,489,135
62.9%
151,520
42.1%
2,303,623
43.6%
DS Division
Revenue
Operating profit
Total assets
984,553 238,158 2,620,558
32.6% 54.9% 44.3%
953,872 291,920 2,258,223
34.1% 56.5% 38.3%
740,540 188,062 1,885,692
31.3% 52.2% 35.7%
Revenue
SDC
Operating profit
Total assets
343,826 59,530 737,798
11.4% 13.7% 12.5%
317,125 44,574 668,836
11.3% 8.6% 11.3%
305,857 22,369 661,929
12.9% 6.2% 12.5%
Revenue
132,137
4.4%
100,399
3.6%
91,837
3.9%
Harman
Operating profit
8,805
2.0%
5,991
1.2%
555
0.2%
Total assets
171,023
2.9%
158,874
2.7%
147,020
2.8%
Includes inter-divisional transactions. Figures for 2020 and 2021 were adjusted to align with those of 2022, reflecting the organizational changes in December 2021.
Reasonable allocation of common SG&A (selling general & administrative) expenses and assets
(1) For common SG&A expenses, specific expenses that are allocable to a specific product/model are allocated to Divisions that are responsible for such product/model. However, common expenses that cannot be attributed to a specific product/model category are reasonably allocated throughout the Company based on an allocation standard (expense-torevenue ratio, number of personnel, etc.).
(2) For common assets, assets that can be directly allocated (inventory assets, fixed assets, investment assets, etc.) are allocated to the corresponding organizational unit. Assets that are commonly managed and cannot be directly allocated are allocated to each Division based on an allocation standard (expense-to-revenue ratio, pre-tax profit, etc.)
Samsung Electronics Business Report
50 / 413
III. Financial Affairs
1. Financial statements
A. Consolidated financial statements
(KRW mil)
Classification
54th
53rd
52nd
December 31, 2022
December 31, 2021
December 31, 2020
Current assets
218,470,581
218,163,185
198,215,579
- Cash and cash equivalents
49,680,710
39,031,415
29,382,578
- Short-term financial instruments
65,102,886
81,708,986
92,441,703
- Other current financial assets
414,610
3,409,791
2,828,562
- Trade receivables
35,721,563
40,713,415
30,965,058
- Inventories
52,187,866
41,384,404
32,043,145
- Others
15,362,946
11,915,174
10,554,533
Non-current assets
229,953,926
208,457,973
180,020,139
- Other non-current financial assets
12,802,480
15,491,183
13,778,185
- Investment in associates and joint ventures
10,893,869
8,932,251
8,076,779
- Property, plant, and equipment
168,045,388
149,928,539
128,952,892
- Intangible assets
20,217,754
20,236,244
18,468,502
- Others
17,994,435
13,869,756
10,743,781
Total assets
448,424,507
426,621,158
378,235,718
Current liabilities
78,344,852
88,117,133
75,604,351
Non-current liabilities
15,330,051
33,604,094
26,683,351
Total liabilities
93,674,903
121,721,227
102,287,702
Equity attributable to owners of the parent company
345,186,142
296,237,697
267,670,331
- Capital stock
897,514
897,514
897,514
- Share premium
4,403,893
4,403,893
4,403,893
- Retained earnings
337,946,407
293,064,763
271,068,211
- Others
1,938,328
-2,128,473
-8,699,287
Non-controlling interests
9,563,462
8,662,234
8,277,685
Total Equity
354,749,604
304,899,931
275,948,016
JanDec 2022
JanDec 2021
JanDec 2020
Revenue
302,231,360
279,604,799
236,806,988
Operating profit
43,376,630
51,633,856
35,993,876
Profit for the period
55,654,077
39,907,450
26,407,832
- Owners of the parent company
54,730,018
39,243,791
26,090,846
- Non-controlling interests
924,059
663,659
316,986
Basic earnings per share (KRW)
8,057
5,777
3,841
Diluted earnings per share (KRW)
8,057
5,777
3,841
Number of companies subject to consolidation accounting
232
229
242
Data shown in conformity with K-IFRS.
Please refer to the footnotes of the 52nd54th Consolidated Audit Report for the calculation of basic earnings per share (ordinary shares).
Samsung Electronics Business Report
51 / 413
B. Separate financial statements
(KRW mil)
Classification
54th
53rd
52nd
December 31, 2022
December 31, 2021
December 31, 2020
Current assets
59,062,658
73,553,416
73,798,549
- Cash and cash equivalents
3,921,593
3,918,872
989,045
- Short-term financial instruments
137
15,000,576
29,101,284
- Trade receivables
20,503,223
33,088,247
24,736,740
- Inventories
27,990,007
15,973,053
13,831,372
- Others
6,647,698
5,572,668
5,140,108
Non-current assets
201,021,092
177,558,768
155,865,878
- Other non-current financial assets
1,364,608
1,664,667
1,542,766
- Subsidiary, associate, and joint venture investments
57,397,249
56,225,599
56,587,548
- Property, plant and equipment
123,266,986
103,667,025
86,166,924
- Intangible assets
8,561,424
8,657,456
7,002,648
- Others
10,430,825
7,344,021
4,565,992
Total assets
260,083,750
251,112,184
229,664,427
Current liabilities
46,086,047
53,067,303
44,412,904
Non-current liabilities
45,81,512
4,851,149
1,934,799
Total liabilities
50,667,559
57,918,452
46,347,703
- Capital stock
897,514
897,514
897,514
- Share premium
4,403,893
4,403,893
4,403,893
- Retained earnings
204,388,016
188,774,335
178,284,102
- Others
-273,232
-882,010
-268,785
Total Equity
209,416,191
193,193,732
183,316,724
Evaluation method of subsidiary, associate, and joint venture investment securities
Cost methods
Cost methods
Cost methods
JanDec 2022
JanDec 2021
JanDec 2020
Revenue
211,867,483
199,744,705
166,311,191
Operating profit
25,319,329
31,993,162
20,518,974
Profit for the period
25,418,778
30,970,954
15,615,018
Basic earnings per share (KRW)
3,742
4,559
2,299
Diluted earnings per share (KRW)
3,742
4,559
Data shown in conformity with K-IFRS.
Please refer to the footnotes of the 52nd54th Consolidated Audit Report for the calculation of basic earnings per share (ordinary shares).
2,299
Samsung Electronics Business Report
52 / 413
2. Consolidated financial statements
Samsung Electronics Co., Ltd. and its subsidiaries
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(In millions of Korean won, in thousands of US dollars (Note 2.29))
Notes
December 31, 2022 KRW
December 31, 2021 KRW
December 31, 2022 USD
December 31, 2021 USD
Assets Current assets Cash and cash equivalents Short-term financial instruments Short-term financial assets at amortized cost Short-term financial assets at fair value
through profit or loss Trade receivables Non-trade receivables Prepaid expenses Inventories Other current assets
4, 28 4, 28 4, 28
4, 6, 28 4, 5, 7, 28
4, 7, 28
8 4, 28
Non-current assets Financial assets at fair value
through other comprehensive income Financial assets at fair value
through profit or loss Investment in associates and joint ventures
Property, plant and equipment
Intangible assets
Net defined benefit assets
Deferred income tax assets
Other non-current assets
4, 6, 28
4, 6, 28 9 10 11 14 25
4, 7, 28
Total assets
49,680,710 65,102,886
414,610
29,080 35,721,563 6,149,209 2,867,823 52,187,866 6,316,834 218,470,581
39,031,415 81,708,986 3,369,034
40,757 40,713,415 4,497,257 2,336,252 41,384,404 5,081,665 218,163,185
38,477,921 50,422,462
321,117
22,523 27,666,503 4,762,589 2,221,141 40,419,724 4,892,415 169,206,395
30,229,997 63,283,957 2,609,331
31,566 31,532,713 3,483,145 1,809,437 32,052,397 3,935,772 168,968,315
11,397,012
1,405,468 10,893,869 168,045,388 20,217,754 5,851,972 5,101,318 7,041,145 229,953,926 448,424,507
13,965,839
1,525,344 8,932,251 149,928,539 20,236,244 2,809,590 4,261,214 6,798,952 208,457,973 426,621,158
8,827,034
1,088,541 8,437,348 130,151,868 15,658,737 4,532,377 3,950,992 5,453,397 178,100,294 347,306,689
10,816,602
1,181,385 6,918,066 116,120,291 15,673,057 2,176,039 3,300,328 5,265,819 161,451,587 330,419,902
The above consolidated statements of financial position should be read in conjunction with the accompanying notes.
Samsung Electronics Business Report
53 / 413
Samsung Electronics Co., Ltd. and its subsidiaries
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(In millions of Korean won, in thousands of US dollars (Note 2.29))
Liabilities and Equity Current liabilities Trade payables Short-term borrowings Other payables Advances received Withholdings Accrued expenses Current income tax liabilities Current portion of long-term liabilities Provisions Other current liabilities
Notes
December 31, 2022 KRW
December 31, 2021 KRW
December 31, 2022 USD
December 31, 2021 USD
4, 28 4, 5, 12, 28
4, 28 17 4, 28 4, 17, 28
4, 12, 13, 28 15
4, 17, 28
10,644,686 5,147,315 17,592,366 1,314,934 1,298,244 29,211,487 4,250,397 1,089,162 5,844,907 1,951,354 78,344,852
13,453,351 13,687,793 15,584,866 1,224,812 1,294,052 27,928,031 6,749,149 1,329,968 5,372,872 1,492,239 88,117,133
8,244,355 3,986,617 13,625,362 1,018,422 1,005,496 22,624,421 3,291,951
843,561 4,526,905 1,511,331 60,678,421
10,419,678 10,601,254 12,070,545
948,622 1,002,249 21,630,379 5,227,245 1,030,066 4,161,312 1,155,744 68,247,094
Non-current liabilities Debentures Long-term borrowings Long-term other payables Net defined benefit liabilities Deferred income tax liabilities Long-term provisions Other non-current liabilities
Total liabilities
4, 13, 28 4, 12, 28
4, 28 14 25 15 4, 17, 28
536,093 3,560,672 2,753,305
268,370 5,111,332 1,928,518 1,171,761 15,330,051 93,674,903
508,232 2,866,156 2,991,440
465,884 23,198,205 2,306,994 1,267,183 33,604,094 121,721,227
415,206 2,757,756 2,132,446
207,854 3,958,748 1,493,645
907,535 11,873,190 72,551,611
393,628 2,219,850 2,316,883
360,829 17,967,108 1,786,777
981,439 26,026,514 94,273,608
The above consolidated statements of financial position should be read in conjunction with the accompanying notes.
Samsung Electronics Business Report
54 / 413
Samsung Electronics Co., Ltd. and its subsidiaries
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(In millions of Korean won, in thousands of US dollars (Note 2.29))
Equity attributable to owners of the Company Preference shares Ordinary shares Share premium Retained earnings Other components of equity
Non-controlling interests Total equity
Notes
December 31, 2022 KRW
December 31, 2021 KRW
December 31, 2022 USD
December 31, 2021 USD
18
119,467
119,467
92,528
92,528
18
778,047
778,047
602,601
602,601
4,403,893
4,403,893
3,410,834
3,410,834
19
337,946,407 293,064,763 261,740,930 226,979,906
20
1,938,328 (2,128,473)
1,501,243 (1,648,512)
345,186,142 296,237,697 267,348,136 229,437,357
31
9,563,462
8,662,234
7,406,942
6,708,937
354,749,604 304,899,931 274,755,078 236,146,294
Total liabilities and equity
448,424,507 426,621,158 347,306,689 330,419,902
The above consolidated statements of financial position should be read in conjunction with the accompanying notes.
Samsung Electronics Business Report
55 / 413
Samsung Electronics Co., Ltd. and its subsidiaries
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS
(In millions of Korean won, in thousands of US dollars (Note 2.29))
Notes
2022 KRW
For the years ended December 31,
2021
2022
KRW
USD
2021 USD
Revenue Cost of sales Gross profit Selling and administrative expenses Operating profit Other non-operating income Other non-operating expense Share of net profit of associates and joint ventures Financial income Financial expense Profit before income tax Income tax expense Profit for the year Profit attributable to Owners of the Company Non-controlling interests Earnings per share (in Korean won, in US dollars) - Basic - Diluted
29 21
21, 22 29 23 23 9 24 24
25
302,231,360 190,041,770 112,189,590 68,812,960 43,376,630
1,962,071 1,790,176 1,090,643 20,828,995 19,027,689 46,440,474 (9,213,603) 55,654,077
279,604,799 166,411,342 113,193,457 61,559,601 51,633,856
2,205,695 2,055,971
729,614 8,543,187 7,704,554 53,351,827 13,444,377 39,907,450
234,079,475 147,188,160 86,891,315 53,295,930 33,595,385
1,519,632 1,386,499
844,708 16,132,145 14,737,026 35,968,345 (7,135,975) 43,104,320
216,555,107 128,886,293 87,668,814 47,678,173 39,990,641
1,708,320 1,592,358
565,089 6,616,735 5,967,210 41,321,217 10,412,727 30,908,490
54,730,018 39,243,791
924,059
663,659
42,388,632 715,688
30,394,483 514,007
26
8,057
5,777
6.24
4.47
8,057
5,777
6.24
4.47
The above consolidated statements of profit or loss should be read in conjunction with the accompanying notes.
Samsung Electronics Business Report
56 / 413
Samsung Electronics Co., Ltd. and its subsidiaries
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In millions of Korean won, in thousands of US dollars (Note 2.29))
Notes
2022 KRW
For the years ended December 31,
2021
2022
KRW
USD
2021 USD
Profit for the year
Other comprehensive income (loss)
Items that will not be reclassified subsequently to profit or loss: Gain (loss) on valuation of financial assets at fair
value through other comprehensive income, net of tax Share of other comprehensive income (loss) of associates and joint ventures, net of tax Remeasurement of net defined benefit liabilities (assets), net of tax Items that may be reclassified subsequently to profit or loss: Share of other comprehensive income (loss) of associates and joint ventures, net of tax Gain on overseas business translation, net of tax Gain (loss) on valuation of cash flow hedge derivatives Other comprehensive income (loss) for the year, net of tax
Total comprehensive income for the year
Comprehensive income attributable to:
Owners of the Company
Non-controlling interests
6, 20 9, 20 14, 20
9, 20 20 20
55,654,077
(1,969,498) (6,318)
1,153,679
(44,192) 4,884,886
(12,893) 4,005,664 59,659,741 58,745,107
914,634
39,907,450 43,104,320
2,980,896 51,816
(524,606)
(1,525,385) (4,893) 893,529
160,163 7,283,620
50,410 10,002,299 49,909,749
(34,227) 3,783,365
(9,986) 3,102,403 46,206,723
49,037,912 871,837
45,498,335 708,388
30,908,490
2,308,717 40,132
(406,310)
124,047 5,641,195
39,043 7,746,824 38,655,314 37,980,071
675,243
The above consolidated statements of comprehensive income should be read in conjunction with the accompanying notes.
Samsung Electronics Business Report
57 / 413
(In millions of Korean won) 2021 KRW
Samsung Electronics Co., Ltd. and its subsidiaries
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Notes
Preference shares
Ordinary shares
Share premium
Retained earnings
Other components
of equity
Accumulated other
comprehensive income
attributable to assets heldfor-sale
Equity attributable to owners of the parent
company
Noncontrolling
interests
Total
Balance as of January 1, 2021 Profit for the year Gain (loss) on valuation of financial assets at fair value through other comprehensive income, net of tax Share of other comprehensive income (loss) of
associates and joint ventures, net of tax Gain on overseas business translation, net of tax Remeasurement of net defined benefit liabilities,
net of tax Gain on valuation of cash flow hedge derivatives
Reclassification to held-for-sale
Total comprehensive income for the year
Dividends declared Capital transaction under common control Changes in consolidated entities Other Total transactions with owners Balance as of December 31, 2021
6, 20 9, 20 20 14, 20 20
19
119,467 -
778,047 4,403,893 271,068,211 (8,687,155)
-
- 39,243,791
-
-
-
119,467
-
- 3,232,934 (359,117)
-
-
-
-
-
225,464
- 7,164,982
-
-
-
-
-
-
-
-
-
778,047
4,403,893
42,476,725 (20,480,721)
548 (20,480,173) 293,064,763
(520,552)
50,410 (12,132)
6,549,055 -
9,627 9,627 (2,128,473)
(12,132) 267,670,331 8,277,685 275,948,016 - 39,243,791 663,659 39,907,450
- 2,873,817 107,079 2,980,896
-
225,464 (13,485)
211,979
- 7,164,982 118,638 7,283,620
- (520,552)
-
50,410
12,132
-
12,132 -
49,037,912 (20,480,721)
10,175 (20,470,546) 296,237,697
(4,054) (524,606)
-
50,410
-
-
871,837 (32,005)
12,553 (477,617)
9,781 (487,288) 8,662,234
49,909,749 (20,512,726)
12,553 (477,617)
19,956 (20,957,834) 304,899,931
Samsung Electronics Business Report
58 / 413
(In thousands of US dollars (Note 2.29)) 2021 USD
Samsung Electronics Co., Ltd. and its subsidiaries
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Notes
Preference shares
Ordinary shares
Share premium
Retained earnings
Other components
of equity
Accumulated other
comprehensive income
attributable to assets heldfor-sale
Equity attributable to owners of the parent
company
Noncontrolling
interests
Total
Balance as of January 1, 2021
Profit for the year Gain (loss) on valuation of financial assets at fair
value through other comprehensive income, net of tax Share of other comprehensive income (loss) of associates and joint ventures, net of tax Gain on overseas business translation, net of tax Remeasurement of net defined benefit liabilities, net of tax Gain on valuation of cash flow hedge derivatives
Reclassification to held-for-sale
Total comprehensive income for the year
Dividends declared Capital transaction under common control Changes in consolidated entities Other Total transactions with owners Balance as of December 31, 2021
6, 20 9, 20 20 14, 20 20
19
92,528 -
602,601 3,410,834 209,943,483 (6,728,239)
-
- 30,394,483
-
-
-
92,528
-
- 2,503,921 (278,138)
-
-
-
-
-
174,623
- 5,549,309
-
-
-
-
-
-
-
-
-
602,601
3,410,834
32,898,404 (15,862,406)
425 (15,861,981) 226,979,906
(403,170)
39,043
(9,396)
5,072,271 -
7,456 7,456 (1,648,512)
(9,396) 207,311,811 6,411,102 213,722,913 - 30,394,483 514,007 30,908,490
- 2,225,783
82,934 2,308,717
-
174,623 (10,444)
164,179
- 5,549,309
91,886 5,641,195
- (403,170)
-
39,043
9,396
-
9,396 -
37,980,071 (15,862,406)
7,881 (15,854,525) 229,437,357
(3,140) (406,310)
-
39,043
-
-
675,243 (24,788)
9,722 (369,916)
7,574 (377,408) 6,708,937
38,655,314 (15,887,194)
9,722 (369,916)
15,455 (16,231,933) 236,146,294
Samsung Electronics Business Report
59 / 413
(In millions of Korean won) 2022 KRW
Samsung Electronics Co., Ltd. and its subsidiaries
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Notes
Preference shares
Ordinary shares
Share premium
Retained earnings
Other components
of equity
Accumulated other
comprehensive income
attributable to assets heldfor-sale
Equity attributable to owners of the parent
company
Noncontrolling
interests
Total
Balance as of January 1, 2022
Profit for the year
Gain (loss) on valuation of financial assets at fair value through other comprehensive income, net of tax Share of other comprehensive income (loss) of associates and joint ventures, net of tax
Gain on overseas business translation, net of tax
Remeasurement of net defined benefit liabilities, net of tax
Loss on valuation of cash flow hedge derivatives
6, 20 9, 20 20 14, 20 20
Total comprehensive income for the year
Dividends declared
19
Capital transactions under common control
Changes in consolidated entities
Others
Total transactions with owners
Balance as of December 31, 2022
119,467 -
-
-
-
119,467
778,047 -
4,403,893 293,064,763 (2,128,473)
- 54,730,018
-
-
-
-
778,047
-
(38,937) (1,867,530)
-
-
(51,848)
-
- 4,863,930
-
- 1,122,367
-
-
- 54,691,081
- (9,809,437)
-
-
-
-
-
-
- (9,809,437)
4,403,893 337,946,407
(12,893)
4,054,026 -
12,775 12,775 1,938,328
- 296,237,697 - 54,730,018
8,662,234 304,899,931 924,059 55,654,077
- (1,906,467)
-
(51,848)
- 4,863,930
- 1,122,367
-
(12,893)
- 58,745,107
- (9,809,437)
-
-
-
-
-
12,775
- (9,796,662)
- 345,186,142
(63,031) (1,969,498)
1,338 20,956
(50,510) 4,884,886
31,312 1,153,679
-
(12,893)
914,634 (5,523)
(176) 124
(7,831)
59,659,741 (9,814,960)
(176) 124
4,944
(13,406) (9,810,068)
9,563,462 354,749,604
Samsung Electronics Business Report
60 / 413
(In thousands of US dollars (Note 2.29)) 2022 USD
Samsung Electronics Co., Ltd. and its subsidiaries
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Notes
Preference shares
Ordinary shares
Share premium
Retained earnings
Other components
of equity
Accumulated other
comprehensive income
attributable to assets heldfor-sale
Equity attributable to owners of the parent
company
Noncontrolling
interests
Total
Balance as of January 1, 2022
Profit for the year
Gain (loss) on valuation of financial assets at fair value through other comprehensive income, net of tax Share of other comprehensive income (loss) of associates and joint ventures, net of tax
Gain on overseas business translation, net of tax
Remeasurement of net defined benefit liabilities, net of tax
Loss on valuation of cash flow hedge derivatives
6, 20 9, 20 20 14, 20 20
Total comprehensive income for the year
Dividends declared
19
Capital transactions under common control
Changes in consolidated entities
Others
Total transactions with owners
Balance as of December 31, 2022
92,528 -
-
-
-
92,528
602,601 -
3,410,834 226,979,906 (1,648,512)
- 42,388,632
-
-
-
-
602,601
-
(30,157) (1,446,410)
-
-
(40,156)
-
- 3,767,134
-
-
869,278
3,410,834
42,358,475 (7,597,451)
(7,597,451) 261,740,930
(9,986) 3,139,860
9,895 9,895 1,501,243
- 229,437,357 - 42,388,632
6,708,937 236,146,294 715,688 43,104,320
- (1,476,567)
-
(40,156)
- 3,767,134
-
869,278
-
(9,986)
- 45,498,335
- (7,597,451)
-
-
-
-
-
9,895
- (7,587,556)
- 267,348,136
(48,818) (1,525,385)
1,036 16,231
(39,120) 3,783,365
24,251
893,529
708,388 (4,277)
(136) 96
(6,066) (10,383) 7,406,942
(9,986) 46,206,723 (7,601,728)
(136) 96
3,829 (7,597,939) 274,755,078
Samsung Electronics Business Report
61 / 413
Samsung Electronics Co., Ltd. and its subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions of Korean won, in thousands of US dollars (Note 2.29))
Notes
2022 KRW
For the years ended December 31,
2021
2022
KRW
USD
2021 USD
Operating activities Profit for the year Adjustments Changes in assets and liabilities arising
from operating activities Cash generated from operations Interest received Interest paid Dividends received Income tax paid
Net cash from operating activities
55,654,077 39,907,450 43,104,320 30,908,490
27
33,073,439 49,055,633 25,615,519 37,993,797
27 (16,998,948) (16,286,884) (13,165,758) (12,614,262)
71,728,568 72,676,199 55,554,081 56,288,025
2,136,795
1,406,706
1,654,957
1,089,500
(714,543)
(434,441)
(553,417)
(336,476)
529,421
299,033
410,039
231,602
(11,498,895) (8,842,049) (8,905,943) (6,848,204)
62,181,346 65,105,448 48,159,717 50,424,447
Investing activities Net decrease in short-term financial instruments Net decrease (increase) in short-term financial assets
at amortized cost Net decrease in short-term financial assets at fair value
through profit or loss Disposal of long-term financial instruments
Acquisition of long-term financial instruments Disposal of financial assets at fair value
through other comprehensive income Acquisition of financial assets at fair value
through other comprehensive income Disposal of financial assets at fair value through profit or loss Acquisition of financial assets at fair value
through profit or loss Disposal of investment in associates and joint ventures
Acquisition of investment in associates and joint ventures Disposal of property, plant and equipment
Acquisition of property, plant and equipment
Disposal of intangible assets
Acquisition of intangible assets
Cash outflow from business combinations
Cash inflow from sale of assets-held-for-sale Cash inflow (outflow) from other investing activities
Net cash used in investing activities
15,214,321 10,917,128 11,783,556 8,455,362
3,050,104
(336,959)
2,362,319
(260,976)
11,677 8,272,909 (4,393,754)
30,694 10,216,082 (6,981,810)
9,044 6,407,403 (3,402,981)
23,773 7,912,399 (5,407,442)
496,090
2,919,888
384,224 2,261,466
(37,687) (1,121,201)
166,315
350,212
(29,189) 128,812
(868,375) 271,241
(158,244) 13,233
(907,958) 217,878
(49,430,428) 23,462
(3,696,304) (31,383) -
(413,035) (31,602,804)
(208,262) 19,169
(47,090) 358,284 (47,122,106)
1,752 (2,706,915)
(5,926) 661,168
8,129 (33,047,763)
(122,561) 10,249
(703,217) 168,747
(38,284,077) 18,171
(2,862,803) (24,306) -
(319,897) (24,476,506)
(161,300) 14,846
(36,471) 277,492 (36,496,272)
1,357 (2,096,517)
(4,590) 512,077
6,296 (25,595,633)
The above consolidated statements of changes in equity should be read in conjunction with the accompanying notes.
Samsung Electronics Business Report
62 / 413
Samsung Electronics Co., Ltd. and its subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions of Korean won, in thousands of US dollars (Note 2.29))
Financing activities Net decrease in short-term borrowings Increase in long-term borrowings Repayment of debentures and long-term borrowings Dividends paid Net decrease in non-controlling interests Net cash used in financing activities
Notes
2022 KRW
For the years ended December 31,
2021
2022
KRW
USD
2021 USD
27
(8,339,149) (2,616,943) (6,458,706) (2,026,833)
27
271,997
58,279
210,663
45,137
27
(1,508,465)
(894,749) (1,168,313)
(692,987)
(9,814,426) (20,510,350) (7,601,315) (15,885,353)
(6)
(27,270)
(5)
(21,121)
(19,390,049) (23,991,033) (15,017,676) (18,581,157)
Reclassification to assets held-for-sale Effect of foreign exchange rate changes Net increase in cash and cash equivalents
(539,198) 10,649,295
139 1,582,046 9,648,837
(417,611) 8,247,924
108 1,225,300 7,473,065
Cash and cash equivalents Beginning of the year End of the year
39,031,415 49,680,710
29,382,578 39,031,415
30,229,997 38,477,921
22,756,932 30,229,997
The above consolidated statements of cash flows should be read in conjunction with the accompanying notes.
Samsung Electronics Business Report
63 / 413
3. Notes to consolidated financial statements
1. General Information
1.1 Company Overview
Samsung Electronics Co., Ltd. ("SEC") was incorporated under the laws of the Republic of Korea in 1969 and listed its shares on the Korea Stock Exchange in 1975. SEC and its subsidiaries (collectively referred to as the "Company") operate four business divisions: DX, DS, SDC and Harman. DX (Device eXperience) division includes digital TVs, refrigerators, mobile phones and communication systems. DS (Device Solutions) division includes memory, foundry, and system LSI. SDC includes display panels products. Harman division includes connected car systems, audio and visual products, enterprise automation solutions and connected services. The Company is domiciled in the Republic of Korea and is located in Suwon, the Republic of Korea.
These consolidated financial statements have been prepared in accordance with Korean International Financial Reporting Standards ("Korean IFRS") 1110, Consolidated Financial Statements. SEC, as the controlling company, consolidates its 232 subsidiaries, including Samsung Display and Samsung Electronics America. The Company also applies the equity method of accounting for its 37 associates and joint ventures, including Samsung Electro-Mechanics Co., Ltd.
1.2 Consolidated Subsidiaries
The consolidated subsidiaries as of December 31, 2022 are as follows:
Area America
Subsidiaries
Industry
Samsung Electronics America, Inc. (SEA)
Sale of electronic devices
Samsung International, Inc. (SII)
Manufacture of electronic devices
Samsung Mexicana S.A. de C.V (SAMEX)
Manufacture of electronic devices
Samsung Electronics Home Appliances America, LLC (SEHA) Manufacture of home appliances
Samsung Research America, Inc. (SRA)
R&D
Samsung Next LLC (SNX)
Management of overseas subsidiaries
Samsung Next Fund LLC (SNXF)
Technology business, venture capital investments
NeuroLogica Corp.
Manufacture and sale of medical equipment
Samsung HVAC America, LLC
Sale of air conditioning products
Joyent, Inc.
Cloud services
Dacor Holdings, Inc.
Management of overseas subsidiaries
Dacor, Inc.
Manufacture and sale of home appliances
SmartThings, Inc.
Sale of smart home electronics
TeleWorld Solutions, Inc. (TWS)
Installation & optimization of network devices
Percentage of ownership (%)1
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
1 Ownership represents the Company's ownership of the voting rights in each entity, including subsidiaries' ownerships.
Samsung Electronics Business Report
64 / 413
Area America
Subsidiaries
Industry
Samsung Semiconductor, Inc. (SSI)
Sale of semiconductor and display panels
Samsung Austin Semiconductor LLC. (SAS)
Manufacture of semiconductors
Samsung Oak Holdings, Inc. (SHI)
Management of overseas subsidiaries
SEMES America, Inc.
Semiconductor equipment services
Samsung Electronics Canada, Inc. (SECA)
Sale of electronic devices
AdGear Technologies Inc.
Digital advertising platforms
Samsung Electronica da Amazonia Ltda. (SEDA)
Manufacture and sale of electronic devices
Samsung Electronics Mexico S.A. de C.V. (SEM)
Sale of electronic devices
SamsungElectronicsDigitalApplianceMexico,S.A.deC.V.(SEDAM) Manufacture of home appliances
Samsung Electronics Latinoamerica (Zona Libre), S. A. (SELA) Sale of electronic devices
Samsung Electronics Latinoamerica Miami, Inc. (SEMI) Sale of electronic devices
Samsung Electronica Colombia S.A. (SAMCOL)
Sale of electronic devices
Samsung Electronics Argentina S.A. (SEASA)
Marketing and services
Samsung Electronics Chile Limitada (SECH)
Sale of electronic devices
Samsung Electronics Peru S.A.C. (SEPR)
Sale of electronic devices
Samsung Electronics Venezuela, C.A. (SEVEN)
Marketing and services
Samsung Electronics Panama. S.A. (SEPA)
Consulting
Harman International Industries, Inc.
Management of overseas subsidiaries
Harman Becker Automotive Systems, Inc.
Manufacture and sale of audio products, R&D
Harman Connected Services, Inc.
Connected service provider
Harman Connected Services Engineering Corp.
Connected service provider
Harman da Amazonia Industria Eletronica e Participacoes Ltda. Manufacture and sale of audio products
Harman de Mexico, S. de R.L. de C.V.
Manufacture of audio products
Harman do Brasil Industria Eletronica e Participacoes Ltda. Sale of audio products, R&D
Harman Financial Group LLC
Management company
Harman International Industries Canada Ltd.
Sale of audio products
Harman International Mexico, S. de R.L. de C.V.
Sale of audio products
Harman KG Holding, LLC
Management of overseas subsidiaries
Harman Professional, Inc.
Sale of audio products, R&D
Beijing Integrated Circuit Industry International Fund, L.P Venture capital investments
China Materialia New Materials 2016 Limited Partnership Venture capital investments
Percentage of ownership (%)1
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 61.4 99.0
1 Ownership represents the Company's ownership of the voting rights in each entity, including subsidiaries' ownerships.
Samsung Electronics Business Report
65 / 413
Area
Europe & CIS
Subsidiaries
Industry
Samsung Electronics (UK) Ltd. (SEUK) Samsung Electronics Ltd. (SEL) Samsung Semiconductor Europe Limited (SSEL) Samsung Electronics GmbH (SEG) Samsung Electronics Holding GmbH (SEHG) Samsung Semiconductor Europe GmbH (SSEG) Samsung Electronics France S.A.S (SEF) Samsung Electronics Italia S.P.A. (SEI) Samsung Electronics Iberia, S.A. (SESA) Samsung Electronics Portuguesa, Unipessoal, Lda. (SEP) Samsung Electronics Hungarian Private Co., Ltd. (SEH) Samsung Electronics Europe Logistics B.V. (SELS) Samsung Electronics Benelux B.V. (SEBN) Samsung Electronics Europe Holding Cooperatief U.A. (SEEH) Samsung Electronics Nordic Aktiebolag (SENA) Samsung Electronics Slovakia s.r.o. (SESK) Samsung Display Slovakia, s.r.o. (SDSK) Samsung Electronics Polska, SP.Zo.o (SEPOL) Samsung Electronics Poland Manufacturing SP.Zo.o (SEPM) Samsung Electronics Romania LLC (SEROM) Samsung Electronics Austria GmbH (SEAG) Samsung Electronics Switzerland GmbH (SESG) Samsung Electronics Czech and Slovak s.r.o. (SECZ) Samsung Electronics Baltics SIA (SEB) Samsung Electronics Greece S.M.S.A (SEGR) Samsung Electronics Air Conditioner Europe B.V. (SEACE) Samsung Nanoradio Design Center (SNDC) Samsung Denmark Research Center ApS (SDRC) Samsung Cambridge Solution Centre Limited (SCSC) SAMSUNG Zhilabs, S.L. Foodient Ltd. Samsung Electronics Rus Company LLC (SERC) Samsung Electronics Rus Kaluga LLC (SERK) Samsung Electronics Ukraine Company LLC (SEUC) Samsung R&D Institute Ukraine (SRUKR) Samsung Electronics Central Eurasia LLP (SECE) Samsung Electronics Overseas B.V. (SEO) Samsung R&D Institute Rus LLC (SRR) Samsung Electronics Caucasus Co., Ltd. (SECC) Samsung Electronics Uzbekistan Ltd. (SEUZ)
Sale of electronic devices Management of overseas subsidiaries Sale of semiconductor and display panels Sale of electronic devices Management of overseas subsidiaries Sale of semiconductor and display panels Sale of electronic devices Sale of electronic devices Sale of electronic devices Sale of electronic devices Manufacture and sale of electronic devices Logistics Sale of electronic devices Management of overseas subsidiaries Sale of electronic devices Manufacture of TV and monitors Toll processing of display panels Sale of electronic devices Manufacture of home appliances Sale of electronic devices Sale of electronic devices Sale of electronic devices Sale of electronic devices Sale of electronic devices Sale of electronic devices Sale of air conditioning products R&D R&D R&D Development and sale of network solutions R&D Sale of electronic devices Manufacture of TV Sale of electronic devices R&D Sale of electronic devices Sale of electronic devices R&D Marketing Marketing
Percentage of ownership (%)1
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
1 Ownership represents the Company's ownership of the voting rights in each entity, including subsidiaries' ownerships.
Samsung Electronics Business Report
66 / 413
Area
Europe & CIS
Subsidiaries
AKG Acoustics GmbH Apostera UA, LLC Harman Audio Iberia Espana Sociedad Limitada Harman Automotive UK Limited Harman Becker Automotive Systems GmbH Harman Becker Automotive Systems Italy S.R.L. Harman Becker Automotive Systems Manufacturing Kft Harman Belgium SA Harman Connected Services AB. Harman Finland Oy Harman Connected Services GmbH Harman Connected Services Poland Sp.zoo Harman Connected Services UK Ltd. Harman Consumer Nederland B.V. Harman Deutschland GmbH Harman Finance International GP S.a.r.l Harman France SNC Harman Holding GmbH & Co. KG Harman Hungary Financing Ltd. Harman Inc. & Co. KG Harman International Estonia OU Harman International Industries Limited Harman International Romania SRL Harman Finance International, SCA Harman Management GmbH Harman Professional Kft Harman Professional Denmark ApS Red Bend Software Ltd. Red Bend Software SAS Studer Professional Audio GmbH Harman Connected Services OOO Harman RUS CIS LLC
Industry
Manufacture and sale of audio products Connected Service Provider Sale of audio products Manufacture of audio products Manufacture and sale of audio products, R&D Sale of audio products Manufacture of audio products, R&D Sale of audio products Connected service provider Connected service provider Connected service provider Connected service provider Connected service provider Sale of audio products Sale of audio products Management of overseas subsidiaries Sale of audio products Management company Financing company Management of overseas subsidiaries R&D Sale of audio products, R&D R&D Financing company Management of overseas subsidiaries Manufacture of audio products, R&D Sale of audio products, R&D Software design Software design Sale of audio products, R&D Connected service provider Sale of audio products
Percentage of ownership (%)1
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
1 Ownership represents the Company's ownership of the voting rights in each entity, including subsidiaries' ownerships.
Samsung Electronics Business Report
67 / 413
Area
Subsidiaries
Samsung Gulf Electronics Co., Ltd. (SGE) Samsung Electronics Turkiye (SETK) Samsung Electronics Industry and Commerce Ltd. (SETK-P) Samsung Electronics Levant Co.,Ltd. (SELV) Samsung Electronics Maghreb Arab (SEMAG) Samsung Electronics Egypt S.A.E (SEEG) Samsung Electronics Israel Ltd. (SEIL) Samsung Electronics Tunisia S.A.R.L (SETN)
Industry
Sale of electronic devices Sale of electronic devices Manufacture of electronic devices Sale of electronic devices Sale of electronic devices Manufacture and sale of electronic devices Marketing Marketing
Percentage of ownership (%)1
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Samsung Electronics Pakistan (Private) Ltd. (SEPAK) Marketing
100.0
Middle East & Africa
Samsung Electronics Saudi Arabia Ltd. (SESAR) Samsung Semiconductor Israel R&D Center, Ltd. (SIRC) Corephotonics Ltd.
Sale of electronic devices R&D R&D
100.0 100.0 100.0
Samsung Electronics South Africa (Pty) Ltd. (SSA)
Sale of electronic devices
100.0
Samsung Electronics South Africa Production (Pty) Ltd. (SSAP) Manufacture of TV and monitors
100.0
Samsung Electronics West Africa Ltd. (SEWA)
Marketing
100.0
Samsung Electronics East Africa Ltd. (SEEA) Global Symphony Technology Group Private Ltd.
Marketing Management of overseas subsidiaries
100.0 100.0
Harman Connected Services Morocco
Connected service provider
100.0
Harman Industries Holdings Mauritius Ltd. Red Bend Ltd. Samsung Asia Pte. Ltd. (SAPL) Samsung Electronics Singapore Pte. Ltd. (SESP) Samsung Malaysia Electronics (SME) Sdn. Bhd. (SME) Samsung Electronics Display (M) Sdn. Bhd. (SDMA) Samsung Electronics (M) Sdn. Bhd. (SEMA) Samsung Vina Electronics Co., Ltd. (SAVINA) Samsung Electronics Vietnam Co., Ltd. (SEV) Samsung Electronics Vietnam THAINGUYEN Co., Ltd. (SEVT) Samsung Electronics HCMC CE Complex Co., Ltd. (SEHC)
Management of overseas subsidiaries Manufacture of audio products Management of overseas subsidiaries Sale of electronic devices Sale of electronic devices Manufacture of electronic devices Manufacture of home appliances Sale of electronic devices Manufacture of electronic devices Manufacture of communication equipment Manufacture and sale of electronic devices
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Samsung Display Vietnam Co., Ltd. (SDV)
Manufacture of display panels
100.0
Asia (Excluding
China)
DOWOOINSYS VINA COMPANY LIMITED PT Samsung Electronics Indonesia (SEIN) PT Samsung Telecommunications Indonesia (STIN) Thai Samsung Electronics Co., Ltd. (TSE)
Manufacture of display components Manufacture and sale of electronic devices Sale of electronic devices and services Manufacture and sale of electronic devices
100.0 100.0 100.0 91.8
Laos Samsung Electronics Sole Co., Ltd. (LSE)
Marketing
100.0
Samsung Electronics Philippines Corporation (SEPCO) Sale of electronic devices
100.0
Samsung Electronics Australia Pty. Ltd. (SEAU)
Sale of electronic devices
100.0
Samsung Electronics New Zealand Limited (SENZ)
Sale of electronic devices
100.0
Samsung India Electronics Private Ltd. (SIEL)
Manufacture and sale of electronic devices
100.0
Red Brick Lane Marketing Solutions Pvt. Ltd.
Marketing
100.0
Samsung Display Noida Private Limited (SDN) Samsung R&D Institute India-Bangalore Private Limited (SRI-B) Samsung R&D Institute BanglaDesh Limited (SRBD) Samsung Nepal Services Pvt, Ltd. (SNSL) Samsung Japan Corporation (SJC)
Manufacture of display panels R&D R&D Service Sale of semiconductor and display panels
100.0 100.0 100.0 100.0 100.0
1 Ownership represents the Company's ownership of the voting rights in each entity, including subsidiaries' ownerships.
Samsung Electronics Business Report
68 / 413
Area
Subsidiaries
Industry
Asia (Excluding
China)
China
Samsung R&D Institute Japan Co., Ltd. (SRJ) Samsung Electronics Japan Co., Ltd. (SEJ) Harman International Industries PTY Ltd. Harman Connected Services Corp. India Pvt. Ltd. Harman International (India) Private Limited Harman International Japan Co., Ltd. Harman Singapore Pte. Ltd. Samsung (CHINA) Investment Co., Ltd. (SCIC) Samsung Electronics Hong Kong Co., Ltd. (SEHK) Samsung Electronics Taiwan Co., Ltd. (SET) Tianjin Samsung Electronics Co., Ltd. (TSEC) Suzhou Samsung Electronics Co., Ltd. (SSEC) Samsung Suzhou Electronics Export Co., Ltd. (SSEC-E) Samsung Electronics Suzhou Computer Co., Ltd. (SESC) Tianjin Samsung Telecom Technology Co., Ltd. (TSTC) Beijing Samsung Telecom R&D Center (SRC-Beijing) Samsung Electronics China R&D Center (SRC-Nanjing) Samsung Mobile R&D Center China-Guangzhou (SRC-Guangzhou) Samsung R&D Institute China-Shenzhen (SRC-Shenzhen) Shanghai Samsung Semiconductor Co., Ltd. (SSS) Samsung (China) Semiconductor Co., Ltd. (SCS) Samsung SemiConductor Xian Co., Ltd. (SSCX) Samsung Electronics Suzhou Semiconductor Co., Ltd. (SESS) Tianjin Samsung LED Co., Ltd. (TSLED) Samsung Semiconductor (China) R&D Co., Ltd. (SSCR) Samsung Display Dongguan Co., Ltd. (SDD) Samsung Display Tianjin Co., Ltd. (SDT) SEMES (XIAN) Co., Ltd. Samsung Semiconductor Investment L.P. Harman (China) Technologies Co., Ltd. Harman (Suzhou) Audio and Infotainment Systems Co., Ltd. Harman Automotive Electronic Systems (Suzhou) Co., Ltd. Harman Commercial (Shanghai) Co., Ltd. Harman Connected Services Solutions (Chengdu) Co., Ltd. Harman Holding Limited Harman International (China) Holdings Co., Ltd. Harman Technology (Shenzhen) Co., Ltd.
R&D Sale of electronic devices Management of overseas subsidiaries Connected service provider Sale of audio products, R&D Sale of audio products, R&D Sale of audio products Sale of electronic devices Sale of electronic devices Sale of electronic devices Manufacture of TV and monitors Manufacture of home appliances Manufacture of home appliances R&D Manufacture of communication equipment R&D R&D R&D R&D Sale of semiconductor and display panels Manufacture of semiconductors Sale of semiconductor and display panels Toll processing of semiconductors Manufacture of LED R&D Manufacture of display panels Manufacture of display panels Semiconductor equipment services Technology business, Venture capital investments Manufacture of audio products Sale of audio products Manufacture of audio products, R&D Sale of audio products Connected service provider Sale of audio products Sale of audio products, R&D Sale of audio products, R&D
1 Ownership represents the Company's ownership of the voting rights in each entity, including subsidiaries' ownerships.
Percentage of ownership (%)1
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 91.2 88.3 100.0 100.0 90.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 95.0 100.0 99.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Samsung Electronics Business Report
69 / 413
Area Domestic
Subsidiaries
Samsung Display Co., Ltd. SU Materials STECO Co., Ltd. SEMES Co., Ltd. Samsung Electronics Service Co., Ltd. Samsung Electronics Service Customer Satisfaction Co., Ltd. Samsung Electronics Sales Co., Ltd. Samsung Electronics Logitech Co., Ltd. Samsung Medison Co., Ltd. Stella Forest of Hope Mirero System Co., Ltd.
Dowooinssys Co., Ltd. Gf-System Co., Ltd. Harman International Korea Samsung Venture Capital Union #21 Samsung Venture Capital Union #22 Samsung Venture Capital Union #26 Samsung Venture Capital Union #28 Samsung Venture Capital Union #29 Samsung Venture Capital Union #32 Samsung Venture Capital Union #33 Samsung Venture Capital Union #37 Samsung Venture Capital Union #40 Samsung Venture Capital Union #42 Samsung Venture Capital Union #43 Samsung Venture Capital Union #45 Samsung Venture Capital Union #48 Samsung Venture Capital Union #52 Samsung Venture Capital Union #55 Samsung Venture Capital Union #56 Samsung Venture Capital Union #57 Growth type private equity trust specialized in semiconductors System LSI Mutual benefit private equity trust
Industry
Manufacture and sale of display panels Manufacture of display components Manufacture of semiconductor components Manufacture and sale of semiconductor/FPD Repair services for electronic devices Call center for repair services for electronic devices Sale of electronic devices General logistics agency Manufacture and sale of medical equipment Manufacture of food Development and supply of semiconductor
process defect and quality control software Manufacture of display components Manufacture of display components Software development and supply, etc. Technology business, Venture capital investments Technology business, Venture capital investments Technology business, Venture capital investments Technology business, Venture capital investments Technology business, Venture capital investments Technology business, Venture capital investments Technology business, Venture capital investments Technology business, Venture capital investments Technology business, Venture capital investments Technology business, Venture capital investments Technology business, Venture capital investments Technology business, Venture capital investments Technology business, Venture capital investments Technology business, Venture capital investments Technology business, Venture capital investments Technology business, Venture capital investments Technology business, Venture capital investments Investment on semiconductor industry Investment on semiconductor industry
Percentage of ownership (%)1
84.8 50.0 70.0 91.5 99.3 100.0 100.0 100.0 68.5 100.0
99.9 69.0 100.0 100.0 99.0 99.0 99.0 99.0 99.0 99.0 99.0 99.0 99.0 99.0 99.0 99.0 99.0 99.0 99.0 99.0 99.0 66.7 62.5
1 Ownership represents the Company's ownership of the voting rights in each entity, including subsidiaries' ownerships.
Samsung Electronics Business Report
70 / 413
1.3 Summary of Financial Data of Major Consolidated Subsidiaries
Summary of financial data of major consolidated subsidiaries is as follows:
(1) 2022
(In millions of Korean won)
Major subsidiaries1 Samsung Display Samsung Electronics America, Inc. (SEA) Samsung Asia Pte. Ltd. (SAPL) Harman and its subsidiaries2 Samsung (China) Semiconductor Co., Ltd. (SCS) Samsung Electronics Vietnam THAINGUYEN Co., Ltd. (SEVT) Samsung (CHINA) Investment Co., Ltd. (SCIC) Samsung Semiconductor, Inc. (SSI) Samsung Electronics Vietnam Co., Ltd. (SEV) Samsung Electronics Europe Holding Cooperatief U.A. (SEEH) Samsung Austin Semiconductor LLC. (SAS) Samsung Display Vietnam Co., Ltd. (SDV) Samsung India Electronics Private Ltd. (SIEL) Shanghai Samsung Semiconductor Co., Ltd. (SSS) Samsung Eletronica da Amazonia Ltda. (SEDA) Samsung Electronics HCMC CE Complex Co., Ltd. (SEHC) Thai Samsung Electronics Co., Ltd. (TSE) Samsung Electronics (UK) Ltd. (SEUK) Samsung Electronics Benelux B.V. (SEBN) Samsung Electronics Hungarian Private Co. Ltd. (SEH) Samsung Electronics Europe Logistics B.V. (SELS) Samsung Display Dongguan Co., Ltd. (SDD) SEMES Co., Ltd. Samsung Electronics GmbH (SEG) Samsung Electronics Mexico S.A. De C.V. (SEM)
As of December 31, 2022
Assets 57,302,567 37,883,156 26,894,611 17,102,324 17,095,000 15,718,299 13,830,988 12,199,102 10,931,037 10,841,515 9,301,017 7,471,680 6,772,537 5,067,891 4,600,508 3,732,057 3,263,473 2,819,792 2,377,730 2,374,317 2,194,975 2,135,132 2,065,558 1,968,273 1,816,895
Liabilities 7,282,718 12,258,315 2,678,285 6,380,456 2,970,835 2,358,140 9,764,636 5,930,369 1,408,387 6,272,800 828,494 1,608,448 3,571,863 2,858,382 1,342,517 980,448 486,820 1,708,064 597,044 452,628 2,021,491 265,835 602,323 1,907,132 996,002
For the year ended December 31, 2022
Sales
Profit (loss) for the year
30,779,405
4,365,588
46,738,920
219,670
-
8,699,679
13,211,151
631,019
9,679,757
638,385
36,336,963
2,721,701
2,865,831
257,878
43,009,331
88,467
23,667,565
1,646,165
-
57,997
3,663,909
208,879
25,773,970
1,301,926
16,180,492
508,510
21,370,622
318,578
7,485,104
(38,490)
6,253,401
386,119
4,824,734
168,524
5,929,357
243,396
2,834,008
25,411
3,935,745
199,742
15,409,984
20,347
2,556,608
111,643
2,889,238
185,762
6,567,011
3,695
3,270,016
110,386
1 Summary of condensed financial information is based on separate financial statements of each subsidiary. 2 Consolidated financial data of an intermediate company that includes Harman International Industries, Inc. and its subsidiaries.
Samsung Electronics Business Report
71 / 413
(2) 2021
(In millions of Korean won)
Major subsidiaries1 Samsung Display Samsung Electronics America, Inc. (SEA) Samsung (China) Semiconductor Co., Ltd. (SCS) Samsung Electronics Vietnam THAINGUYEN Co., Ltd. (SEVT) Harman and its subsidiaries2 Samsung Asia Pte. Ltd. (SAPL) Samsung Electronics Europe Holding Cooperatief U.A. (SEEH) Samsung Semiconductor, Inc. (SSI) Samsung (CHINA) Investment Co., Ltd. (SCIC) Samsung Electronics Vietnam Co., Ltd. (SEV) Samsung Austin Semiconductor LLC (SAS) Shanghai Samsung Semiconductor Co., Ltd. (SSS) Samsung India Electronics Private Ltd. (SIEL) Samsung Display Vietnam Co., Ltd. (SDV) Samsung Eletronica da Amazonia Ltda. (SEDA) Samsung Electronics HCMC CE Complex Co., Ltd. (SEHC) Thai Samsung Electronics Co., Ltd. (TSE) Samsung Electronics (UK) Ltd. (SEUK) Samsung Electronics Benelux B.V. (SEBN) Samsung Electronics Hungarian Private Co., Ltd. (SEH) Samsung Electronics Europe Logistics B.V. (SELS) Samsung Electronics GmbH (SEG) Samsung Display Dongguan Co., Ltd. (SDD) Samsung International, Inc. (SII) Samsung Electronics Taiwan Co., Ltd. (SET)
As of December 31, 2021
Assets 54,967,156 42,982,054 19,049,536 17,521,446 15,887,380 14,683,789 14,651,496 13,744,799 13,599,093 13,023,272 8,705,085 7,765,126 7,765,019 6,821,066 4,589,505 3,129,104 3,018,358 2,925,062 2,612,357 2,504,075 2,305,275 2,289,391 2,149,277 2,125,719 2,033,992
Liabilities 9,081,737 19,246,751 5,168,738 3,425,127 6,104,012 58,381 8,998,502 7,955,060 9,685,278 2,085,411 958,537 5,799,690 3,236,745 2,486,703 1,671,097 919,721 474,223 1,992,367 766,034 641,004 2,144,805 2,228,650 339,425 1,041,168 1,459,353
For the year ended December 31, 2021
Sales 28,755,975
Profit (loss) for the year
2,770,060
42,325,524
823,914
7,341,018
1,708,832
32,184,024
2,298,273
10,015,092
357,612
-
4,668,478
-
24,527
33,895,805
74,531
2,615,685
451,062
21,583,038
1,455,704
3,703,472
759,206
31,326,186
325,397
12,222,643
522,672
21,722,446
981,311
6,020,523
490,202
6,551,242
472,666
4,443,031
142,191
5,621,922
241,403
2,569,603
284,816
4,357,137
157,616
14,700,517
13,943
6,385,080
2,158
3,987,674
163,637
7,948,982
105,444
5,638,204
50,966
1 Summary of condensed financial information is based on separate financial statements of each subsidiary. 2 Consolidated financial data of an intermediate company that includes Harman International Industries, Inc. and its subsidiaries.
Samsung Electronics Business Report
72 / 413
1.4 Changes in Consolidation Scope
Changes in consolidation scope during the year ended December 31, 2022 are as follows:
Change Included Excluded
Area
Europe & CIS
Asia (Excluding China)
Domestic America Europe & CIS
Subsidiary Samsung R&D Institute Ukraine (SRUKR) Samsung Electronics Uzbekistan Ltd. (SEUZ) Apostera GmbH Apostera UA, LLC DOWOOINSYS VINA COMPANY LIMITED Red Brick Lane Marketing Solutions Pvt. Ltd. Samsung Venture Capital Union #57 Stella Forest of Hope Dacor Canada Co. AMX UK Limited Harman International s.r.o Apostera GmbH
Description Establishment Establishment Acquisition Acquisition Establishment Acquisition Establishment Establishment Liquidation Liquidation Liquidation
Merger
2. Significant Accounting Policies
2.1 Basis of Presentation
The principal accounting policies used to prepare the consolidated financial statements are set out below. Except for the effect of the amendments to the Korean IFRS and new interpretations set out below, the principal accounting policies used to prepare the consolidated financial statements as of and for the year ended December 31, 2022 are consistent with those used to prepare the consolidated financial statements as of and for the year ended December 31, 2021.
The Company maintains its accounting records in Korean won and prepares the statutory financial statements in Korean language (Hangul) in accordance with International Financial Reporting Standards as adopted by the Republic of Korea ("Korean IFRS"). The accompanying consolidated financial statements have been restructured, and translated into English from the Korean language financial statements.
Certain information attached to the Korean language financial statements that are not required for a fair presentation of the Company's financial position, financial performance or cash flows, are not presented in the accompanying consolidated financial statements.
The consolidated financial statements of the Company have been prepared in accordance with Korean IFRS. These are the standards, subsequent amendments and related interpretations issued by the International Accounting Standards Board (IASB) that have been adopted by the Republic of Korea.
Korean IFRS permits the use of critical accounting estimates in the preparation of the consolidated financial statements and requires management judgments in applying the accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements, are disclosed in Note 3.
Samsung Electronics Business Report
73 / 413
2.2 Changes in Accounting Policies and Disclosures
(A) New and amended standards adopted by the Company
The Company applied the following amended and/or enacted standards for the first time for their annual reporting period commencing on January 1, 2022:
Amendments to Korean IFRS 1116, Lease
The amendments to Korean IFRS 1116 introduced a practical expedient that provided practical relief to lessees in accounting for rent concessions occurring as a direct consequence of COVID-19. The amendments extend the practical expedient to apply to reduction in lease payments originally due on or before June 30, 2022. The application of amendments does not have a significant impact on the Company's year-end consolidated financial statements.
Amendments to Korean IFRS 1103, Business Combinations
The amendments update Korean IFRS 1103 so that it refers to the amended conceptual framework for financial reporting for assets and liabilities recognized upon business combination, along with adding requirement that for transactions and other events within the scope of IAS 37 or IFRIC 21, an acquirer applies IAS 37 or IFRIC 21 to identify the liabilities it has assumed in a business combination. The amendments also add an explicit statement that an acquirer does not recognize contingent assets acquired in a business combination. The application of amendments does not have a significant impact on the Company's year-end consolidated financial statements.
Amendments to Korean IFRS 1016, Property, Plant and Equipment
The amendments prohibit deducting from the cost of an item of property, plant and equipment any proceeds from selling items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity recognizes the proceeds from selling such items, and the cost of producing those items, in profit or loss. The application of amendments does not have a significant impact on the Company's year-end consolidated financial statements.
Amendments to Korean IFRS 1037, Provisions, Contingent Liabilities and Contingent Assets
The amendments specify that the cost of fulfilling a contract comprises the costs that relate directly to the contract, and that costs that relate directly to a contract consist of both the incremental costs of fulfilling that contract and an allocation of other costs that relate directly to fulfilling contracts. The application of the amendments does not have a significant impact on the Company's year-end consolidated financial statements.
Samsung Electronics Business Report
74 / 413
(B) New and amended standards not yet adopted by the Company
The amended accounting standards issued that are not mandatory for the annual reporting periods commencing on January 1, 2022 and has not been early adopted by the Company are as follows:
Amendments to Korean IFRS 1001 Presentation of Financial Statements
The amendments clarify that the classification of liabilities as current or non-current is based on the rights that are in existence at the end of the reporting period, specify that classification is unaffected by expectations about whether an entity will exercise its right to defer settlement of a liability, and elucidate that settlement refers to the transfer to the counterparty of cash, equity instruments, other assets or services. The amendments are effective for annual reporting periods beginning on or after January 1, 2023, with earlier application permitted.
Amendments to Korean IFRS 1001 Presentation of Financial Statements
The amendments require companies to define and disclose their 'material' accounting policy information instead of its 'significant' accounting policies. The amendments explain how an entity can identify material accounting policy information. The amendments to K-IFRS 1001 are effective for annual periods beginning on or after January 1, 2023, with earlier application permitted and are applied prospectively.
Amendments to Korean IFRS 1008 Accounting Policies, Changes in Accounting Estimates and Errors
The amendments clarify the definition of a change in accounting estimates, and specify how to distinguish from a change in accounting policies. The amendments are effective for annual periods beginning on or after January, 1 2023 to changes in accounting policies and changes in accounting estimates that occur on or after the beginning of that period, with earlier application permitted.
Amendments to Korean IFRS 1012, Income Taxes
The amendments add to the initial recognition exemption that the initial recognition exemption does not apply to transactions in which equal amounts of deductible and taxable temporary differences arise on initial recognition. The amendments are effective for annual reporting periods beginning on or after January 1, 2023, with earlier application permitted.
Samsung Electronics Business Report
75 / 413
2.3 Consolidation
The Company prepares the consolidated financial statements in accordance with Korean IFRS 1110 Consolidated Financial Statements.
(A) Subsidiaries
Subsidiaries are all entities (including the special purpose entities) over which the Company has control. The Company controls the corresponding investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Consolidation of a subsidiary begins from the date the Company obtains control of a subsidiary and ceases when the Company loses control of the subsidiary.
The Company applies the acquisition method to account for business combinations. The consideration transferred is measured at the fair values of the assets transferred, and identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are initially measured at their fair values at the acquisition date. The Company recognizes any non-controlling interest in the acquiree on an acquisition-by-acquisition basis in the event of liquidation at the non-controlling interest's proportionate share of the recognized amounts of acquiree's identifiable net assets. Acquisition-related costs are expensed as incurred.
The excess of consideration transferred, of any non-controlling interest in the acquired entity, and acquisition-date fair value of any previous equity interest in the acquired entity over the fair value of the net identifiable assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net identifiable assets of the business acquired, the difference is recognized directly in the profit or loss as a bargain purchase.
Balances of receivables and payables, income and expenses and unrealized gains or losses on transactions between the entities within the Company are eliminated. Accounting policies of subsidiaries are changed where necessary to ensure consistency with the policies adopted by the Company.
(B) Changes in ownership interests in subsidiaries without change of control
Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions that is, as transactions with the owners in their capacity as owners. The difference between the fair value of any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals of noncontrolling interests are also recorded in equity.
(C) Disposal of subsidiaries
If the Company loses control of a subsidiary, any investment continuously retained in the subsidiary is re-measured at its fair value at the date when control is lost and any resulting differences are recognized in profit or loss. Such fair value becomes the initial carrying amount for the subsequent measurement of the retained interest accounted for as an associate, joint venture, or financial asset. In addition, any amounts previously recognized in other comprehensive income in respect of such entity are accounted as if the Company had directly disposed of the related assets or liabilities. As a result, the previously recognized other comprehensive income are reclassified into profit or loss or equity.
(D) Non-controlling interests
Each component of profit or loss and other comprehensive income is attributed to owners of the parent and to non-controlling interests. Total comprehensive income is attributed to owners of the parent and to non-controlling interests even if this results in a negative balance of non-controlling interests.
Samsung Electronics Business Report
76 / 413
(E) Associates
Associates are all entities over which the Company has significant influence but does not have control, generally investees of which from 20% to 50% voting shares are owned by the Company. Investments in associates are accounted for using the equity method of accounting, after initially being recognized at cost. Unrealized gains on transactions between the Company and its associates are eliminated to the extent of the Company's interest in the associates. If the Company's share of losses of an associate equals or exceeds its interest in the associate (including long-term interests that, in substance, form part of the Company's net investment in the associate), the Company discontinues recognizing its share of further losses. After the Company's interest is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Company has incurred legal or constructive obligations or made payments on behalf of the associate. If there is objective evidence of impairment for the investment in the associate, the Company recognizes the difference between the recoverable amount of the associate and its carrying amount as an impairment loss. If an associate uses accounting policies other than those of the Company for like transactions and events in similar circumstances, adjustments shall be made, if necessary, to make the associate's accounting policies conform to those of the Company when the associate's financial statements are used by the entity in applying the equity method.
(F) Joint arrangements
A joint arrangement of which two or more parties have joint control is classified as either a joint operation or a joint venture. A joint operator has rights to the assets, and obligations for the liabilities, relating to the joint operation and recognizes the assets, liabilities, revenues and expenses relating to its interest in a joint operation. A joint venturer has rights to the net assets relating to the joint venture and accounts for that investment using the equity method.
2.4 Foreign Currency Translation
(A) Functional and presentation currency
Items included in the consolidated financial statements of each of the Company's entities are measured using the currency of the primary economic environment in which each entity operates (the "functional currency"). The consolidated financial statements are presented in Korean won, which is the parent company's functional and presentation currency.
(B) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in profit or loss. Exchange differences arising on non-monetary financial assets and liabilities such as equity instruments at fair value through profit or loss and equity instruments at fair value through other comprehensive income are recognized in profit or loss and other comprehensive income, respectively, as part of the fair value gain or loss.
(C) Translation into the presentation currency
The results and financial position of all the foreign entities that have a functional currency different from the presentation currency of the Company are translated into the presentation currency as follows:
Assets and liabilities for each consolidated statement of financial position presented are translated at the closing rate at the end of the reporting date.
Income and expenses for each consolidated statement of profit or loss are translated at average exchange rates, unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the as-of rate on the dates of the transactions.
All resulting exchange differences are recognized in other comprehensive income.
Samsung Electronics Business Report
77 / 413
2.5 Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, and other short-term investment assets with high liquidity that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
2.6 Financial Assets
(A) Classification
From January 1, 2018, the initial application date for Korean IFRS 1109 Financial Instruments, the Company classifies its financial assets in the following measurement categories:
- Financial assets measured at fair value (changes in fair value recognized in either other comprehensive income, or profit or loss) - Financial assets measured at amortized cost.
The classification depends on the Company's business model for managing the financial assets and the contractual terms of the cash flows.
For financial assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. For investments in debt instruments, this will depend on the business model in which the investment is held. The Company reclassifies debt investments only when its business model for managing those assets changes.
For investments in equity instruments that are not held for trading, classification will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income. Changes in fair value of the investments in equity instruments that are not elected to be accounted for as other comprehensive income are recognized in profit or loss.
(B) Measurement
At initial recognition, the Company measures a financial asset at its fair value. In the case of financial asset not measured at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset or the issuance of the financial liabilities are added to its fair value. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.
Hybrid (combined) contracts with embedded derivatives are considered in their entirety when determining whether their cash flows solely consist of the payments of principal and interest.
a) Debt instruments
Subsequent measurement of debt instruments depends on the Company's business model for managing the asset and the cash flow characteristics of the asset. The Company classifies its debt instruments into one of the following three measurement categories:
Financial assets measured at amortized cost
Assets that are held for collection of contractual cash flows where those cash flows represent solely the payments of principal and interest are measured at amortized cost. A gain or loss on a debt investment that is subsequently measured at amortized cost and is not part of a hedging relationship is recognized in profit or loss when the asset is derecognized or impaired. Interest income from these financial assets is included in `financial income' using the effective interest rate method.
Samsung Electronics Business Report
78 / 413
Financial assets measured at fair value through other comprehensive income
Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets' cash flows represent solely the payments of principal and interest, are measured at fair value through other comprehensive income. Movements in the carrying amount are taken through other comprehensive income, except for the recognition of impairment loss (reversal of impairment loss), interest income and foreign exchange gains and losses which are recognized in profit or loss. When the financial assets are derecognized, the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss. Interest income from these financial assets is included in `financial income' using the effective interest rate method. Foreign exchange gains and losses are presented in `financial income' or `financial expenses' and impairment losses are presented in `other non-operating expenses'.
Financial assets measured at fair value through profit or loss
Assets that do not meet the criteria for amortized cost or fair value through other comprehensive income are measured at fair value through profit or loss. A gain or loss on a debt investment that is subsequently measured at fair value through profit or loss and is not part of a hedging relationship is recognized in profit or loss and presented in the consolidated statement of profit or loss within `other non-operating income' or `other non-operating expenses' in the year in which it arises.
b) Equity instruments
The Company subsequently measures all equity investments at fair value. Where the Company's management has elected to present fair value gains and losses on equity investments in other comprehensive income, there is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment. When the financial asset is derecognized, the cumulative gain or loss on valuation of financial assets at fair value through other comprehensive income recognized in equity is reclassified to retained earnings. Dividend income from such investments continue to be recognized in profit or loss as `other nonoperating income' when the right to receive the payments is established.
Changes in the fair value of financial assets at fair value through profit or loss are recognized in `other non-operating income' or `other non-operating expenses' in the consolidated statements of profit or loss as applicable.
(C) Impairment
The Company assesses on a forward-looking basis the expected credit losses associated with its debt instruments carried at amortized cost and fair value through other comprehensive income. The impairment methodology applied depends on whether there has been a significant increase in credit risk. For trade receivables, the Company applies the simplified approach, which requires expected lifetime losses to be recognized from initial recognition of the receivables.
(D) Recognition and derecognition
Regular way purchases and sales of financial assets are recognized or derecognized on a trade date basis. Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the Company has transferred substantially all the risks and rewards of ownership. If a transfer does not result in derecognition because the Company has retained substantially all the risks and rewards of ownership of the transferred asset, the Company continues to recognize the transferred asset in its entirety and recognizes a financial liability for the consideration received. The Company classifies the financial liability as `borrowings' in the consolidated statement of financial position.
Samsung Electronics Business Report
79 / 413
(E) Offsetting of financial instruments
Financial assets and liabilities are offset and the net amount is reported in the statements of financial position when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the assets and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business, even in the event of default, insolvency or bankruptcy of the Company or the counterparty.
2.7 Trade Receivables
Trade receivables are amounts due from customers for inventories sold or services performed in the ordinary course of business. If collection is expected within one year or less, they are classified as current assets. If collection is expected beyond one year, they are presented as non-current assets. Trade receivables are recognized initially at transaction price and subsequently measured at amortized cost using the effective interest method, less loss allowance, unless the trade receivables bear significant financial component.
2.8 Inventories
Inventories are stated at the lower of cost and net realizable value. Cost is determined using the average cost method, except for materials in transit. The cost of finished goods and work in progress comprises raw materials, direct labor, other direct costs and related production overheads (based on normal operating capacity). It excludes costs of idle plant and abnormal waste. Net realizable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses.
The Company regularly estimates the changes in future customer demand in the products that may cause a significant change in the valuation allowance and recognizes the valuation allowance if there is any case such as excess, obsolescence and decline in market value. Loss on valuation of inventories is recorded as cost of sales.
2.9 Property, Plant and Equipment
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Historical cost includes expenditures that are directly attributable to the acquisition. Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the cost will flow to the Company and the cost can be measured reliably. The carrying amounts of the replaced parts are derecognized and the repairs and maintenance expenses are recognized in profit or loss in the period they are incurred.
Depreciation on tangible assets is calculated using the straight-line method to allocate the difference between their cost and their residual values over their estimated useful lives. Land is not depreciated. Costs that are directly attributable to the acquisition, construction or production of a qualifying asset, including capitalized interest costs, form part of the cost of that asset and are amortized over the estimated useful lives.
The Company's policy is that property, plant and equipment should be depreciated over the following estimated useful lives:
Buildings and structures Machinery and equipment Other
Estimated useful lives 15, 30 years 5 years 5 years
Samsung Electronics Business Report
80 / 413
The depreciation method, residual values and useful lives of property, plant and equipment are reviewed, and adjusted if appropriate, at the end of each reporting period. An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized within the consolidated statement of profit or loss as `other non-operating income' or `other non-operating expenses'.
2.10 Borrowing Costs
General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized during the period of time that is required to complete and prepare the asset for its intended use. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization. Other borrowing costs are expensed in the period in which they are incurred.
2.11 Intangible Assets
Goodwill represents the excess of the cost of acquisition over the fair value of the Company's share of the net identifiable assets of the acquired subsidiaries, associates, joint ventures and businesses at the date of acquisition. Goodwill on an acquisition of businesses is included in intangible assets and goodwill on an acquisition of associates and joint ventures' shares is included in the investments in associates and joint ventures.
Intangible assets, except for goodwill, are initially recognized at their historical cost and carried at cost less accumulated amortization and accumulated impairment losses.
Internally generated development costs are the aggregate costs recognized after meeting the asset recognition criteria, including technical feasibility, and determined to have future economic benefits. Membership rights and certain trademarks are regarded as intangible assets with an indefinite useful life and not amortized because there is no foreseeable limit to the period over which the assets are expected to be utilized. However, the Company records impairment based on its reasonable estimation of the benefits associated with the membership rights and assessment of impairment indicators, such as a decline in the market value. Intangible assets with definite useful lives such as trademarks, licenses, and other intangible assets, are amortized using the straight-line method over their estimated useful lives.
The Company's policy is that intangible assets should be amortized over the following estimated useful lives:
Development costs Trademarks, licenses and other intangible assets
Estimated useful lives 2 years
3 - 25 years
2.12 Impairment of Non-Financial Assets
Goodwill or intangible assets with indefinite useful lives are not subject to amortization and are tested annually for impairment. Assets that are subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest level for which there are separately identifiable cash flows (cash-generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.
Samsung Electronics Business Report
81 / 413
2.13 Assets Held-for-Sale (Disposal Group)
Non-current assets (or disposal groups) are classified as assets held-for-sale when their carrying amount is to be recovered principally through a sale transaction and the sale is considered highly probable. The assets are measured at the lower of their carrying amount and the fair value less costs to sell. Gain or loss on disposal is determined by comparing the proceeds with the carrying amount of relevant assets, and is recognized in the statements of profit or loss as `other non-operating income' or `other non-operating expenses'.
2.14 Financial Liabilities
(A) Classification and measurement
The Company shall classify all financial liabilities as financial liabilities measured subsequently at amortized cost, except for the following:
- Financial liabilities at fair value through profit or loss. Such liabilities, including derivatives that are liabilities, shall be subsequently measured at fair value.
- Financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when the continuing involvement approach applies. Such financial liabilities are measured based on the methodology described in Note 2.6 Financial Assets.
- Financial guarantee contracts. After the initial recognition, an issuer of such a contract shall subsequently measure it at the higher of: (a) The amount of the loss allowance determined based on the expected credit losses. (b) The amount initially recognized less the cumulative amount of income recognized in accordance with the principles of Korean IFRS 1115 Revenue from Contracts with Customers, when appropriate.
- Commitments to provide loan at below-market interest rate. An issuer of such a commitment shall subsequently measure it at the higher of: (a) The amount of the loss allowance determined based on the expected credit losses. (b) The amount initially recognized less the cumulative amount of income recognized in accordance with the principles of Korean IFRS 1115 Revenue from Contracts with Customers, when appropriate.
- Contingent consideration recognized by an acquirer in a business combination to which Korean IFRS 1103 Business Combinations applies. Such contingent consideration shall subsequently be measured at fair value with changes recognized in profit or loss.
(B) Derecognition
Financial liabilities are removed from the consolidated statements of financial position when it is extinguished; for example, when the obligation specified in the contract is discharged or cancelled or expired or when the terms of an existing financial liability are substantially modified. The difference between the carrying amount of a financial liability extinguished or transferred to another party and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.
2.15 Trade Payables
Trade payables are amounts due to suppliers for inventories purchased or services received in the ordinary course of business. If payment is expected to be made within 12 months, they are classified as current liabilities. If not, they are presented as non-current liabilities. Non-current trade payables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method.
Samsung Electronics Business Report
82 / 413
2.16 Borrowings
Borrowings are recognized initially at fair value, net of transaction costs, and are subsequently measured at amortized cost. Any difference between cost and the redemption value is recognized in the consolidated statement of profit or loss over the period of the borrowings using the effective interest method. If the Company has an indefinite right to defer payment for a period longer than 12 months after the end of the reporting date, such liabilities are recorded as non-current liabilities, otherwise, they are recorded as current liabilities.
2.17 Provisions and Contingent Liabilities
A provision is recognized when the Company has present legal or constructive obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. Provisions are not recognized for future operating losses.
Provisions are measured at present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects the current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognized as interest expense.
The Company discloses a contingent liability if there is a possible obligation from past events in which the existence may only be identified through the occurrence of uncertain future events; or there is a present obligations that the possibility on the outflow of economic resources is uncertain; or the amount of economic resources required to settle the present obligation cannot be reasonably estimated.
2.18 Employee Benefits
The Company has a variety of retirement pension plans including a defined benefit plan and a defined contribution plan.
A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate fund. The Company has no legal or constructive obligation to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service received in the current and prior periods. For a defined contribution plans, the Company pays contributions to annuity plans that are managed either publicly or privately on a mandatory, contractual or voluntary basis. The Company has no further future payment obligations once the contributions have been paid. The contributions are recognized as employee benefit expense when they are due. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payments is available.
A defined benefit plan is a pension plan that is not a defined contribution plan. Typically, a defined benefit plan establishes an amount of pension benefit that an employee will receive upon retirement, usually dependent on one or more factors such as age, years of service and compensation. The liability (asset) recognized in the consolidated statement of financial position with respect to the defined benefit pension plan is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using the interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid and that have the terms to maturity approximating to the terms of the related pension obligation.
Actuarial gains and losses resulting from the changes in actuarial assumptions, and the differences between the previous actuarial assumptions and what has actually occurred, are recognized in other comprehensive income in the period in which they were incurred. When plan amendments, curtailments and settlements occur, past service costs or gain or loss from settlements are immediately recognized in profit or loss.
Samsung Electronics Business Report
83 / 413
2.19 Financial Guarantee Contract
Financial guarantee contracts are contracts that require the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payments when due.
The liability is initially measured at fair value and then subsequently measured at the higher of the following, and is recognized in the consolidated statements of financial position within `other financial liabilities':
- the amount determined in accordance with the expected credit loss model and - the amount initially recognized less the cumulative amount of income recognized in accordance with Korean IFRS 1115
Revenue from Contracts with Customers, where appropriate.
2.20 Current and Deferred Tax
The tax expense for the year comprises current and deferred tax. Current and deferred tax is recognized in profit or loss, except to the extent that it relates to the items recognized in other comprehensive income or directly in equity. The tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period.
Deferred tax is recognized for temporary differences arising between the tax bases of assets and liabilities and their carrying amounts as expected tax consequences at the recovery or settlement of the carrying amounts of those assets and liabilities. However, deferred tax assets and liabilities are not recognized if they arise from initial recognition of an asset or liability in a transaction other than a business combination that, at the time of the transaction, affects neither the accounting nor taxable profit. Deferred tax assets are recognized only to the extent that it is probable that a future taxable profit will be available against which the temporary differences can be utilized.
A deferred tax liability is recognized for taxable temporary differences associated with investments in subsidiaries, associates, and interests in joint ventures, except to the extent that the Company is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. In addition, a deferred tax asset is recognized for deductible temporary differences arising from such investments to the extent that it is probable the temporary difference will reverse in the foreseeable future and taxable profit will be available against which the temporary difference can be utilized.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset the current tax assets against the current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities with an intention to settle the balances on a net basis.
2.21 Derivative Instruments
The Company initially recognizes rights and obligations from derivative contracts as assets and liabilities at fair value. Gain or loss arising from these contracts are recognized in profit or loss. Qualified hedged amount from cash flow hedge and hedge of a net investment in a foreign operation is deferred in equity.
The Company applies cash flow hedge accounting to hedge the price risk associated with inventory purchase and other. The effective portion of changes in fair value of derivatives that are designated and qualify as cash flow hedges is recognized in other comprehensive income, and the ineffective portion is recognized in financial income or expenses.
2.22 Dividend
Dividend is recognized as a liability when approved by the Company's shareholders.
Samsung Electronics Business Report
84 / 413
2.23 Share Capital
Ordinary shares and preference shares with no repayment obligations are classified as equity. When the Company or a subsidiary acquires the Company's ordinary shares, the acquisition costs, including direct transaction costs, are deducted from equity until the redemption or reissuance as treasury shares. Consideration received on the reissuance of treasury shares is credited to equity attributable to owners of the parent company.
2.24 Revenue Recognition
Revenue mainly comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the Company's activities. Revenue is shown net of value-added tax, returns, sales incentives and discounts and after eliminating intercompany transactions.
The Company applied Korean IFRS 1115 Revenue from Contracts with Customers to the annual period beginning January 1, 2018. The Company shall recognize revenue in accordance with Korean IFRS 1115 Revenue from Contracts with Customers by applying the following 5 steps: Identify the contracts with the customers, Identify the separate performance obligations, Determine the transaction price of the contract, Allocate the transaction price to each of the separate performance obligations, and Recognize the revenue as each performance obligation is satisfied.
(A) Identification of performance obligations
The Company exports various products and merchandise in accordance with Incoterms Group C trading conditions (Incoterms CIF and other). Since the seller provides the shipping service after the control of the product or merchandise has been transferred to the customer, the shipping service (including insurance) is recognized as a separate performance obligation.
(B) Performance obligations satisfied over time
The Company delivers products to customers and installs them in accordance with the system air conditioner contracts awarded by the Public Procurement Service. According to Korean IFRS 1115 Revenue from Contracts with Customers the Company should recognize revenue over time if the Company creates or enhances an asset (for example, work in progress) that the customer controls as the asset is created or enhanced. The Company recognizes the revenue from system air conditioner installation over time as the customer controls the outcome of the service.
(C) Variable consideration
The Company estimates amount of variable consideration by using the `expected value method' or the `most likely amount method', depending on which method the Company expects to better predict the amount of consideration. The Company recognizes revenue only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur, and classifies the amount which the Company does not expect to be entitled as contract liabilities.
The Company measures refund liability at the amount of consideration received for which the Company does not expect to be entitled. The Company has a right to recover the product from the customer when the customer exercises his right of return and recognizes an asset and a corresponding adjustment to cost of sales. The asset is measured with reference to the former carrying amount of the product less the costs to recover the products.
(D) Allocation of the transaction price
The transaction price in an arrangement must be allocated to each separate performance obligation based on the relative standalone selling prices of the goods or services being provided to a customer. The Company determines the standalone selling price for each separate performance obligation by using methods such as the `adjusted market assessment approach'.
Samsung Electronics Business Report
85 / 413
2.25 Leases
A lease is a contract, whereby the lessor conveys to the lessee, the right to control the use of an identified asset for a period of time in exchange for consideration.
At inception of a contract, the Company assesses whether the contract is, or contains, a lease. However, the Company did not reassess all contracts at initial application of Korean IFRS 1116 Leases because the Company applied the practical expedient to contracts entered into before January 1, 2019.
For a contract that is, or contains, a lease, both lessee and lessor account for each lease component within the contract as a lease separately from the non-lease components of the contract. In lessee accounting, however, the Company does not account for them separately but instead applies the practical expedient to account for each lease component and any associated non-lease components as a single lease component.
(A) Lessee accounting
The Company recognizes a right-of-use asset representing its right to use the underlying leased asset and a lease liability representing its obligation to make lease payments at the commencement date of the lease.
The right-of-use asset is initially measured at cost and subsequently measured at cost less accumulated depreciation and accumulated impairment losses, adjusted for the remeasurement of lease liability. The right-of-use asset is depreciated over the shorter of the asset's useful life and the lease term from the commencement date of the lease and is classified as `property, plant and equipment' in the consolidated financial statements.
At the commencement date, the lease liability is measured at the present value of the lease payments that are not paid at that date. When measuring the present value, the lease payments are discounted using the interest rate implicit in the lease. If such implicit rate cannot be readily determined, the Company uses the Company's incremental borrowing rate. The lease liability is subsequently increased by the amount of interest expenses recognized on the lease liability and reduced by the lease payments made. Lease liabilities are remeasured when the future lease payments are changed due to the following:
Changes in an index or rate Changes in amounts expected to be payable by the lessee under the residual value guarantees Changes in the assessment of whether a purchase option or an option to renew is reasonably certain to be exercised, or Changes in the assessment of whether it is reasonably certain that an option to terminate the lease will not be exercised.
Lease liabilities are classified as `current portion of long-term liabilities' and/or `long-term borrowings' in the consolidated financial statements.
The Company elected the practical expedient for short-term leases (leases that have a lease term of 12 months or less at the commencement date) and leases of low-value assets (leases for which the underlying asset is valued at USD 5,000 or less), and the lease payments are recognized as an expense on a straight-line basis over the lease term.
(B) Lessor accounting
The accounting treatment as a lessor did not change significantly from the Korean IFRS 1116 Leases initially applied on January 1, 2019.
The Company classifies a lease as a finance lease if it transfers substantially all the risks and rewards incidental to ownership at the inception of the lease. A lease other than a finance lease is classified as an operating lease. Lease income from operating leases is recognized in income on a straight-line basis over the lease term. Initial direct costs incurred by the lessor in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognized as an expense over the lease term on the same basis as the lease income.
Samsung Electronics Business Report
86 / 413
2.26 Government Grants
Government grants are recognized at their fair values when there is reasonable assurance that the grant will be received and the Company will comply with the conditions attached to it. Government grants relating to costs are deferred and recognized in the consolidated statements of profit or loss over the period necessary to match the costs they are intended to compensate. Government grants relating to assets are recognized in liabilities as deferred income government grants, and depreciated over the expected lives of the related assets, and are credited to the consolidated statements of profit or loss.
2.27 Earnings per Share
Basic earnings per share is calculated by dividing the net profit for the period available to the ordinary shareholders by the weightedaverage number of ordinary shares outstanding during the year.
Diluted earnings per share is calculated by dividing the profit for the year attributable to owners of the parent company from the consolidated statements of profit or loss by the weighted-average number of ordinary shares outstanding and potential dilutive shares. Potential dilutive shares are used in the calculation of dilutive earnings per share only when they have dilutive effects.
2.28 Reportable Segments
Reportable segments are disclosed in a manner consistent with the reporting provided to the chief operating decision-maker. The chief operating decision-maker is responsible for making strategic decisions on resource allocation and assessing performance of the reportable segments. The Management Committee, which makes strategic decisions, is regarded as the chief operating decision-maker.
2.29 Convenience Translation into United States Dollar Amounts
The Company operates primarily in Korean won and its official accounting records are maintained in Korean won. The US dollar amounts provided in the consolidated financial statements represent supplementary information solely for the convenience of the reader. All Korean won amounts are expressed in US dollar at the rate of W 1,291.1 to USD 1, the average exchange rate for the year ended December 31, 2022. Such presentation is not in accordance with generally accepted accounting principles, and should not be construed as a representation that the Korean won amounts shown could be readily converted, realized or settled in US dollar at this or at any other rate.
2.30 Approval of the Consolidated Financial Statements
These consolidated financial statements were approved by the Board of Directors on January 31, 2023, and may be modified and approved at the Annual General Shareholders' Meetings.
Samsung Electronics Business Report
87 / 413
3. Critical Accounting Estimates and Assumptions
The Company makes estimates and assumptions concerning the future. The estimates and assumptions are continuously assessed, considering historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The resulting accounting estimates will, by definition, seldom equal the related actual results. In particular, the spread of COVID-19 in the year ended December 31, 2020 may result in changes to the Company's assumptions and estimates but its potential financial impact cannot be reasonably estimated as of the reporting date.
The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
(A) Revenue recognition
A refund liability and a right to the returned goods are recognized for the products expected to be returned at the time of sale. Accumulative experience is used to estimate such returns at the time of sale at a portfolio level (through expected value method), and the Company's revenue is affected by the changes in expected return rate.
Sales of goods are recognized based on the considerations specified in the contract, net of sales incentives, when control of the products has transferred. The sales deduction, which affects the Company's revenue, is reasonably estimated based on the historical experience and past contracts.
(B) Provision for warranty
The Company recognizes provision for warranty on products sold. The Company accrues provision for warranty based on the best estimate of amounts necessary to settle future and existing claims at the end of each reporting period. The amounts are estimated based on the past experience.
(C) Fair value of financial instruments
The fair value of financial instruments that are not traded in an active market is determined by using a variety of methods and assumptions that are mainly based on market conditions existing at the end of each reporting period.
(D) Impairment of financial assets
The loss allowance for financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation based on the Company's past history, existing market conditions as well as forward looking estimates at the end of each reporting period.
(E) Lease
In determining the lease term, the Company considers all facts and circumstances that create an economic incentive to exercise an extension option, or not to exercise a termination option. Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated).
The lease term is reassessed if an option is actually exercised (or not exercised) or the Company becomes obliged to exercise (or not exercise) it. The Company reassesses whether it is reasonably certain to exercise an extension option (or not to exercise such option) upon the occurrence of either a significant event or a significant change in circumstances that is within the control of the lessee.
Samsung Electronics Business Report
88 / 413
(F) Net defined benefit liabilities (assets)
The net defined benefit liabilities (assets) depend on a number of factors that are determined on an actuarial basis using a number of assumptions including the discount rate. Any changes in these assumptions will impact the carrying amount of the net defined benefit liability. The Company, in consideration of the interest rates of high-quality corporate bonds, determines the appropriate discount rate at the end of each year. This is the interest rate that is used to determine the present value of estimated future cash outflows expected to be required to settle the net defined benefit liabilities (assets). The principal actuarial assumptions associated with the net defined benefit liabilities (assets) are based on the current market expectations.
(G) Impairment of goodwill and intangible assets that have an indefinite useful life
At the end of each reporting period, the Company tests whether goodwill and intangible assets that have an indefinite useful life have become impaired by comparing the carrying amounts of assets or cash-generating units to the recoverable amounts. The recoverable amounts of assets or cash-generating units have been determined based on value-in-use calculations, and these calculations are based on estimates.
(H) Income taxes
Income taxes on the Company's taxable income from operating activities are subject to various tax laws and determinations of each tax authority across various countries throughout the world. There is uncertainty in determining the eventual tax effects on the taxable income from operating activities. The Company has recognized current tax and deferred tax at the end of the fiscal year based on the best estimate of future taxes payable as a result of operating activities. However, the resulting deferred income tax assets and liabilities may not equal the actual future taxes payable and such difference may impact the current tax and deferred income tax assets and liabilities upon the determination of eventual tax effects.
Regarding taxes payable in Korea, if a certain portion of taxable income is not used for investments or for increases in wages or dividends, in accordance with the Tax System For Recirculation of Corporate Income, the Company is liable to pay additional income tax calculated based on the Korean tax law. The current and deferred taxes at the end of the fiscal year are based on the best estimate of future taxes payable, which can differ from the actual future taxes payable as a result of changes in investments, wages and dividends; this results in an additional uncertainty in measuring the final tax effects.
The Company assesses uncertainty over a tax treatment. When the Company concludes it is not probable that the taxation authority will accept an uncertain tax treatment, the Company will reflect the effect of uncertainty for each uncertain tax treatment by using either of the following methods, depending on which method the Company expects to better predict the resolution of the uncertainty:
- The most likely amount: the single most likely amount in a range of possible outcomes. - The expected value: the sum of the probability-weighted amounts in a range of possible outcomes.
Samsung Electronics Business Report
89 / 413
4. Financial Instruments by Category (A) Categorizations of financial assets and liabilities as of December 31, 2022 and 2021 are as follows:
(1) As of December 31, 2022
(In millions of Korean won)
Financial assets measured at amortized cost
Financial assets measured at fair
value through other
comprehensive income
Financial assets measured at fair
value through profit or loss
Other financial assets1
Total
Financial assets Cash and cash equivalents Short-term financial instruments Short-term financial assets at amortized cost Short-term financial assets at fair value through profit or loss Trade receivables Financial assets at fair value through other comprehensive income Financial assets at fair value through profit or loss Other
Total
49,680,710 65,102,886
414,610
35,721,563
-
9,945,209 160,864,978
-
-
-
11,397,012
11,397,012
-
-
29,080 -
-
1,405,468 334,263
1,768,811
-
-
-
-
61,404 61,404
49,680,710 65,102,886
414,610
29,080 35,721,563
11,397,012
1,405,468 10,340,876 174,092,205
1 Other financial assets include derivatives designated as hedging instruments which are not subject to categorizations.
(In millions of Korean won)
Financial liabilities measured at amortized cost
Financial liabilities measured at
fair value through profit or loss
Other financial liabilities1
Total
Financial liabilities Trade payables Short-term borrowings Other payables Current portion of long-term liabilities Debentures Long-term borrowings Long-term other payables Other Total
10,644,686 1,577,958 16,328,237
215,143 536,093 33,846 2,289,236 12,047,761 43,672,960
334,415 334,415
3,569,357
874,019
3,526,826
27,353 7,997,555
10,644,686 5,147,315 16,328,237 1,089,162
536,093 3,560,672 2,289,236 12,409,529 52,004,930
1 Other financial liabilities include collateralized borrowings, lease liabilities and derivatives designated as hedging instruments, which are not subject to categorizations.
Samsung Electronics Business Report
90 / 413
(2) As of December 31, 2021
(In millions of Korean won)
Financial assets measured at amortized cost
Financial assets measured at fair
value through other
comprehensive income
Financial assets measured at fair
value through profit or loss
Other financial assets1
Total
Financial assets Cash and cash equivalents Short-term financial instruments Short-term financial assets at amortized cost Short-term financial assets at fair value through profit or loss Trade receivables Financial assets at fair value through other comprehensive income Financial assets at fair value through profit or loss Other
Total
39,031,415 81,708,986
3,369,034
40,713,415
-
8,711,973 173,534,823
-
-
-
13,965,839
13,965,839
-
-
40,757 -
-
1,525,344 279,127
1,845,228
-
-
-
-
49,089 49,089
1 Other financial assets include derivatives designated as hedging instruments which are not subject to categorizations.
(In millions of Korean won)
Financial liabilities measured at amortized cost
Financial liabilities measured at
fair value through profit or loss
Other financial liabilities1
39,031,415 81,708,986 3,369,034
40,757 40,713,415 13,965,839 1,525,344 9,040,189 189,394,979
Total
Financial liabilities Trade payables Short-term borrowings Other payables Current portion of long-term liabilities Debentures Long-term borrowings Long-term other payables Others Total
13,453,351 2,131,692 14,126,970
518,065 508,232
1,500 2,562,158 10,444,290 43,746,258
323,526 323,526
11,556,101
811,903
2,864,656
13,868 15,246,528
1 Other financial liabilities include collateralized borrowings, lease liabilities, and derivatives designated as hedging instruments, which are not subject to categorizations.
13,453,351 13,687,793 14,126,970 1,329,968
508,232 2,866,156 2,562,158 10,781,684 59,316,312
Samsung Electronics Business Report
91 / 413
(B) Net gains or losses on each category of financial assets and liabilities for the years ended December 31, 2022 and 2021 are as follows:
(1) 2022
(In millions of Korean won)
Financial assets measured at amortized cost
Financial assets measured
at fair value through other comprehensive
income
Financial assets measured
at fair value through
profit or loss
Other financial assets1
Total
Financial assets
Gain (loss) on valuation (other comprehensive income)
Gain (loss) on valuation/disposal (profit or loss)
Reclassification from other comprehensive income to profit or loss
Interest income
Foreign exchange differences (profit or loss)
Dividend income
Impairment/reversal (profit or loss)
(36,550)
2,720,213 (822,011)
(19,124)
(1,969,498) -
413,467 -
83,332
266
1,134
-
53,180 474
310 -
1 Other financial assets include derivatives designated as hedging instruments which are not subject to categorizations.
(1,916,318) 47,256
310 2,720,479 (822,011)
414,601 (19,124)
(In millions of Korean won)
Financial liabilities measured at amortized cost
Financial liabilities measured at
fair value through profit or loss
Other financial liabilities1
Total
Financial liabilities
Gain (loss) on valuation (other comprehensive income)
Gain (loss) on valuation/disposal (profit or loss)
Reclassification from other comprehensive income to profit or loss
Interest expense
Foreign exchange differences (profit or loss)
-
(322,529)
574,771
(91,056)
-
(10,621) (45)
59 (440,486)
155,952
1 Other financial liabilities include collateralized borrowings, lease liabilities, and derivatives designated as hedging instruments, which are not subject to categorizations.
(10,621) (91,101)
59 (763,015)
730,723
Samsung Electronics Business Report
92 / 413
(2) 2021
(In millions of Korean won)
Financial assets measured at amortized cost
Financial assets measured at fair value
through other comprehensive
income
Financial assets measured at fair value through
profit or loss
Other financial assets1
Total
Financial assets
Gain (loss) on valuation (other comprehensive income)
Gain (loss) on valuation/disposal (profit or loss)
Reclassification from other comprehensive income to profit or loss
Interest income
Foreign exchange differences (profit or loss)
Dividend income
Impairment/reversal (profit or loss)
(1,969)
1,278,051
29,834 -
(27,194)
2,980,896 -
133,532 -
420,100
227
2,308
-
27,715 437
(148) -
1 Other financial assets include derivatives designated as hedging instruments which are not subject to categorizations.
(In millions of Korean won)
Financial liabilities measured at amortized cost
Financial liabilities measured at
fair value through profit or loss
Other financial liabilities1
3,008,611 418,568 (148)
1,278,278 29,834 135,840
(27,194)
Total
Financial liabilities
Gain on valuation (other comprehensive loss)
Gain (loss) on valuation/disposal (profit or loss)
Reclassification from other comprehensive income to profit or loss
Interest expense
Foreign exchange differences (profit or loss)
-
(213,477)
362,820
(65,368)
-
22,695 -
(121) (218,063)
3,447
1 Other financial liabilities include collateralized borrowings, lease liabilities, and derivatives designated as hedging instruments, which are not subject to categorizations.
22,695 (65,368)
(121) (431,540)
366,267
Samsung Electronics Business Report
93 / 413
5. Transfer of Financial Assets
Trade receivables of the Company have been discounted through factoring agreements with banks during the years ended December 31, 2022 and 2021. Trade receivables provided as collaterals in such factoring transactions do not meet the requirements for asset derecognition as risks and rewards are not substantially transferred in the event of a debtor default due to the recourse obligation, etc. Financial liabilities recognized in relation to these transactions are included as `short-term borrowings' on the consolidated statements of financial position (refer to Note 12).
The following table presents a breakdown of discounted trade receivables as of December 31, 2022 and 2021:
(In millions of Korean won)
December 31, 2022
December 31, 2021
Carrying amount of the discounted trade receivables1 Carrying amount of the related borrowings
1 The discounted trade receivables include the intercompany balances.
3,569,357 3,569,357
11,556,101 11,556,101
6. Financial Assets at Fair Value
(A) Details of financial assets at fair value as of December 31, 2022 and 2021 are as follows: (1) Financial assets at fair value through other comprehensive income
(In millions of Korean won) Non-current portion
Equity instruments
December 31, 2022 11,397,012
December 31, 2021 13,965,839
(2) Financial assets at fair value through profit or loss
(In millions of Korean won) Current portion
Debt instruments Non-current portion
Equity instruments Debt instruments Subtotal Total
December 31, 2022
29,080
773,063 632,405 1,405,468 1,434,548
December 31, 2021
40,757
905,094 620,250 1,525,344 1,566,101
Samsung Electronics Business Report
94 / 413
(B) Changes in financial assets at fair value for the years ended December 31, 2022 and 2021 are as follows: (1) Financial assets at fair value through other comprehensive income
(In millions of Korean won)
2022
2021
Balance as of January 1 Acquisition Disposal Fair value valuation gain (loss) Other Balance as of December 31
(2) Financial assets at fair value through profit or loss
13,965,839 35,013
(20,913) (2,636,448)
53,521 11,397,012
12,575,216 1,146,868 (3,551,604) 3,653,253
142,106 13,965,839
(In millions of Korean won)
2022
2021
Balance as of January 1 Acquisition Disposal Fair value valuation gain (loss) Other Balance as of December 31
1,525,344 158,244 (80,718)
(198,594) 1,192
1,405,468
1,202,969 208,262
(142,406) 275,447 (18,928)
1,525,344
(C) Changes in gain (loss) on valuation of financial assets at fair value through other comprehensive income for the years ended December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
2022
2021
Balance as of January 1 Fair value valuation gain (loss) Reclassification to retained earnings due to disposals Balance as of December 31 Income tax effects on equity and non-controlling interests Total
6,222,980 (2,636,448)
49,946 3,636,478 (887,369) 2,749,109
7,071,415 3,653,253 (4,501,688) 6,222,980 (1,606,341) 4,616,639
Samsung Electronics Business Report
95 / 413
(D) Details of listed equity securities of financial assets at fair value as of December 31, 2022 and 2021 are as follows:
December 31, 2022
December 31, 2021
(In millions of Korean won, number of shares and percentage) Samsung Heavy Industries Hotel Shilla iMarket Korea SFA Wonik Holdings Wonik IPS ASML Holding N.V. Wacom Co., Ltd. BYD Company Limited Corning Incorporated Other
Total
Number of shares owned
134,027,281 2,004,717 647,320 3,644,000 3,518,342 3,701,872 6,297,787 8,398,400 2,380,100 80,000,000
Percentage of ownership1 (%)
15.2 5.1 1.9 10.2 4.6 7.5 1.5 5.1 0.1 9.5
Acquisition cost 932,158 13,957 324 38,262 30,821 32,428 363,012 62,013 79,049
3,980,636
Carrying amount (Market value) 684,879 166,592 6,538 132,642 13,536 91,621 4,287,121 46,750 110,971 3,238,205
563,635
742,890
6,096,295
9,521,745
Carrying amount (Market value)
759,935 156,368
6,926 131,366
17,521 156,589 5,974,280
79,256 118,862 3,530,893 1,155,113
12,087,109
1 Ownership represents the Company's ownership of the total ordinary shares issued by each entity.
7. Trade and Non-Trade Receivables
(A) Trade and non-trade receivables as of December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
December 31, 2022
Trade
Non-trade
December 31, 2021
Trade
Non-trade
Receivables Less: Loss allowance Subtotal Less: Non-current portion Current portion
36,238,032 (312,221)
35,925,811 (204,248)
35,721,563
7,051,536 (78,101)
6,973,435 (824,226) 6,149,209
41,250,034 (310,880)
40,939,154 (225,739)
40,713,415
5,572,176 (72,805)
5,499,371 (1,002,114)
4,497,257
(B) Movements in the loss allowance for receivables for the years ended December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
Trade
2022
Non-trade
Trade
2021 Non-trade
Balance as of January 1 Bad debt expense (reversal) Write-off Other Balance as of December 31
310,880 8,784
(3,557) (3,886) 312,221
72,805 7,312 (6,154) 4,138 78,101
318,731 17,990 (19,095) (6,746) 310,880
59,487 9,009 (2,424) 6,733 72,805
Samsung Electronics Business Report
96 / 413
(C) The details of trade and non-trade receivables classified by past due date to measure expected credit losses as of December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
December 31, 2022
Trade
Non-trade
December 31, 2021
Trade
Non-trade
Receivables not past due Past due1:
Less than 31 days overdue 31 days to 90 days overdue Over 90 days overdue Subtotal Total
33,177,298
2,206,622 642,859 211,253
3,060,734 36,238,032
5,890,018
981,889 52,972 126,657 1,161,518 7,051,536
39,677,264
1,229,479 36,545 306,746
1,572,770 41,250,034
5,125,414
196,783 51,804 198,175 446,762 5,572,176
1 The Company does not consider trade and non-trade receivables that are overdue for less than or equal to 31 days as impaired.
(D) The maximum exposure to current credit risk is equivalent to the carrying amount of receivables as of December 31, 2022. The Company has in place insurance contracts covering the Company's major receivables.
8. Inventories Inventories as of December 31, 2022 and 2021 are as follows:
(In millions of Korean won) Finished goods Work in process Raw materials and supplies Materials in transit Total
December 31, 2022
Gross amount
Valuation allowance
17,526,178
(1,493,952)
21,612,965
(1,535,446)
16,268,974
(1,289,694)
1,098,841
-
56,506,958
(4,319,092)
Carrying amount 16,032,226 20,077,519 14,979,280
1,098,841 52,187,866
December 31, 2021
Gross amount
Valuation allowance
13,000,200
(719,621)
13,967,331
(493,713)
14,864,486
(679,645)
1,445,366
-
43,277,383
(1,892,979)
Carrying amount 12,280,579 13,473,618 14,184,841
1,445,366 41,384,404
The inventories recognized as expense for the year ended December 31, 2022, amount to W 186,396,549 million W 164,319,031 million). The amount includes loss on valuation of inventories.
(2021:
Samsung Electronics Business Report
97 / 413
9. Investments in Associates and Joint Ventures
(A) Changes in investments in associates and joint ventures for the years ended December 31, 2022 and 2021 are as follows:
(In millions of Korean won) Balance as of January 1 Acquisition Disposal Share of profit Other1 Balance as of December 31
2022 8,932,251 1,006,998 (20,894) 1,090,643 (115,129) 10,893,869
2021
8,076,779 47,090
(34,664) 729,614 113,432 8,932,251
1 Other consists of dividends, impairment, and reclassification.
(B) Major investments in associates and joint ventures as of December 31, 2022 are as follows: (1) Investments in associates
Investee Samsung Electro-
Mechanics Co., Ltd.
Samsung SDS Co., Ltd.
Samsung Biologics Co., Ltd.
Nature of relationship with associate Manufacture and supply electronic components
including passive components, circuit boards, and modules
Provide IT services including computer programming, system integration and management and logistical services
New business investment
Percentage of ownership (%)1
Principal business location
Fiscal period-end
23.7
Korea
December
22.6
Korea
December
31.2
Korea
December
Samsung SDI Co., Ltd.2
Manufacture and supply electronic components including secondary cell batteries
19.6
Korea
December
Cheil Worldwide, Inc.
Advertising agency
25.2
Korea
December
1 Ownership represents the Company's ownership of the total ordinary shares issued by each entity. 2 The Company's ownership of ordinary shares outstanding is 20.6%.
(2) Investments in joint ventures
Investee
Samsung Corning Advanced Glass, LLC
Nature of relationship with joint venture Manufacture and supply industrial glass devices
Percentage of ownership (%)1
Principal business location
Fiscal period-end
50.0
Korea
December
1 Ownership represents the Company's ownership of the total ordinary shares issued by each entity.
Samsung Electronics Business Report
98 / 413
(C) Details of investments in associates and joint ventures as of December 31, 2022 and 2021 are as follows:
(1) Investments in associates
(In millions of Korean won) Investee
Acquisition cost
December 31, 2022
Net asset value of equity shares1
Samsung Electro-Mechanics Samsung SDS Samsung Biologics Samsung SDI Cheil Worldwide Other Total
359,237 147,963 1,424,358 1,242,605 506,162 645,255 4,325,580
1,765,507 1,857,481 2,804,547 3,318,875
347,510 718,801 10,812,721
1 The Company's portion of net asset value of associates is based on the Company's percentage of ownership.
Carrying amount
1,764,249 1,870,338 2,808,673 2,691,223
649,161 907,333 10,690,977
(In millions of Korean won) Investee
Acquisition cost
December 31, 2021
Net asset value of equity shares 1
Samsung Electro-Mechanics Samsung SDS Samsung Biologics Samsung SDI Cheil Worldwide Other Total
359,237 147,963 443,193 1,242,605 506,162 644,903 3,344,063
1,573,570 1,632,847 1,571,809 2,960,235
320,301 578,547 8,637,309
1 The Company's portion of net asset value of associates is based on the Company's percentage of ownership.
(2) Investments in joint ventures
Carrying amount
1,556,386 1,652,155 1,577,664 2,529,650
621,292 793,748 8,730,895
(In millions of Korean won)
Investee Samsung Corning Advanced Glass Other Total
Acquisition cost 215,000 259,994 474,994
December 31, 2022 Net asset value of
equity shares 1
137,727 67,632
205,359
Carrying amount 137,745 65,147 202,892
1 The Company's portion of net asset value of joint ventures is based on the Company's percentage of ownership.
(In millions of Korean won)
Investee Samsung Corning Advanced Glass Other Total
Acquisition cost 215,000 259,994 474,994
December 31, 2021 Net asset value of
equity shares 1
135,584 67,517
203,101
Carrying amount 135,580 65,776 201,356
1 The Company's portion of net asset value of joint ventures is based on the Company's percentage of ownership.
Samsung Electronics Business Report
99 / 413
(D) Details of the valuation of investments in associates and joint ventures using the equity method are as follows: (1) For the year ended December 31, 2022
(In millions of Korean won)
Balance as of January 1
Share of profit (loss)
Share of other comprehensive
income
Samsung Electro-Mechanics
1,556,386
242,139
2,880
Samsung SDS
1,652,155
241,962
18,154
Samsung Biologics
1,577,664
250,028
(183)
Samsung SDI
2,529,650
194,242
(19,207)
Cheil Worldwide
621,292
55,476
1,140
Samsung Corning Advanced Glass
135,580
1,999
144
Other
859,524
104,797
(53,438)
Total
8,932,251
1,090,643
(50,510)
1 Other consists of acquisitions, disposals, dividends, impairment and reclassification.
Other1
Balance as of December 31
(37,156) (41,933) 981,164 (13,462) (28,747)
22 61,597 921,485
1,764,249 1,870,338 2,808,673 2,691,223
649,161 137,745 972,480 10,893,869
(2) For the year ended December 31, 2021
(In millions of Korean won)
Samsung Electro-Mechanics Samsung SDS Samsung Biologics Samsung SDI Cheil Worldwide Samsung Corning Advanced Glass Other Total
Balance as of January 1
Share of profit
Share of other comprehensive
income
1,333,819 1,525,857 1,453,012 2,326,037
586,057 123,356 728,641 8,076,779
207,949 137,926 124,979 128,483 47,619 12,376 70,282 729,614
51,702 30,305
(327) 88,594 12,008
(129) 29,826 211,979
Other1
(37,084) (41,933)
(13,464) (24,392)
(23) 30,775 (86,121)
Balance as of December 31
1,556,386 1,652,155 1,577,664 2,529,650
621,292 135,580 859,524 8,932,251
1 Other consists of acquisitions, disposals, dividends, impairment, and reclassification.
Samsung Electronics Business Report
100 / 413
(E) Summary of the condensed financial information of major associates and joint ventures
(1) Summary of condensed financial information of major associates and dividends received from associates as of December 31, 2022 and 2021, and for the years ended December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
Samsung ElectroMechanics
Samsung SDS
2022
Samsung Biologics
Samsung SDI
Cheil Worldwide
1. Condensed financial information Condensed statements of financial position : Current assets Non-current assets Current liabilities Non-current liabilities Non-controlling interests
4,888,319 6,108,852 2,525,123
778,563 154,991
8,005,764 3,946,660 2,493,323
992,132 243,777
6,457,657 10,124,394 4,181,542 3,416,034
-
Condensed statements of comprehensive income: Revenue Profit from continuing operations, net of tax 1 Profit from discontinued operation, net of tax1 Other comprehensive income (loss)1 Total comprehensive income1
9,441,276 993,519 (9,601) 983,918
17,234,750 1,099,745
80,368 1,180,113
3,001,295 798,056 6,995 805,051
2. Details of adjustments from the carrying amount of investments in associates
Net assets (a)
7,538,494 8,223,192
Ownership percentage (b)2
23.4%
22.6%
Net assets of equity shares (a x b)
1,765,507 1,857,481
Goodwill
7,081
26,801
Intercompany transactions and other3
(8,339)
(13,944)
Carrying amount of associates
1,764,249 1,870,338
8,984,475 31.2%
2,804,547 3,645 481
2,808,673
3. Dividends from associates Dividends
37,155
41,933
-
1 Profit (loss) attributable to owners of the investee 2 Ownership percentage includes ordinary and preference shares. 3 Consists of unrealized gains and losses and other differences.
9,651,702 20,605,823 8,006,939 5,033,084
731,779
20,124,070 1,952,149
(139,877) 1,812,272
16,485,723 20.1%
3,318,875 -
(627,652) 2,691,223
13,463
2,193,979 557,466
1,335,643 194,373 9,388
4,253,367 193,732 (1,122) 192,610
1,212,041 28.7%
347,510 298,779
2,872 649,161
28,748
Samsung Electronics Business Report
101 / 413
(In millions of Korean won)
Samsung ElectroMechanics
Samsung SDS
2021
Samsung Biologics
Cheil Samsung SDI Worldwide
1. Condensed financial information Condensed statements of financial position: Current assets Non-current assets
4,598,269 5,343,105
7,575,968 2,941,464
Current liabilities Non-current liabilities Non-controlling interests
2,234,657 835,592 152,177
2,370,290 703,442 214,980
Condensed statements of comprehensive income: Revenue Profit from continuing operations, net of tax 1 Loss from discontinued operation, net of tax1 Other comprehensive income (loss)1 Total comprehensive income1
9,675,036 1,055,411 (162,966)
151,809 1,044,254
13,630,002 611,171 134,163 745,334
2. Details of adjustments from the carrying amount of investments in associates
Net assets (a)
6,718,948
7,228,720
Ownership percentage (b)2
23.40%
22.60%
Net assets of equity shares (a x b)
1,573,570
1,632,847
Goodwill
7,081
26,801
Intercompany transactions and other3
(24,265)
(7,493)
Carrying amount of associates
1,556,386
1,652,155
3. Dividends from associates Dividends
24,770
41,933
1 Profit (loss) attributable to owners of the investee. 2 Ownership percentage includes ordinary and preference shares. 3 Consists of unrealized gains and losses and other differences.
2,823,175 5,146,835 1,107,295 1,871,614
-
7,444,907 18,388,286 6,461,286 4,175,208
492,435
2,018,598 523,513
1,224,222 190,622 10,125
1,568,007 393,589 (1,270) 392,319
13,553,220 1,169,801
623,792 1,793,593
3,325,712 165,485 32,535 198,020
4,991,101 31.50%
1,571,809 3,645 2,210
1,577,664
14,704,264 20.10%
2,960,235 -
(430,585) 2,529,650
1,117,142 28.70% 320,301 298,779 2,212 621,292
-
13,463
24,392
Samsung Electronics Business Report
102 / 413
(2) Summary of condensed financial information of major joint ventures and dividends received from joint ventures as of December 31, 2022 and 2021, and for the years ended December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
Samsung Corning Advanced Glass
2022
2021
1. Condensed financial information
Condensed statements of financial position:
Current assets
170,103
Non-current assets
125,507
Current liabilities
19,794
Non-current liabilities
363
Condensed statements of comprehensive income:
Revenue
133,634
Profit from continuing operations, net of tax1 Profit (loss) from discontinued operations, net of tax1 Other comprehensive income (loss)1 Total comprehensive income1
3,998 -
288 4,286
2. Details of adjustments from the carrying amount of investments in joint ventures
Net assets (a)
275,453
Ownership percentage (b)
50.00%
Net assets of equity shares (a x b)
137,727
Intercompany transactions and other2
18
Carrying amount of joint ventures
137,745
3. Dividends from joint ventures
Dividends
-
1 Profit (loss) attributable to owners of the parent company. 2 Consists of unrealized gains and losses and other differences.
163,083 141,411
31,779 1,547
204,130 24,753 (305) 24,448
271,168 50.00% 135,584
(4) 135,580
-
(3) Profit (loss) attributable to owners of the parent company from associates and joint ventures which are not individually material for the years ended December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
Profit from continuing operations Other comprehensive income (loss) Total comprehensive income (loss)
2022
Associates
Joint ventures
102,930 (50,761)
52,169
1,867 (2,677)
(810)
2021
Associates
Joint ventures
68,646 29,258 97,904
1,636 568
2,204
Samsung Electronics Business Report
103 / 413
(F) Details of marketable investments in associates as of December 31, 2022 and 2021 are as follows:
(In millions of Korean won and number of shares)
Samsung Electro-Mechanics Samsung SDS Samsung Biologics Samsung SDI Cheil Worldwide
December 31, 2022
Number of shares held
Market value
17,693,084 17,472,110 22,217,309 13,462,673 29,038,075
2,308,947 2,149,070 18,240,411 7,956,440
669,328
December 31, 2021 Market value
3,494,384 2,734,385 18,815,659 8,818,051
663,520
(G) Other matters
On July 12, 2018, the Korea Securities and Futures Commission determined an initial measure following an investigation relating to Samsung Biologics Co., Ltd., an associate of the Company, and its accounting for its investment in Samsung Bioepis Co., Ltd, a joint venture between Biogen Therapeutics Inc. and Samsung Biologics Co., Ltd. This measure included a recommendation to dismiss the director in charge, prosecution charges, and external auditor designation by the regulator, on the basis that the Joint Venture Agreement was not disclosed in the notes to the financial statements. On November 14, 2018, the Korea Securities and Futures Commission determined a second measure which included a penalty of W 8,000 million, a recommendation to dismiss the CEO, a requirement to restate its financial statements, and further prosecution charges.
To prove justification of its accounting treatment, Samsung Biologics Co., Ltd. filed a suit for cancellation of the aforementioned measures to the Seoul Administrative Court, which is currently in progress. On September 24, 2021, the Seoul Administrative Court announced a decision to cancel the first measure charged by the Korea Securities and Futures Commission, and suspended its execution until the final rulings of the appeal. On October 16, 2021, the Korea Securities and Futures Commission appealed and the litigation is in progress at Seoul High Court. Samsung Biologics Co., Ltd. also filed for suspending the execution of the initial and second measures. On January 22, 2019 and February 19, 2019, the Seoul Administrative Court pronounced decisions to suspend the second and initial measure, respectively, until the final rulings. The Korea Securities and Futures Commission immediately appealed against the decisions but the appeals were dismissed by the Seoul High Court on May 13, 2019 and May 24, 2019, in relation to the second and first measures, respectively. On May 23, 2019 and June 10, 2019, the Korea Securities and Futures Commission reappealed against the dismissals relating to the second and first measures, respectively. On September 6, 2019 and October 11, 2019, the Supreme Court of Korea dismissed the Korea Securities and Futures Commission's re-appeal relating to the second and first measures, respectively, and confirmed the decision to suspend the execution of these measures.
Although the future outcome of the administrative litigation cannot be estimated, should Samsung Biologics Co., Ltd. be required to restate its financial statements to amend its historical accounting treatment relating to its investment in Samsung Bioepis Co., Ltd., the Company's share of profit or loss relating to its equity method investment, the amount of investment in associates, and retained earnings, for the years ended December 31, 2015 and onwards, and the profit on disposal of investment for the year ended December 31, 2016, may be impacted. Given the timing of completion and the final result of the administrative litigation between Samsung Biologics Co., Ltd. and the Korea Securities and Futures Commission is uncertain and cannot currently be estimated, it is not possible for the Company to recognize the effects of these proceedings in the current period consolidated financial statements.
Samsung Electronics Business Report
104 / 413
10. Property, Plant and Equipment
(A) Changes in property, plant and equipment for the years ended December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
Land
Buildings and structures
2022
Machinery
Construction in
and equipment
progress
Other
Total
Balance as of January 1
9,830,154
38,869,440
79,526,297
18,009,324
3,693,324
149,928,539
Acquisition cost
Accumulated depreciation and impairment
Acquisitions and capital expenditures1
Depreciation
9,943,570
(113,416) 138,925 (49,516)
62,651,459
(23,782,019) 5,302,095
(3,533,917)
274,909,571
(195,383,274) 31,010,080
(30,761,685)
18,009,324
16,675,741
-
11,958,070
(8,264,746) 2,100,119
(1,606,980)
377,471,994
(227,543,455) 55,226,960
(35,952,098)
Disposals/scrap
(57,596)
(127,935)
(35,098)
(193)
(34,208)
(255,030)
Impairment (reversal) Other2
30,200
(2,255) 199,490
(11,815) (13,148)
(1,077,308)
(12,323) (15,824)
(26,393) (876,590)
Balance as of December 31
9,892,167
40,706,918
79,714,631
33,607,564
4,124,108
168,045,388
Acquisition cost
Accumulated depreciation and impairment
10,024,569 (132,402)
67,713,808 (27,006,890)
303,000,627 (223,285,996)
33,607,564 -
13,248,490 (9,124,382)
427,595,058 (259,549,670)
1 The capitalized borrowing costs are W 41,634 million and interest rate used to calculate the borrowing costs eligible for capitalization is 2.1%~4.1%. 2 Other includes effects of changes in foreign currency exchange rates and effects of the offset related to government grants.
(In millions of Korean won)
Land
Buildings and structures
2021
Machinery
Construction in
and equipment
progress
Other
Total
Balance as of January 1
9,772,156
34,552,004
60,994,130
20,175,917
3,458,685
128,952,892
Acquisition cost
Accumulated depreciation and impairment
Acquisitions and capital expenditures1
Depreciation
9,850,942
(78,786) 117,933 (47,517)
55,026,369
(20,474,365) 6,608,620
(3,174,672)
233,056,501
(172,062,371) 43,862,769
(26,552,958)
20,175,917
(2,320,520)
-
10,496,584
(7,037,899) 1,696,362
(1,510,062)
328,606,313
(199,653,421) 49,965,164
(31,285,209)
Disposals, scrap
(49,683)
(91,964)
(18,307)
(469)
(6,200)
(166,623)
Impairment (reversal) Other2 Balance as of December 31
-
37,265 9,830,154
(12,135)
987,587 38,869,440
(131,985)
1,372,648 79,526,297
-
154,396 18,009,324
(7,082)
61,621 3,693,324
(151,202)
2,613,517 149,928,539
Acquisition cost
Accumulated depreciation and impairment
9,943,570 (113,416)
62,651,459 (23,782,019)
274,909,571 (195,383,274)
18,009,324 -
11,958,070 (8,264,746)
377,471,994 (227,543,455)
1 The capitalized borrowing costs are W 24,908 million and interest rate used to calculate the borrowing costs eligible for capitalization is 0.3~1.1%. 2 Other includes effects of changes in foreign currency exchange rates and effects of the offset related to government grants.
Samsung Electronics Business Report
105 / 413
(B) Changes in the right-of-use assets included in the property, plant and equipment for the years ended December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
Land
Buildings and structures
2022 Machinery and equipment
Other
Total
Balance as of January 1 Acquisition Depreciation Cancellation of contracts Other1 Balance as of December 31
525,954 32,632 (49,516) (13,741) 7,874 503,203
2,841,970 1,542,889 (823,543) (111,145)
1,425 3,451,596
1 Other includes effects of changes in foreign currency exchange rates.
191,059 29,098 (58,000)
(263) 13,257 175,151
391,584 507,041 (116,287) (4,220)
9,541 787,659
3,950,567 2,111,660 (1,047,346) (129,369)
32,097 4,917,609
(In millions of Korean won)
Land
Buildings and structures
2021 Machinery and equipment
Balance as of January 1 Acquisition Depreciation Cancellation of contracts Other1 Balance as of December 31
441,603 112,419 (57,699)
(398) 30,029 525,954
2,105,360 1,326,322 (553,324)
(60,742) 24,354
2,841,970
1 Other includes effects of changes in foreign currency exchange rates.
109,372 136,680 (54,233) (1,265)
505 191,059
Other
313,538 173,490 (66,868) (4,790) (23,786) 391,584
Total
2,969,873 1,748,911 (732,124)
(67,195) 31,102
3,950,567
(C) Details of depreciation of property, plant and equipment for the years ended December 31, 2022 and 2021 are as follows:
(In millions of Korean won) Cost of sales Selling and administrative expenses, and etc. Total
2022 32,285,800 3,666,298 35,952,098
2021 27,868,090 3,417,119 31,285,209
Samsung Electronics Business Report
106 / 413
11. Intangible Assets
(A) Changes in intangible assets for the years ended December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
Intellectual
Development
property rights
cost
2022
Membership
Goodwill
Other
Balance as of January 1 External acquisitions Internally generated/developed Amortization Disposals/scrap Impairment (reversal) Other1 Balance as of December 31
4,153,236 299,484 -
(268,070) (50,979)
145,079 4,278,750
236,910 -
(151,892) -
85,018
241,219 8,905 (417) (509) 4,356
253,554
5,844,259 -
170,163 6,014,422
1 Other includes the cumulative effect of changes in foreign currency exchange rates and others.
9,760,620 2,375,986
(2,735,599)
(402) (5,753) 191,158 9,586,010
Total
20,236,244 2,684,375 -
(3,155,561) (51,798) (6,262) 510,756
20,217,754
(In millions of Korean won)
Intellectual
Development
property rights
cost
2021
Membership
Goodwill
Balance as of January 1 External acquisitions Internally generated/developed Amortization Disposals/scrap Impairment (reversal) Other1 Balance as of December 31
4,033,904 333,073 -
(278,288) (51,236) (52,101) 167,884 4,153,236
371,391 -
193,708 (321,608)
(6,581) 236,910
229,987 8,757 (195)
(1,586) 4,256
241,219
5,673,642 -
170,617 5,844,259
1 Other includes effects of reclassification of licenses and changes in foreign currency exchange rates.
Other
8,159,578 3,648,484
(2,362,256)
(1,696) -
316,510 9,760,620
Total
18,468,502 3,990,314 193,708
(2,962,152) (53,127) (53,687) 652,686
20,236,244
Samsung Electronics Business Report
107 / 413
(B) Goodwill Goodwill is allocated to each cash-generating unit. Details of goodwill as of December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
DX segment DS segment SDC segment Harman segment Other Total
December 31, 2022
1,249,290 159,359 138,754
4,466,339 680
6,014,422
December 31, 2021
1,214,730 160,026 138,061
4,330,139 1,303
5,844,259
Goodwill impairment reviews are performed annually, and the recoverable amounts of cash-generating units have been determined based on the value-in-use calculations, etc. These calculations generally use the pre-tax cash flow projections based on the financial budgets approved by management covering a five-year period, unless it is reasonable to use long-term financial budgets longer than five years in the new technology business. Perpetual cash flows beyond the five-year period are extrapolated using a constant growth rate assumption. The growth rate applied was capped at the long-term average growth rate for the industry.
(C) Details of amortization of intangible assets for the years ended December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
2022
2021
Cost of sales Selling and administrative expenses and other Total
2,211,481 944,080
3,155,561
2,136,937 825,215
2,962,152
Samsung Electronics Business Report
108 / 413
12. Borrowings (A) Details of the carrying amounts of borrowings as of December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
Short-term borrowings Collateralized borrowings1 Non-collateralized borrowings Total
Interest rates (%) Financial institutions as of Dec 31, 2022 December 31, 2022 December 31, 2021
Woori Bank and others Citibank and others
0.1~16.7 0.1~38.5
3,569,357 1,577,958 5,147,315
11,556,101 2,131,692 13,687,793
Current portion of long-term borrowings
Bank borrowings Lease liabilities2
BNP and others CSSD and others
Total
38.9~53.2 3.5
208,915 874,019 1,082,934
40,415 811,902 852,317
Long-term borrowings Bank borrowings Lease liabilities2
Industrial Bank of Korea and others
CSSD and others
1.6~5.9 3.5
33,846 3,526,826
1,500 2,864,656
Total
3,560,672
2,866,156
1 Collateralized borrowings are secured by trade receivables.
2 Interest expenses arising from the lease liabilities for the years ended December 31, 2022 and 2021 amount to W 140,111 million and W 106,877 million, respectively, which were determined using the weighted average incremental borrowing rate. The right-of-use assets are pledged as collateral to the lessor in the event of default. Short-term lease payments and low- valued asset lease payments that are not included in measurement of lease liabilities during the years ended December 31, 2022 and 2021 amount to W 211,283 million and W 129,686 million, respectively.
(B) Maturities of long-term borrowings outstanding as of December 31, 2022 are as follows:
(In millions of Korean won) Repayment terms
2023 2024 2025 2026 2027 and thereafter Total
Long-term borrowings
208,915 1,000 31,346 1,500
242,761
(C) Maturities of lease liabilities outstanding as of December 31, 2022 are as follows:
(In millions of Korean won) Repayment terms
2023 2024 2025 2026 2027 and thereafter Total
Lease liabilities
1,021,767 866,188 690,763 582,745
1,905,034 5,066,497
Samsung Electronics Business Report
109 / 413
13. Debentures
(A) Details of the carrying amounts of debentures as of December 31, 2022 and 2021 are as follows:
(In millions of Korean won) US dollar denominated straight bonds1
Issue date 1997.10.2
US dollar denominated debenture bonds2 2015.5.11
EURO denominated debenture bonds3 Less: Discounts Add: Premium
2015.5.27
Due date 2027.10.1 2025.5.15 2022.5.27
Interest rates (%) as of Dec 31, 2022
7.7
4.2
2.0
December 31, 2022 31,683
(US$ 25 million) 506,920
(US$ 400 million) -
(543)
December 31, 2021 35,565
(US$ 30 million) 474,200
(US$ 400 million) 469,819
(EUR 350 million)
(708)
4,261
7,007
Less: Current portion
(6,228)
(477,651)
Total
536,093
508,232
1 US dollar denominated straight bonds are repaid annually for twenty years after a ten-year grace period from the date of issuance.
Interest is paid semi-annually. 2 Harman International Industries, Inc. issued US dollar denominated debenture bonds. These debentures are repaid on the date of 10 years maturity and interest is paid semi-annually. 3 Harman Finance International, SCA issued Euro denominated debenture bonds. These debentures are repaid on the date of 7 years maturity and interest is paid annually. These debentures were fully repaid early on March 1, 2022.
(B) Maturities of debentures outstanding as of December 31, 2022 are as follows:
(In millions of Korean won) Repayment terms
2023 2024 2025 2026 2027 and thereafter Total
Debentures
6,337 6,337 513,257 6,337 6,335 538,603
Samsung Electronics Business Report
110 / 413
14. Net Defined Benefit Liabilities (Assets)
(A) Details of net defined benefit liabilities (assets) recognized in the statements of financial position as of December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
December 31, 2022
December 31, 2021
Present value of funded defined benefit obligations Present value of unfunded defined benefit obligations Subtotal Fair value of plan assets Total
13,639,460 370,848
14,010,308 (19,593,910) (5,583,602)
14,391,209 266,976
14,658,185 (17,001,891) (2,343,706)
(B) The components of defined benefit costs recognized in profit or loss for the years ended December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
2022
2021
Current service cost Net interest income Past service cost Other Total
1,365,600 (99,356) (253) 28,713
1,294,704
1,247,857 (38,326) 2,718 3,847
1,216,096
The amount recognized as an expense of defined contribution plans for the years ended December 31, 2022 and 2021 are W 145,395 million and W 144,248 million, respectively.
(C) The expenses related to the defined benefit plans recognized in the statements of profit or loss for the years ended December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
2022
2021
Cost of sales Selling and administrative expenses and other Total
514,589 780,115 1,294,704
480,331 735,765 1,216,096
Samsung Electronics Business Report
111 / 413
(D) Changes in the defined benefit obligations for the years ended December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
2022
2021
Balance as of January 1 Current service cost Interest cost Past service cost Remeasurement:
Actuarial gains or losses arising from changes in demographic assumptions Actuarial gains or losses arising from changes in financial assumptions Other Benefits paid Other1 Balance as of December 31
1 Other includes effects of changes in foreign currency exchange rates and business combinations.
14,658,185 1,365,600
528,884 (253)
34,917 (2,496,879)
521,452 (630,019)
28,421 14,010,308
12,948,999 1,247,857
396,730 2,718
(34,014) 126,297 473,668 (519,043)
14,973 14,658,185
(E) Changes in the fair value of plan assets for the years ended December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
2022
2021
Balance as of January 1 Interest income on plan assets Remeasurement of plan assets Contributions by employer Benefits paid Other1 Balance as of December 31
17,001,891 628,240
(312,565) 2,741,417 (498,246)
33,173 19,593,910
1 Other includes effects of changes in foreign currency exchange rates and business combinations.
13,840,043 435,056
(146,239) 3,263,765 (397,678)
6,944 17,001,891
Expected contributions to post-employment benefit plans to be paid in 2023 as of December 31, 2022 are W 1,940,341 million.
(F) Plan assets as of December 31, 2022 and 2021 consist of the following:
(In millions of Korean won)
December 31, 2022
December 31, 2021
Principal guaranteed fixed income financial instruments and other Other Total
18,766,006 827,904
19,593,910
Plan assets are mostly invested in instruments which have a quoted price in active markets.
16,935,143 66,748
17,001,891
Samsung Electronics Business Report
112 / 413
(G) The principal actuarial assumptions as of December 31, 2022 and 2021 are as follows:
(In percentage)
December 31, 2022
Discount rate Salary growth rate (including the effects of inflation)
4.3~6.4 2.0~6.4
December 31, 2021
0.2~7.2 1.5~10.0
(H) The sensitivity analysis of the defined benefit obligations as of December 31, 2022 and 2021 to changes in the weighted principal assumptions is as follows:
(In percentage)
December 31, 2022
December 31, 2021
Discount rate 1% p increase 1% p decrease
Salary growth rate 1% p increase 1% p decrease
92
91
109
110
109
110
92
91
(I) The weighted average maturity of the defined benefit obligations is 8.38 years as of December 31, 2022.
15. Provisions
Changes in provisions for the year ended December 31, 2022 are as follows:
(In millions of Korean won)
Warranty (A)
Royalty expenses (B)
Long-term incentives (C)
Balance as of January 1 Charged to profit or loss Payment Other1 Balance as of December 31
1,978,294 2,186,312 (1,873,519)
18,639 2,309,726
1,561,809 629,713
(712,635) 67,719
1,546,606
734,283 302,229 (255,658)
2,409 783,263
1 Other includes effects of changes in foreign currency exchange rates.
Other (D, E)
3,405,480 759,669
(1,070,410) 39,091
3,133,830
Total
7,679,866 3,877,923 (3,912,222)
127,858 7,773,425
(A) The Company accrues warranty reserves for estimated costs of quality assurance, exchanges, repairs, recalls, and future services based on historical experience and terms of warranty programs.
(B) The Company recognizes provisions for the estimated royalty expenses that are under negotiation with counterparties. The timing and amount of payment depend on the settlement of the negotiation.
(C) The Company has a long-term incentive plan for its executives based on a three-year management performance criteria and recognizes a provision for the estimated incentive cost for the accrued period.
(D) The Company records provisions for future expenses expected to be incurred for products that have been discontinued from manufacturing and sales.
Samsung Electronics Business Report
113 / 413
(E) The Company makes provisions for the carrying amounts of emission rights held by the Company and the emission in excess of the emission rights for the applicable years. Details of emission rights and liabilities as of December 31, 2022 are as follows:
(1) The amount of emission rights allocated free of charge in the current commitment period and the estimated amount of emission as of December 31, 2022 are as follows:
(In ten thousand metric tons) Allocated emission permits1 Estimated volume of emission
December 31, 2022
1,754 1,957
1As of December 31, 2022, emission permits allocated to the Company for the remaining plan periods are 4,905 ten thousand tons. (2023: 1,645 ten thousand, 2024: 1,630 ten thousand, 2025: 1,630 ten thousand)
(2) Changes in the emission rights for the year ended December 31, 2022 are as follows:
(In millions of Korean won) Balance as of January 1 Increase Decrease Balance as of December 311
2022
46,073 1,872 (28,378) 19,567
2021
1The quantity of emission right is 6,742 ten thousand ton and there is no emission rights provided as provision of collateral as of December 31, 2022.
44,865 1,422 (214) 46,073
(3) Changes in emissions liabilities for the year ended December 31, 2022 are as follows:
(In millions of Korean won) Balance as of January 1 Charged to profit or loss Submission Balance as of December 31
2022
45,049 16,167 (28,378) 32,838
2021
31,876 13,374
(201) 45,049
16. Commitments and Contingencies
(A) Litigation
As of December 31, 2022, the Company is involved in various claims, disputes, and investigations conducted by regulatory bodies that arose during the normal course of business with numerous entities. Although the outflow of resources and timing of these matters are uncertain, the Company believes the outcome will not have a material impact on the financial position of the Company.
(B) Other commitments
(1) As of December 31, 2022, the Company has trade financing agreements, trade notes receivable discounting facilities, and loan facilities with accounts receivable pledged as collateral with 26 financial institutions including Woori Bank, with a combined limit of up to W 21,609,679 million. In addition, the Company has a trade financing agreement (up to W 16,020,930 million) with 23 financial institutions including Shinhan Bank and loan facilities with accounts receivable pledged as collateral and other financial agreements (up to W 1,589,717 million).
(2) As of December 31, 2022, unfulfilled agreements relating to the acquisition of property, plant and equipment and intangible assets amount to W 8,553,336 million.
Samsung Electronics Business Report
114 / 413
17. Contract Liabilities The Company has recognized contract liabilities related to contracts with customers as follows:
(In millions of Korean won)
December 31, 2022
December 31, 2021
Contract liabilities1
13,255,682
13,235,108
1 Contract liabilities include advances received, accrued expenses, other current liabilities and others.
The revenue recognized during the year ended December 31, 2022 in relation to carried-forward contract liabilities as of January 1, 2022 amounts to W 1,051,027 million.
18. Share Capital
As of December 31, 2022, the Company's total number of authorized shares is 25,000,000,000 shares (W 100 per share). The Company has issued 5,969,782,550 shares of ordinary shares and 822,886,700 shares of preference shares as of December 31, 2022, excluding the retired shares. As of the December 31, 2022, the number of shares outstanding is the same as the number of shares issued above, and no changes were made to the number of shares outstanding during the years ended December 31, 2022 and 2021. Due to the retirement of shares, the total par value of the shares issued is W 679,267 million (ordinary shares of W 596,978 million and preference shares of W 82,289 million), which does not agree with paid-in capital of W 897,514 million.
Samsung Electronics Business Report
115 / 413
19. Retained Earnings (A) Retained earnings as of December 31, 2022 and 2021 consist of the following:
(In millions of Korean won)
December 31, 2022
December 31, 2021
Discretionary reserve, etc. Unappropriated retained earnings Total
192,294,496 145,651,911 337,946,407
(B) Details of interim and year-end dividends are as follows:
(1) Interim dividends (Record date: March 31, June 30 and September 30, 2022 and 2021)
(In millions of Korean won and number of shares) Number of shares eligible for dividends Dividend rate (based on par value)
1st Quarter Dividend amount
Number of shares eligible for dividends Dividend rate (based on par value) 2nd Quarter Dividend amount
Number of shares eligible for dividends Dividend rate (based on par value) 3rd Quarter Dividend amount
Ordinary shares Preference shares
Ordinary shares Preference shares
Total Ordinary shares Preference shares
Ordinary shares Preference shares
Total Ordinary shares Preference shares
Ordinary shares Preference shares
Total
2022 5,969,782,550
822,886,700 361%
2,155,092 297,062
2,452,154 5,969,782,550
822,886,700 361%
2,155,092 297,062
2,452,154 5,969,782,550
822,886,700 361%
2,155,092 297,062
2,452,154
170,814,107 122,250,656 293,064,763
2021 5,969,782,550
822,886,700 361%
2,155,092 297,062
2,452,154 5,969,782,550
822,886,700 361%
2,155,092 297,062
2,452,154 5,969,782,550
822,886,700 361%
2,155,092 297,062
2,452,154
(2) Year-end dividends (Record date: December 31, 2022 and 2021)
(In millions of Korean won and number of shares) Number of shares eligible for dividends Dividend rate (based on par value)
Dividend amount
Ordinary shares Preference shares Ordinary shares Preference shares Ordinary shares Preference shares
Total
2022 5,969,782,550 822,886,700 361% 362% 2,155,092 297,884 2,452,976
2021 5,969,782,550 822,886,700 361% 362% 2,155,092 297,884 2,452,976
Samsung Electronics Business Report
116 / 413
20. Other Components of Equity
Other components of equity as of December 31, 2022 and 2021 are as follows:
(In millions of Korean won) Gain on valuation of financial assets at fair value through other comprehensive income Share of other comprehensive income of associates and joint ventures Gain (loss) on overseas business translation Remeasurement of net defined benefit liabilities (assets) Other Total
December 31, 2022 2,749,109 114,987 1,039,197
(2,051,610) 86,645
1,938,328
December 31, 2021 4,616,639 166,835
(3,824,733) (3,173,977)
86,763 (2,128,473)
21. Expenses by Nature Expenses by nature for the years ended December 31, 2022 and 2021 consist of the following:
(In millions of Korean won)
2022
Changes in finished goods, work in process, and other Raw materials used, merchandise purchased, and other Wages and salaries Post-employment benefit Depreciation Amortization Welfare Utilities Outsourcing Advertising Sales promotion expenses Other Total1
(10,355,548) 112,591,917 30,078,623
1,440,099 35,952,098 3,155,561 6,091,626 6,142,317 6,597,467 6,112,951 7,110,649 53,936,970 258,854,730
1 Equal to the sum of cost of sales and selling and administrative expenses in the consolidated statements of profit or loss.
2021
(4,517,560) 95,625,437 28,207,782 1,360,344 31,285,209 2,962,152 5,073,002 4,928,929 5,594,602 5,376,015 6,286,159 45,788,872 227,970,943
Samsung Electronics Business Report
117 / 413
22. Selling and Administrative Expenses Selling and administrative expenses for the years ended December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
Selling and administrative expenses Wages and salaries Post-employment benefit Commissions and service charges Depreciation Amortization Advertising Sales promotion expenses Transportation Service charges Other
Subtotal Research and development expenses
Total expenses Capitalized expenses Subtotal Total
2022
7,763,588 330,115
7,457,896 1,574,757
664,346 6,112,951 7,110,649 3,214,301 3,671,913 5,993,246 43,893,762
24,919,198 -
24,919,198 68,812,960
2021
7,245,981 310,823
6,192,568 1,529,507
543,544 5,376,015 6,286,159 2,792,690 4,039,642 4,840,946 39,157,875
22,595,434 (193,708)
22,401,726 61,559,601
23. Other Non-Operating Income and Expenses Details of other non-operating income and expenses for the years ended December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
Other non-operating income Dividend income Rental income Gain on disposal of property, plant and equipment Other
Total
2022
414,601 140,908 159,123 1,247,439 1,962,071
2021
135,840 132,801 340,400 1,596,654 2,205,695
(In millions of Korean won)
Other non-operating expenses Loss on disposal of property, plant and equipment Donations Other
Total
2022
61,256 305,941 1,422,979 1,790,176
2021
75,586 270,927 1,709,458 2,055,971
Samsung Electronics Business Report
118 / 413
24. Financial Income and Expenses Details of financial income and expenses for the years ended December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
2022
2021
Financial income Interest income Interest income from financial assets measured at amortized cost Interest income from financial assets measured at fair value through profit or loss Foreign exchange differences Gains from derivatives
Total
2,720,479 2,720,213
266 16,537,855 1,570,661 20,828,995
1,278,278 1,278,051
227 6,525,676
739,233 8,543,187
(In millions of Korean won)
2022
2021
Financial expenses Interest expenses Interest expenses from financial liabilities measured at amortized cost Other financial liabilities Foreign exchange differences Losses from derivatives
Total
763,015 322,529 440,486 16,809,703 1,454,971 19,027,689
431,540 213,477 218,063 6,486,093 786,921 7,704,554
The Company recognizes foreign exchange gains and losses arising from foreign currency transactions and translation as financial income and expenses.
Samsung Electronics Business Report
119 / 413
25. Income Tax Expense
(A) Income tax expense for the years ended December 31, 2022 and 2021 consists of the following:
(In millions of Korean won)
2022
Current taxes Current tax on profits for the year Adjustments recognize in the current year
Subtotal Deferred taxes
Changes in deferred taxes arising from unused tax credits Changes in deferred taxes arising from temporary differences Changes in deferred taxes arising from unused tax losses Other Subtotal Items charged directly to equity Income tax expense
7,391,099 (501,683) 6,889,416
(1,080,068) (15,407,692)
160,123 224,618 (16,103,019)
(9,213,603)
2021
11,135,521 (195,237)
10,940,284
(332,975) 2,172,312
507,313 157,443 2,504,093
13,444,377
(B) The tax on the Company's profit before income tax differs from the theoretical amount that would arise using the weighted-average statutory tax rate applicable to profits of the Company as follows:
(In millions of Korean won)
2022
2021
Profit before income tax Tax calculated at weighted average of applicable tax rates1 Adjustments:
Permanent differences Temporary differences for which no deferred income tax was recognized Tax credits and exemptions Results of interest in subsidiaries, etc. Impact of changes in tax rates Other Subtotal Income tax expense
46,440,474 13,652,900
(2,090,031) 769,211
(5,185,576) (16,186,745)
(376) (172,986) (22,866,503) (9,213,603)
53,351,827 15,760,775
(464,839) (80,250) (4,627,136) 2,267,026
8,691 580,110 (2,316,398) 13,444,377
1 The weighted average of statutory tax rates are applied to the respective profits of the Company applicable to each tax authority as of December 31, 2022 and 2021.
Samsung Electronics Business Report
120 / 413
(C) The movement in deferred income tax assets and liabilities resulting from the tax effect of temporary differences for the years ended December 31, 2022 and 2021 are as follows:
(1) 2022
(In millions of Korean won)
Temporary differences
Balance as of
Increase
Balance as of
January 1
(Decrease)
December 31
Deferred income tax assets (liabilities)
Balance as of
Increase
Balance as of
January 1
(Decrease) December 31
Deferred tax arising from temporary differences
Revaluation of land
Investments in subsidiaries, associates and joint ventures1
Accumulated depreciation and other
(3,406,625)
(126,816,779) (3,814,598)
Accrued income
(22,153)
Provisions, accrued expenses and other
15,979,455
Foreign currency translation
62,615
Asset impairment losses
1,134,048
Other
(492,225)
Subtotal
(117,376,262)
Deferred tax arising from tax losses
Unused tax losses
2,015,448
Deferred tax arising from tax credits
Unused tax credits
1,687,065
Deferred tax recognized in equity
Loss (gain) on valuation of financial assets at fair value through other comprehensive income and other
Remeasurement of net defined benefit liabilities (assets)
Subtotal
(3,575,094)
4,447,510 872,416
Deferred tax assets
Deferred tax liabilities
Total
3,195 (18,391,837)
(3,782,747) 108,861
2,799,841 670,489 (69,523)
(1,356,462) (20,018,183)
(520,129)
1,243,873
(61,384) (1,627,945) (1,689,329)
(3,403,430)
(145,208,616) (7,597,345) 86,708 18,779,296 733,104 1,064,525 (1,848,687)
(137,394,445)
(936,822)
(20,614,554) (1,771,793)
6,853 4,560,874
12,076 258,886 (638,757) (19,123,237)
1,495,319
436,481
2,930,938
1,666,362
(3,636,478)
2,819,565 (816,913)
(3,155,310)
1,238,713 (1,916,597)
4,261,214 (23,198,205) (18,936,991)
38,317
15,654,307 (794,742) 32,827 658,256 173,824 (24,152) (330,945)
15,407,692
(160,123)
1,080,068
3,104,918 (505,578) 2,599,340
840,104 18,086,873 18,926,977
(898,505)
(4,960,247) (2,566,535)
39,680 5,219,130
185,900 234,734 (969,702) (3,715,545)
276,358
2,746,430
(50,392) 733,135 682,743 5,101,318 (5,111,332) (10,014)
1 Deferred tax assets are not recognized if it is probable that the temporary differences will not reverse in the foreseeable future for investments in subsidiaries, associates and joint ventures.
Samsung Electronics Business Report
121 / 413
(2) 2021
(In millions of Korean won)
Temporary differences
Balance as of
Increase
Balance as of
January 1
(Decrease)
December 31
Deferred income tax assets (liabilities)
Balance as of
Increase
Balance as of
January 1
(Decrease) December 31
Deferred tax arising from temporary differences
Revaluation of land
Investments in subsidiaries, associates and joint ventures1
Accumulated depreciation and other
(3,420,886)
(111,924,859) (2,285,841)
Accrued income
(139,406)
Provisions, accrued expenses and other
13,121,416
Foreign currency translation
(24,683)
Asset impairment losses
1,855,765
Other
562,628
Subtotal
(102,255,866)
Deferred tax arising from tax losses
Unused tax losses
3,618,601
Deferred tax arising from tax credits
Unused tax credits
1,328,527
Deferred tax recognized in equity
Loss on valuation of financial assets at fair value through other comprehensive income and other
Remeasurement of net defined benefit liabilities (assets)
Subtotal
(1,660,421)
3,735,320 2,074,899
Deferred tax assets
Deferred tax liabilities
Total
14,261 (14,891,920)
(1,528,757) 117,253
2,858,039 87,298
(721,717) (1,054,853) (15,120,396)
(1,603,153)
358,538
(1,914,673) 712,190
(1,202,483)
(3,406,625)
(126,816,779) (3,814,598) (22,153) 15,979,455 62,615 1,134,048 (492,225)
(117,376,262)
(940,744)
(19,172,409) (992,777) (31,486) 3,764,808 (10,077) 453,486 (21,726)
(16,950,925)
2,015,448
943,794
1,687,065
1,333,387
(3,575,094)
4,447,510 872,416
(909,176)
1,047,075 137,899
4,275,000 (18,810,845) (14,535,845)
3,922
(1,442,145) (779,016) 38,339 796,066 22,153 (194,600) (617,031)
(2,172,312)
(936,822)
(20,614,554) (1,771,793) 6,853 4,560,874 12,076 258,886 (638,757)
(19,123,237)
(507,313)
436,481
332,975
1,666,362
(2,246,134)
191,638 (2,054,496)
(13,786) (4,387,360) (4,401,146)
(3,155,310)
1,238,713 (1,916,597)
4,261,214 (23,198,205) (18,936,991)
1 Deferred tax assets are not recognized if it is probable that the temporary differences will not reverse in the foreseeable future for investments in subsidiaries, associates and joint ventures.
The Company assessed that the deferred tax asset is realizable as the estimated average annual taxable income in future years exceeds the tax loss carry forwards and tax credit carry forwards to be reversed in each accounting period. Temporary differences in which deferred tax effects were not recognized due to uncertainty regarding the ultimate realizability of such assets as of December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
2022
2021
Unused tax losses Unused tax credits
594,798 46,550
706,512 47,929
Expected expiry dates of unused tax losses and credits for which no deferred tax asset is recognized are as follows:
(In millions of Korean won)
2022
2023
2024
2025 and after
Unused tax losses Unused tax credits
69,464 7,466
1,776 4,157
29,972
523,558 4,955
Samsung Electronics Business Report
122 / 413
(D) Details of the period when the deferred tax assets (liabilities) are recovered (settled) as of December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
December 31, 2022
December 31, 2021
Deferred tax assets Deferred tax assets to be recovered within 12 months Deferred tax assets to be recovered after more than 12 months
Subtotal Deferred tax liabilities
Deferred tax liabilities to be settled after more than 12 months Total
3,249,661 1,851,657 5,101,318
(5,111,332) (10,014)
2,999,046 1,262,168 4,261,214
(23,198,205) (18,936,991)
26. Earnings per Share
(A) Basic earnings per share Basic earnings per share for the years ended December 31, 2022 and 2021 are calculated as follows:
(1) Ordinary shares
(In millions of Korean won, thousands of number of shares)
Profit for the year attributable to owners of the parent company Profit for the year available for ordinary shares Weighted-average number of ordinary shares outstanding Basic earnings per ordinary share (in Korean won)
2022
54,730,018 48,099,117 5,969,783
8,057
(2) Preference shares
(In millions of Korean won, thousands of number of shares)
2022
Profit for the year attributable to owners of the parent company Profit for the year available for preference shares Weighted-average number of preference shares outstanding Basic earnings per preference share (in Korean won)
54,730,018 6,630,901
822,887 8,058
2021
39,243,791 34,488,944 5,969,783
5,777
2021
39,243,791 4,754,847
822,887 5,778
(B) Diluted earnings per share
The Company does not have dilutive potential ordinary shares and as a result, basic earnings per share and diluted earnings per share are the same for the years ended December 31, 2022 and 2021.
Samsung Electronics Business Report
123 / 413
27. Statements of Cash Flows
(A) The Company used the indirect method to present cash flows from operating activities. Adjustments and changes in assets and liabilities arising from operating activities for the years ended December 31, 2022 and 2021 are as follows:
- Adjustments
(In millions of Korean won)
2022
2021
Adjustments: Income tax expense Financial income Financial expenses Post-employment benefits Depreciation Amortization Bad debt expenses Dividend income Share of profit of associates and joint ventures Gain on disposal of property, plant and equipment Loss on disposal of property, plant and equipment Loss on valuation of inventories Others
Total
(9,213,603) (5,778,279)
4,336,254 1,440,099 35,952,098 3,155,561
8,784 (414,601) (1,090,643) (159,123)
61,256 4,408,767
366,869 33,073,439
13,444,377 (2,485,679)
1,917,705 1,360,344 31,285,209 2,962,152
17,990 (135,840) (729,614) (340,400)
75,586 1,735,741
(51,938) 49,055,633
- Changes in assets and liabilities arising from operating activities
(In millions of Korean won)
Changes in assets and liabilities : Decrease (increase) in trade receivables Increase in non-trade receivables Decrease (increase) in prepaid expenses Increase in inventories Increase (decrease) in trade payables Increase (decrease) in other payables Increase (decrease) in advances received Increase in withholdings Increase in accrued expenses Increase (decrease) in provisions Payment of post-employment benefits Increase in plan assets Other
Total
2022
7,856,258 (1,524,173)
3,506 (13,311,072) (5,298,547) (1,443,409)
106,977 25,392 919,271 (34,298) (707,887) (2,243,171) (1,347,795) (16,998,948)
2021
(7,302,604) (204,348) (204,971)
(9,712,379) 1,027,017 1,516,076 (24,371) 275,998 3,340,697 1,862,320 (606,870)
(2,866,087) (3,387,362) (16,286,884)
Samsung Electronics Business Report
124 / 413
(B) Significant non-cash investing and financing transactions for the years ended December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
2022
2021
Valuation of financial assets at fair value through other comprehensive income Valuation of investments in associates and joint ventures Reclassification of construction in progress to property, plant and equipment Acquisition of right-of-use assets (New lease contracts established) Reclassification of current portion of debentures Reclassification of current portion of long-term borrowings
(2,636,448) (50,510)
36,047,916 2,111,660
6,228 1,082,934
3,653,253 211,979
50,451,574 1,748,911
477,651 852,317
(C) Changes in liabilities arising from financing activities for the years ended December 31, 2022 and 2021 are as follows:
(1) 2022
(In millions of Korean won)
Short-term borrowings Debentures and long-term borrowings Total
As of January 1
Cash flows from financing activities
13,687,793 4,704,356 18,392,149
(8,339,149) (1,236,468) (9,575,617)
Non-cash transactions
New lease contracts
Other1
As of December 31
2,111,660 2,111,660
(201,329) (393,621) (594,950)
5,147,315 5,185,927 10,333,242
1 Other includes amortization and effects of changes in foreign currency exchange rates.
(2) 2021
(In millions of Korean won)
As of January 1
Cash flows from financing activities
Non-cash transactions
New lease contracts
Other1
As of December 31
Short-term borrowings Debentures and long-term borrowings Total
16,553,429 3,663,952 20,217,381
(2,616,943) (836,470)
(3,453,413)
1,748,912 1,748,912
(248,693) 127,962
(120,731)
13,687,793 4,704,356 18,392,149
1 Other includes amortization, effects of changes in foreign currency exchange rates.
For the years ended December 31, 2022 and 2021, cash outflows from principal repayment (financial activities) amount to W 998,531 million and W 876,437 million, respectively, and cash outflows due to interest expenses (operating activities) in relation to the lease liabilities amount to W 140,111 million and W 106,877 million, respectively.
(D) The Company reported cash receipts and payments arising from transactions occurring frequently, of large gross amounts, and with short-term maturities, such as short-term financial instruments, borrowings and other, on a net basis. As of December 31, 2022, most of the Company's cash and cash equivalents consist of bank deposits.
Samsung Electronics Business Report
125 / 413
28. Financial Risk Management
The Company's financial risk management focuses on minimizing the market risk, credit risk, and liquidity risk arising from operating activities. To mitigate these risks, the Company implements and operates a financial risk policy and program that closely monitors and manages such risks. In addition, the Company uses derivatives to hedge certain risk exposure.
The finance team mainly carries out the Company's financial risk management. After implementing the global financial risk management policies, the finance team periodically measures, evaluates, and hedges the financial risk and also establishes and implements the global financial risk management policy.
The Company also manages the foreign exchange risk by monitoring the foreign exchange rate fluctuations at local finance centers across major regions (United States, United Kingdom, Singapore, China, Brazil, and Russia) and acting as an agent of foreign exchange transactions. In addition, the Company manages the liquidity risk by utilizing a globally integrated finance structure.
The Company's financial assets that are under the financial risk management are comprised of cash and cash equivalents, short-term financial instruments, financial assets at amortized cost, trade receivables and others. The Company's financial liabilities under financial risk management are comprised of trade payables, borrowings, and others.
(A) Market risk
(1) Foreign exchange risk
The Company is exposed to the foreign exchange risk arising from its global operations performed in currencies other than its functional currency. The major currencies that are exposed to the foreign exchange risk are the US dollar, Euro, and Indian Rupee.
The Company focuses on minimizing the impact of the foreign exchange fluctuation by maintaining the equal amount of assets and liabilities denominated in each foreign currency, irrespective of the foreign exchange fluctuation considerations. To prevent the exchange position, the Company's foreign exchange management policy requires the normal business transactions, including imports and exports, as well as the financing transactions such as depositing and borrowing, to be in local currency or for the cashin currency to be matched up with the cash-out currency. Moreover, the Company periodically evaluates and monitors the foreign exchange risk to efficiently mitigate such risk, and the speculative foreign exchange transactions are strictly prohibited.
As of December 31, 2022 and 2021, when the currency rates change by 5%, the impact on profit or loss (before income tax effects) arising from financial assets and liabilities denominated in foreign currencies other than the functional currency are as follows:
(In millions of Korean won)
USD EUR INR
December 31, 2022
Increase
Decrease
258,655 92,546 52,096
(258,655) (92,546) (52,096)
December 31, 2021
Increase
Decrease
250,489 107,519 24,216
(250,489) (107,519) (24,216)
Samsung Electronics Business Report
126 / 413
(2) Interest rate risk
Risk of changes in interest rates for floating interest rate financial instruments is defined as the risk that the fair value of components of the statements of financial position, and future cash flows of interest income (expenses) of a financial instrument, will fluctuate because of the changes in market interest rates. The Company's position with regard to interest rate risk exposure is mainly driven by its floating interest rate debt obligations and interest-bearing deposits. The Company implemented policies and operates to minimize uncertainty arising from changes in interest rates and financial expenses.
As of December 31, 2022 and 2021, changes in profit or loss (before income tax effects) as a result of a 1%p change in interest rates on floating interest rate financial assets and liabilities are presented below:
(In millions of Korean won)
December 31, 2022
Increase
Decrease
December 31, 2021
Increase
Decrease
Financial assets Financial liabilities Net effect
72,750 (8,427) 64,323
(72,750) 8,427
(64,323)
71,131 (18,779)
52,352
(71,131) 18,779
(52,352)
(3) Price risk
The Company's investment portfolio consists of direct and indirect investments in equity instruments classified as financial assets at fair value through other comprehensive income and financial assets at fair value through profit or loss, which is in line with the Company's strategy.
As of December 31, 2022 and 2021, price fluctuation of marketable equity securities (listed stocks) by 1% would result in changes in other comprehensive income (before income tax) of W 92,073 million and W 116,087 million, respectively, and changes in profit before tax of W 3,144 million and W 4,784 million, respectively.
(B) Credit risk
Credit risk arises during the normal course of transactions and investing activities where clients or other parties fail to discharge an obligation. The Company monitors and sets the client's and the counterparty's credit limits on a periodic basis based on the client's and counterparty's financial conditions, default histories and other important factors. Adequate insurance coverage is maintained for trade receivables related to the trading partners situated in higher risk countries.
Credit risk can arise from transactions with financial institutions which include financial instrument transactions such as cash and cash equivalents, deposits, and derivative instruments. To minimize such risk, the Company transacts only with banks which have strong international credit ratings (S&P A and above), and all new transactions with financial institutions with no prior transaction history are approved, managed and monitored by the Company's finance team and the local finance center. The Company generally enters into a financial agreement with no restrictions, such as debt ratio covenants, provision of collateral and/or repayment of loans/ borrowings. The Company requires separate approvals for contracts with restrictions.
As of December 31, 2022 and 2021, the Company estimates that its maximum exposure to credit risk is the carrying amount of its financial assets, net of impairment losses.
Samsung Electronics Business Report
127 / 413
(C) Liquidity risk
Due to large investments made by the Company, maintaining adequate levels of liquidity risk is critical. The Company strives to achieve this goal by periodically forecasting its capital balance, estimating the required cash levels, and managing income and expenses.
The Company manages its liquidity risk by periodically forecasting the projected cash flows. If abnormal signs are identified, the Company works with the local finance center and provides liquidity support by utilizing a globally integrated finance structure, such as Cash Pooling. In addition, the Company maintains a liquidity management process which provides an additional financial support from the local finance center and the Company. The Cash Pooling program allows the sharing of surplus funds among the entities and contributes to minimizing the liquidity risk and strengthening the Company's competitive position by reducing capital operation expenses and financial expenses.
For the need of large scale of liquidity, the Company secures the credit limit for overseas subsidiaries through payment guarantees.
As of December 31, 2022 and 2021, the following table is an undiscounted cash flow analysis for financial liabilities according to their remaining contractual maturity.
(In millions of Korean won) Financial liabilities
Less than 3 months
42,990,570
4 - 6 months
December 31, 2022 7 12 months
733,984
1,925,448
1 - 5 years 5,402,672
More than 5 years
1,562,274
(In millions of Korean won) Financial liabilities
Less than 3 months
4 6 months
December 31, 2021 7 - 12 months
55,185,809
1,814,271
1,674,980
1 - 5 years 5,462,057
More than 5 years
944,232
The table above shows the Company's financial liabilities based on the remaining period at the consolidated statements of financial position date until the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.
The Company's derivative financial liabilities of W 119,061 million (December 31, 2021: W 113,590 million) has been included within the less than 3 months bucket. These are the Company's trading portfolio of derivative instruments, on a net settlement term, of which the contractual maturities are not essential for understanding its cash flows. These contracts are managed on a net fair value basis rather than by the maturity date. Net settled derivatives consist of forwards on currency rates used by the Company to manage the exchange rate profile.
Derivatives that are settled on a gross basis by the delivery of underlying items, including derivatives for hedging, will be settled within the next 60 months from the end of the reporting period. These derivatives are not included in the table above.
There is no maximum liquidity risk exposure from those other than the above financial liabilities (e.g., payment and performance guarantees) as of December 31, 2022.
Samsung Electronics Business Report
128 / 413
(D) Derivative financial instruments
The Company applies cash flow hedge accounting to hedge the foreign currency risk of forecasted transaction including hedging the price risk associated with inventory. Details of derivative financial instruments that qualify as cash flow hedges as of December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
December 31, 2022
Assets
Liabilities
December 31, 2021
Assets
Liabilities
Currency forward exchange contracts Current items Non-current items
Total
44,567 15,703 60,270
11,035 15,813 26,848
34,075 16,790 50,865
11,090 3,280
14,370
For the years ended December 31, 2022 and 2021, the Company recognizes the gains and losses relating to the effective portion of changes in fair value of derivatives that are designated and qualify as cash flow hedges in other comprehensive income, which amount to the loss of W 12,893 million (after tax) and gain of W 50,410 million (after tax), respectively, and recognizes the gains and losses relating to the ineffective portion in profit or loss, which amount to the gain of W 611 million (before tax) and loss of W 451 million (before tax), respectively. For the years ended December 31, 2022 and 2021, gains and losses reclassified directly from other comprehensive income to profit or loss amount to the loss of W 4,602 million (after tax) and the gain of W 1,117 million (after tax), respectively and the gains reclassified from other comprehensive income to the carrying amount of inventory amount to the gain of W 55,856 million (after tax) and the gain of W 1,539 million (after tax), respectively.
(E) Capital risk management
The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximising the return to shareholders through the optimisation of the debt and equity balance.
The Company's capital risk management policy has not changed since the prior reporting periods. The Company has maintained an AA- and Aa2 credit ratings from S&P and Moody's, respectively.
The total liabilities to equity ratios as of December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
December 31, 2022
Total liabilities Total equity Debt ratio
93,674,903 354,749,604
26.4%
December 31, 2021
121,721,227 304,899,931
39.9%
Samsung Electronics Business Report
129 / 413
(F) Fair value estimation (1) Carrying amounts and fair values of financial instruments by category as of December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
Financial assets Cash and cash equivalents Short-term financial instruments Short-term financial assets at amortized cost Short-term financial assets at fair value through profit or loss Trade receivables Financial assets at fair value through other comprehensive income Financial assets at fair value through profit or loss Other(*2)
Total financial assets
Financial liabilities Trade payables Short-term borrowings Other payables Current portion of long-term liabilities - Current portion of long-term borrowing - Current portion of debentures Debentures Long-term borrowings Long-term other payables(*2) Other(*2)
Total financial liabilities
December 31, 2022
Carrying amount
Fair value
December 31, 2021
Carrying amount
Fair value
49,680,710 65,102,886
414,610
29,080 35,721,563
11,397,012 1,405,468 10,340,876 174,092,205
(*1) (*1) (*1)
29,080
(*1)
11,397,012 1,405,468
395,667
39,031,415 81,708,986 3,369,034
40,757 40,713,415
13,965,839 1,525,344 9,040,189 189,394,979
(*1) (*1) (*1)
40,757
(*1)
13,965,839 1,525,344
328,216
10,644,686 5,147,315 16,328,237 1,089,162 1,082,934
6,228 536,093 3,560,672 2,289,236 12,409,529 52,004,930
(*1) (*1) (*1)
6,580
(*1)(*3)
6,580 521,129
(*1)(*3) (*1)
361,768
13,453,351 13,687,793 14,126,970 1,329,968
852,317 477,651 508,232 2,866,156 2,562,158 10,781,684 59,316,312
(*1) (*1) (*1)
554,106
(*1)(*3)
554,106 546,339
(*1)(*3) (*1)
337,394
(*1) Assets and liabilities whose carrying amount is a reasonable approximation of fair value are excluded from the fair value disclosures. (*2) Assets measured at the cost of W 9,945,209 million (December 31, 2021: W 8,711,973 million) and liabilities measured at the cost of W
12,047,761 million (December 31, 2021: W 10,444,290 million) are excluded as the carrying amount is a reasonable estimation of fair value. (*3) Lease liabilities, classified under the current portion of long-term liabilities and long-term borrowings, are excluded from the fair value disclosures
in accordance with Korean IFRS 1107.
Samsung Electronics Business Report
130 / 413
(2) Fair value hierarchy classifications of the financial instruments that are measured or disclosed at fair value as of December 31, 2022 and 2021 are as follows:
December 31, 2022
(In millions of Korean won)
Level 1
Level 2
Level 3
Total balance
1) Assets Short-term financial assets at fair value
through profit or loss Financial assets at fair value through
other comprehensive income Financial assets at fair value through
profit or loss
Other
-
9,207,295
314,449 -
29,080
-
373,176
-
2,189,717
1,091,019 22,491
29,080
11,397,012
1,405,468 395,667
2) Liabilities
Current portion of debentures
-
6,580
-
6,580
Debentures
-
521,129
-
521,129
Other
-
354,364
7,404
361,768
(In millions of Korean won)
1) Assets Short-term financial assets at fair value
through profit or loss Financial assets at fair value through
other comprehensive income Financial assets at fair value through
profit or loss Other
2) Liabilities
Current portion of debentures
Debentures
Other
Level 1
11,608,708
478,401 -
-
December 31, 2021
Level 2
Level 3
Total balance
35,620 -
307,213
554,106 546,339 331,956
5,137 2,357,131 1,046,943
21,003
5,438
40,757 13,965,839 1,525,344
328,216
554,106 546,339 337,394
The levels of the fair value hierarchy and its application to financial assets and liabilities are described below. Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or
indirectly Level 3: Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs)
The fair value of financial instruments traded in active markets is based on quoted market prices at the statements of financial position date. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm's length basis. The quoted market price used for financial assets held by the Company is the current bid price. These instruments are included in Level 1. The instruments included in Level 1 are listed equity investments, most of which are classified as financial assets at fair value through other comprehensive income. The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined by using valuation techniques. These valuation techniques maximize the use of observable market data where it is available and rely as little as possible on the entity-specific estimates. If all significant inputs required for a fair value of an instrument are observable, the instrument is included in Level 2.
If one or more of the significant inputs are not based on observable market data, the instrument is included in Level 3.
Samsung Electronics Business Report
131 / 413
The Company performs the fair value measurements required for financial reporting purposes, including Level 3 fair values and discusses valuation processes and results at least once every quarter in line with the Company's quarterly reporting dates. The Company's policy is to recognize transfers between levels at the end of the reporting period, if corresponding events or changes in circumstances have occurred.
Specific valuation techniques used to value financial instruments include:
Quoted market prices or dealer quotes for similar instruments The fair value of forward foreign exchange contracts is determined using forward exchange rates at the statements of financial
position date, with the resulting value discounted back to present value
Other techniques, such as discounted cash flow analysis, are used to determine fair value for the remaining financial instruments. For trade and other receivables that are classified as current assets, the book value approximates a reasonable estimate of fair value.
(3) Valuation technique and the inputs
The Company utilizes a present value technique to discount cash flow and others using a proper interest rate for corporate bonds, government and public bonds, and bank debentures that are classified as Level 2 in the fair value hierarchy.
The following table presents the valuation technique and the inputs used for major financial instruments classified as Level 3 as of December 31, 2022.
(In millions of Korean won and percentage)
Classification
Fair value
Valuation technique
Financial assets at fair value through other comprehensive income
Samsung Venture Investment
32,073 Discounted cash flow
MiCo Ceramics Co., Ltd.
TCL China Star Optoelectronics Technology Co., Ltd. (CSOT) China Star Optoelectronics Semiconductor Display Technology Ltd. (CSOSDT) Others
29,385 Discounted cash flow 1,244,889 Discounted cash flow
and others 230,263 Discounted cash flow
Put option on equity instruments
22,491 Binomial model
Level 3 inputs
Permanent growth rate Weighted average cost of capital
Permanent growth rate Weighted average cost of capital
Permanent growth rate Weighted average cost of capital
Permanent growth rate Weighted average cost of capital
Risk-free discount rate Price volatility
Input range (Weighted average)
-1.0%~1.0%(0.0%) 15.8%~17.8%(16.8%)
0.0%~1.0%(0.5%) 13.1%~15.1%(14.1%)
-1.0%~1.0%(0.0%) 10.6%~12.6%(11.6%)
-1.0%~1.0%(0.0%) 10.6%~12.6%(11.6%)
4.0%~4.5%, 2.5% 22.3%~32.3%(27.3%) 25.3%~35.3%(30.3%)
Samsung Electronics Business Report
132 / 413
(4) Changes in Level 3 instruments for the years ended December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
2022
Financial assets Balance as of January 1 Acquisitions Disposals Amount recognized in profit or loss Amount recognized in other comprehensive income (loss) Other Balance as of December 31
3,430,214 207,730
(207,252) 73,782
(197,830) (3,417)
3,303,227
(In millions of Korean won)
2022
Financial liabilities Balance as of January 1 Amount recognized in profit or loss Other Balance as of December 31
5,438 1,966
7,404
2021
6,449,139 1,075,389 (402,782)
463,818 1,543,511 (5,698,861) 3,430,214
2021
9,248 (784) (3,026) 5,438
(5) Sensitivity analysis for recurring fair value measurements categorized within Level 3
Sensitivity analysis of financial instruments is performed to measure favorable and unfavorable changes in the fair value of financial instruments which are affected by the unobservable parameters, using a statistical technique. When the fair value is affected by more than two input parameters, the amounts represent the most favorable or unfavorable.
The results of the sensitivity analysis for the effect on profit or loss (before tax amount for other comprehensive income or loss) from changes in inputs for major financial instruments which are categorized within Level 3 and subject to sensitivity analysis are as follows:
(In millions of Korean won)
Classification Financial assets at fair value through other
comprehensive income1 Others2
Favorable changes
Profit or loss
Equity
2,669
112,515 -
Unfavorable changes
Profit or loss
Equity
(3,750)
(79,168) -
1 For equity securities, changes in fair value are calculated with the correlation between the growth rate (-1%~1%) and the discount rate, which are significant unobservable inputs. 2 Changes were calculated based on the correlation between the fair value and price volatility (-5%~5%), which is a significant unobservable input.
Samsung Electronics Business Report
133 / 413
29. Segment Information (A) Operating segment information
The chief operating decision-maker has been identified as the Management Committee. The Company determines operating segments based on the units reported to the Management Committee. The Management Committee reviews the operating profits of each operating segment in order to assess the performance and to make strategic decisions regarding the allocation of resources to the segments.
Sales revenue consists mostly of product sales. The operating segments are product-based and are identified based on the internal organization and revenue streams. As of the reporting date, the operating segments are comprised of DX, DS, SDC, Harman, and others.
The segment information for each reporting period is prepared after allocating the intercompany reconciliations to depreciation, amortization of intangible assets and operating profits. Total assets and liabilities of each operating segment are excluded from the disclosure as these have not been provided regularly to the Management Committee.
(1) For the year ended December 31, 2022
(In millions of Korean won)
DX
DS
SDC
Harman
Total1
Net revenue Depreciation Amortization Operating profit
182,489,720 2,520,708 1,678,572 12,746,074
1 Other operating segments are not separately disclosed.
98,455,270 28,196,959
809,270 23,815,810
34,382,619 4,768,498
237,182 5,952,973
13,213,694 331,342 211,549 880,548
Net revenue by major product for the year ended December 31, 2022 are as follows:
(In millions of Korean won) Image devices Mobile devices
Memory
Display panels
302,231,360 35,952,098 3,155,561 43,376,630
Total1
Net revenue
33,279,488
1 Other products are not separately disclosed.
115,425,375
68,534,930
34,382,619
302,231,360
Samsung Electronics Business Report
134 / 413
(2) For the year ended December 31, 2021
(In millions of Korean won)
DX
DS
SDC
Harman
Total1
Net revenue Depreciation Amortization Operating profit
166,259,437 2,373,076 1,435,220 17,386,554
1 Other operating segments are not separately disclosed.
95,387,173 22,848,912
939,922 29,192,021
31,712,526 5,504,216
239,821 4,457,365
10,039,922 311,237 229,772 599,097
Net revenue by major product for the year ended December 31, 2021 are as follows:
(In millions of Korean won) Image devices Mobile devices
Memory
Display panels
279,604,799 31,285,209 2,962,152 51,633,856
Total1
Net revenue
31,497,420
1 Other products are not separately disclosed.
104,680,574
72,602,237
31,712,526
279,604,799
(B) Regional information
The regional segment information provided to the Management Committee for the reportable segments as of and for the years ended December 31, 2022 and 2021 are as follows:
(1) As of and for the year ended December 31, 2022
(In millions of Korean won)
Korea
America
Europe
Asia and Africa
China
Intercompany elimination
Consolidated
Net revenue Non-current assets1
48,654,656 144,936,912
118,974,561 14,022,225
50,283,975 5,839,813
48,692,399 9,056,272
35,625,769 15,338,153
(930,233)
302,231,360 188,263,142
1 Financial instruments, deferred tax assets, investments in associates and joint ventures, and others are excluded from non-current assets.
(2) As of and for the year ended December 31, 2021
(In millions of Korean won)
Korea
America
Europe
Asia and Africa
China
Intercompany elimination
Consolidated
Net revenue Non-current assets1
43,971,631 127,116,179
97,903,868 10,758,956
50,323,287 5,951,905
41,834,609 9,088,409
45,571,404 18,244,469
(995,135)
279,604,799 170,164,783
1 Financial instruments, deferred tax assets, investments in associates and joint ventures, and others are excluded from non-current assets.
Samsung Electronics Business Report
135 / 413
30. Related Party Transactions
(A) Sale and purchase transactions Sale and purchase transactions with related parties for the years ended December 31, 2022 and 2021 are as follows:
2022
(In millions of Korean won)
Associates and joint ventures
Other related parties
Other2
Name of company1 Samsung SDS Samsung Electro-Mechanics Samsung SDI Cheil Worldwide Other Total Samsung C&T Other Total Samsung Engineering S-1 Other Total
Sales 214,105 62,274 82,062 31,782
1,353,769 1,743,992
51,447 345,901 397,348
1,666 13,634 166,052 181,352
Disposal of non-current assets
767
767 188 188 -
Purchases 1,865,588 1,401,483 803,556 964,096 15,158,969 20,193,692 433,100 1,595,487 2,028,587 53,793 510,311 550,757 1,114,861
Purchase of non-current assets
378,770 120
24,926 361
125,053 529,230 7,423,404 1,910,813 9,334,217 3,249,254 54,069 746,749 4,050,072
1 Transactions with separate entities that are related parties of the Company. 2 Although these entities are not related parties of the Company in accordance with Korean IFRS 1024, they belong to the same large enterprise group in accordance with the Monopoly Regulation and Fair Trade Act.
2021
(In millions of Korean won)
Associates and joint ventures
Other related parties
Other2
Name of company1 Samsung SDS Samsung Electro-Mechanics Samsung SDI Cheil Worldwide Other Total Samsung C&T Other Total Samsung Engineering S-1 Other Total
Sales 142,435 47,031 76,160 27,740
1,288,094 1,581,460
79,183 352,919 432,102
787 13,819 129,439 144,045
Disposal of non-current assets
269 68 337 32,705 32,705 2,371 2,371
Purchases 1,732,273 1,525,854 671,169 758,877 12,361,130 17,049,303 334,386 1,608,435 1,942,821 48,284 469,979 496,451 1,014,714
Purchase of non-current assets
569,840 -
36,180 16
118,099 724,135 4,045,297 633,109 4,678,406 2,404,314 35,762 261,614 2,701,690
1 Transactions with separate entities that are related parties of the Company. 2 Although these entities are not related parties of the Company in accordance with Korean IFRS 1024, they belong to the same large enterprise group in accordance with the Monopoly Regulation and Fair Trade Act.
Samsung Electronics Business Report
136 / 413
(B) Balances of receivables and payables
Balances of receivables and payables arising from the sales and purchases of goods and services as of December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
Associates and joint ventures
Other related parties
Other3
Name of company1 Samsung SDS Samsung Electro-Mechanics Samsung SDI Cheil Worldwide Other Total Samsung C&T Other Total Samsung Engineering S-1 Other Total
December 31, 2022
Receivables
Payables2
49,792
512,022
385
133,952
121,605
92,452
223
453,545
371,575
1,236,016
543,580
2,427,987
217,818
2,783,240
20,830
250,103
238,648
3,033,343
331
1,251,039
3,839
73,102
15,647
545,684
19,817
1,869,825
1 Balances due from and to separate entities that are related parties of the Company. 2 Payables and others include lease liabilities. 3 Although these entities are not related parties of the Company in accordance with Korean IFRS 1024, they belong to the same large enterprise group in accordance with the Monopoly Regulation and Fair Trade Act.
(In millions of Korean won)
Associates and joint ventures
Other related parties Other3
Name of company1 Samsung SDS Samsung Electro-Mechanics Samsung SDI Cheil Worldwide Other Total Samsung C&T Other Total Samsung Engineering S-1 Other Total
December 31, 2021
Receivables
Payables2
64,521
616,949
3,659
176,549
130,638
100,835
206
428,090
397,709
1,361,554
596,733
2,683,977
220,550
1,739,997
20,306
251,766
240,856
1,991,763
338
1,151,536
2,423
40,558
48,703
185,256
51,464
1,377,350
1 Balances due from and to separate entities that are related parties of the Company. 2 Payables and others include lease liabilities. 3 Although these entities are not related parties of the Company in accordance with Korean IFRS 1024, they belong to the same large enterprise
Samsung Electronics Business Report
137 / 413
group in accordance with the Monopoly Regulation and Fair Trade Act.
(C) For the years ended December 31, 2022 and 2021, the Company invested W 907,958 million and W 47,090 million, respectively, in associates and joint ventures. In addition, the Company recovered W 13,087 million and W 19,169 million of investments in associates and joint ventures for the years ended December 31, 2022 and 2021.
(D) For the year ended December 31, 2022, the Company declared W 1,663,149 million of dividends (W 3,527,449 million for the year ended December 31, 2021) to the related parties. In addition, for the year ended December 31, 2022, the Company declared W 128,232 million (W 267,738 million for the year ended December 31, 2021) of dividends to the entities that are not related parties of the Company in accordance with Korean IFRS 1024, but belong to the same conglomerate according to the Monopoly Regulation and Fair Trade Act. As of December 31, 2022 and 2021, there is no dividend payables to the entities that are not in scope of Korean IFRS 1024.
(E) For the year ended December 31, 2022, the Company entered into lease agreements with its related parties amounted to W 25,243 million (W 12,602 million for the year ended December 31, 2021), and the lease payments made to the related parties for the years ended December 31, 2022 and 2021 amounted to W 22,607 million and W 31,893 million, respectively.
(F) Key management compensation
The compensation paid or payable to key management (executive directors) for their services for the years ended December 31, 2022 and 2021 consists of:
(In millions of Korean won)
2022
2021
Short-term employee benefits Post-employment benefits Other long-term employee benefits
14,768 612
5,434
20,370 886
8,092
Samsung Electronics Business Report
138 / 413
31. Information for Non-Controlling Interests
(A) Changes in accumulated non-controlling interests
The profit or loss allocated to non-controlling interests and accumulated non-controlling interests of subsidiaries that are material to the Company for the years ended December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
Samsung Display Co., Ltd. and its subsidiaries
2022
2021
Percentage of non-controlling interests Balance as of January 1 Profit for the year Dividends Other Balance as of December 31
15.2% 8,028,555
853,290 (3,947) (24,186) 8,853,712
15.2% 7,723,784
580,164 (3,123) (272,270) 8,028,555
(B) The summarized financial information for each subsidiary with non-controlling interests that are material to the Company before the intercompany eliminations for the years December 31, 2022 and 2021 are as follows:
(1) Summarized consolidated statements of financial position
(In millions of Korean won)
Samsung Display Co., Ltd. and its subsidiaries
December 31, 2022
December 31, 2021
Current assets Non-current assets Current liabilities Non-current liabilities Equity attributable to:
Owners of the parent company Non-controlling interests
42,082,412 23,070,658 6,294,310 1,220,097 57,638,663 57,552,528
86,135
35,220,985 24,773,119 7,539,403 1,359,478 51,095,223 51,012,895
82,328
(2) Summarized consolidated statements of comprehensive income
(In millions of Korean won)
Samsung Display Co., Ltd. and its subsidiaries
2022
2021
Sales Profit for the year Other comprehensive income (loss) Total comprehensive income attributable to:
Owners of the parent company Non-controlling interests
34,298,283 6,614,496
(67,942) 6,546,554 6,539,633
6,921
31,557,504 3,511,314 1,256,904 4,768,218 4,752,963
15,255
Samsung Electronics Business Report
139 / 413
(3) Summarized consolidated statements of cash flows
(In millions of Korean won)
Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Effect of exchange rate changes on cash and cash equivalents Increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of year
Samsung Display Co., Ltd. and its subsidiaries
2022
2021
11,395,827 (8,654,933) (1,146,117)
(44,426) 1,550,351
758,859 2,309,210
10,943,029 (9,927,110) (1,284,749)
52,154 (216,676)
975,535 758,859
Samsung Electronics Business Report
140 / 413
4. Non-consolidated financial statements
Samsung Electronics Co., Ltd.
SEPARATE STATEMENTS OF FINANCIAL POSITION
(In millions of Korean won, in thousands of US dollars (Note 2.29))
Assets Current assets
Cash and cash equivalents Short-term financial instruments Trade receivables Non-trade receivables Prepaid expenses Inventories Other current assets
Notes
December 31, 2022 KRW
December 31, 2021 KRW
December 31, 2022 USD
December 31, 2021 USD
4, 28 4, 28 4, 5, 7, 28 4, 7, 28
8 4, 28
3,921,593 137
20,503,223 2,925,006 1,047,900 27,990,007 2,674,792 59,062,658
3,918,872 15,000,576 33,088,247 1,832,488
817,689 15,973,053 2,922,491 73,553,416
3,037,290 106
15,879,833 2,265,430
811,603 21,678,380 2,071,638 45,744,280
3,035,183 11,618,010 25,626,988 1,419,270
633,304 12,371,198 2,263,481 56,967,434
Non-current assets Financial assets at fair value through other comprehensive income Financial assets at fair value through profit or loss Investments in subsidiaries, associates and joint ventures Property, plant and equipment
Intangible assets
Net defined benefit assets
Deferred income tax assets
Other non-current assets
4, 6, 28
4, 6, 28
9 10 11 14 25 4, 7, 28
Total assets
1,364,325
283
57,397,249 123,266,986
8,561,424 4,410,223 2,142,512 3,878,090 201,021,092 260,083,750
1,662,532
2,135
56,225,599 103,667,025
8,657,456 2,324,291 1,211,100 3,808,630 177,558,768 251,112,184
1,056,676
219
44,454,414 95,470,805 6,630,859 3,415,736 1,659,385 3,003,597 155,691,691 201,435,971
1,287,638
1,654
43,546,966 80,290,552 6,705,237 1,800,173
938,002 2,949,799 137,520,021 194,487,455
The above separate statements of financial position should be read in conjunction with the accompanying notes.
Samsung Electronics Business Report
141 / 413
Samsung Electronics Co., Ltd.
SEPARATE STATEMENTS OF FINANCIAL POSITION
(In millions of Korean won, in thousands of US dollars (Note 2.29))
Liabilities and Equity Current liabilities Trade payables Short-term borrowings Other payables Advances received Withholdings Accrued expenses Current income tax liabilities Current portion of long-term liabilities Provisions Other current liabilities
Notes
December 31, 2022 KRW
December 31, 2021 KRW
December 31, 2022 USD
December 31, 2021 USD
4, 28 4, 5, 12, 28
4, 28 17 4, 28 4, 17, 28
4, 12, 13, 28 15 17
8,729,315 2,381,512 18,554,543
320,689 523,354 8,359,296 2,533,481 135,753 4,059,491 488,613 46,086,047
11,557,441 9,204,268 13,206,753
474,731 624,585 8,275,410 5,599,896 139,328 3,643,853 341,038 53,067,303
6,760,892 1,844,491 14,370,573
248,375 405,340 6,474,310 1,962,192 105,141 3,144,093 378,433 35,693,840
8,951,287 7,128,745 10,228,686
367,681 483,744 6,409,340 4,337,143 107,910 2,822,180 264,135 41,100,851
Non-current liabilities Debentures Long-term borrowings Long-term other payables Long-term provisions Other non-current liabilities
Total liabilities
4, 13, 28 4, 12, 28
4, 28 15
24,912 654,979 2,439,232 1,423,165
39,224 4,581,512 50,667,559
29,048 431,915 2,653,715 1,659,774
76,697 4,851,149 57,918,452
19,294 507,284 1,889,196 1,102,247
30,378 3,548,399 39,242,239
22,498 334,520 2,055,314 1,285,502
59,401 3,757,235 44,858,086
The above separate statements of financial position should be read in conjunction with the accompanying notes.
Samsung Electronics Business Report
142 / 413
Samsung Electronics Co., Ltd.
SEPARATE STATEMENTS OF FINANCIAL POSITION
(In millions of Korean won, in thousands of US dollars (Note 2.29))
Equity Preference shares Ordinary shares Share premium Retained earnings Other components of equity Total equity
Notes
December 31, 2022 KRW
December 31, 2021 KRW
December 31, 2022 USD
December 31, 2021 USD
18
119,467
119,467
92,528
92,528
18
778,047
778,047
602,601
602,601
4,403,893
4,403,893
3,410,834
3,410,834
19
204,388,016
188,774,335
158,299,388
146,206,526
20
(273,232)
(882,010)
(211,619)
(683,120)
209,416,191
193,193,732
162,193,732
149,629,369
Total liabilities and equity
260,083,750
251,112,184
201,435,971
194,487,455
The above separate statements of financial position should be read in conjunction with the accompanying notes.
Samsung Electronics Business Report
143 / 413
Samsung Electronics Co., Ltd.
SEPARATE STATEMENTS OF PROFIT OR LOSS
(In millions of Korean won, in thousands of US dollars (Note 2.29))
Notes
2022 KRW
For the years ended December 31,
2021
2022
KRW
USD
2021 USD
Revenue Cost of sales Gross profit Selling and administrative expenses Operating profit Other non-operating income Other non-operating expense Financial income Financial expense Profit before income tax Income tax expense Profit for the year Earnings per share (in Korean won, in US dollars) - Basic - Diluted
29 21
21, 22 29 23 23 24 24
25
26
211,867,483 152,589,393 59,278,090 33,958,761 25,319,329
4,576,378 296,344
9,734,299 9,641,742 29,691,920 4,273,142 25,418,778
199,744,705 135,823,433 63,921,272 31,928,110 31,993,162
7,359,004 745,978
3,796,979 3,698,675 38,704,492 7,733,538 30,970,954
164,092,267 118,181,134 45,911,133 26,301,205 19,609,928
3,544,424 229,520
7,539,256 7,467,570 22,996,518 3,309,566 19,686,952
154,703,124 105,195,827 49,507,297 24,728,457 24,778,840
5,699,580 577,762
2,940,776 2,864,640 29,976,794 5,989,658 23,987,136
3,742
4,559
2.90
3.53
3,742
4,559
2.90
3.53
The above separate statements of profit or loss should be read in conjunction with the accompanying notes.
Samsung Electronics Business Report
144 / 413
Samsung Electronics Co., Ltd.
SEPARATE STATEMENTS OF COMPREHENSIVE INCOME
(In millions of Korean won, in thousands of US dollars (Note 2.29))
Notes
2022 KRW
For the years ended December 31,
2021
2022
KRW
USD
2021 USD
Profit for the year
Other comprehensive income (loss)
Items that will not be reclassified subsequently to profit or loss:
Loss on valuation of financial assets at fair value through other comprehensive income, net of tax
Remeasurement of net defined benefit assets, net of tax
Items that may be reclassified subsequently to profit or loss
Other comprehensive income (loss) for the year, net of tax
6, 20 14, 20
Total comprehensive income for the year
25,418,778
(208,883) 822,001 613,118
26,031,896
30,970,954
(99,916) (513,309)
(613,225) 30,357,729
19,686,952
(161,781) 636,643 474,862
20,161,814
23,987,136
(77,385) (397,560)
(474,945) 23,512,191
The above separate statements of comprehensive income should be read in conjunction with the accompanying notes.
Samsung Electronics Business Report
145 / 413
(In millions of Korean won) 2021 KRW
Samsung Electronics Co., Ltd.
SEPARATE STATEMENTS OF CHANGES IN EQUITY
Notes
Preference shares
Ordinary shares
Share premium
Retained earnings
Other components
of equity
Total
Balance as of January 1, 2021 Profit for the year Loss on valuation of financial assets at fair value through
other comprehensive income, net of tax Remeasurement of net defined benefit assets, net of tax
Total comprehensive income (loss) for the year Dividends declared
Total transactions with owners Balance as of December 31, 2021
6, 20 14, 20
19
119,467 -
119,467
778,047 -
778,047
4,403,893 -
178,284,102 30,970,954
4,403,893
30,970,954 (20,480,721) (20,480,721) 188,774,335
(268,785) -
183,316,724 30,970,954
(99,916) (513,309) (613,225)
(882,010)
(99,916) (513,309) 30,357,729 (20,480,721) (20,480,721) 193,193,732
The above separate statements of changes in equity should be read in conjunction with the accompanying notes.
Samsung Electronics Business Report
146 / 413
(In thousands of US dollars (Note 2.29))
Samsung Electronics Co., Ltd.
SEPARATE STATEMENTS OF CHANGES IN EQUITY
2021 USD
Notes
Preference shares
Ordinary shares
Share premium
Retained earnings
Other components
of equity
Total
Balance as of January 1, 2021
Profit for the year Loss on valuation of financial assets at fair value through
other comprehensive income, net of tax Remeasurement of net defined benefit assets, net of tax Total comprehensive income (loss) for the year Dividends declared Total transactions with owners Balance as of December 31, 2021
6, 20 14, 20
19
92,528 -
92,528
602,601 -
602,601
3,410,834 138,081,796 - 23,987,136
3,410,834
23,987,136 (15,862,406) (15,862,406) 146,206,526
(208,175) 141,979,584 - 23,987,136
(77,385) (397,560) (474,945)
(683,120)
(77,385) (397,560) 23,512,191 (15,862,406) (15,862,406) 149,629,369
The above separate statements of changes in equity should be read in conjunction with the accompanying notes.
Samsung Electronics Business Report
147 / 413
(In millions of Korean won) 2022 KRW
Samsung Electronics Co., Ltd.
SEPARATE STATEMENTS OF CHANGES IN EQUITY
Notes
Preference shares
Ordinary shares
Share premium
Retained earnings
Other components
of equity
Total
Balance as of January 1, 2022
Profit for the year Gain (loss) on valuation of financial assets at fair value through
other comprehensive income, net of tax Remeasurement of net defined benefit assets, net of tax
Total comprehensive income for the year
Dividends declared
Total transactions with owners
Balance as of December 31, 2022
6, 20 14, 20
19
119,467 -
119,467
778,047 -
4,403,893 -
188,774,335 25,418,778
(882,010) -
193,193,732 25,418,778
778,047
4,403,893
4,340 -
25,423,118 (9,809,437) (9,809,437) 204,388,016
(213,223) 822,001 608,778 -
(273,232)
(208,883) 822,001
26,031,896 (9,809,437) (9,809,437) 209,416,191
The above separate statements of changes in equity should be read in conjunction with the accompanying notes.
Samsung Electronics Business Report
148 / 413
Samsung Electronics Co., Ltd.
SEPARATE STATEMENTS OF CHANGES IN EQUITY
(In thousands of US dollars (Note 2.29))
2022 USD
Balance as of January 1, 2022 Profit for the year Gain (loss) on valuation of financial assets at fair value through
other comprehensive income, net of tax Remeasurement of net defined benefit assets, net of tax Total comprehensive income for the year Dividends declared Total transactions with owners Balance as of December 31, 2022
Notes
Preference shares
Ordinary shares
Share premium
Retained earnings
Other components
of equity
Total
92,528 -
602,601 -
3,410,834 -
146,206,526 19,686,952
(683,120) -
149,629,369 19,686,952
6, 20 14, 20
19
92,528
602,601
3,410,834
3,361 -
19,690,313 (7,597,451) (7,597,451) 158,299,388
(165,142) 636,643 471,501 -
(211,619)
(161,781) 636,643
20,161,814 (7,597,451) (7,597,451) 162,193,732
The above separate statements of changes in equity should be read in conjunction with the accompanying notes.
Samsung Electronics Business Report
149 / 413
Samsung Electronics Co., Ltd.
SEPARATE STATEMENTS OF CASH FLOWS
(In millions of Korean won, in thousands of US dollars (Note 2.29))
Notes
For the years ended December 31,
2022
2021
2022
2021
KRW
KRW
USD
USD
Operating activities Profit for the year Adjustments Changes in assets and liabilities arising from
operating activities Cash generated from operations Interest received Interest paid Dividends received Income tax paid
Net cash from operating activities
25,418,778 30,970,954 19,686,952 23,987,136
27
31,039,388 25,168,062 24,040,138 19,492,771
27
(6,868,269) (5,781,655) (5,319,504) (4,477,916)
49,589,897 50,357,361 38,407,586 39,001,991
339,560
282,918
262,991
219,121
(287,488) (125,036) (222,661)
(96,841)
3,551,435 6,560,011 2,750,602 5,080,756
(8,404,655) (5,825,185) (6,509,441) (4,511,631)
44,788,749 51,250,069 34,689,077 39,693,396
Investing activities
Net decrease in short-term financial instruments Disposal of financial assets at fair value
through other comprehensive income Acquisition of financial assets at fair value
through other comprehensive income Disposal of financial assets at fair value
through profit or loss Disposal of investments in subsidiaries, associates and
joint ventures Acquisition of investments in subsidiaries, associates
and joint ventures Disposal of property, plant and equipment
Acquisition of property, plant and equipment
Disposal of intangible assets
Acquisition of intangible assets
Cash outflow from other investing activities
Net cash used in investing activities
15,000,439 13,600,708 11,617,904 10,533,806
10,976
-
8,501
-
- (234,975)
- (181,989)
1,744
912
1,351
706
165,089
605,607
127,862
469,045
(1,001,723) 288,684
(138,858) 408,560
(775,839) 223,587
(107,546) 316,431
(39,160,176) (36,021,504) (30,329,723) (27,898,808)
6,242
5,809
4,834
4,499
(3,298,378) (2,459,929) (2,554,608) (1,905,225)
(136,783) (201,537) (105,939) (156,091)
(28,123,886) (24,435,207) (21,782,070) (18,925,172)
The above separate statements of cash flows should be read in conjunction with the accompanying notes.
Samsung Electronics Business Report
150 / 413
Samsung Electronics Co., Ltd.
SEPARATE STATEMENTS OF CASH FLOWS
(In millions of Korean won, in thousands of US dollars (Note 2.29)) Notes
Financing activities
Net decrease in short-term borrowings
27
Repayment of debentures and long-term borrowings
27
Dividends paid
Net cash used in financing activities
For the years ended December 31,
2022
2021
2022
2021
KRW
KRW
USD
USD
(6,700,826) (3,288,858) (5,189,818) (155,264) (117,963) (120,253)
(9,808,974) (20,478,233) (7,597,092) (16,665,064) (23,885,054) (12,907,163)
(2,547,235) (91,363)
(15,860,478) (18,499,076)
Effect of foreign exchange rate changes Net increase in cash and cash equivalents
2,922 2,721
19 2,929,827
2,263 2,107
15 2,269,163
Cash and cash equivalents Beginning of the year End of the year
3,918,872 3,921,593
989,045 3,918,872
3,035,183 3,037,290
766,020 3,035,183
The above separate statements of cash flows should be read in conjunction with the accompanying notes.
Samsung Electronics Business Report
151 / 413
5. Notes to non-consolidated financial statements
1. General Information
Samsung Electronics Co., Ltd. (the "Company") was incorporated under the laws of the Republic of Korea in 1969 and listed its shares on the Korea Stock Exchange in 1975. The Company operates two business divisions: Device eXperience ("DX") and Device Solutions ("DS"). DX division includes digital TVs, refrigerators, mobile phones, and communication systems. DS division includes semiconductor products such as memory, foundry and system LSI. The Company is domiciled in the Republic of Korea and is located in Suwon, the Republic of Korea.
These financial statements have been prepared in accordance with Korean IFRS 1027, Separate Financial Statements.
2. Significant Accounting Policies
2.1 Basis of Presentation
The principal accounting policies used to prepare the separate financial statements are set out below. Except for the effect of the amendments to the Korean IFRS and new interpretations set out below, the principal accounting policies used to prepare the separate financial statements as of and for the year ended December 31, 2022 are consistent with those used to prepare the separate financial statements as of and for the year ended December 31, 2021.
The Company maintains its accounting records in Korean won and prepares the statutory financial statements in Korean language (Hangul) in accordance with International Financial Reporting Standards as adopted by the Republic of Korea ("Korean IFRS"). The accompanying separate financial statements have been restructured and translated into English from the Korean language financial statements.
Certain information attached to the Korean language financial statements that are not required for a fair presentation of the Company's financial position, financial performance, or cash flows, are not presented in the accompanying separate financial statements.
The separate financial statements of the Company have been prepared in accordance with Korean IFRS. These are the standards, subsequent amendments and related interpretations issued by the International Accounting Standards Board (IASB) that have been adopted by the Republic of Korea.
Korean IFRS permits the use of critical accounting estimates in the preparation of the separate financial statements and requires management judgments in applying the accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the separate financial statements, are disclosed in Note 3.
Samsung Electronics Business Report
152 / 413
2.2 Changes in Accounting Policies and Disclosures
(A) New and amended standards adopted by the Company
The Company applied the following amended and/or enacted standards for the first time for their annual reporting period commencing on January 1, 2022:
Amendments to Korean IFRS 1116, Lease
The amendments to Korean IFRS 1116 introduced a practical expedient that provided practical relief to lessees in accounting for rent concessions occurring as a direct consequence of COVID-19. The amendments extend the practical expedient to apply to reduction in lease payments originally due on or before 30 June 2022. The application of amendments does not have a significant impact on the Company's year-end financial statements.
Amendments to Korean IFRS 1103, Business Combinations
The amendments update Korean IFRS 1103 so that it refers to the amended conceptual framework for financial reporting for assets and liabilities recognized upon business combination, along with adding requirement that for transactions and other events within the scope of IAS 37 or IFRIC 21, an acquirer applies IAS 37 or IFRIC 21 to identify the liabilities it has assumed in a business combination. The amendments also add an explicit statement that an acquirer does not recognize contingent assets acquired in a business combination. The application of amendments does not have a significant impact on the Company's year-end financial statements.
Amendments to Korean IFRS 1016, Property, Plant and Equipment
The amendments prohibit deducting from the cost of an item of property, plant and equipment any proceeds from selling items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity recognizes the proceeds from selling such items, and the cost of producing those items, in profit or loss. The application of amendments does not have a significant impact on the Company's year-end financial statements.
Amendments to Korean IFRS 1037, Provisions, Contingent Liabilities and Contingent Assets
The amendments specify that the cost of fulfilling a contract comprises the costs that relate directly to the contract, and that costs that relate directly to a contract consist of both the incremental costs of fulfilling that contract and an allocation of other costs that relate directly to fulfilling contracts. The application of the amendments does not have a significant impact on the Company's year-end financial statements.
(B) New and amended standards not yet adopted by the Company
The amended accounting standards issued that are not mandatory for the annual reporting period commencing on January 1, 2022 and have not been early adopted by the Company are as follows:
Amendments to Korean IFRS 1001, Presentation of Financial Statements
The amendments clarify that the classification of liabilities as current or non-current is based on the rights that are in existence at the end of the reporting period, specify that classification is unaffected by expectations about whether an entity will exercise its right to defer settlement of a liability, and elucidate that settlement refers to the transfer to the counterparty of cash, equity instruments, other assets or services. The amendments are effective for annual reporting periods beginning on or after January 1, 2023, with earlier application permitted.
Samsung Electronics Business Report
153 / 413
Amendments to Korean IFRS 1001, Presentation of Financial Statements
The amendments require companies to define and disclose their 'material' accounting policy information instead of its 'significant' accounting policies. The amendments explain how an entity can identify material accounting policy information. The amendments to K-IFRS 1001 are effective for annual periods beginning on or after January 1, 2023, with earlier application permitted and are applied prospectively.
Amendments to Korean IFRS 1008, Accounting Policies, Changes in Accounting Estimates and Errors
The amendments clarify the definition of a change in accounting estimates, and specify how to distinguish from a change in accounting policies. The amendments are effective for annual periods beginning on or after January, 1 2023 to changes in accounting policies and changes in accounting estimates that occur on or after the beginning of that period, with earlier application permitted.
Amendments to Korean IFRS 1012, Income Taxes
The amendments add to the initial recognition exemption that the initial recognition exemption does not apply to transactions in which equal amounts of deductible and taxable temporary differences arise on initial recognition. The amendments are effective for annual reporting periods beginning on or after January 1, 2023, with earlier application permitted.
2.3 Subsidiaries, Associates and Joint Ventures
The Company, as the ultimate controlling company in accordance with Korean IFRS 1110 Consolidated Financial Statements recognizes investments in subsidiaries, associates and joint ventures under the cost method in accordance with Korean IFRS 1027 Separate Financial Statements on the Company's separate financial statements.
If there is any objective evidence that the investment in the subsidiaries, associates and joint ventures is impaired, the Company recognizes the difference between the recoverable amount and its carrying amount as an impairment loss.
2.4 Foreign Currency Translation
(A) Functional and presentation currency
Items included in the separate financial statements of each of the Company's entities are measured using the currency of the primary economic environment in which each entity operates (the "functional currency"). The separate financial statements are presented in Korean won, which is the parent company's functional and presentation currency.
(B) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in profit or loss. Exchange differences arising on non-monetary financial assets and liabilities such as equity instruments at fair value through profit or loss and equity instruments at fair value through other comprehensive income are recognized in profit or loss and other comprehensive income, respectively, as part of the fair value gain or loss.
Samsung Electronics Business Report
154 / 413
2.5 Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, and other short-term investment assets with high liquidity that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
2.6 Financial Assets
(A) Classification
From January 1, 2018, the initial application date for Korean IFRS 1109 Financial Instruments, the Company classifies its financial assets in the following measurement categories:
- Financial assets measured at fair value (changes in fair value recognized in either other comprehensive income, or profit or loss).
- Financial assets measured at amortized cost.
The classification depends on the Company's business model for managing the financial assets and the contractual terms of the cash flows.
For financial assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. For investments in debt instruments, this will depend on the business model in which the investment is held. The Company reclassifies debt investments only when its business model for managing those assets changes.
For investments in equity instruments that are not held for trading, classification will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income. Changes in fair value of the investments in equity instruments that are not elected to be accounted for as other comprehensive income are recognized in profit or loss.
Samsung Electronics Business Report
155 / 413
(B) Measurement
At initial recognition, the Company measures a financial asset at its fair value. In the case of financial asset not measured at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset or the issuance of the financial liabilities are added to its fair value. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.
Hybrid (combined) contracts with embedded derivatives are considered in their entirety when determining whether their cash flows solely consist of the payments of principal and interest.
a) Debt instruments
Subsequent measurement of debt instruments depends on the Company's business model for managing the asset and the cash flow characteristics of the asset. The Company classifies its debt instruments into one of the following three measurement categories:
Financial assets measured at amortized cost
Assets that are held for collection of contractual cash flows where those cash flows represent solely the payments of principal and interest are measured at amortized cost. A gain or loss on a debt investment that is subsequently measured at amortized cost and is not part of a hedging relationship is recognized in profit or loss when the asset is derecognized or impaired. Interest income from these financial assets is included in `financial income' using the effective interest rate method.
Financial assets measured at fair value through other comprehensive income
Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets' cash flows represent solely the payments of principal and interest, are measured at fair value through other comprehensive income. Movements in the carrying amount are taken through other comprehensive income, except for the recognition of impairment loss (reversal of impairment loss), interest income and foreign exchange gains and losses which are recognized in profit or loss. When the financial assets are derecognized, the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss. Interest income from these financial assets is included in `financial income' using the effective interest rate method. Foreign exchange gains and losses are presented in `financial income' or `financial expenses' and impairment losses are presented in `other non-operating expenses'.
Financial assets measured at fair value through profit or loss
Assets that do not meet the criteria for amortized cost or fair value through other comprehensive income are measured at fair value through profit or loss. A gain or loss on a debt investment that is subsequently measured at fair value through profit or loss and is not part of a hedging relationship is recognized in profit or loss and presented in the separate statement of profit or loss within `other nonoperating income' or `other non-operating expenses' in the year in which it arises.
Samsung Electronics Business Report
156 / 413
b) Equity instruments
The Company subsequently measures all equity investments at fair value. Where the Company's management has elected to present fair value gains and losses on equity investments in other comprehensive income, there is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment. When the financial asset is derecognized, the cumulative gain or loss on valuation of financial assets at fair value through other comprehensive income recognized in equity is reclassified to retained earnings. Dividend income from such investments continue to be recognized in profit or loss as `other nonoperating income' when the right to receive the payments is established.
Changes in the fair value of financial assets at fair value through profit or loss are recognized in `other non-operating income' or `other non-operating expenses' in the separate statements of profit or loss as applicable.
(C) Impairment
The Company assesses on a forward-looking basis the expected credit losses associated with its debt instruments carried at amortized cost and fair value through other comprehensive income. The impairment methodology applied depends on whether there has been a significant increase in credit risk. For trade receivables, the Company applies the simplified approach, which requires expected lifetime losses to be recognized from initial recognition of the receivables.
(D) Recognition and derecognition
Regular way purchases and sales of financial assets are recognized or derecognized on a trade date basis. Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the Company has transferred substantially all the risks and rewards of ownership. If a transfer does not result in derecognition because the Company has retained substantially all the risks and rewards of ownership of the transferred asset, the Company continues to recognize the transferred asset in its entirety and recognizes a financial liability for the consideration received. The Company classifies the financial liability as `borrowings' in the separate statement of financial position.
(E) Offsetting of financial instruments
Financial assets and liabilities are offset and the net amount is reported in the statements of financial position when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or, realize the assets and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business, even in the event of default, insolvency or bankruptcy of the Company or the counterparty.
2.7 Trade Receivables
Trade receivables are amounts due from customers for inventories sold or services performed in the ordinary course of business. If collection is expected within one year or less, they are classified as current assets. If collection is expected beyond one year, they are presented as non-current assets. Trade receivables are recognized initially at transaction price and subsequently measured at amortized cost using the effective interest method, less loss allowance, unless the trade receivables bear significant financial component.
Samsung Electronics Business Report
157 / 413
2.8 Inventories
Inventories are stated at lower of the cost and net realizable value. Cost is determined using the average cost method, except for materials in transit. The cost of finished goods and work in progress comprises raw materials, direct labor, other direct costs and related production overheads (based on normal operating capacity). It excludes costs of idle plant and abnormal waste. Net realizable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses.
The Company regularly estimates the changes in future customer demand in the products that may cause a significant change in the valuation allowance and recognizes the valuation allowance if there is any case such as excess, obsolescence and decline in market value. Loss on valuation of inventories is recorded as cost of sales.
2.9 Property, Plant and Equipment
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Historical cost includes expenditures that are directly attributable to the acquisition. Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the cost will flow to the Company and the cost can be measured reliably. The carrying amounts of the replaced parts are derecognized and the repairs and maintenance expenses are recognized in profit or loss in the period they are incurred.
Depreciation on tangible assets is calculated using the straight-line method to allocate the difference between their cost and their residual values over their estimated useful lives. Land is not depreciated. Costs that are directly attributable to the acquisition, construction or production of a qualifying asset, including capitalized interest costs, form part of the cost of that asset and are amortized over the estimated useful lives.
The Company's policy is that property, plant and equipment should be depreciated over the following estimated useful lives:
Buildings and structures Machinery and equipment Other
Estimated useful lives 15, 30 years 5 years 5 years
The depreciation method, residual values and useful lives of property, plant and equipment are reviewed, and adjusted if appropriate, at the end of each reporting period. An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized in the separate statements of profit or loss as `other non-operating income' or `other non-operating expenses'.
2.10 Borrowing Costs
General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized during the period of time that is required to complete and prepare the asset for its intended use. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization. Other borrowing costs are expensed in the period in which they are incurred.
Samsung Electronics Business Report
158 / 413
2.11 Intangible Assets
Goodwill represents the excess of the cost of acquisition over the fair value of the Company's share of the net identifiable assets of the acquired subsidiaries, associates, joint ventures and businesses at the date of acquisition. Goodwill on an acquisition of businesses is included in intangible assets and goodwill on an acquisition of subsidiaries, associates and joint ventures' shares is included in the investments in subsidiaries, associates and joint ventures.
Intangible assets, except for goodwill, are initially recognized at their historical cost and carried at cost less accumulated amortization and accumulated impairment losses.
Internally generated development costs are the aggregate costs recognized after meeting the asset recognition criteria, including technical feasibility, and determined to have future economic benefits. Membership rights and certain trademarks are regarded as intangible assets with an indefinite useful life and not amortized because there is no foreseeable limit to the period over which the assets are expected to be utilized. However, the Company records impairment based on its reasonable estimation of the benefits associated with the membership rights and assessment of impairment indicators, such as a decline in the market value. Intangible assets with definite useful lives such as trademarks, licenses, and other intangible assets, are amortized using the straight-line method over their estimated useful lives.
The Company's policy is that intangible assets should be amortized over the following estimated useful lives:
Development costs Trademarks, licenses and other intangible assets
Estimated useful lives 2 years
5 - 10 years
2.12 Impairment of Non-Financial Assets
Goodwill or intangible assets with indefinite useful lives are not subject to amortization and are tested annually for impairment. Assets that are subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest level for which there are separately identifiable cash flows (cash-generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.
2.13 Assets Held-for-Sale (Disposal Group)
Non-current assets (or disposal groups) are classified as assets held-for-sale when their carrying amount is to be recovered principally through a sale transaction and the sale is considered highly probable. The assets are measured at the lower of carrying amount and the fair value less costs to sell. Gain or loss on disposal is determined by comparing the proceeds with the carrying amount of relevant assets, and is recognized in the statements of profit or loss as `other non-operating income' or `other non-operating expenses'.
Samsung Electronics Business Report
159 / 413
2.14 Financial Liabilities
(A) Classification and measurement
The Company shall classify all financial liabilities as financial liabilities measured subsequently at amortized cost, except for the following:
- Financial liabilities at fair value through profit or loss. Such liabilities, including derivatives that are liabilities, shall be subsequently measured at fair value.
- Financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when the continuing involvement approach applies. Such financial liabilities are measured based on the methodology described in Note 2.6 Financial Assets.
- Financial guarantee contracts. After the initial recognition, an issuer of such a contract shall subsequently measure it at the higher of: (a) The amount of the loss allowance determined based on the expected credit losses. (b) The amount initially recognized less the cumulative amount of income recognized in accordance with the principles of Korean IFRS 1115 Revenue from Contracts with Customers, when appropriate.
- Commitments to provide loan at below-market interest rate. An issuer of such a commitment shall subsequently measure it at the higher of: (a) The amount of the loss allowance determined based on the expected credit losses. (b) The amount initially recognized less the cumulative amount of income recognized in accordance with the principles of Korean IFRS 1115 Revenue from Contracts with Customers, when appropriate.
- Contingent consideration recognized by an acquirer in a business combination to which Korean IFRS 1103 Business Combinations applies. Such contingent consideration shall subsequently be measured at fair value with changes recognized in profit or loss.
(B) Derecognition
Financial liabilities are removed from the separate statements of financial position when it is extinguished; for example, when the obligation specified in the contract is discharged or cancelled or expired or when the terms of an existing financial liability are substantially modified. The difference between the carrying amount of a financial liability extinguished or transferred to another party and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.
2.15 Trade Payables
Trade payables are amounts due to suppliers for inventories purchased or services received in the ordinary course of business. If payment is expected to be made within 12 months, they are classified as current liabilities. If not, they are presented as non-current liabilities. Non-current trade payables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method.
2.16 Borrowings
Borrowings are recognized initially at fair value, net of transaction costs, and are subsequently measured at amortized cost. Any difference between cost and the redemption value is recognized in the separate statement of profit or loss over the period of the borrowings using the effective interest method. If the Company has an indefinite right to defer payment for a period longer than 12 months after the end of the reporting date, such liabilities are recorded as non-current liabilities, otherwise, they are recorded as current liabilities.
Samsung Electronics Business Report
160 / 413
2.17 Provisions and Contingent Liabilities
A provision is recognized when the Company has present legal or constructive obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. Provisions are not recognized for future operating losses.
Provisions are measured at present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects the current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognized as interest expense.
The Company discloses a contingent liability if there is a possible obligation from past events in which the existence may only be identified through the occurrence of uncertain future events; or there is a present obligation that the possibility on the outflow of economic resources is uncertain; or the amount of economic resources required to settle the present obligation cannot be reasonably estimated.
2.18 Employee Benefits
The Company has a variety of retirement pension plans including a defined benefit plan and a defined contribution plan.
A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate fund. The Company has no legal or constructive obligation to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service received in the current and prior periods. For a defined contribution plans, the Company pays contributions to annuity plans that are managed either publicly or privately on a mandatory, contractual or voluntary basis. The Company has no further future payment obligations once the contributions have been paid. The contributions are recognized as employee benefit expense when they are due. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payments is available.
A defined benefit plan is a pension plan that is not a defined contribution plan. Typically, a defined benefit plan establishes an amount of pension benefit that an employee will receive upon retirement, usually dependent on one or more factors such as age, years of service and compensation. The liability (asset) recognized in the separate statements of financial position with respect to the defined benefit pension plan is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using the interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid and that have the terms to maturity approximating to the terms of the related pension obligation.
Actuarial gains and losses resulting from the changes in actuarial assumptions, and the differences between the previous actuarial assumptions and what has actually occurred, are recognized in other comprehensive income in the period in which they were incurred. When plan amendments, curtailments and settlements occur, past service costs or gain or loss from settlements are immediately recognized in profit or loss.
Samsung Electronics Business Report
161 / 413
2.19 Financial Guarantee Contract
Financial guarantee contracts are contracts that require the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payments when due.
The liability is initially measured at fair value and then subsequently measured at the higher of the following, and is recognized in the separate statements of financial position within `other financial liabilities':
- the amount determined in accordance with the expected credit loss model and - the amount initially recognized less the cumulative amount of income recognized in accordance with Korean IFRS 1115
Revenue from Contracts with Customers, where appropriate.
2.20 Current and Deferred Tax
The tax expense for the year comprises current and deferred tax. Current and deferred tax is recognized in profit or loss, except to the extent that it relates to the items recognized in other comprehensive income or directly in equity. The tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period.
Deferred tax is recognized for temporary differences arising between the tax bases of assets and liabilities and their carrying amounts as expected tax consequences at the recovery or settlement of the carrying amounts of those assets and liabilities. However, deferred tax assets and liabilities are not recognized if they arise from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither the accounting nor taxable profit. Deferred tax assets are recognized only to the extent that it is probable that a future taxable profit will be available against which the temporary differences can be utilized.
A deferred tax liability is recognized for taxable temporary differences associated with investments in subsidiaries, associates, and interests in joint ventures, except to the extent that the Company is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. In addition, a deferred tax asset is recognized for deductible temporary differences arising from such investments to the extent that it is probable the temporary difference will reverse in the foreseeable future and taxable profit will be available against which the temporary difference can be utilized.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset the current tax assets against the current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities with an intention to settle the balances on a net basis.
2.21 Derivative Instruments
The Company initially recognizes rights and obligations from derivative contracts as assets and liabilities at fair value. Gain or loss arising from these contracts are recognized in profit or loss. Qualified hedged amount from cash flow hedge and hedge of a net investment in a foreign operation is deferred in equity.
The Company applies cash flow hedge accounting to hedge the price risk associated with inventory purchase and other. The effective portion of changes in fair value of derivatives that are designated and qualify as cash flow hedges is recognized in other comprehensive income, and the ineffective portion is recognized in financial income or expenses.
2.22 Dividend
Dividend is recognized as a liability when approved by the Company's shareholders.
Samsung Electronics Business Report
162 / 413
2.23 Share Capital
Ordinary shares and preference shares with no repayment obligations are classified as equity. When the Company acquires its ordinary shares, the acquisition costs, including direct transaction costs, are deducted from equity until the redemption or reissuance as treasury shares. Consideration received on the reissuance of treasury shares is credited to equity attributable to owners of the parent company.
2.24 Revenue Recognition
Revenue mainly comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the Company's activities. Revenue is shown net of value-added tax, returns, sales incentives and discounts and after eliminating intercompany transactions.
The Company applied Korean IFRS 1115 Revenue from Contracts with Customers to the annual period beginning January 1, 2018. The Company shall recognize revenue in accordance with Korean IFRS 1115 Revenue from Contracts with Customers by applying the following 5 steps: Identify the contracts with the customers, Identify the separate performance obligations, Determine the transaction price of the contract, Allocate the transaction price to each of the separate performance obligations, and Recognize the revenue as each performance obligation is satisfied.
(A) Identification of performance obligations
The Company exports various products and merchandise in accordance with Incoterms Group C trading conditions (Incoterms CIF, and other). Since the seller provides the shipping service after the control of the product or merchandise has been transferred to the customer, the shipping service (including insurance) is recognized as a separate performance obligation.
(B) Performance obligations satisfied over time
The Company delivers products to customers and installs them in accordance with the system air conditioner contracts awarded by the Public Procurement Service. According to Korean IFRS 1115 Revenue from Contracts with Customers, the Company should recognize revenue over time if the Company creates or enhances an asset (for example, work in progress) that the customer controls as the asset is created or enhanced. The Company recognizes the revenue from system air conditioner installation over time as the customer controls the outcome of the service.
(C) Variable consideration
The Company estimates amount of variable consideration by using the `expected value method' or the `most likely amount method', depending on which method the Company expects to better predict the amount of consideration. The Company recognizes revenue only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur, and classifies the amount which the Company does not expect to be entitled as contract liabilities.
The Company measures refund liability at the amount of consideration received for which the Company does not expect to be entitled. The Company has a right to recover the product from the customer when the customer exercises his right of return and recognizes an asset and a corresponding adjustment to cost of sales. The asset is measured with reference to the former carrying amount of the product less the costs to recover the products.
Samsung Electronics Business Report
163 / 413
(D) Allocation of the transaction price
The transaction price in an arrangement must be allocated to each separate performance obligation based on the relative standalone selling prices of the goods or services being provided to a customer. The Company determines the standalone selling price for each separate performance obligation by using methods such as the `adjusted market assessment approach'.
2.25 Leases
A lease is a contract, whereby the lessor conveys to the lessee, the right to control the use of an identified asset for a period of time in exchange for consideration.
At inception of a contract, the Company assesses whether the contract is, or contains, a lease. However, the Company did not reassess all contracts at initial application of Korean IFRS 1116 Leases because the Company applied the practical expedient to contracts entered into before January 1, 2019.
For a contract that is, or contains, a lease, both lessee and lessor account for each lease component within the contract as a lease separately from the non-lease components of the contract. In lessee accounting, however, the Company does not account for them separately but instead applies the practical expedient to account for each lease component and any associated non-lease components as a single lease component.
(A) Lessee accounting
The Company recognizes a right-of-use asset representing its right to use the underlying leased asset and a lease liability representing its obligation to make lease payments at the commencement date of the lease.
The right-of-use asset is initially measured at cost and subsequently measured at cost less accumulated depreciation and accumulated impairment losses, adjusted for the remeasurement of lease liability. The right-of-use asset is depreciated over the shorter of the asset's useful life and the lease term from the commencement date of the lease and is classified as `property, plant and equipment' in the separate financial statements.
At the commencement date, the lease liability is measured at the present value of the lease payments that are not paid at that date. When measuring the present value, the lease payments are discounted using the interest rate implicit in the lease. If such implicit rate cannot be readily determined, the Company uses the Company's incremental borrowing rate. The lease liability is subsequently increased by the amount of interest expenses recognized on the lease liability and reduced by the lease payments made. Lease liabilities are remeasured when the future lease payments are changed due to the following:
Changes in an index or rate Changes in amounts expected to be payable by the lessee under the residual value guarantee Changes in the assessment of whether a purchase option or an option to renew is reasonably certain to be exercised, or Changes in the assessment of whether it is reasonably certain that an option to terminate the lease will not be exercised.
Lease liabilities are classified as `current portion of long-term liabilities' and/or `long-term borrowings' in the separate financial statements.
The Company elected the practical expedient for short-term leases (leases that have a lease term of 12 months or less at the commencement date) and leases of low-value assets (leases for which the underlying asset is valued at USD 5,000 or less), and the lease payments are recognized as an expense on a straight-line basis over the lease term.
Samsung Electronics Business Report
164 / 413
(B) Lessor accounting
The accounting treatment as a lessor did not change significantly from the accounting treatment applied before the initial application of the Korean IFRS 1116 Leases on January 1, 2019.
The Company classifies a lease as a finance lease if it transfers substantially all the risks and rewards incidental to ownership at the inception of the lease. A lease other than a finance lease is classified as an operating lease. Lease income from operating leases is recognized in income on a straight-line basis over the lease term. Initial direct costs incurred by the lessor in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognized as an expense over the lease term on the same basis as the lease income.
2.26 Government Grants
Government grants are recognized at their fair values when there is reasonable assurance that the grant will be received and the Company will comply with the conditions attached to it. Government grants relating to costs are deferred and recognized in the separate statements of profit or loss over the period necessary to match the costs they are intended to compensate. Government grants relating to assets are recognized in liabilities as deferred income government grants, and are depreciated over the expected lives of the related assets, and credited to the statements of profit or loss.
2.27 Earnings per Share
Basic earnings per share is calculated by dividing the net profit for the period available to the ordinary shareholders by the weightedaverage number of ordinary shares outstanding during the year.
Diluted earnings per share is calculated by dividing the profit for the year attributable to the Company from the separate statements of profit or loss by the weighted-average number of ordinary shares outstanding and potential dilutive shares. Potential dilutive shares are used in the calculation of dilutive earnings per share only when they have dilutive effects.
2.28 Reportable Segments
Reportable segments are disclosed in a manner consistent with the reporting provided to the chief operating decision-maker. The chief operating decision-maker is responsible for making strategic decisions on resource allocation and assessing performance of the reportable segments. The Management Committee, which makes strategic decisions, is regarded as the chief operating decision-maker.
2.29 Convenience Translation into United States Dollar Amounts
The Company operates primarily in Korean won and its official accounting records are maintained in Korean won. The US dollar amounts provided in the separate financial statements represent a supplementary information solely for the convenience of the reader. All Korean won amounts are expressed in U.S. dollar at the rate of W 1,291.2 to USD 1, the average exchange rate for the year ended December 31, 2022. Such presentation is not in accordance with generally accepted accounting principles, and should not be construed as a representation that the Korean won amounts shown could be readily converted, realized or settled in US dollar at this or at any other rate.
2.30 Approval of the Separate Financial Statements
These separate financial statements were approved by the Board of Directors on January 31, 2023, and may be modified and approved at the Annual General Shareholders' Meetings.
Samsung Electronics Business Report
165 / 413
3. Critical Accounting Estimates and Assumptions
The Company makes estimates and assumptions concerning the future. The estimates and assumptions are continuously assessed, considering historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The resulting accounting estimates will, by definition, seldom equal the related actual results. In particular, the spread of COVID-19 since 2020 may result in changes to the Company's assumptions and estimates but its potential financial impact cannot be reasonably estimated as of the reporting date.
The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
(A) Revenue recognition
A refund liability and a right to the returned goods are recognized for the products expected to be returned at the time of sale. Accumulative experience is used to estimate such returns at the time of sale at a portfolio level (through expected value method), and the Company's revenue is affected by the changes in expected return rate.
Sales of goods are recognized based on the considerations specified in the contract, net of sales incentives, when control of the products has transferred. The sales deduction, which affects the Company's revenue, is reasonably estimated based on the historical experience and past contracts.
(B) Provision for warranty
The Company recognizes provision for warranty on products sold. The Company accrues provision for warranty based on the best estimate of amounts necessary to settle future and existing claims at the end of each reporting period. The amounts are estimated based on the past experience.
(C) Fair value of financial instruments
The fair value of financial instruments that are not traded in an active market is determined by using a variety of methods and assumptions that are mainly based on market conditions existing at the end of each reporting period.
(D) Impairment of financial assets
The loss allowance for financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation based on the Company's past history, existing market conditions as well as forward looking estimates at the end of each reporting period.
(E) Lease
In determining the lease term, the Company considers all facts and circumstances that create an economic incentive to exercise an extension option, or not to exercise a termination option. Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated).
The lease term is reassessed if an option is actually exercised (or not exercised) or the Company becomes obliged to exercise (or not exercise) it. The Company reassesses whether it is reasonably certain to exercise an extension option (or not to exercise such option), upon the occurrence of either a significant event or a significant change in circumstances that is within the control of the lessee.
Samsung Electronics Business Report
166 / 413
(F) Net defined benefit liabilities (assets)
The net defined benefit liabilities (assets) depend on a number of factors that are determined on an actuarial basis using a number of assumptions including the discount rate. Any changes in these assumptions will impact the carrying amount of the net defined benefit liability. The Company, in consideration of the interest rates of high-quality corporate bonds, determines the appropriate discount rate at the end of each year. This is the interest rate that is used to determine the present value of the estimated future cash outflows expected to be required to settle the net defined benefit liabilities (assets). The principal actuarial assumptions associated with the net defined benefit liabilities (assets) are based on the current market expectations.
(G) Impairment of goodwill and intangible assets that have an indefinite useful life
At the end of each reporting period, the Company tests whether goodwill and intangible assets that have an indefinite useful life have become impaired by comparing the carrying amounts of assets or cash-generating units to the recoverable amounts. The recoverable amounts of assets or cash-generating units have been determined based on the value-in-use calculations, and these calculations are based on estimates.
(H) Income taxes
Income taxes on the Company's taxable income from operating activities are subject to various tax laws and determinations of each tax authority across various countries throughout the world. There is uncertainty in determining the eventual tax effects on the taxable income from operating activities. The Company has recognized current tax and deferred tax at the end of the fiscal year based on the best estimate of future taxes payable as a result of operating activities. However, the resulting deferred income tax assets and liabilities may not equal the actual future taxes payable and such difference may impact the current tax and deferred income tax assets and liabilities upon the determination of eventual tax effects.
Regarding taxes payable in Korea, if a certain portion of taxable income is not used for investments or for increases in wages or dividends, in accordance with the Tax System for Recirculation of Corporate Income, the Company is liable to pay additional income tax calculated based on the Korean tax law. The current and deferred taxes at the end of the fiscal year are based on the best estimate of future taxes payable, which can differ from the actual future taxes payable as a result of changes in investments, wages and dividends; this results in an additional uncertainty in measuring the final tax effects.
The Company assesses uncertainty over a tax treatment. When the Company concludes it is not probable that the taxation authority will accept an uncertain tax treatment, the Company will reflect the effect of uncertainty for each uncertain tax treatment by using either of the following methods, depending on which method the Company expects to better predict the resolution of the uncertainty:
- The most likely amount: the single most likely amount in a range of possible outcomes. - The expected value: the sum of the probability-weighted amounts in a range of possible outcomes.
Samsung Electronics Business Report
167 / 413
4. Financial Instruments by Category
(A) Categorizations of financial assets and liabilities as of December 31, 2022 and December 31, 2021 are as follows:
(1) As of December 31, 2022
(In millions of Korean won)
Financial assets measured at amortized cost
Financial assets measured at fair
value through other
comprehensive income
Financial assets measured at fair
value through profit or loss
Total
Financial assets
Cash and cash equivalents
Short-term financial instruments
Trade receivables Financial assets at fair value through other comprehensive income Financial assets at fair value through profit or loss Other
Total
3,921,593 137
20,503,223
5,470,355 29,895,308
-
1,364,325 -
1,364,325
-
3,921,593
-
137
-
20,503,223
-
1,364,325
283
283
-
5,470,355
283
31,259,916
(In millions of Korean won)
Financial liabilities measured at amortized
cost
Other financial liabilities1
Financial liabilities Trade payables Short-term borrowings Other payables Current portion of long-term liabilities Debentures Long-term borrowings Long-term other payables Other Total
8,729,315 -
18,324,604 6,228 24,912 -
2,083,790 3,145,473 32,314,322
2,381,512
129,525
654,979
3,166,016
1 Other financial liabilities include collateralized borrowings and lease liabilities which are not subject to categorizations.
Total
8,729,315 2,381,512 18,324,604
135,753 24,912 654,979 2,083,790 3,145,473 35,480,338
Samsung Electronics Business Report
168 / 413
(2) As of December 31, 2021
(In millions of Korean won)
Financial assets measured at amortized cost
Financial assets measured at fair
value through other
comprehensive income
Financial assets measured at fair
value through profit or loss
Total
Financial assets
Cash and cash equivalents
Short-term financial instruments
Trade receivables Financial assets at fair value through other comprehensive income Financial assets at fair value through profit or loss Other
Total
3,918,872 15,000,576 33,088,247
5,076,418 57,084,113
-
1,662,532 -
1,662,532
-
2,135
2,135
3,918,872 15,000,576 33,088,247
1,662,532 2,135
5,076,418 58,748,780
(In millions of Korean won)
Financial liabilities measured at amortized cost
Other financial liabilities1
Total
Financial liabilities Trade payables Short-term borrowings Other payables Current portion of long-term liabilities Debentures Long-term borrowings Long-term other payables Others Total
11,557,441 -
12,948,960 5,810 29,048 -
2,335,218 3,056,156 29,932,633
9,204,268
133,518
431,915
9,769,701
11,557,441 9,204,268 12,948,960
139,328 29,048 431,915 2,335,218 3,056,156 39,702,334
1 Other financial liabilities include collateralized borrowings and lease liabilities which are not subject to categorizations.
Samsung Electronics Business Report
169 / 413
(B) Net gains or net losses on each category of financial assets and liabilities for the years ended December 31, 2022 and 2021 are as follows:
(1) For the year ended December 31, 2022
(In millions of Korean won)
Financial assets measured at amortized cost
Financial assets
Financial assets
measured at fair value measured at fair
through other
value through profit
comprehensive income
or loss
Total
Financial assets
Gain (loss) on valuation (other comprehensive income)
Gain on valuation/disposal (profit or loss)
Interest income Foreign exchange differences
(profit or loss) Dividend income
Impairment/reversal (profit or loss)
-
339,242
(668,955) -
(2,130)
(208,883)
-
3,594
-
-
271,057 -
-
(208,883)
271,057 339,242
(668,955) 3,594
(2,130)
(In millions of Korean won)
Financial liabilities measured
at amortized cost
Other financial liabilities1
Financial liabilities Interest expense Foreign exchange differences (profit or loss)
(45,883) 477,397
(244,200) 132,902
1 Other financial liabilities include collateralized borrowings, lease liabilities which are not subject to categorizations.
Total
(290,083) 610,299
Samsung Electronics Business Report
170 / 413
(2) For the year ended December 31, 2021
(In millions of Korean won)
Financial assets measured at amortized cost
Financial assets
measured at fair value
through other
Financial assets
comprehensive measured at fair value
income
through profit or loss
Financial assets
Gain (loss) on valuation (other comprehensive income)
Gain on valuation/disposal (profit or loss)
Interest income Foreign exchange differences
(profit or loss) Dividend income
Impairment/reversal (profit or loss)
-
260,396
69,874 -
(17,144)
(99,916)
-
3,118
-
-
14,003 -
593
-
(In millions of Korean won)
Financial liabilities measured
at amortized cost
Other financial liabilities1
Financial liabilities Interest expense Foreign exchange differences (profit or loss)
(49,982) 317,176
(100,002) (21,167)
1 Other financial liabilities include collateralized borrowings, lease liabilities which are not subject to categorizations.
Total
(99,916) 14,003
260,396 69,874 3,711
(17,144)
Total
(149,984) 296,009
5. Transfer of Financial Assets
Trade receivables of the Company have been discounted through factoring agreements with banks during the years ended December 31, 2022 and 2021. Trade receivables provided as collaterals in such factoring transactions do not meet the requirements for asset derecognition as risks and rewards are not substantially transferred in the event of a debtor default due to the recourse obligation, etc. Financial liabilities recognized in relation to these transactions are included as `short-term borrowings' on the separate statements of financial position (refer to Note 12).
The following table presents a breakdown of discounted trade receivables as of December 31, 2022 and 2021:
(In millions of Korean won)
Carrying amount of the discounted trade receivables Carrying amount of the related borrowings
December 31, 2022
2,381,512 2,381,512
December 31, 2021
9,204,268 9,204,268
Samsung Electronics Business Report
171 / 413
6. Financial Assets at Fair Value
(A) Details of financial assets at fair value as of December 31, 2022 and December 31, 2021 are as follows: (1) Financial assets at fair value through other comprehensive income
(In millions of Korean won)
December 31, 2022
December 31, 2021
Equity instruments
1,364,325
(2) Financial assets at fair value through profit or loss
(In millions of Korean won)
December 31, 2022
1,662,532 December 31, 2021
Debt instruments
283
2,135
(B) Changes in financial assets at fair value for the years ended December 31, 2022 and 2021 are as follows: (1) Financial assets at fair value through other comprehensive income
(In millions of Korean won)
2022
2021
Balance as of January 1 Acquisition Disposal Fair value valuation loss Other Balance as of December 31
(2) Financial assets at fair value through profit or loss
1,662,532 -
(10,976) (285,585)
(1,646) 1,364,325
1,539,659 260,642 -
(137,815) 46
1,662,532
(In millions of Korean won)
2022
2021
Balance as of January 1 Disposal Other Balance as of December 31
2,135 (1,744)
(108) 283
3,107 (912) (60) 2,135
Samsung Electronics Business Report
172 / 413
(C) Changes in gain (loss) on valuation of financial assets at fair value through other comprehensive income for the years ended December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
2022
2021
Balance as of January 1 Fair value valuation loss Reclassification to retained earnings due to disposal Balance as of December 31 Income tax effects on equity Total
124,937 (285,585)
(5,987) (166,635)
43,991 (122,644)
262,752 (137,815)
124,937 (34,358)
90,579
(D) Details of listed equity securities of financial assets at fair value as of December 31, 2022 and 2021 are as follows:
(In millions of Korean won, number of shares and percentage)
Number of shares owned
December 31, 2022
Percentage of ownership1 (%) Acquisition cost
Carrying amount (Market value)
December 31, 2021 Carrying amount
(Market value)
Samsung Heavy Industries Hotel Shilla iMarket Korea Skylife Yongpyong Resort A-Tech Solution Wonik Holdings Wonik IPS Dongjin Semichem Soulbrain Holdings Soulbrain S&S Tech YIK Corp Kctech Lotvacuum Newpower Fine Semitech DNF Marvell SoundHound Total
134,027,281
15.2
2,004,717
5.1
647,320
1.9
240,000
0.5
400,000
0.8
1,592,000
15.9
1,759,171
2.3
1,850,936
3.8
2,467,894
4.8
461,741
2.2
373,368
4.8
1,716,116
8.0
9,601,617
11.7
1,022,216
4.9
1,267,668
7.1
2,140,939
4.9
1,522,975
7.0
810,030
7.0
173,187
0.0
1,702,957
0.9
932,158 13,957
324 3,344 1,869 26,348 15,410 16,214 48,277 30,752 24,866 65,933 47,336 20,720 18,990 12,739 43,009 20,964 11,705 13,719 1,368,634
1 Ownership represents the Company's ownership of the total ordinary shares issued by each entity.
684,879 166,592
6,538 1,954 1,412 12,879 5,972 45,811 73,913 10,989 81,357 45,220 26,933 15,129 14,326 7,579 23,758 10,692 8,129 3,820 1,247,882
759,935 156,368
6,926 2,194 1,958 26,188 8,761 78,295 125,863 15,976 103,983 63,153 59,530 24,584 21,805 13,723 38,607 18,509 17,962
1,544,320
Samsung Electronics Business Report
173 / 413
7. Trade and Non-Trade Receivables (A) Trade and non-trade receivables as of December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
December 31, 2022
Trade
Non-trade
December 31, 2021
Trade
Non-trade
Receivables Less: Loss allowance Subtotal Less: Non-current portion Current portion
20,720,707 (56,432)
20,664,275 (161,052)
20,503,223
2,945,898 (6,387)
2,939,511 (14,505)
2,925,006
33,353,467 (56,610)
33,296,857 (208,610)
33,088,247
1,855,136 (4,397)
1,850,739 (18,251)
1,832,488
As of December 31, 2022, trade receivables discounted through factoring agreements were accounted for as collateral borrowings and amount of the trade receivables were W 2,381,512 million (as of December 31, 2021, W 9,204,268 million) (refer to Note 12).
(B) Movements in the loss allowance for receivables for the years ended December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
Trade
2022 Non-trade
Trade
2021 Non-trade
Balance as of January 1 Bad debt expense (reversal) Write-off Balance as of December 31
56,610 (178) -
56,432
4,397 1,994
(4) 6,387
37,469 19,235
(94) 56,610
7,014 (1,998)
(619) 4,397
(C) The details of trade and non-trade receivables classified by past due date to measure expected credit losses as of December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
December 31, 2022
Trade
Non-trade
December 31, 2021
Trade
Non-trade
Receivables not past due Past due1:
Less than 31 days overdue 31 days to 90 days overdue Over 90 days overdue Subtotal Total
19,948,076
581,231 89,722 101,678 772,631 20,720,707
2,237,287
651,489 30,611 26,511
708,611 2,945,898
32,986,766
181,986 26,727 157,988 366,701 33,353,467
1,640,450
31,420 17,586 165,680 214,686 1,855,136
1 The Company does not consider trade and non-trade receivables that are overdue for less than or equal to 31 days as impaired.
(D) The maximum exposure to current credit risk is equivalent to the carrying amount of receivables as of December 31, 2022. The Company has in place insurance contracts covering the Company's major receivables.
Samsung Electronics Business Report
174 / 413
8. Inventories Inventories as of December 31, 2022 and 2021 are as follows:
(In millions of Korean won) Finished goods Work in process Raw materials and supplies Materials in transit Total
December 31, 2022
Gross
Valuation
amount
allowance
8,589,879
(956,427)
Carrying amount
7,633,452
16,738,121 (1,216,059) 15,522,062
4,891,951
(492,006)
4,399,945
434,548
-
434,548
30,654,499 (2,664,492) 27,990,007
December 31, 2021
Gross
Valuation
amount
allowance
3,884,713
(366,987)
Carrying amount
3,517,726
9,384,285
(222,291)
9,161,994
3,211,380
(258,464)
2,952,916
340,417
-
340,417
16,820,795
(847,742) 15,973,053
The inventories recognized as expense for the year ended December 31, 2022, amount to W 151,436,315 million (2021: W 135,609,737 million). The amount includes loss on valuation of inventories.
Samsung Electronics Business Report
175 / 413
9. Investments in Subsidiaries, Associates and Joint Ventures
(A) Changes in investments in subsidiaries, associates and joint ventures for the years ended December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
2022
2021
Balance as of January 1 Acquisition Disposal Impairment (reversal) Balance as of December 31
56,225,599 1,272,296 (164,503)
63,857 57,397,249
56,587,548 138,858
(567,693) 66,886
56,225,599
(B) Major investments in associates as of December 31, 2022 are as follows: (refer to Note 30 for list of the Company's subsidiaries)
Investee Samsung ElectroMechanics Co., Ltd.
Samsung SDS Co., Ltd.
Samsung Biologics Co., Ltd.
Nature of relationship with associate Manufacture and supply electronic components including passive components, circuit boards, and modules
Provide IT services including computer programming, system integration and management, and logistical services
New business investment
Percentage of ownership (%)1
23.7
22.6 31.2
Samsung SDI Co., Ltd.2
Manufacture and supply electronic components
19.6
including secondary cell batteries
Cheil Worldwide, Inc.
Advertising agency
25.2
1 Ownership represents the Company's ownership of the total ordinary shares issued by each entity. 2 The Company's ownership of ordinary shares outstanding is 20.6%.
Principal business location
Korea
Korea
Korea Korea Korea
Fiscal period-end December
December December December December
Samsung Electronics Business Report
176 / 413
(C) A summary of the condensed financial information of major subsidiaries and associates as of and for the years ended December 31, 2022 and 2021 is as follows:
(1) Major subsidiaries
(In millions of Korean won)
Assets
2022
Liabilities
Sales
Profit (loss) for the year
Samsung Display Co., Ltd. (SDC)1 Samsung Electronics America, Inc. (SEA)1 Samsung Asia Pte. Ltd. (SAPL)1 Samsung (China) Semiconductor Co., Ltd. (SCS) Samsung (CHINA) Investment Co., Ltd. (SCIC)1 Samsung Electronics Europe Holding Cooperatief U.A. (SEEH)1 Samsung India Electronics Private Ltd. (SIEL)1 Shanghai Samsung Semiconductor Co., Ltd. (SSS)1 Samsung Eletronica da Amazonia Ltda. (SEDA) Thai Samsung Electronics Co., Ltd. (TSE)1 Samsung Electronics (UK) Ltd. (SEUK)1 Samsung Electronics Benelux B.V. (SEBN)1 Samsung Electronics Hungarian Private Co. Ltd. (SEH) Samsung Electronics Europe Logistics B.V. (SELS) SEMES Co., Ltd.1
57,302,567 37,883,156 26,894,611 17,095,000 13,830,988 10,841,515 6,772,537 5,067,891 4,600,508 3,263,473 2,819,792 2,377,730 2,374,317 2,194,975 2,065,558
7,282,718 12,258,315 2,678,285 2,970,835 9,764,636 6,272,800 3,571,863 2,858,382 1,342,517
486,820 1,708,064
597,044 452,628 2,021,491 602,323
30,779,405 46,738,920
9,679,757 2,865,831
16,180,492 21,370,622 7,485,104 4,824,734 5,929,357 2,834,008 3,935,745 15,409,984 2,889,238
4,365,588 219,670
8,699,679 638,385 257,878 57,997 508,510 318,578 (38,490) 168,524 243,396 25,411 199,742 20,347 185,762
1 The above summary of condensed financial information is based on separate financial statements of each subsidiary.
(In millions of Korean won)
Assets
2021
Liabilities
Sales
Profit for the year
Samsung Display Co., Ltd. (SDC)1 Samsung Electronics America, Inc. (SEA)1 Samsung (CHINA) Investment Co., Ltd. (SCIC)1 Samsung (China) Semiconductor Co., Ltd. (SCS)1 Samsung Electronics Europe Holding Cooperatief U.A. (SEEH)1 Samsung Asia Private Ltd. (SAPL)1 Shanghai Samsung Semiconductor Co., Ltd. (SSS)1 Samsung Eletronica da Amazonia Ltda. (SEDA) Samsung India Electronics Private Ltd. (SIEL)1 Thai Samsung Electronics Co., Ltd. (TSE)1 Samsung Electronics (UK) Ltd. (SEUK)1 Samsung Electronics GmbH (SEG) Samsung Electronics Hungarian Private Co., Ltd. (SEH) Samsung Electronics Benelux B.V. (SEBN)1 Samsung Electronics Europe Logistics B.V. (SELS)
54,967,156 42,982,054 13,599,093 19,049,536 14,651,496 14,683,789 7,765,126 4,589,505 7,765,019 3,018,358 2,925,062 2,289,391 2,504,075 2,612,357 2,305,275
9,081,737 19,246,751 9,685,278 5,168,738 8,998,502
58,381 5,799,690 1,671,097 3,236,745
474,223 1,992,367 2,228,650
641,004 766,034 2,144,805
28,755,975 42,325,524 2,615,685 7,341,018
31,326,186 6,020,523 12,222,643 4,443,031 5,621,922 6,385,080 4,357,137 2,569,603 14,700,517
2,770,060 823,914 451,062
1,708,832 24,527
4,668,478 325,397 490,202 522,672 142,191 241,403 2,158 157,616 284,816 13,943
1 The above summary of condensed financial information is based on separate financial statements of each subsidiary.
Samsung Electronics Business Report
177 / 413
(2) Major associates
(In millions of Korean won)
Samsung ElectroMechanics
Samsung SDS
2022
Samsung Biologics
Samsung SDI
Cheil Worldwide
Current assets Non-current assets Current liabilities Non-current liabilities
4,888,319 6,108,852 2,525,123
778,563
8,005,764 3,946,660 2,493,323
992,132
6,457,657 10,124,394 4,181,542 3,416,034
9,651,702 20,605,823 8,006,939 5,033,084
2,193,979 557,466
1,335,643 194,373
Revenue Profit from continuing operations1 Profit or loss from discontinued operation, net of tax1 Other comprehensive income (loss)1 Total comprehensive income1
9,441,276 993,519 (9,601) 983,918
1 Profit (loss) attributable to owners of the parent company.
17,234,750 1,099,745
80,368 1,180,113
3,001,295 798,056 6,995 805,051
20,124,070 1,952,149
(139,877) 1,812,272
4,253,367 193,732 (1,122) 192,610
(In millions of Korean won)
Samsung ElectroMechanics
Samsung SDS
2021
Samsung Biologics
Samsung SDI
Cheil Worldwide
Current assets Non-current assets Current liabilities Non-current liabilities
4,598,269 5,343,105 2,234,657
835,592
7,575,968 2,941,464 2,370,290
703,442
2,823,175 5,146,835 1,107,295 1,871,614
7,444,907 18,388,286 6,461,286 4,175,208
2,018,598 523,513
1,224,222 190,622
Revenue Profit from continuing operations1 Loss from discontinued operation, net of tax1 Other comprehensive income (loss)1 Total comprehensive income1
9,675,036 1,055,411 (162,966)
151,809 1,044,254
1 Profit (loss) attributable to owners of the parent company.
13,630,002 611,171 134,163 745,334
1,568,007 393,589 (1,270) 392,319
13,553,220 1,169,801
623,792 1,793,593
3,325,712 165,485 32,535 198,020
Samsung Electronics Business Report
178 / 413
(D) Fair value of marketable investments in associates as of December 31, 2022 and are 2021 as follows:
(In millions of Korean won and number of shares) Samsung Electro-Mechanics Samsung SDS Samsung Biologics Samsung SDI Cheil Worldwide
Number of shares held
December 31, 2022 Market value
17,693,084
2,308,947
17,472,110
2,149,070
22,217,309
18,240,411
13,462,673
7,956,440
29,038,075
669,328
Carrying amount
445,244 560,827 1,595,892 1,242,605 491,599
December 31, 2021
Market value
Carrying amount
3,494,384
445,244
2,734,385
560,827
18,815,659
443,193
8,818,051
1,242,605
663,520
491,599
Samsung Electronics Business Report
179 / 413
10. Property, Plant and Equipment
(A) Changes in property, plant and equipment for the years ended December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
Land
Buildings and structures
2022
Machinery
and
Construction
equipment
in progress
Other
Total
Balance as of January 1
7,780,994
21,841,816
57,135,313
15,307,502
1,601,400 103,667,025
Acquisition cost
Accumulated depreciation and impairment
Acquisitions and capital expenditures1
Depreciation
7,782,125
(1,131) 154
(439)
33,244,532 175,487,461
(11,402,716) (118,352,148)
3,246,081 (1,827,588)
26,182,600 (21,889,623)
15,307,502
13,481,591
-
4,022,759 235,844,379
(2,421,359) (132,177,354)
1,085,750 (594,290)
43,996,176 (24,311,940)
Disposals/scrap
(27,720)
(20,264)
(137,496)
-
(8,247)
(193,727)
Other
-
6,577
135,746
(20,729)
(12,142)
109,452
Balance as of December 31
7,752,989
23,246,622
61,426,540
28,768,364
2,072,471 123,266,986
Acquisition cost
Accumulated depreciation and impairment
7,754,559 (1,570)
36,449,026 199,823,339 (13,202,404) (138,396,799)
28,768,364 -
4,886,059 277,681,347 (2,813,588) (154,414,361)
1 The capitalized borrowing costs are 40,577 million, and interest rate used to calculate the borrowing costs eligible for capitalization is 4.1%.
(In millions of Korean won)
Land
Buildings and structures
2021
Machinery
and
Construction
equipment
in progress
Other
Total
Balance as of January 1
7,800,435
19,087,134
43,749,609
13,994,259
1,535,487
86,166,924
Acquisition cost
Accumulated depreciation and impairment
Acquisitions and capital expenditures1
Depreciation
7,801,259
(824) 5,295 (406)
28,992,675 146,778,918
(9,905,541) (103,029,309)
4,385,819 (1,614,006)
31,501,402 (18,016,803)
13,994,259
1,339,173
-
3,535,985 201,103,096
(2,000,498) (114,936,172)
607,076 (532,894)
37,838,765 (20,164,109)
Disposals/scrap
(24,319)
(5,104)
(108,737)
-
(5,402)
(143,562)
Other
(11)
(12,027)
9,842
(25,930)
(2,867)
(30,993)
Balance as of December 31
7,780,994
21,841,816
57,135,313
15,307,502
1,601,400 103,667,025
Acquisition cost
Accumulated depreciation and impairment
7,782,125 (1,131)
33,244,532 175,487,461 (11,402,716) (118,352,148)
15,307,502 -
4,022,759 235,844,379 (2,421,359) (132,177,354)
1 The capitalized borrowing costs are 21,911 million, and interest rate used to calculate the borrowing costs eligible for capitalization is 1.1%.
Samsung Electronics Business Report
180 / 413
(B) Changes in the right-of-use assets included in the property, plant and equipment for the years ended December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
Land
Buildings and structures
2022 Machinery and equipment
Other
Total
Balance as of January 1 Acquisition Depreciation Cancellation of contract Other Balance as of December 31
2,279 26
(439) -
1,866
510,528 261,999 (128,754) (1,070)
(3) 642,700
39,038 1,380 (23,276)
4,993 22,135
178,480 410,088 (19,120)
(737) 601
569,312
730,325 673,493 (171,589) (1,807)
5,591 1,236,013
(In millions of Korean won)
Balance as of January 1 Acquisition Depreciation Disposals/scrap Other Balance as of December 31
Land
Buildings and structures
2021 Machinery and equipment
2,593 91
(405) -
2,279
144,615 446,071 (80,085)
(28) (45) 510,528
70,429 4,674 (36,065)
39,038
Other
188,236 992
(9,617) (1,131)
178,480
Total
405,873 451,828 (126,172) (1,159)
(45) 730,325
(C) Details of depreciation of property, plant and equipment for the years ended December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
2022
2021
Cost of sales Selling and administrative expenses and other Total
22,486,452 1,825,488 24,311,940
18,479,655 1,684,454 20,164,109
Samsung Electronics Business Report
181 / 413
11. Intangible Assets
(A) Changes in intangible assets for the years ended December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
Intellectual Development
property rights
cost
2022 Membership
Other
Balance as of January 1 External acquisitions Internally generated/ developed Amortization Disposals/scrap Impairment Other Balance as of December 31
1,226,241 232,768 -
(217,808) (47,915) -
1,193,286
236,910 -
(151,892) -
85,018
195,135 5,795 (197) (863) -
199,870
6,999,170 2,315,598
(2,235,367)
3,849 7,083,250
(In millions of Korean won)
Intellectual Development
property rights
cost
2021 Membership
Other
Balance as of January 1 External acquisitions Internally generated/ developed Amortization Disposals/scrap Impairment Other Balance as of December 31
1,195,319 286,963 -
(218,754) (42,031)
4,744 1,226,241
371,392 -
193,708 (321,608)
(6,582) 236,910
194,277 4,329 -
(3,471) -
195,135
5,241,660 3,610,518
(1,851,408)
(557) -
(1,043) 6,999,170
Total
8,657,456 2,554,161
(2,605,067)
(48,112) (863) 3,849
8,561,424
Total
7,002,648 3,901,810
193,708 (2,391,770)
(42,588) (3,471) (2,881) 8,657,456
(B) Details of amortization of intangible assets for the years ended December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
2022
2021
Cost of sales Selling and administrative expenses and other Total
2,006,928 598,139
2,605,067
1,931,598 460,172
2,391,770
Samsung Electronics Business Report
182 / 413
12. Borrowings
(A) Details of the carrying amounts of borrowings as of December 31, 2022 and December 31, 2021 are as follows:
(In millions of Korean won)
Financial institutions
Interest rate (%) as of Dec 31, 2022 December 31, 2022 December 31, 2021
Short-term borrowings Collateralized borrowings1
Current portion of long-term borrowings Lease liabilities2
Long-term borrowings Lease liabilities2
Woori Bank and other -
0.0~16.7 1.6 1.6
2,381,512 129,525 654,979
9,204,268 133,518 431,915
1 Collateralized borrowings are secured by trade receivables. 2 Interest expenses arising from the lease liabilities for the years ended December 31, 2022 and 2021 amount to W 10,876 million and W
4,939 million, respectively, which were determined using the weighted average incremental borrowing rate. The right-of-use assets are pledged as collateral to lessors in the event of default. Short-term lease payments and low- valued asset lease payments that are not included in measurement of lease liabilities during the years ended December 31, 2022 and 2021 amount to W 63,103 million and W 56,750 million, respectively.
(B) Maturities of lease liabilities outstanding as of December 31, 2022 are as follows:
(In millions of Korean won) Repayment terms
2023 2024 2025 2026 2027 and thereafter Total
Lease liabilities
149,150 151,838 146,916 131,801 303,645 883,350
Samsung Electronics Business Report
183 / 413
13. Debentures (A) Details of the carrying amounts of debentures as of December 31, 2022 and 2021 are as follows:
(In millions of Korean won) US dollar denominated
straight bonds1 Less: Discounts Less: Current Portion Total
Issue date
Due date
Oct 2, 1997 Oct 1, 2027
Interest rate (%) as of Dec 31, 2022
7.7
December 31, 2022 31,683
(USD 25 million) (543)
(6,228) 24,912
December 31, 2021 35,565
(USD 30 million) (707)
(5,810) 29,048
1 US dollar denominated straight bonds are repaid annually for twenty years after a ten-year grace period from the date of issuance. Interest is paid semi-annually.
(B) Maturities of debentures outstanding as of December 31, 2022 are as follows:
(In millions of Korean won) Repayment terms
2023 2024 2025 2026 2027 and thereafter Total
Debentures
6,337 6,337 6,337 6,337 6,335 31,683
Samsung Electronics Business Report
184 / 413
14. Net Defined Benefit Liabilities (Assets)
(A) Details of net defined benefit liabilities (assets) recognized in the statements of financial position as of December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
December 31, 2022
December 31, 2021
Present value of funded defined benefit obligations Present value of unfunded defined benefit obligations Subtotal Fair value of plan assets Total
10,729,126 29,546
10,758,672 (15,168,895) (4,410,223)
11,155,187 18,449
11,173,636 (13,497,927) (2,324,291)
(B) The components of defined benefit costs recognized in profit or loss for the years ended December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
2022
2021
Current service cost Net interest income Total
1,030,033 (91,902) 938,131
907,450 (40,104) 867,346
(C) The expenses related to the defined benefit plans recognized in the statements of profit or loss for the years ended December 31, 2022 and 2021 are as follows :
(In millions of Korean won)
2022
2021
Cost of sales Selling and administrative expenses and other Total
373,835 564,296 938,131
(D) Changes in the defined benefit obligations for the years ended December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
2022
2021
341,934 525,412 867,346
Balance as of January 1 Current service cost Interest cost Remeasurement:
Actuarial gains or losses arising from changes in demographic assumptions
Actuarial gains or losses arising from changes in financial assumptions
Other Benefits paid Other
Balance as of December 31
11,173,636 1,030,033
401,973
-
(1,779,803) 356,672
(455,787) 31,948
10,758,672
9,754,082 907,450 296,029
-
150,624 429,051 (374,416) 10,816 11,173,636
Samsung Electronics Business Report
185 / 413
(E) Changes in the fair value of plan assets for the years ended December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
2022
2021
Balance as of January 1 Interest income on plan assets Remeasurement of plan assets Contributions by employer Benefits paid Other Balance as of December 31
13,497,927 493,875
(249,943) 1,757,800 (355,311)
24,547 15,168,895
10,916,538 336,133
(128,336) 2,640,100 (276,733)
10,225 13,497,927
Expected contributions to post-employment benefit plans to be paid in 2023 as of December 31, 2022 are W 1,451,728 million.
(F) As of December 31, 2022, plan assets are invested in principal guaranteed fixed income financial instruments and others. (G) The principal actuarial assumptions as of December 31, 2022 and 2021 are as follows:
(In percentage)
December 31, 2022
December 31, 2021
Discount rate Salary growth rate (including the effects of inflation)
6.1
3.8
5.8
5.3
(H) The sensitivity analysis of the defined benefit obligations as of December 31, 2022 and 2021 to changes in the weighted principal assumptions is as follows:
(In percentage)
December 31, 2022
December 31, 2021
Discount rate 1%p increase 1%p decrease
Salary growth rate 1%p increase 1%p decrease
92
91
109
110
109
110
92
91
(I) The weighted average maturity of the defined benefit obligations is 8.1 years as of December 31, 2022.
Samsung Electronics Business Report
186 / 413
15. Provisions Changes in provisions for the year ended December 31, 2022 are as follows:
(In millions of Korean won)
Warranty (A)
Royalty expenses (B)
Long-term incentives (C)
Other (D, E)
Total
Balance as of January 1 Charged to profit or loss Payment Other Balance as of December 31
386,713 764,209 (563,257)
587,665
1,496,525 590,483
(608,120) 67,718
1,546,606
558,982 184,480 (194,281)
549,181
2,861,407 865,232
(964,082) 36,647
2,799,204
5,303,627 2,404,404 (2,329,740)
104,365 5,482,656
(A) The Company accrues warranty reserves for estimated costs of quality assurance, exchanges, repairs, recalls, and future services based on historical experience and terms of warranty programs.
(B) The Company recognizes provisions for the estimated royalty expenses that are under negotiation with counterparties. The timing and amount of payment depend on the settlement of the negotiation.
(C) The Company has a long-term incentive plan for its executives based on a three-year management performance criteria and recognizes a provision for the estimated incentive cost for the accrued period.
(D) The Company records provisions for future expenses expected to be incurred for products that have been discontinued from manufacturing and sales.
Samsung Electronics Business Report
187 / 413
(E) The Company makes provisions for the carrying amounts of emission rights held by the Company and the emission in excess of the emission rights for the applicable years. Details of emission rights and liabilities as of December 31, 2022 are as follows:
(1) The amount of emission rights allocated free of charge in the current commitment period and the estimated amount of emission as of December 31, 2022 are as follows:
(In ten thousand metric tons) Allocated emission rights1 Estimated volume of emission
December 31, 2022 1,147 1,521
1 The quantity of allocated emission right for the remaining planned period is 3,361 ten thousand metric ton (2023: 1,127 ten thousand, 2024: 1,117 ten thousand, 2025: 1,117 ten thousand).
(2) Changes in the emission rights for the years ended December 31, 2022 and 2021 are as follows:
(In millions of Korean won) Balance as of January 1 Acquisition Submission Balance as of December 311
2022 46,073 1,872
(28,378) 19,567
2021
44,865 1,312 (104) 46,073
1 The quantity of emission right is 4,589 ten thousand metric ton and no emission rights is provided as collateral as of December 31, 2022.
(3) Changes in the emission liabilities for the years ended December 31, 2022 and 2021 are as follows:
(In millions of Korean won) Balance as of January 1 Charged to the statement of profit or loss Submission Balance as of December 31
2022 45,049 16,154
(28,378) 32,825
2021
31,777 13,376
(104) 45,049
Samsung Electronics Business Report
188 / 413
16. Commitments and Contingencies
(A) Guarantees
(1) Debt guarantees provided by the Company for overseas subsidiaries as of December 31, 2022 are as follows:
(In millions of Korean won and thousands of US dollars)
Debtor
Creditor
Period
Actual indebtedness
Guaranteed amount
SETK
BNP and others
Dec 16, 2023
303,386
984,692
SEDAM
Citibank and others
Dec 16, 2023
197,405
680,540
SETK-P
BNP and others
Dec 16, 2023
32,506
164,749
SEIL
Citibank
Dec 16, 2023
12,248
19,770
Other
Others
-
-
8,474,399
Total
545,545 USD 430,476
10,324,150 USD 8,146,572
(2) The ceiling amount of guarantees provided by the Company for the execution of contracts by overseas subsidiaries is W 469,262 million as of December 31, 2022.
(3) The Company has not been provided any collateral or guarantees from its related parties as of December 31, 2022.
(B) Litigation
As of December 31, 2022, the Company is involved in various claims, disputes, and investigations conducted by regulatory bodies that arose during the normal course of business with numerous entities. Although the outflow of resources and timing of these matters are uncertain, the Company believes the outcome will not have a material impact on the financial position of the Company.
(C) Joint liabilities related to the divestiture
The Company, Samsung Display Co., Ltd. and others are jointly and severally liable to fulfill the debts of Samsung Display Co., Ltd. and others which relate to the periods prior to Samsung Display Co., Ltd.'s separation from the Company.
(D) Other commitments
(1) As of December 31, 2022, the Company has trade financing agreements, trade notes receivable discounting facilities, and loan facilities with accounts receivable pledged as collateral with 5 financial institutions including Woori Bank, with a combined limit of up to W 10,411,963 million. In addition, the Company has a trade financing agreement (up to USD 8,950 million) with 19 financial institutions including Shinhan Bank, and loan facilities with accounts receivable pledged as collateral related to purchase payments with 4 financial institutions including Industrial Bank of Korea (up to W 415,048 million).
(2) As of December 31, 2022, unfulfilled agreements relating to the acquisition of property, plant and equipment and intangible assets amount to W 7,191,569 million.
Samsung Electronics Business Report
189 / 413
17. Contract Liabilities The Company has recognized contract liabilities related to contracts with customers as follows:
(In millions of Korean won)
December 31, 2022
December 31, 2021
Contract liabilities1
1,133,426
1 Contract liabilities include advances received, accrued expenses, other current liabilities and others.
The revenue recognized during the year ended December 31, 2022 in relation to carried-forward balance of contract liabilities as of January 1, 2022 amounts to W 361,591 million.
1,104,756
18. Share Capital
As of December 31, 2022, the Company's total number of authorized shares is 25,000,000,000 shares (W 100 per share). The Company has issued 5,969,782,550 shares of ordinary shares and 822,886,700 shares of preference shares as of December 31, 2022, excluding the retired shares. As of the December 31, 2022, the number of shares outstanding is the same as the number of shares issued above, and no changes were made to the number of shares outstanding during the years ended December 31, 2022 and 2021. Due to the retirement of shares, the total par value of the shares issued is W 679,267 million (ordinary shares of W 596,978 million and preference shares of W 82,289 million), which does not agree with paid-in capital of W 897,514 million.
Samsung Electronics Business Report
190 / 413
19. Retained Earnings (A) Retained earnings as of December 31, 2022 and 2021 consist of the following:
(In millions of Korean won)
December 31, 2022
December 31, 2021
Appropriated retained earnings Legal reserves:
Earned profit reserves1 Discretionary reserves Subtotal Unappropriated retained earnings Total
450,789 185,870,540 186,321,329 18,066,687 204,388,016
450,789 164,709,023 165,159,812 23,614,523 188,774,335
1 The Commercial Code of the Republic of Korea requires the Company to appropriate as a legal reserve, an amount equal to a minimum of 10% of annual cash dividends declared, until the reserve equals 50% of its issued capital stock. As of December 31, 2022, since the Company's profit reserves reached 50% of its capital stock, the Company has no obligation for additional reserves.
Samsung Electronics Business Report
191 / 413
(B) Separate statements of appropriation of retained earnings for the years ended December 31, 2022 and 2021 are as follows:
The appropriation of retained earnings for the year ended December 31, 2022, is expected to be appropriated at the shareholders' meeting. The appropriation date for the year ended December 31, 2021 was March 16, 2022.
(In millions of Korean won)
Retained earnings before appropriations Unappropriated retained earnings carried over from prior year Interim dividends:
In 2022 - W 1,083 (dividend rate: 1083%) In 2021 - W 1,083 (dividend rate: 1083%) Profit for the year Disposal of financial assets measured at fair value through profit or loss Retained earnings available for appropriation
Transfers from other reserves
Appropriations of retained earnings Cash dividends: In 2022:
Ordinary shares - W 361 (dividend rate: 361%) Preference shares - W 362 (dividend rate: 362%) In 2021: Ordinary shares - W 361 (dividend rate: 361%) Preference shares - W 362 (dividend rate: 362%) Reserve for research and human resources development Total appropriations of retained earnings
Unappropriated retained earnings to be carried forward
2022
30 (7,356,461) 25,418,778
4,340 18,066,687
-
2,452,976
2021
30 (7,356,461) 30,970,954
23,614,523
-
2,452,976
15,613,681 18,066,657
30
21,161,517 23,614,493
30
Samsung Electronics Business Report
192 / 413
(C) Details of interim and year-end dividends are as follows: (1) Interim dividends (Record date: March 31, June 30 and September 30, 2022 and 2021)
(In millions of Korean won and number of shares) Number of shares eligible for dividends Dividend rate (based on par value)
1st Quarter Dividend amount
Number of shares eligible for dividends Dividend rate (based on par value) 2nd Quarter Dividend amount
Number of shares eligible for dividends Dividend rate (based on par value) 3rd Quarter Dividend amount
Ordinary shares Preference shares
Ordinary shares Preference shares
Total Ordinary shares Preference shares
Ordinary shares Preference shares
Total Ordinary shares Preference shares
Ordinary shares Preference shares
Total
(2) Year-end dividends (Record date: December 31, 2022 and 2021)
2022 5,969,782,550
822,886,700 361%
2,155,092 297,062
2,452,154 5,969,782,550
822,886,700 361%
2,155,092 297,062
2,452,154 5,969,782,550
822,886,700 361%
2,155,092 297,062
2,452,154
2021 5,969,782,550
822,886,700 361%
2,155,092 297,062
2,452,154 5,969,782,550
822,886,700 361%
2,155,092 297,062
2,452,154 5,969,782,550
822,886,700 361%
2,155,092 297,062
2,452,154
(In millions of Korean won and number of shares) Number of shares eligible for dividends Dividend rate (based on par value)
Dividend amount
Ordinary shares Preference shares Ordinary shares Preference shares Ordinary shares Preference shares
Total
2022 5,969,782,550
822,886,700 361% 362%
2,155,092 297,884
2,452,976
2021 5,969,782,550
822,886,700 361% 362%
2,155,092 297,884
2,452,976
Samsung Electronics Business Report
193 / 413
20. Other Components of Equity Other components of equity as of December 31, 2022 and 2021 are as follows:
(In millions of Korean won) Gain (loss) on valuation of financial assets at fair value
through other comprehensive income Remeasurement of net defined benefit assets Others
Total
December 31, 2022
(122,644) (1,910,996)
1,760,408 (273,232)
December 31, 2021
90,579 (2,732,997)
1,760,408 (882,010)
21. Expenses by Nature Expenses by nature for the years ended December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
2022
Changes in finished goods, work in process, and other Raw materials used, merchandise purchased, and other Wages and salaries Post-employment benefit Depreciation Amortization Welfare Utilities Outsourcing Advertising Sales promotion expenses Other Total1
(10,475,794) 107,383,581 14,861,811
974,711 24,311,940 2,605,067 3,220,421 3,779,467 3,623,225 1,662,135 1,385,835 33,215,755 186,548,154
1 Equal to sum of cost of sales and selling and administrative expenses in the separate statements of profit or loss.
2021
(1,423,122) 90,519,249 14,870,760
898,132 20,164,109 2,391,770 2,630,171 2,903,838 3,106,610 1,945,358 1,066,434 28,678,234 167,751,543
Samsung Electronics Business Report
194 / 413
22. Selling and Administrative Expenses Selling and administrative expenses for the years ended December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
2022
Selling and administrative expenses Wages and salaries Post-employment benefit Commissions Depreciation Amortization Advertising Sales promotion expenses Transportation Service charges Other Subtotal
Research and development expenses Total expenses Capitalized expenses Subtotal
Total
2,308,767 171,358
2,652,491 412,787 361,653
1,662,135 1,385,835
790,774 935,838 2,333,072 13,014,710
20,944,051 -
20,944,051 33,958,761
2021
2,396,978 163,395
2,397,640 396,881 220,616
1,945,358 1,066,434
907,948 1,675,628 1,911,866 13,082,744
19,039,074 (193,708)
18,845,366 31,928,110
Samsung Electronics Business Report
195 / 413
23. Other Non-Operating Income and Expenses Details of other non-operating income and expenses for the years ended December 31, 2022 and 2021 are as follows:
(In millions of Korean won) Other non-operating income
Dividend income Rental income Gain on disposal of property, plant and equipment Other Total
2022
3,952,338 173,719 115,861 334,460
4,576,378
2021
6,560,011 164,197 278,849 355,947
7,359,004
(In millions of Korean won)
Other non-operating expenses Loss on disposal of property, plant and equipment Donations Other
Total
2022
18,842 220,309 57,193 296,344
2021
13,366 195,457 537,155 745,978
Samsung Electronics Business Report
196 / 413
24. Financial Income and Expenses
Details of financial income and expenses for the years ended December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
2022
2021
Financial income Interest income
Interest income from financial assets measured at amortized cost Foreign exchange differences Gain from derivatives Total
339,242 339,242 9,124,484 270,573 9,734,299
260,396 260,396 3,497,401
39,182 3,796,979
(In millions of Korean won)
2022
2021
Financial expenses Interest expenses
Interest expenses from financial liabilities measured at amortized cost Other financial liabilities Foreign exchange differences Losses from derivatives Total
290,083 45,883 244,200 9,351,659
9,641,742
149,984 49,982
100,002 3,485,602
63,089 3,698,675
The Company recognizes foreign exchange gains and losses arising from foreign currency transactions and translation as financial income and expenses.
Samsung Electronics Business Report
197 / 413
25. Income Tax Expense (A) Income tax expense for the years ended December 31, 2022 and 2021 consists of the following:
(In millions of Korean won)
2022
2021
Current taxes Current tax on profits for the year Adjustments recognized in the current year
Subtotal Deferred taxes
Changes in deferred taxes arising from unused tax credits Changes in deferred taxes arising from temporary differences Subtotal Items charged directly to equity Income tax expense
5,926,928 (449,536) 5,477,392
(1,010,632) (193,618)
(1,204,250) -
4,273,142
8,041,604 (321,952) 7,719,652
(332,351) 346,237 13,886 -
7,733,538
(B) The tax on the Company's profit before income tax differs from the theoretical amount that would arise using the tax rate applicable to profits of the Company as follows:
(In millions of Korean won)
2022
2021
Profit before income tax Tax calculated at tax rates applicable to profits1 Adjustments:
Non-taxable income Disallowed expense Tax credits Other Subtotal Income tax expense
1 The statutory tax rate regulated by tax law as of December 31, 2022 and 2021 is applied.
29,691,920 8,165,278
(47,446) 507,992 (4,133,747) (218,935) (3,892,136) 4,273,142
38,704,492 10,643,735
(34,706) 651,517 (3,420,702) (106,306) (2,910,197) 7,733,538
Samsung Electronics Business Report
198 / 413
(C) The movement in deferred income tax assets and liabilities resulting from the tax effect of temporary differences for the years ended December 31, 2022 and 2021 are as follows:
(1) 2022
(In millions of Korean won)
Temporary differences
Balance
Balance
as of
Increase
as of
January 1 (Decrease) December 31
Deferred tax assets (liabilities)
Balance
Balance
as of
Increase
as of
January 1 (Decrease) December 31
Deferred tax arising from temporary differences Revaluation of land Investments in subsidiaries, associates and joint ventures1 Accumulated depreciation and other
Accrued income
(3,406,625)
3,195 (3,403,430)
(3,837,368) (2,456,302)
(54,107)
(3,733,239)
44,687
(3,837,368) (6,189,541)
(9,420)
(936,822)
(853,165) (675,483) (14,879)
38,317
(898,505)
34,127 (958,555)
12,392
(819,038) (1,634,038)
(2,487)
Provisions, accrued expenses, and other Foreign currency translation
11,098,305 (5,313)
2,589,469 562,866
13,687,774 557,553
3,052,034 (1,461)
561,538 148,655
3,613,572 147,194
Asset impairment losses Post-employment benefits Valuation effects from spin-off2
1,096,297 (6,093,355) 10,586,822
(105,290) 685,667 -
991,007 (5,407,688) 10,586,822
220,916 (1,675,673)
-
(36,634) 248,043
-
184,282 (1,427,630)
-
Other
3,897,591
624,521
4,522,112
478,445
145,735
624,180
Subtotal
10,825,945
671,876 11,497,821
(406,088)
193,618
(212,470)
Deferred tax arising from unused tax credits Unused tax credits
672,053
1,153,334
1,825,387
614,893
1,010,632
1,625,525
Deferred tax recognized in equity Loss (gain) on valuation of financial assets at fair value through other comprehensive income and other Remeasurement of net defined benefit assets
Subtotal Total
(124,938) 3,769,652 3,644,714
291,573 (1,173,189)
(881,616)
166,635 2,596,463 2,763,098
(34,358) 1,036,653 1,002,295 1,211,100
78,349 (351,187) (272,838)
931,412
43,991 685,466 729,457 2,142,512
1 Deferred tax assets are not recognized if it is probable that the temporary differences will not reverse in the foreseeable future for investments in subsidiaries, associates and joint ventures.
2 Difference in carrying amount for accounting and tax purposes for the shares of Samsung Display Co., Ltd., the Company's subsidiary, acquired through spin-off of the LCD division in the past. As of the reporting date, the Company does not have plans to dispose of its investments in Samsung Display Co., Ltd. As it is probable that the temporary differences will not reverse in the foreseeable future, deferred tax assets were not recognized.
Samsung Electronics Business Report
199 / 413
(2) 2021
(In millions of Korean won)
Temporary differences
Balance
Balance
as of
Increase
as of
January 1 (Decrease) December 31
Deferred tax assets (liabilities)
Balance
Balance
as of
Increase
as of
January 1 (Decrease) December 31
Deferred tax arising from temporary differences Revaluation of land Investments in subsidiaries, associates and joint ventures1 Accumulated depreciation and other Accrued income Provisions, accrued expenses, and other Foreign currency translation Asset impairment losses Post-employment benefits Valuation effects from spin-off2 Other
Subtotal
Deferred tax arising from unused tax credits Unused tax credits
Deferred tax recognized in equity Loss on valuation of financial assets at fair value through other comprehensive income and other Remeasurement of net defined benefit assets
Subtotal Total
(3,420,886)
14,261 (3,406,625)
(940,744)
(3,994,444) (514,103) (112,810) 9,540,744 (51,955) 1,744,851
(4,223,358) 10,586,822 1,038,962 10,593,823
157,076 (1,942,199)
58,703 1,557,561
46,642 (648,554) (1,869,997)
2,858,629
232,122
(3,837,368) (2,456,302)
(54,107) 11,098,305
(5,313) 1,096,297 (6,093,355) 10,586,822 3,897,591 10,825,945
(909,018) (141,379) (31,023) 2,623,704 (14,288)
399,268 (1,161,424)
115,053 (59,851)
3,922
(936,822)
55,853 (534,104)
16,144 428,330 12,827 (178,352) (514,249)
363,392 (346,237)
(853,165) (675,483)
(14,879) 3,052,034
(1,461) 220,916 (1,675,673)
478,445 (406,088)
282,542
389,511
672,053
282,542
332,351
614,893
(262,753) 3,061,640 2,798,887
137,815 708,012 845,827
(124,938) 3,769,652 3,644,714
(72,257) 841,951 769,694 992,385
37,899 194,702 232,601 218,715
(34,358) 1,036,653 1,002,295 1,211,100
1 Deferred tax assets are not recognized if it is probable that the temporary differences will not reverse in the foreseeable future for investments in subsidiaries, associates and joint ventures.
2 Difference in carrying amount for accounting and tax purposes for the shares of Samsung Display Co., Ltd., the Company's subsidiary acquired through a spin-off of the LCD division in the past. As of the reporting date, the Company does not have plans to dispose of its investments in Samsung Display Co., Ltd. As it is probable that the temporary differences will not reverse in the foreseeable future, deferred tax assets were not recognized.
(D) Details of the period when the deferred tax assets (liabilities) are recovered (settled) as of December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
December 31, 2022 December 31, 2021
Net deferred tax assets (liabilities) to be recovered (settled) within 12 months Net deferred tax assets (liabilities) to be recovered (settled) after more than 12 months Total
2,267,807 (125,295) 2,142,512
2,837,162 (1,626,062)
1,211,100
Samsung Electronics Business Report
200 / 413
26. Earnings per Share (A) Basic earnings per share Basic earnings per share for the years ended December 31, 2022 and 2021 are calculated as follows: (1) Ordinary shares
(In millions of Korean won, thousands of number of shares)
2022
Profit for the year Profit for the year available for ordinary shares Weighted-average number of ordinary shares outstanding Basic earnings per ordinary share (in Korean won)
(2) Preference shares
(In millions of Korean won, thousands of number of shares)
25,418,778 22,338,739 5,969,783
3,742
2022
Profit for the year Profit for the year available for preference shares Weighted-average number of preference shares outstanding Basic earnings per preference share (in Korean won)
25,418,778 3,080,039
822,887 3,743
2021
30,970,954 27,218,306 5,969,783
4,559
2021
30,970,954 3,752,648
822,887 4,560
(B) Diluted earnings per share
The Company does not have dilutive potential ordinary shares and as a result, basic earnings per share and diluted earnings per share are the same for the years ended December 31, 2022 and 2021.
Samsung Electronics Business Report
201 / 413
27. Statements of Cash Flows
(A) The Company used the indirect method to present cash flows from operating activities. Adjustments and changes in assets and liabilities arising from operating activities for the years ended December 31, 2022 and 2021 are as follows:
- Adjustments
(In millions of Korean won)
2022
2021
Adjustments : Income tax expense Financial income Financial expenses Post-employment benefits Depreciation Amortization Bad debt expenses (reversal) Dividends income Gain on disposal of property, plant and equipment Loss on disposal of property, plant and equipment Loss on valuation of inventories and others Others Total
4,273,142 (1,224,148)
1,565,955 974,711
24,311,940 2,605,067
(178) (3,952,338)
(115,861) 18,842
2,529,351 52,905
31,039,388
7,733,538 (514,303)
636,934 898,132 20,164,109 2,391,770
19,235 (6,560,011)
(278,849) 13,366
696,536 (32,395) 25,168,062
- Changes in assets and liabilities arising from operating activities
(In millions of Korean won)
2022
2021
Changes in assets and liabilities : Decrease (increase) in trade receivables Decrease (increase) in non-trade receivables Decrease (increase) in prepaid expenses Increase in inventories Increase (decrease) in trade payables Increase in other payables Increase (decrease) in advances received Increase (decrease) in withholdings Increase in accrued expenses Increase in provisions Payment of post-employment benefits Increase in plan assets Other Total
12,354,628 (711,933) 11,033
(14,337,291) (2,494,560)
1,522,457 (154,042) (101,231)
88,828 74,664 (492,366) (1,402,489) (1,225,967) (6,868,269)
(8,102,318) 54,306
(198,371) (2,732,143)
4,935,529 1,004,128
50,363 191,872 920,919 1,570,118 (405,203) (2,363,367) (707,488) (5,781,655)
Samsung Electronics Business Report
202 / 413
(B) Significant non-cash investing and financing transactions for the years ended December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
2022
2021
Valuation of financial assets at fair value through other comprehensive income Reclassification of construction in progress to property, plant and equipment Acquisition of right-of-use assets (new lease contracts established) Reclassification of current portion of debentures Reclassification of current portion of long-term borrowings
(285,585) 30,539,179
673,493 6,228
129,525
(137,815) 36,663,946
451,828 5,810
133,518
(C) Changes in liabilities arising from financing activities for the years ended December 31, 2022 and 2021 are as follows: (1) 2022
(In millions of Korean won) Short-term borrowings Debentures and long-term borrowings Total
As of January 1
Cash flows from financing activities
9,204,268 600,291
9,804,559
(6,700,826) (155,264)
(6,856,090)
Non-cash transactions
New lease contracts
Other1
673,493 673,493
(121,930) (302,876) (424,806)
1 Other includes amortization and effects of changes in foreign currency exchange rates.
(2) 2021
As of December 31
2,381,512 815,644
3,197,156
(In millions of Korean won) Short-term borrowings Debentures and long-term borrowings Total
As of January 1
Cash flows from financing activities
12,520,367 269,877
12,790,244
(3,288,858) (117,963)
(3,406,821)
Non-cash transactions
New lease contracts
Other1
451,828 451,828
(27,241) (3,451) (30,692)
As of December 31
9,204,268 600,291
9,804,559
1 Other includes amortization and effects of changes in foreign currency exchange rates.
(D) For the years ended December 31, 2022 and 2021, cash outflows from repayment of the principal (financial activities) were W 149,337 million and W 112,523 million, respectively, while cash outflows due to interest expenses (operating activities) in relation to the lease liabilities amount to W 10,876 million and W 4,939 million, respectively.
(E) The Company reported cash receipts and payments arising from transactions occurring frequently, of large gross amounts, and with short-term maturities, such as short-term financial instruments, borrowings and other, on a net basis. As of December 31, 2022, most of the Company's cash and cash equivalents consist of bank deposits.
Samsung Electronics Business Report
203 / 413
28. Financial Risk Management
The Company's financial risk management focuses on minimizing the market risk, credit risk, and liquidity risk arising from operating activities. To mitigate these risks, the Company implements and operates a financial risk policy and program that closely monitors and manages such risks. In addition, the Company uses derivatives to hedge certain risk exposure.
The finance team mainly carries out the Company's financial risk management. After implementing the global financial risk management policies, the finance team periodically measures, evaluates, and hedges the financial risk and also establishes and implements the global financial risk management policy.
The Company also manages the foreign exchange risk by monitoring the foreign exchange rate fluctuations at local finance centers across major regions (United States, United Kingdom, Singapore, China, Brazil, and Russia) and acting as an agent of foreign exchange transactions. In addition, the Company manages the liquidity risk by utilizing a globally integrated finance structure.
The Company's financial assets that are under the financial risk management are comprised of cash and cash equivalents, short-term financial instruments, trade receivables and others. The Company's financial liabilities under financial risk management are comprised of trade payables, borrowings, and others.
(A) Market risk
(1) Foreign exchange risk
The Company is exposed to the foreign exchange risk arising from its global operations performed in currencies other than its functional currency. The major currencies that are exposed to the foreign exchange risk are the US dollar, Euro, and Indian Rupee.
The Company focuses on minimizing the impact of the foreign exchange fluctuation by maintaining the equal amount of assets and liabilities denominated in each foreign currency, irrespective of the foreign exchange fluctuation considerations. To prevent the exchange position, the Company's foreign exchange management policy requires the normal business transactions, including imports and exports, as well as the financing transactions such as depositing and borrowing, to be in local currency or for the cashin currency to be matched up with the cash-out currency. Moreover, the Company periodically evaluates and monitors the foreign exchange risk to efficiently mitigate such risk, and the speculative foreign exchange transactions are strictly prohibited.
As of December 31, 2022 and 2021, when the currency rates change by 5%, the impact on profit or loss (before income tax effects) arising from financial assets and liabilities denominated in foreign currencies other than the functional currency are as follows:
(In millions of Korean won)
USD EUR INR
December 31, 2022
Increase
Decrease
77,795 (53,114)
52,012
(77,795) 53,114
(52,012)
December 31, 2021
Increase
Decrease
119,312 (33,776)
25,057
(119,312) 33,776
(25,057)
Samsung Electronics Business Report
204 / 413
(2) Interest rate risk
Risk of changes in interest rates for floating interest rate financial instruments is defined as the risk that the fair value of components of the statements of financial position, and future cash flows of interest income (expenses) of a financial instrument, will fluctuate because of the changes in market interest rates. The Company's position with regard to interest rate risk exposure is mainly driven by its floating interest rate debt obligations and interest-bearing deposits. The Company implemented policies and operates to minimize uncertainty arising from changes in interest rates and financial expenses.
(3) Price risk
The Company's investment portfolio consists of direct and indirect investments in equity instruments classified as financial assets at fair value through other comprehensive income, which is in line with the Company's strategy.
As of December 31, 2022 and 2021, price fluctuation of marketable equity securities (listed stocks) by 1% would result in changes in other comprehensive income (before income tax) of W 12,479 million and W 15,443 million, respectively.
(B) Credit risk
Credit risk arises during the normal course of transactions and investing activities where clients or other parties fail to discharge an obligation. The Company monitors and sets the client's and the counterparty's credit limits on a periodic basis based on the client's and counterparty's financial conditions, default histories and other important factors. Adequate insurance coverage is maintained for trade receivables related to the trading partners situated in higher risk countries.
Credit risk can arise from transactions with financial institutions which include financial instrument transactions such as cash and cash equivalents, deposits, and derivative instruments. To minimize such risk, the Company transacts only with banks which have strong international credit ratings (S&P A and above), and all new transactions with financial institutions with no prior transaction history are approved, managed and monitored by the Company's finance team and the local finance center. The Company generally enters into a financial agreement with no restrictions, such as debt ratio covenants, provision of collateral and/or repayment of loans/ borrowings. The Company requires separate approvals for contracts with restrictions.
As of December 31, 2022 and 2021, the Company estimates that its maximum exposure to credit risk is the carrying amount of its financial assets, net of impairment losses.
(C) Liquidity risk
Due to large investments made by the Company, maintaining adequate levels of liquidity risk is critical. The Company strives to achieve this goal by periodically forecasting its capital balance, estimating the required cash levels, and managing income and expenses.
The Company manages its liquidity risk by periodically forecasting the projected cash flows. If abnormal signs are identified, the Company works with the local finance center and provides liquidity support by utilizing a globally integrated finance structure, such as Cash Pooling. In addition, the Company maintains a liquidity management process which provides an additional financial support from the local finance center and the Company. The Cash Pooling program allows the sharing of surplus funds among the entities and contributes to minimizing the liquidity risk and strengthening the Company's competitive position by reducing capital operation expenses and financial expenses.
For the need of large scale of liquidity, the Company secures the credit limit for overseas subsidiaries through payment guarantees.
Samsung Electronics Business Report
205 / 413
As of December 31, 2022 and 2021, the following table is an undiscounted cash flow analysis for financial liabilities according to their remaining contractual maturity.
(In millions of Korean won)
Less than 3 months
December 31, 2022
4 6 months
7 12 months
1 - 5 years
More than 5 years
Financial liabilities
31,354,944
316,725
1,096,183
2,431,415
472,135
(In millions of Korean won)
Less than 3 months
4 6 months
December 31, 2021 7 12 months
1 - 5 years
More than 5 years
Financial liabilities
35,764,225
435,581
728,627
2,798,560
87,798
The table above shows the Company's financial liabilities based on the remaining period at the separate statements of financial position date until the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.
The maximum liquidity risk exposure from those other than the above financial liabilities (e.g., payment guarantees for affiliated companies, performance bonds, and other) as of December 31, 2022 and 2021 are W 10,793,412 million and W 10,211,619 million, respectively.
(D) Capital risk management The purpose of capital management is to maintain a sound capital structure. The Company monitors capital on the basis of credit ratings and debt ratio. Debt ratio is calculated by dividing the total liabilities by total equity in the financial statements.
The Company has maintained an AA- and Aa2 credit ratings from S&P and Moody's, respectively.
The debt ratio as of December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
December 31, 2022
December 31, 2021
Total liabilities Total equity Debt ratio
50,667,559 209,416,191
24.2%
57,918,452 193,193,732
30.0%
Samsung Electronics Business Report
206 / 413
(E) Fair values estimation (1) Carrying amounts and fair value of financial instruments by category as of December 31, 2022 and 2021 are as follows:
(In millions of Korean won) Financial assets Cash and cash equivalents Short-term financial instruments Trade receivables Financial assets at fair value through
other comprehensive income Financial assets at fair value through profit or loss Other Total financial assets Financial liabilities Trade payables Short-term borrowings Other payables Current portion of long-term liabilities - Current portion of long-term borrowing - Current portion of debentures Debentures Long-term borrowings Long-term other payables Other Total financial liabilities
December 31, 2022 Carrying amount
3,921,593 137
20,503,223
1,364,325
283 5,470,355 31,259,916
8,729,315 2,381,512 18,324,604
135,753 129,525
6,228 24,912 654,979 2,083,790 3,145,473 35,480,338
Fair value
(*1) (*1) (*1)
1,364,325
283
(*1)
(*1) (*1) (*1)
6,580
(*2)
6,580 27,845
(*2) (*1) (*1)
December 31, 2021 Carrying amount
3,918,872 15,000,576 33,088,247
1,662,532
2,135 5,076,418 58,748,780
11,557,441 9,204,268 12,948,960
139,328 133,518
5,810 29,048 431,915 2,335,218 3,056,156 39,702,334
Fair value
(*1) (*1) (*1)
1,662,532
2,135
(*1)
(*1) (*1) (*1)
6,276
(*2)
6,276 35,863
(*2) (*1) (*1)
(*1) Assets and liabilities whose carrying amount is a reasonable approximation of fair value are excluded from the fair value disclosures. (*2) Lease liabilities, classified under the current portion of long-term liabilities and long-term borrowings, are excluded from the fair
value disclosures in accordance with Korean IFRS 1107.
Samsung Electronics Business Report
207 / 413
(2) Fair value hierarchy classifications of the financial instruments that are measured at fair value or its fair value disclosed as of December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
1) Assets Financial assets at fair value through other comprehensive income Financial assets at fair value through profit or loss 2) Liabilities Current portion of debentures Debentures
Level 1
December 31, 2022
Level 2
Level 3
Total balance
1,247,882 -
-
-
6,580 27,845
116,443 283
-
1,364,325 283
6,580 27,845
(In millions of Korean won)
1) Assets Financial assets at fair value through other comprehensive income Financial assets at fair value through profit or loss 2) Liabilities Current portion of debentures Debentures
Level 1
December 31, 2021
Level 2
Level 3
Total balance
1,544,320 -
-
-
6,276 35,863
118,212 2,135
-
1,662,532 2,135
6,276 35,863
The levels of the fair value hierarchy and its application to financial assets and liabilities are described below.
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly or indirectly Level 3: Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs)
The fair value of financial instruments traded in active markets is based on quoted market prices at the statements of financial position date. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm's length basis. The quoted market price used for financial assets held by the Company is the current bid price. These instruments are included in Level 1. The instruments included in Level 1 are listed equity investments, most of which are classified as financial assets at fair value through other comprehensive income.
The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined by using valuation techniques. These valuation techniques maximize the use of observable market data where it is available and rely as little as possible on the entity-specific estimates. If all significant inputs required for a fair value of an instrument are observable, the instrument is included in Level 2.
If one or more of the significant inputs are not based on observable market data, the instrument is included in Level 3.
Samsung Electronics Business Report
208 / 413
The Company performs the fair value measurements required for financial reporting purposes, including Level 3 fair values and discusses valuation processes and results at least once every quarter in line with the Company's quarterly reporting dates. The Company's policy is to recognize transfers between levels at the end of the reporting period, if corresponding events or changes in circumstances have occurred.
Specific valuation techniques used to value financial instruments include:
Quoted market prices or dealer quotes for similar instruments The fair value of forward foreign exchange contracts is determined using forward exchange rates at the
statements of financial position date, with the resulting value discounted back to present value
Other techniques, such as discounted cash flow analysis, are used to determine fair value for the remaining financial instruments. For trade and other receivables that are classified as current assets, the book value approximates a reasonable estimate of fair value.
(3) Valuation technique and the inputs
The Company utilizes a present value technique to discount future cash flows using a proper interest rate for corporate bonds, government and public bonds, and bank debentures that are classified as Level 2 in the fair value hierarchy.
The following table presents the valuation technique and the inputs used for major financial instruments classified as Level 3 as of December 31, 2022.
(In millions of Korean won, and percentage)
Classification
Fair value
Valuation technique
Financial assets at fair value through other comprehensive income
Samsung Venture Investment
Discounted cash 32,073
flow
MiCo Ceramics Co., Ltd.
Discounted cash 29,385
flow and other
Level 3 inputs
Input range (Weighted average)
Permanent growth rate
Weighted average cost of capital
Permanent growth rate Weighted average cost
of capital
-1.0%~1.0%(0.0%)
15.8%~17.8%(16.8%) 0.0%~1.0%(0.5%)
13.1%~15.1%(14.1%)
(4) Changes in Level 3 instruments for the years ended December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
2022
2021
Financial assets Balance as of January 1 Disposals Amount recognized in profit or loss for the year Amount recognized in other comprehensive income Other Balance as of December 31
120,347 (12,720)
(108) 22,926 (13,719) 116,726
130,242 (912) 2,736
(11,719) 120,347
Samsung Electronics Business Report
209 / 413
(5) Sensitivity analysis for recurring fair value measurements categorized within Level 3
Sensitivity analysis of financial instruments is performed to measure favorable and unfavorable changes in the fair value of financial instruments which are affected by the unobservable parameters, using a statistical technique. When the fair value is affected by more than two input parameters, the amounts represent the most favorable or unfavorable.
The results of the sensitivity analysis for the effect on other comprehensive income or loss (before-tax amount for other comprehensive income or loss) from changes in inputs for major financial instruments which are categorized within Level 3 and subject to sensitivity analysis are as follows:
(In millions of Korean won)
Favorable changes
Unfavorable changes
Classification
Profit or loss
Equity
Profit or loss
Equity
Financial assets at fair value through other comprehensive income1
-
2,970
-
1 For equity securities, changes in fair value are calculated with the correlation between the growth rate (-1% ~1%) and the discount rate, which are significant unobservable inputs.
(2,374)
Samsung Electronics Business Report
210 / 413
29. Segment Information
The chief operating decision-maker has been identified as the Management Committee. The Company determines operating segments based on the units reported to the Management Committee. The Management Committee reviews the operating profits of each operating segment in order to assess the performance and to make strategic decisions regarding the allocation of resources to the segment.
Sales revenue consists mostly of product sales. The operating segments are product-based and are identified based on the internal organization and revenue streams. As of the reporting date, the operating segments are comprised of DX, DS, and others.
Total assets and liabilities of each operating segment are excluded from the disclosure as these have not been provided regularly to the Management Committee.
(1) For the year ended December 31, 2022
(In millions of Korean won) Sales Depreciation Amortization Operating profit 1 Other operating segments are not separately disclosed.
(2) For the year ended December 31, 2021
DX 117,257,647 542,437 1,631,289 3,083,254
DS 97,102,386 23,589,388 754,791 22,232,180
Total1 211,867,483 24,311,940 2,605,067 25,319,329
(In millions of Korean won) Sales Depreciation Amortization Operating profit 1 Other operating segments are not separately disclosed.
DX 107,675,342 537,479 1,382,922 6,389,720
DS 94,373,136 19,457,650 891,431 25,592,201
Total1 199,744,705 20,164,109 2,391,770 31,993,162
Samsung Electronics Business Report
211 / 413
30. Related Party Transactions
(A) Subsidiaries
List of subsidiaries as of December 31, 2022 are as follows:
Area
Subsidiaries
Industry
America
Samsung Electronics America, Inc. (SEA) Samsung International, Inc. (SII) Samsung Mexicana S.A. de C.V (SAMEX) Samsung Electronics Home Appliances America, LLC (SEHA) Samsung Research America, Inc (SRA) Samsung Next LLC (SNX) Samsung Next Fund LLC (SNXF) NeuroLogica Corp. Samsung HVAC America, LLC Joyent, Inc. Dacor Holdings, Inc. Dacor, Inc. SmartThings, Inc. TeleWorld Solutions, Inc. (TWS) Samsung Semiconductor, Inc. (SSI) Samsung Austin Semiconductor LLC. (SAS) Samsung Oak Holdings, Inc. (SHI) SEMES America, Inc. Samsung Electronics Canada, Inc. (SECA) AdGear Technologies Inc. Samsung Eletronica da Amazonia Ltda. (SEDA) Samsung Electronics Mexico S.A. de C.V. (SEM) Samsung Electronics Digital Appliance Mexico, S.A. de C.V. (SEDAM) Samsung Electronics Latinoamerica (Zona Libre), S. A. (SELA) Samsung Electronics Latinoamerica Miami, Inc. (SEMI) Samsung Electronica Colombia S.A. (SAMCOL) Samsung Electronics Argentina S.A. (SEASA) Samsung Electronics Chile Limitada (SECH) Samsung Electronics Peru S.A.C. (SEPR) Samsung Electronics Venezuela, C.A. (SEVEN) Samsung Electronics Panama. S.A. (SEPA) Harman International Industries, Inc. Harman Becker Automotive Systems, Inc. Harman Connected Services, Inc. Harman Connected Services Engineering Corp. Harman da Amazonia Industria Eletronica e Participacoes Ltda. Harman de Mexico, S. de R.L. de C.V. Harman do Brasil Industria Eletronica e Participacoes Ltda. Harman Financial Group LLC Harman International Industries Canada Ltd. Harman International Mexico, S. de R.L. de C.V. Harman KG Holding, LLC Harman Professional, Inc. Beijing Integrated Circuit Industry International Fund, L.P China Materialia New Materials 2016 Limited Partnership
Sale of electronic devices Manufacture of TV and monitors Manufacture of electronic devices Manufacture of home appliances R&D Management of overseas subsidiaries Technology business, venture capital investments Manufacture and sale of medical equipment Sale of air conditioning products Cloud services Management of overseas subsidiaries Manufacture and sale of home appliances Sale of smart home electronics Installation and optimization of network devices Sale of semiconductor and display panels Manufacture of semiconductors Management of overseas subsidiaries Semiconductor equipment services Sale of electronic devices Digital advertising platforms Manufacture and sale of electronic devices Sale of electronic devices Manufacture of home appliances Sale of electronic devices Sale of electronic devices Sale of electronic devices Marketing and services Sale of electronic devices Sale of electronic devices Marketing and services Consulting Management of overseas subsidiaries Manufacture and sale of audio products, R&D Connected service provider Connected service provider Manufacture and sale of audio products Manufacture of audio products Sale of audio products, R&D Management company Sale of audio products Sale of audio products Management of overseas subsidiaries Sale of audio products, R&D Venture capital investments Venture capital investments
1 Ownership represents the Company's ownership of the voting rights in each entity, including subsidiaries' ownerships.
Percentage of ownership (%)1
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 61.4 99.0
Samsung Electronics Business Report
212 / 413
Area
Subsidiaries
Industry
Europe & CIS
Samsung Electronics (UK) Ltd. (SEUK) Samsung Electronics Ltd. (SEL) Samsung Semiconductor Europe Limited (SSEL) Samsung Electronics GmbH (SEG) Samsung Electronics Holding GmbH (SEHG) Samsung Semiconductor Europe GmbH (SSEG) Samsung Electronics France S.A.S (SEF) Samsung Electronics Italia S.P.A. (SEI) Samsung Electronics Iberia, S.A. (SESA) Samsung Electronics Portuguesa, Unipessoal, Lda. (SEP) Samsung Electronics Hungarian Private Co. Ltd. (SEH) Samsung Electronics Europe Logistics B.V. (SELS) Samsung Electronics Benelux B.V. (SEBN) Samsung Electronics Europe Holding Cooperatief U.A. (SEEH) Samsung Electronics Nordic Aktiebolag (SENA) Samsung Electronics Slovakia s.r.o (SESK) Samsung Display Slovakia, s.r.o. (SDSK) Samsung Electronics Polska, SP.Zo.o (SEPOL) Samsung Electronics Poland Manufacturing SP.Zo.o (SEPM) Samsung Electronics Romania LLC (SEROM) Samsung Electronics Austria GmbH (SEAG) Samsung Electronics Switzerland GmbH (SESG) Samsung Electronics Czech and Slovak s.r.o. (SECZ) SAMSUNG ELECTRONICS BALTICS SIA (SEB) Samsung Electronics Greece S.M.S.A (SEGR) Samsung Electronics Air Conditioner Europe B.V. (SEACE) Samsung Nanoradio Design Center (SNDC) Samsung Denmark Research Center ApS (SDRC) Samsung Cambridge Solution Centre Limited (SCSC) SAMSUNG Zhilabs, S.L. FOODIENT LTD. Samsung Electronics Rus Company LLC (SERC) Samsung Electronics Rus Kaluga LLC (SERK) Samsung Electronics Ukraine Company LLC (SEUC) Samsung R&D Institute Ukraine (SRUKR) Samsung Electronics Central Eurasia LLP (SECE) Samsung Electronics Overseas B.V. (SEO) Samsung R&D Institute Rus LLC (SRR) Samsung Electronics Caucasus Co. Ltd (SECC) Samsung Electronics Uzbekistan Ltd. (SEUZ)
Sale of electronic devices Management of overseas subsidiaries Sale of semiconductor and display panels Sale of electronic devices Management of overseas subsidiaries Sale of semiconductor and display panels Sale of electronic devices Sale of electronic devices Sale of electronic devices Sale of electronic devices Manufacture and sale of electronic devices Logistics Sale of electronic devices Management of overseas subsidiaries Sale of electronic devices Manufacture of TV and monitors Toll processing of display panels Sale of electronic devices Manufacture of home appliances Sale of electronic devices Sale of electronic devices Sale of electronic devices Sale of electronic devices Sale of electronic devices Sale of electronic devices Sale of air conditioning products R&D R&D R&D Development and sale of network solutions R&D Sale of electronic devices Manufacture of TV Sale of electronic devices R&D Sale of electronic devices Sale of electronic devices R&D Marketing Marketing
1 Ownership represents the Company's ownership of the voting rights in each entity, including subsidiaries' ownerships.
Percentage of ownership (%)1
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Samsung Electronics Business Report
213 / 413
Area
Subsidiaries
Industry
Europe & CIS
Middle East
& Africa
AKG Acoustics Gmbh Apostera UA, LLC Harman Audio Iberia Espana Sociedad Limitada Harman Automotive UK Limited Harman Becker Automotive Systems GmbH Harman Becker Automotive Systems Italy S.R.L. Harman Becker Automotive Systems Manufacturing Kft Harman Belgium SA Harman Connected Services AB. Harman Finland Oy Harman Connected Services GmbH Harman Connected Services Poland Sp.zoo Harman Connected Services UK Ltd. Harman Consumer Nederland B.V. Harman Deutschland GmbH Harman Finance International GP S.a.r.l Harman France SNC Harman Holding Gmbh & Co. KG Harman Hungary Financing Ltd. Harman Inc. & Co. KG Harman International Estonia OU Harman International Industries Limited Harman International Romania SRL Harman Finance International, SCA Harman Management Gmbh Harman Professional Kft Harman Professional Denmark ApS Red Bend Software Ltd. Red Bend Software SAS Studer Professional Audio GmbH Harman Connected Services OOO Harman RUS CIS LLC Samsung Gulf Electronics Co., Ltd. (SGE) Samsung Electronics Türkiye (SETK) Samsung Electronics Industry and Commerce Ltd. (SETK-P) Samsung Electronics Levant Co.,Ltd. (SELV) Samsung Electronics Maghreb Arab (SEMAG) Samsung Electronics Egypt S.A.E (SEEG) Samsung Electronics Israel Ltd. (SEIL) Samsung Electronics Tunisia S.A.R.L (SETN) Samsung Electronics Pakistan(Private) Ltd. (SEPAK) Samsung Electronics Saudi Arabia Ltd. (SESAR) Samsung Semiconductor Israel R&D Center, Ltd. (SIRC) Corephotonics Ltd.
Manufacture and sale of audio products Connected service provider Sale of audio products Manufacture of audio products Manufacture and sale of audio products, R&D Sale of audio products Manufacture of audio products, R&D Sale of audio products Connected service provider Connected service provider Connected service provider Connected service provider Connected service provider Sale of audio products Sale of audio products Management of overseas subsidiaries Sale of audio products Management company Financing company Management of overseas subsidiaries R&D Sale of audio products, R&D R&D Financing company Management of overseas subsidiaries Manufacture of audio products, R&D Sale of audio products, R&D Software design Software design Sale of audio products, R&D Connected service provider Sale of audio products Sale of electronic devices Sale of electronic devices Manufacture of electronic devices Sale of electronic devices Sale of electronic devices Manufacture and sale of electronic devices Marketing Marketing Marketing Sale of electronic devices R&D R&D
1 Ownership represents the Company's ownership of the voting rights in each entity, including subsidiaries' ownerships.
Percentage of ownership (%)1
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Samsung Electronics Business Report
214 / 413
Area
Subsidiaries
Industry
Asia (Excluding
China)
Samsung Electronics South Africa(Pty) Ltd. (SSA) Samsung Electronics South Africa Production (pty) Ltd. (SSAP) Samsung Electronics West Africa Ltd. (SEWA) Samsung Electronics East Africa Ltd. (SEEA) Global Symphony Technology Group Private Ltd. Harman Connected Services Morocco Harman Industries Holdings Mauritius Ltd. Red Bend Ltd. Samsung Asia Pte. Ltd. (SAPL) Samsung Electronics Singapore Pte. Ltd. (SESP) Samsung Malaysia Electronics (SME) Sdn. Bhd. (SME) Samsung Electronics Display (M) Sdn. Bhd. (SDMA) Samsung Electronics (M) Sdn. Bhd. (SEMA) Samsung Vina Electronics Co., Ltd. (SAVINA) Samsung Electronics Vietnam Co., Ltd. (SEV) Samsung Electronics Vietnam THAINGUYEN Co., Ltd. (SEVT) Samsung Electronics HCMC CE Complex Co., Ltd. (SEHC) Samsung Display Vietnam Co., Ltd. (SDV) DOWOOINSYS VINA COMPANY LIMITED PT Samsung Electronics Indonesia (SEIN) PT Samsung Telecommunications Indonesia (STIN) Thai Samsung Electronics Co., Ltd. (TSE) Laos Samsung Electronics Sole Co., Ltd (LSE) Samsung Electronics Philippines Corporation (SEPCO) Samsung Electronics Australia Pty. Ltd. (SEAU) Samsung Electronics New Zealand Limited (SENZ) Samsung India Electronics Private Ltd. (SIEL) Red Brick Lane Marketing Solutions Pvt. Ltd. Samsung Display Noida Private Limited (SDN) Samsung R&D Institute India-Bangalore Private Limited (SRI-Bangalore) Samsung R&D Institute BanglaDesh Limited (SRBD) Samsung Nepal Services Pvt, Ltd (SNSL) Samsung Japan Corporation (SJC) Samsung R&D Institute Japan Co. Ltd. (SRJ) Samsung Electronics Japan Co., Ltd. (SEJ) Harman Connected Services Corp. India Pvt. Ltd. Harman International (India) Private Limited Harman International Industries PTY Ltd. Harman International Japan Co., Ltd. Harman Singapore Pte. Ltd.
Sale of electronic devices Manufacture of TV and monitors Marketing Marketing Management of overseas subsidiaries Connected service provider Management of overseas subsidiaries Manufacture of audio products Management of overseas subsidiaries Sale of electronic devices Sale of electronic devices Manufacture of electronic devices Manufacture of home appliances Sale of electronic devices Manufacture of electronic devices Manufacture of communication equipment Manufacture and sale of electronic devices Manufacture of display panels Manufacture of display components Manufacture and sale of electronic devices Sale of electronic devices and services Manufacture and sale of electronic devices Marketing Sale of electronic devices Sale of electronic devices Sale of electronic devices Manufacture and sale of electronic devices Marketing Manufacture of display panels R&D R&D Service Sale of semiconductor and display panels R&D Sale of electronic devices Connected service provider Sale of audio products, R&D Management of overseas subsidiaries Sale of audio products, R&D Sale of audio products
1 Ownership represents the Company's ownership of the voting rights in each entity, including subsidiaries' ownerships.
Percentage of ownership (%)1
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 91.8 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Samsung Electronics Business Report
215 / 413
Area China
Subsidiaries
Samsung (CHINA) Investment Co., Ltd. (SCIC) Samsung Electronics Hong Kong Co., Ltd. (SEHK) Samsung Electronics Taiwan Co., Ltd. (SET) Tianjin Samsung Electronics Co., Ltd. (TSEC) Suzhou Samsung Electronics Co., Ltd. (SSEC) Samsung Suzhou Electronics Export Co., Ltd. (SSEC-E) Samsung Electronics Suzhou Computer Co., Ltd. (SESC) Tianjin Samsung Telecom Technology Co., Ltd. (TSTC) Beijing Samsung Telecom R&D Center (SRC-Beijing) Samsung Electronics China R&D Center (SRC-Nanjing) Samsung Mobile R&D Center China-Guangzhou (SRC-Guangzhou) Samsung R&D Institute China-Shenzhen (SRC-Shenzhen) Shanghai Samsung Semiconductor Co., Ltd. (SSS) Samsung (China) Semiconductor Co., Ltd. (SCS) Samsung SemiConductor Xian Co., Ltd. (SSCX) Samsung Electronics Suzhou Semiconductor Co., Ltd. (SESS) Tianjin Samsung LED Co., Ltd. (TSLED) Samsung Semiconductor (China) R&D Co., Ltd. (SSCR) Samsung Display Dongguan Co., Ltd. (SDD) Samsung Display Tianjin Co., Ltd. (SDT) SEMES (XIAN) Co., Ltd. Samsung Semiconductor Investment L.P. Harman (China) Technologies Co., Ltd. Harman (Suzhou) Audio and Infotainment Systems Co., Ltd. Harman Automotive Electronic Systems (Suzhou) Co., Ltd. Harman Commercial (Shanghai) Co., Ltd. Harman Connected Services Solutions (Chengdu) Co., Ltd. Harman Holding Limited Harman International (China) Holdings Co., Ltd. Harman Technology (Shenzhen) Co., Ltd.
Industry
Sale of electronic devices Sale of electronic devices Sale of electronic devices Manufacture of TV and monitors Manufacture of home appliances Manufacture of home appliances R&D Manufacture of communication equipment R&D R&D R&D R&D Sale of semiconductor and display panels Manufacture of semiconductors Sale of semiconductor and display panels Toll processing of semiconductors Manufacture of LED R&D Manufacture of display panels Manufacture of display panels Semiconductor/FPD equipment services Technology business, venture capital investments Manufacture of audio products Sale of audio products Manufacture of audio products, R&D Sale of audio products Connected service provider Sale of audio products Sale of audio products, R&D Sale of audio products, R&D
Percentage of ownership (%)1
100.0 100.0 100.0 91.2 88.3 100.0 100.0 90.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 95.0 100.0 99.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
1 Ownership represents the Company's ownership of the voting rights in each entity, including subsidiaries' ownerships.
Samsung Electronics Business Report
216 / 413
Area
Subsidiaries
Samsung Display Co., Ltd. SU Materials STECO Co., Ltd. SEMES Co., Ltd. Samsung Electronics Service Co., Ltd. Samsung Electronics Service Customer Satisfaction Co., Ltd. Samsung Electronics Sales Co., Ltd. Samsung Electronics Logitech Co., Ltd. Samsung Medison Co., Ltd. Stella Forest of Hope Mirero System Co., Ltd.
Domestic
Dowooinssys Co., Ltd. Gf-System Co., Ltd. Harman International Korea Samsung Venture Capital Union #21 Samsung Venture Capital Union #22 Samsung Venture Capital Union #26 Samsung Venture Capital Union #28 Samsung Venture Capital Union #29 Samsung Venture Capital Union #32 Samsung Venture Capital Union #33 Samsung Venture Capital Union #37 Samsung Venture Capital Union #40 Samsung Venture Capital Union #42 Samsung Venture Capital Union #43 Samsung Venture Capital Union #45 Samsung Venture Capital Union #48 Samsung Venture Capital Union #52 Samsung Venture Capital Union #55 Samsung Venture Capital Union #56 Samsung Venture Capital Union #57 Growth type private equity trust specialized in semiconductors System LSI mutual benefit private equity trust
Industry
Manufacture and sale of display panels Manufacture of display components Manufacture of semiconductor components Manufacture and sale of semiconductor/FPD Repair services for electronic devices Call center for repair services for electronic devices Sale of electronic devices General logistics agency Manufacture and sale of medical equipment Manufacture and production of food Development and supply of semiconductor process defect and quality control software Manufacture of display components Manufacture of display components Software development and supply, etc. Technology business, Venture capital investments Technology business, Venture capital investments Technology business, Venture capital investments Technology business, Venture capital investments Technology business, Venture capital investments Technology business, Venture capital investments Technology business, Venture capital investments Technology business, Venture capital investments Technology business, Venture capital investments Technology business, Venture capital investments Technology business, Venture capital investments Technology business, Venture capital investments Technology business, Venture capital investments Technology business, Venture capital investments Technology business, Venture capital investments Technology business, Venture capital investments Technology business, Venture capital investments Investment on semiconductor industry Investment on semiconductor industry
Percentage of ownership (%)1
84.8 50.0 70.0 91.5 99.3 100.0 100.0 100.0 68.5 100.0
99.9
69.0 100.0 100.0 99.0 99.0 99.0 99.0 99.0 99.0 99.0 99.0 99.0 99.0 99.0 99.0 99.0 99.0 99.0 99.0 99.0 66.7 62.5
1 Ownership represents the Company's ownership of the voting rights in each entity, including subsidiaries' ownerships.
Samsung Electronics Business Report
217 / 413
(B) Sale and purchase transactions
Sale and purchase transactions with related parties for the years ended December 31, 2022 and 2021 are as follows:
(In millions of Korean won)
Name of company1
Sales and other
2022
Disposal of non-
current assets
Purchases and other
Purchase of non-
current assets
Subsidiaries
Associates and
joint ventures Other related
parties Other3
Samsung Display Co., Ltd. Samsung Electronics America, Inc. (SEA) Samsung Asia Pte. Ltd. (SAPL) Harman and its subsidiaries2 Samsung (China) Semiconductor Co., Ltd. (SCS) Samsung Electronics Vietnam THAINGUYEN Co., Ltd. (SEVT) Samsung (CHINA) Investment Co., Ltd. (SCIC) Samsung Semiconductor, Inc. (SSI) Samsung Electronics Vietnam Co., Ltd. (SEV) Samsung Electronics Europe Holding Cooperatief U.A. (SEEH) Samsung Austin Semiconductor LLC. (SAS) Samsung Display Vietnam Co., Ltd. (SDV) Samsung India Electronics Private Ltd. (SIEL) Shanghai Samsung Semiconductor Co., Ltd. (SSS) Samsung Eletronica da Amazonia Ltda. (SEDA) Samsung Electronics HCMC CE Complex Co., Ltd. (SEHC) Thai Samsung Electronics Co., Ltd. (TSE) Samsung Electronics (UK) Ltd. (SEUK) Samsung Electronics Benelux B.V. (SEBN) Samsung Electronics Hungarian Private Co. Ltd. (SEH) Samsung Electronics Europe Logistics B.V. (SELS) Samsung Display Dongguan Co., Ltd. (SDD) SEMES Co., Ltd. Samsung Electronics GmbH (SEG) Samsung Electronics Mexico S.A. De C.V. (SEM) Other
Total Samsung SDS Co., Ltd Samsung Electro-Mechanics Co., Ltd Samsung SDI Co., Ltd Cheil Worldwide Inc. Other
Total Samsung C&T Corporation Other
Total Samsung Engineering Co., Ltd S-1 Corporation Other
Total
283,011 35,303,291
42 -
184,796 8,668,668 1,588,710 40,907,261 5,804,935
1,053 2,073,972 7,439,341 16,490,821 1,262,369 628,854 1,578,349 1,529,791 788,385 408,409 4,772,554 249,142 8,224 3,865,859 2,442,869 58,705,560
194,986,266 212,376 60,343 60,325 31,194 617,779
982,017 44,359 283,122
327,481 1,490 7,530
136,969
145,989
632
10,644 256 112 2,791 141 4,198
18,774 -
767 -
767 -
188
188 -
-
981,927 209,912 30,982 76,891 9,679,473 25,941,259
9,035 532,962 16,441,332
3,663,909
5,798,974
47 2,174 4,830,861 2,615,512 98,891 2,333 2,191 5,104
2,283,556
6,948 6,950 23,123,295
96,344,518 1,672,853
919,709 422,836 931,489 881,585
4,828,472 84,635 602,014
686,649 32,677 428,907 251,907
713,491
5,534 831 50 2,457 1,680 2,213
12,765 348,752
120 24,874
361 10,224
384,331 7,018,252
132,512
7,150,764 3,106,154
45,864 540,591
3,692,609
1 Transactions with separate entities that are related parties of the Company. 2 Transactions with the intermediate parent company, including Harman International Industries, Inc. and its subsidiaries. 3 Although these entities are not related parties of the Company in accordance with Korean IFRS 1024, they belong to the same large enterprise group according to the Monopoly Regulation and Fair Trade Act.
Samsung Electronics Business Report
218 / 413
(In millions of Korean won)
Name of company1
Sales and other
2021
Disposal of non-
current assets
Purchases and other
Purchase of non-
current assets
Subsidiaries
Associates and
joint ventures Other related
parties Other3
Samsung Display Co., Ltd. Samsung Electronics America, Inc. (SEA) Samsung (China) Semiconductor Co., Ltd. (SCS) Samsung Electronics Vietnam THAINGUYEN Co., Ltd. (SEVT) Harman and its subsidiaries2 Samsung Electronics Vietnam Co., Ltd. (SEV) Samsung (CHINA) Investment Co., Ltd. (SCIC) Samsung Semiconductor, Inc. (SSI) Samsung Asia Pte. Ltd. (SAPL) Samsung Austin Semiconductor LLC (SAS) Samsung India Electronics Private Ltd. (SIEL) Shanghai Samsung Semiconductor Co., Ltd. (SSS) Samsung Display Vietnam Co., Ltd. (SDV) Samsung Eletronica da Amazonia Ltda. (SEDA) Samsung Electronics (UK) Ltd. (SEUK) Samsung International, Inc. (SII) Thai Samsung Electronics Co., Ltd. (TSE) Samsung Electronics HCMC CE Complex Co., Ltd. (SEHC) Samsung Electronics Taiwan Co., Ltd. (SET) Samsung Electronics Hungarian Private Co., Ltd. (SEH) Samsung Electronics Europe Logistics B.V. (SELS) Samsung Electronics Benelux B.V. (SEBN) Samsung Electronics GmbH (SEG) Samsung Display Dongguan Co., Ltd. (SDD) Other
Total Samsung SDS Co., Ltd Samsung Electro-Mechanics Co., Ltd Samsung SDI Co., Ltd Cheil Worldwide Inc. Other
Total Samsung C&T Corporation Other
Total Samsung Engineering Co., Ltd S-1 Corporation Other
Total
234,883 32,860,328
167,937 9,380,604
65 6,652,988 1,525,639 31,894,007
18 598 4,327,075 25,683,936 1,314,121 3,151,503 1,535,053 417,680 1,459,938 652,277 4,853,191 547,190 4,294,662 365,818 3,332,793 288,980 53,602,392 188,543,676 141,014 45,303 49,995 26,794 595,551 858,657 66,745 303,093 369,838 598 7,132 106,714 114,444
2,475 -
190,056 686 -
1,716 -
1,183 2,609
403 3,222 10,982 213,332 269 68 337 2,371 2,371
916,709 165,629 7,340,085 21,146,962 48,387 15,387,219
9,019 409,852 22,855 3,703,472 3,373,962
3,885 -
8,600 91,821 7,721,915 2,489,534 5,183,912
674 547 11,007 2,695 7,646
15,648,603 83,694,990 1,542,039
975,086 360,350 720,533 773,381 4,371,389 78,054 564,706 642,760 38,556 401,224 200,387 640,167
9,857 1,111 317 7,511 1 900 3,784 23,481 530,412 30,627 16 8,011 569,066 3,902,417 92,577 3,994,994 2,106,166 27,744 38,531 2,172,441
1 Transactions with separate entities that are related parties of the Company. 2 Transactions with the intermediate parent company, including Harman International Industries, Inc. and its subsidiaries. 3 Although these entities are not related parties of the Company in accordance with Korean IFRS 1024, they belong to the same large enterprise group according to the Monopoly Regulation and Fair Trade Act.
Samsung Electronics Business Report
219 / 413
(C) Balances of receivables and payables
Balances of receivables and payables arising from the sales and purchases of goods and services as of December 31, 2022 and December 31, 2021 are as follows:
(In millions of Korean won)
Name of company1
Samsung Display Co., Ltd. Samsung Electronics America, Inc. (SEA) Samsung Asia Pte. Ltd. (SAPL) Harman and its subsidiaries4 Samsung (China) Semiconductor Co., Ltd. (SCS)
December 31, 2022
Receivables and other2
Payables and other3
32,521
108,011
868,937
983,709
1,604
1,812
-
6,537
57,423
751,693
Samsung Electronics Vietnam THAINGUYEN Co., Ltd. (SEVT)
606,030
2,396,411
Samsung (CHINA) Investment Co., Ltd. (SCIC)
131,285
283,459
Samsung Semiconductor, Inc. (SSI)
4,700,427
263,757
Samsung Electronics Vietnam Co., Ltd. (SEV)
369,380
1,748,670
Samsung Electronics Europe Holding Cooperatief U.A. (SEEH)
693
-
Samsung Austin Semiconductor LLC. (SAS)
21,309
386,640
Samsung Display Vietnam Co., Ltd. (SDV)
196,643
7
Samsung India Electronics Private Ltd. (SIEL)
1,219,298
312,243
Subsidiaries Shanghai Samsung Semiconductor Co., Ltd. (SSS) Samsung Eletronica da Amazonia Ltda. (SEDA)
1,623,968 227,180
77 3,037
Samsung Electronics HCMC CE Complex Co., Ltd. (SEHC)
234,870
358,082
Thai Samsung Electronics Co., Ltd. (TSE)
115,103
379,098
Samsung Electronics (UK) Ltd. (SEUK)
76,264
-
Samsung Electronics Benelux B.V. (SEBN)
18,403
-
Samsung Electronics Hungarian Private Co. Ltd. (SEH)
11,449
-
Samsung Electronics Europe Logistics B.V. (SELS)
273,816
506,872
Samsung Display Dongguan Co., Ltd. (SDD)
20,177
11
SEMES Co., Ltd.
54,327
561,368
Samsung Electronics GmbH (SEG)
10,607
-
Samsung Electronics Mexico S.A. De C.V. (SEM)
230,508
1,093
Other
6,565,258
2,226,116
Total Samsung SDS Co., Ltd Samsung Electro-Mechanics Co., Ltd
17,667,480 49,439 385
11,278,703 468,830 101,960
Associates and joint ventures
Samsung SDI Co., Ltd Cheil Worldwide Inc. Other
114,618 43
203,575
51,199 444,017 159,668
Total
368,060
1,225,674
Other related parties
Samsung C&T Corporation Other
Samsung Engineering Co., Ltd
Total
194,539 14,679 209,218
286
2,718,294 160,305
2,878,599 1,181,947
Other 5
S-1 Corporation Other
3,085 4,113
59,352 478,136
Total
7,484
1,719,435
1 Transactions with separate entities that are related parties of the Company. 2 The Company has not recognized bad debt allowance in relation to the receivables due from subsidiaries as of December 31, 2022. 3 Payables and others include lease liabilities. 4 Transactions with the intermediate parent company, including Harman International Industries, Inc. and its subsidiaries. 5 Although these entities are not related parties of the Company in accordance with Korean IFRS 1024, they belong to the same large enterprise group according to the Monopoly Regulation and Fair Trade Act.
Samsung Electronics Business Report
220 / 413
(In millions of Korean won)
Name of Company1
Subsidiaries
Associates and joint ventures Other related
parties Other5
Samsung Display Co., Ltd. Samsung Electronics America, Inc. (SEA) Samsung (China) Semiconductor Co., Ltd. (SCS) Samsung Electronics Vietnam THAINGUYEN Co., Ltd. (SEVT) Harman and its subsidiaries4 Samsung Electronics Vietnam Co., Ltd. (SEV) Samsung (CHINA) Investment Co., Ltd. (SCIC) Samsung Electronics Europe Holding Cooperatief U.A. (SEEH) Samsung Semiconductor, Inc. (SSI) Samsung Asia Pte. Ltd. (SAPL) Samsung Austin Semiconductor LLC (SAS) Samsung India Electronics Private Ltd. (SIEL) Shanghai Samsung Semiconductor Co., Ltd. (SSS) Samsung Display Vietnam Co., Ltd. (SDV) Samsung Eletronica da Amazonia Ltda. (SEDA) Samsung Electronics (UK) Ltd. (SEUK) Samsung International, Inc. (SII) Thai Samsung Electronics Co., Ltd. (TSE) Samsung Electronics HCMC CE Complex Co., Ltd. (SEHC) Samsung Electronics Taiwan Co., Ltd. (SET) Samsung Electronics Hungarian Private Co., Ltd. (SEH) Samsung Electronics Europe Logistics B.V. (SELS) Samsung Electronics Benelux B.V. (SEBN) Samsung Electronics GmbH (SEG) Samsung Display Dongguan Co., Ltd. (SDD) Other Total Samsung SDS Co., Ltd Samsung Electro-Mechanics Co., Ltd Samsung SDI Co., Ltd Cheil Worldwide Inc. Other Total Samsung C&T Corporation Other Total Samsung Engineering Co., Ltd S-1 Corporation Other Total
December 31, 2021
Receivables and other2
Payables and other3
23,791
119,401
4,708,011
143,310
59,110
726,945
734,283
4,049,400
-
7,541
414,781
2,301,949
138,307
77,540
316
-
7,320,890
123,555
1,736
2,164
4,645
277,682
1,099,927
463,652
4,337,520
217
161,441
-
258,490
1,040
201,717
19,595
32,564
259,847
132,508
334,943
167,225
430,960
372,716
32,145
58,694
99
629,882
1,715
45,171
3,351
223,603
2,272
18,025
-
9,220,424
2,284,643
30,365,777
11,663,966
64,364
574,443
2,415
108,103
113,845
54,076
59
421,901
192,550
166,311
373,233
1,324,834
195,355
1,640,615
15,839
125,470
211,194
1,766,085
289
1,099,881
2,058
29,620
4,286
56,476
6,633
1,185,977
1 Transactions with separate entities that are related parties of the Company. 2 The Company has not recognized any bad debt allowance in relation to the receivables due from subsidiaries as of December 31, 2021. 3 Payables and others include lease liabilities. 4 Transactions with the intermediate parent company, including Harman International Industries, Inc. and its subsidiaries. 5 Although these entities are not related parties of the Company in accordance with Korean IFRS 1024, they belong to the same large enterprise group according to the Monopoly Regulation and Fair Trade Act.
Samsung Electronics Business Report
221 / 413
(D) For the years ended December 31, 2022 and 2021, the Company invested W 119,598 million and W 138,858 million, respectively, in subsidiaries, and received W 164,503 million and W 592,520 million in return of investments, respectively. In addition, the Company invested W 882,125 million in associates and joint ventures for the year ended December 31, 2022, but there was no additional investment in associates and joint ventures for the year ended December 31, 2021 or return of those investments for the years ended December 31, 2022 and 2021, respectively.
(E) For the years ended December 31, 2022 and 2021, the Company declared dividend of W 1,663,149 million and W 3,527,449 million, respectively, to related parties. In addition, for the years ended December 31, 2022 and 2021, the Company declared dividends of W 128,232 million and W 267,738 million, respectively, to the entities that are not related parties of the Company in accordance with Korean IFRS 1024, but belong to the same conglomerate according to the Monopoly Regulation and Fair Trade Act. As of December 31, 2022 and December 31, 2021, no dividends declared remains unpaid.
(F) For the years ended December 31, 2022 and 2021, assets leased from related parties amounted to W 20 million and W 63,887 million, respectively, and lease payments made to the related parties amounted to
W 46,819 million and W 51,703 million, respectively.
(G) As of December 31, 2022, the Company provides guarantees in relation to borrowings of the related parties (refer to Note 13). (H) Key management compensation
The compensation paid or payable to key management (executive directors) for their services for the years ended December 31, 2022 and 2021 consists of:
(In millions of Korean won)
2022
2021
Short-term employee benefits Post-employment benefits Other long-term employee benefits
14,768 612
5,434
20,370 886
8,092
31. Subsequent Event
In accordance to the resolution of the Board of Directors on February 14, 2023, the Company concluded a W 20 trillion loan agreement with Samsung Display Co., Ltd., the subsidiary, on February 16, 2023.
Samsung Electronics Business Report
222 / 413
6. Dividends
We continue to work to enhance shareholder value alongside our efforts to strengthen competitiveness of our products and businesses. We utilized 50% of the free cash flow as the shareholder return pool for 2018 to 2020 as part of our shareholder return policy for 2018 to 2020 and paid annual, regular dividends of KRW 9.6 trillion. A special cash dividend of KRW 10.7 trillion was paid out at the same time as the 2020 end-year, regular dividend. The shareholder return policy for 2021 to 2023 was announced in January 2021. For this term, we kept the shareholder return pool at 50% of the free cash flow, but increased the annual, regular dividend to KRW 9.8 trillion. Any remaining portion of the 50% of the free cash flow will be paid out to shareholders.
Dividends paid in the three most recent fiscal years are as follows:
[Key dividend indices]
Classification
2022
2021
2020
Par value per share (KRW)
100
100
100
Consolidated net profit1) (KRW mil)
54,730,018
39,243,791
26,090,846
Separate net profit (KRW mil)
25,418,778
30,970,954
15,615,018
EPS2) (KRW)
8,057
5,777
3,841
Total cash dividend (KRW mil)
9,809,438
9,809,438
20,338,075
Total stock dividend (KRW mil)
-
-
-
Dividend payout ratio (%)
17.9
25.0
78.0
Cash dividend yield (%)
Common Preferred
2.5
1.8
4.0
2.7
2.0
4.2
Stock dividend yield (%)
Common Preferred
-
-
-
-
-
-
Cash dividend per share (KRW)
Common Preferred
1,444 1,445
1,444 1,445
2,994 2,995
Stock dividend per share (share)
Common Preferred
-
-
-
-
-
-
Total cash dividend for 2022 in the above table is a figure prior to the approval at the AGM, and if the amount is rejected or adjusted at the AGM, the details will be published in future reports. Dividends were KRW 2,452,154 million or KRW 361 per share in the first three quarters of 2022 and the first three quarters of 2021, and KRW 2,404,605 million or KRW 354 per share in each of the first three quarters of 2020. For further information relating to total cash dividend, see retained earnings in3. Note to Consolidated Financial Statementsin. Financial Affairs.
1) Equity attributable to owners of the parent. 2) Basic earnings per common share on a consolidated basis. For further information relating to the calculation of basic EPS,
see Earnings Per Share in3. Note to Consolidated Financial Statementsin. Financial Affairs.
Samsung Electronics Business Report
223 / 413
History of dividend payouts is as follows:
Number of continuous dividend payments
Average dividend yield
Quarterly/biannual dividends
End-year dividends
Past 3 years
Past 5 years
36
42
2.7%
2.9%
The number of continuous dividend payments includes the quarterly dividend for the quarter and the end-year dividend for the recent business year.
Continuous payment of the end-year dividend started in 1981, biannual dividend in 1999, and quarterly dividend in 2017.
The average dividend yield is based on common shares. The average dividend yield of preferred shares for the past 3 years and past 5 years are 3.0%
and 3.3% respectively.
The "past 3 years" refers to the period from 2020 to 2022, and the "past 5 years" refers to the period from 2018 to 2022. For the dividend yield of 2022,
please refer to the table of key dividends above (common shares at 2.5%, preferred shares at 2.7%).
Samsung Electronics Business Report
224 / 413
7. Matters about financing through the issuance of securities
7-1 Financing through the issuance of securities [Issuance of equity securities]
N/A
[Issuance of debt securities] A. List of issued debt securities
(As of December 31, 2022)
Issuing company
Samsung Electronics Harman International Industries, Inc Harman Finance International, SCA (*1) Dowinsys Co., Ltd Dowinsys Co., Ltd SEMES SEMES
Type of securities
Corporate bonds Corporate bonds Corporate bonds Corporate bonds Corporate bonds Commercial paper Commercial paper
Issuance method
Public offering
Public offering
Public offering
Private placement
Private placement
Private placement
Private placement
Date of Issuance
Oct 2,1997
Total nominal amount
126,730
May 11, 2015
506,920
May 27, 2015
469,819
Feb 28, 2020
23,000
Dec 8, 2022
42,000
Jul 28, 2022
80,000
Aug 30, 2022
30,000
Interest rate
7.7
4.2
2.0
Rating (rating institution)
Aa2(Moody's), AA-(S&P)
Baa1 (Moody's), A- (S&P)
Baa1 (Moody's), A- (S&P)
0.5
-
0.5
-
3.0
A1
3.3
A1
Maturity date
Oct 1, 2027 May 15, 2025 May 27, 2022 Feb 28, 2025 Dec 8, 2027 Aug 26, 2022 Sep 29, 2022
Payment status
Partial redemption
(KRW mil, %)
Management company
Goldman Sachs et al.
Unredeemed J.P.Morgan et al.
Redeemed
HSBC et al.
Unredeemed
-
Unredeemed
-
Redeemed
-
Redeemed
-
Total
-
-
-
1,278,469
-
-
-
-
-
The rating institutions of Commercial paper are NICE Investors Service and Korea Ratings Corporation. (*1) The corporate bonds were redeemed on March 1st, 2022, prior to the original maturity date.
Samsung Electronics Business Report
225 / 413
B. Commercial Paper Unredeemed Balance
Not Applicable (Reporting Date: December 31, 2022)
(KRW mil)
Maturity
Under 10 days
Above 10 days Above 30 days Above 90 days / Above 180 days / under 30 days / under 90 days under 180 days / under 1 year
Above 1 year / under 2 years
Above 2 years / under 3 years
Above 3 years
Total
Unredeemed balance
Public Private Total
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
C. Short-term Bond Unredeemed Balance
Not Applicable (Reporting Date: December 31, 2022)
Maturity
Under 10 days
Above 10 days / under 30 days
Above 30 days Above 90 days Above 180 days / under 90 days / under 180 days / under 1 year
Unredeemed balance
Public Private Total
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(KRW mil)
Total
Issue limit
Balance limit
-
-
-
-
-
-
-
-
-
Samsung Electronics Business Report
226 / 413
D. Corporate Bond Unredeemed Balance
(Reporting Date: December 31, 2022)
Maturity
Under 1 year
Above 1 year / under 2 years
Above 2 years / under 3 years
Above 3 years / under 4 years
Above 4 years / under 5 years
Above 5 years / under 10 years
Above 10 years
Public
6,337
6,337
513,257
6,337
6,335
-
-
Unredeemed balance
Private
-
-
23,000
-
42,000
-
-
Total
6,337
6,337
536,257
6,337
48,335
-
-
Based on consolidated financial statements. The exchange rate as of the reporting date has been applied. Unredeemed balance of corporate bonds of Dowinsys are intercompany balances eliminated in consolidated financial statements.
- Corporate Bond Unredeemed Balance (Samsung Electronics)
(Reporting Date: December 31, 2022)
Maturity
Under 1 year
Above 1 year / under 2 years
Above 2 years / under 3 years
Above 3 years / under 4 years
Above 4 years / under 5 years
Above 5 years / under 10 years
Above 10 years
Unredeemed Public
6,337
6,337
6,337
6,337
6,335
-
-
balance
Total
6,337
6,337
6,337
6,337
6,335
-
-
The exchange rate as of the reporting date has been applied.
- Corporate Bond Unredeemed Balance (Harman)
(Reporting Date: December 31, 2022)
Maturity
Under 1 year
Above 1 year / under 2 years
Above 2 years / under 3 years
Above 3 years / under 4 years
Above 4 years / under 5 years
Above 5 years / under 10 years
Above 10 years
Unredeemed balance
Public Total
-
-
506,920
-
-
-
-
-
-
506,920
-
-
-
-
The exchange rate as of the reporting date has been applied.
(KRW mil) Total 538,790 65,000 603,603
(KRW mil) Total 31,683 31,683
(KRW mil) Total 506,920 506,920
Samsung Electronics Business Report
227 / 413
- Corporate Bond Unredeemed Balance (Dowinsys) (Reporting Date: December 31, 2022)
Maturity
Under 1 year
Above 1 year / under 2 years
Above 2 years / under 3 years
Above 3 years / under 4 years
Above 4 years / under 5 years
Above 5 years / under 10 years
Above 10 years
Unredeemed Private
balance
Total
-
-
23,000
-
42,000
-
-
-
-
23,000
-
42,000
-
-
Unredeemed balance of corporate bonds of Dowinsys are intercompany balances eliminated in consolidated financial statements.
E. Hybrid Bond Unredeemed Balance
Not Applicable (Reporting Date: December 31, 2022)
Maturity
Unredeemed balance
Public Private
Total
Under 1 year
Above 1 year / under 5 years
Above 5 years Above 10 years Above 15 years Above 20 years / under 10 years / under 15 years / under 20 years / under 30 years
Above 30 years
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(KRW mil) Total 65,000 65,000
(KRW mil) Total -
Samsung Electronics Business Report
228 / 413
F. Contingent Convertible Bond Unredeemed Balance
Not Applicable (Reporting Date: December 31, 2022)
(KRW mil)
Maturity
Under 1 year
Above 1 year / Above 2 years Above 3 years Above 4 years Above 5 years Above 10 years Above 20 years under 2 years / under 3 years / under 4 years / under 5 years / under 10 years / under 20 years / under 30 years
Above 30 years
Total
Unredeemed balance
Public Private Total
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Samsung Electronics Business Report
229 / 413
G. Details and Compliance of the Bond Management Contract (Samsung Electronics)
(Reporting Date: December 31, 2022)
Name of security
Date of issuance
Maturity date
Issued amount
Settlement date of bond management contract
US$ 100,000,000 7.7% debenture
Oct 2, 1997
Oct 1, 2027
126,730
Oct 2, 1997
(KRW mil, %)%)
Debenture management company
The Bank of New York Mellon Trust Company, N.A.
(Reporting Date: December 31, 2022)
Financial ratios
Contract details Implementation status
Not applicable Not applicable
Constraint on collateral
Contract details Implementation status
Less than 10% of net tangible assets Compliant (there is no collateral for the relevant assets)
Constraint on disposal of assets
Contract details Implementation status
Certain requirements, such as transfer of obligations on the bond, must be satisfied to dispose all or most of an asset
Compliant (disposed assets accounted for 0.2% of the total assets during 2022)
Constraint on governance
Contract Details Implementation status
Not applicable Not applicable
Submission of implementation report
Implementation status
Not applicable
The exchange rate as of the base date has been applied. The date of the bond management contract was signed on the same day as the Fiscal Agency Agreement; accordingly, the Bank of New York Mellon Trust
Company, N.A. is under the authority of the Fiscal Agent. The net tangible assets subjected to the limitation of collaterals are production facilities and stocks owned by the Company. The reporting date is the date when most recent financial statements were prepared, which are used to determine the status of implementation. The constraint on governance is as of the reporting date.
Samsung Electronics Business Report
230 / 413
7-2 Use of funds financed through the issuance of securities
Not applicable
Samsung Electronics Business Report
231 / 413
8. Other financial information
A. Restatement of financial statements and other matters to note
(1) Restatement of financial statements: Not Applicable (2) Acquisition, divestment, asset sales, and sale of business
The major acquisition, divestment and transfer of business during past three years are as follows. [Sale of SSL, SSM] On August 28, 2020, Samsung Display Co., Ltd., the Company's subsidiary, decided to sell its 100% ownership in Samsung Suzhou Module Co., Ltd. ("SSM") and 60% ownership in Samsung Suzhou LCD Co., Ltd. ("SSL") to TCL China Star Optoelectronics Technologies Co. Ltd. ("CSOT"). The sales were completed on April 1, 2021.
(3) Information on the accounting treatment of the sales of assets related to asset backed securities and contingent liabilities
Accounting Treatment of the sale of assets related to asset backed securities:
- Not applicable Litigation The Company is involved in various claims, disputes, and investigations conducted by regulatory bodies, which arose during the normal course of business with numerous entities. Although the outflow of resources and timing of these matters are uncertain, as of the reporting date, the Company believes the outcome will not have a material impact on the financial position of the Company.
Debt guarantee - Domestic: Not applicable
Samsung Electronics Business Report
232 / 413
- Overseas:
Company
Relationship
Creditor
SEA SEM SAMCOL SEDA SECH SEPR SSA SEMAG SETK SETK-P SECE SEEG SEIN SJC SEUC SEDAM SECA SELA SEEH SERK SELV SEIL SAPL SAVINA SCIC SME SAMEX SEASA SSAP SEPM SESAR AdGear Technologies Inc. Harman International Industries, Inc. Harman International Japan Co., Ltd. Harman RUS CIS LLC Harman Holding Limited Harman do Brasil Industria Eletronica e Participacoes Ltda. Harman da Amazonia Industria Eletronica e Participacoes Ltda. Harman International Industries Limited Harman Finance International, SCA SDN
SAS
DOWOOINSYS VINA COMPANY LIMITED Total
Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary
Subsidiary
Subsidiary Subsidiary Subsidiary
Subsidiary
Subsidiary
BOA etc. BBVA etc. Citibank etc. BRADESCO etc. Citibank etc. BBVA etc. SCB etc. SocGen etc. BNP etc. BNP etc. Citibank HSBC BNP etc. Mizuho Bank etc. Credit Agricole etc. Citibank etc. BoA Citibank HSBC etc. SMBC etc. Citibank Citibank BOA etc. HSBC HSBC etc. SCB Citibank Citibank SCB HSBC HSBC BOA JP Morgan MUFG SocGen HSBC
SocGen
HSBC JP Morgan etc. SIEL
Epcor
ANZ
Guarantee
Expiry date
Dec 16, 2023 Nov 08, 2023 Dec 16, 2023 Dec 16, 2023 Dec 16, 2023 Dec 16, 2023 Dec 16, 2023 Dec 16, 2023 Dec 16, 2023 Dec 16, 2023 Dec 16, 2023 Jun 13, 2023 Nov 08, 2023 Dec 16, 2023 Dec 16, 2023 Dec 16, 2023 Nov 08, 2023 Dec 16, 2023 Dec 16, 2023 Dec 16, 2023 Dec 16, 2023 Dec 16, 2023 Dec 16, 2023 Jun 13, 2023 Dec 16, 2023 Nov 08, 2023 Dec 16, 2023 Dec 16, 2023 Nov 08, 2023 Jun 13, 2023 Jun 13, 2023 Nov 08, 2023 Jun 13, 2023 Nov 08, 2023 May 31, 2022 Jun 13, 2023
Nov 08, 2023
Jun 13, 2023 Mar 01, 2022 Nov 22, 2024 The date of debt expiration Nov 09, 2025
Beginning of period 102,275 33,334 10,947 -
Transactions Increase/ decrease 137,120 -7,685 155,768 -1,283 -
-
-
396,304 571,121
-
-396,304 -57,755
-
1,113,981
20,000 -150,139
(USD thousand)
End of period
239,395 25,649 155,768 9,664 -
Limit of guarantee
1,278,000 715,000 210,000 409,000 62,000 150,000 318,000 110,000 777,000 130,000 60,000 85,000 70,000 832,572 150,000 537,000 70,000 60,000 888,400 45,000 10,000 15,600 404,000 51,000 300,000 110,000 5,000 2,000 35,000 35,000 20,000 2,000 100,000 25,000 30,000
-
15,000
513,366
-
30,000 -
603,960
340,000
20,000 963,842
20,000 9,110,532
Information above are prepared on a consolidated basis. Debt guarantees for Harman Finance International, SCA are provided by Harman International Industries, Inc., SDN by Samsung Display Co., Ltd., SAS by SEA, and DOWOOINSYS VINA COMPANY LIMITED by Dowinsys, respectively.
SEC requires Board approval for individual guarantees exceeding 2.5% of total equity. When the guarantee amount is between 0.1% and/or less than 2.5%, the approval decision is delegated to the Management Committee. Samsung Display Co., Ltd requires Board approval for individual guarantees over KRW 10,000 million.
SEC claims fees on the debt guarantees depending on the maturity date of each debt guarantee, general loan interest rate, etc. In 2022, the Company claimed approximately USD 547,000 in guarantee fees and, as of the reporting date, has not collected the amount.
Samsung Electronics Business Report
233 / 413
In 2022, Samsung Display Co., Ltd. claimed approximately USD 3,080,000 in guarantee fees to SDN and, as of the reporting date, has not collected the amount.
Refer to the notes to the consolidated financial statements for the information on contingent liabilities.
(4) Other matters requiring attention in relation to the use of the financial statements
A. Emphasis of matter and key audit matter in Independent auditor's report
Period 2022 2021
2020
Emphasis of matter Not applicable Not applicable
Not applicable
Key audit matter (Consolidated financial statement) 1. Sales deduction related to the Sales promotion activities of products
(Separate financial statement) 1. Sales deduction related to the Sales promotion activities of products (Consolidated financial statement) 1. Sales deduction related to the Sales promotion activities of products
(Separate financial statement) 1. Sales deduction related to the Sales promotion activities of products (Consolidated financial statement) 1. Sales deduction related to the Sales promotion activities of products 2. Impairment of goodwill and intangible assets with indefinite useful lives
(Separate financial statement) 1. Sales deduction related to the Sales promotion activities of products
Samsung Electronics Business Report
234 / 413
B. Allowance for bad debt
The allowances for bad debt by account over the past 3 years are as follows:
Period
Account
Receivables amount
Allowance amount
Trade receivables
36,033,784
312,221
Short-term loans
22,403
215
Other receivables
6,227,068
77,859
Advances
1,741,031
3,965
2022
Trade receivables (long-term)
204,248
-
Other receivables (long-term)
824,468
242
Advances (long-term)
2,382,711
10,969
Long-term loans
225,983
1,206
Total
47,661,696
406,677
Trade receivables
41,024,295
310,880
Short-term loans
17,895
73
Other receivables
4,569,772
72,515
Advances
1,122,660
3,847
2021
Trade receivables (long-term)
225,739
-
Other receivables (long-term)
1,002,404
290
Advances (long-term)
1,770,999
9,003
Long-term loans
199,577
917
Total
49,933,341
397,525
Trade receivables
31,283,789
318,731
Short-term loans
7,813
73
Other receivables
3,663,822
59,283
Advances
890,413
3,371
2020
Trade receivables (long-term)
85,575
-
Other receivables (long-term)
401,582
204
Advances (long-term)
1,397,698
5,972
Long-term loans
113,944
1,309
Total
37,844,636
388,943
Based on consolidated financial statements. Receivables amount represents the value after deducting present value discount account.
(KRW mil, %) Allowance
0.9% 1.0% 1.3% 0.2% 0.0% 0.0% 0.5% 0.5% 0.9% 0.8% 0.4% 1.6% 0.3% 0.0% 0.0% 0.5% 0.5% 0.8% 1.0% 0.9% 1.6% 0.4% 0.0% 0.1% 0.4% 1.1% 1.0%
Samsung Electronics Business Report
235 / 413
Allowance for bad debt by year
1. Allowance for bad debt (beginning balance)
2. Net bad debt expense ( - + )
Bad debt expense, etc (Write-off) Bad debt recovered Others
3. Bad debts expense
4. Allowance for bad debts (Ending balance)
Based on consolidated financial statements.
2022 397,525
16,658 9,711 6,947
25,810
406,677
2021 388,943
25,926 22,400
3,526 34,508
397,525
(KRW mil) 2020
411,310
65,575 40,487
745 25,833 43,208
388,943
The guideline for bad debt allowances for trade receivables
(1) Calculation of bad debt allowance
Bad debt allowance is calculated using an expected credit loss impairment model which is based on write-off experience rate and future expected bad debt amount.
(2) Calculation basis of write-off experience rate and future expected bad debt:
Write-off experience rate for each aging group of receivables is calculated based on the actual rate of credit losses to three-year average receivables balance.
Future expected bad debt is determined taking into consideration cases of debtor bankruptcy, compulsory execution, death, disappearance, credit information of debtor and forward-looking information.
[Bad debt allowance by circumstance]
Circumstance Dispute or conflict Receivable through utilization of third party collection agency Receivable under litigation Customer filed or in the process of filing bankruptcy
Rate of allowance 25% 50% 75% 100%
Samsung Electronics Business Report
236 / 413
(3) Instruction: Write-off is recorded when trade receivables contain the following characteristics: Objective proof of bad debts, such as bankruptcy, compulsory execution, discontinuance of business, debtor's death or disappearance Legal action has failed or the right of collection has been extinguished. When the third party collection agency notifies that collection is not possible. When the collateral is sold or insurance is received. When collection expense exceeds receivables amount.
The outstanding period of trade receivables
(Reporting Date: December 31, 2022)
Less than 6 months
6 months ~ 1 year
1 year ~ 3 years
More than 3 years
Amount
36,067,812
4,549
68,147
97,524
Ratio
99.5%
0.0%
0.2%
0.3%
Base on consolidated financial statements. Receivables amount represents the value after deducting present value discount account.
(KRW mil, %) Total 36,238,032 100.0%
Samsung Electronics Business Report
237 / 413
C. Inventory
- The inventory status by Division over the last three years is as follows:
Division
Category
Finished goods
Work in process
DX
Raw material
Material in transit
Total
Finished goods
Work in process
DS
Raw material
Material in transit
Total
Finished goods
Work in process
SDC
Raw material
Material in transit
Total
Finished goods
Work in process
Harman
Raw material
Material in transit
Total
Finished goods
Work in process
Total
Raw material
Material in transit
Total
Inventory ratio (%) [Inventory ÷ Total Assets]100
Inventory turnover (x) [ Yearly COGS ÷ {(Beginning of inventory + End of
inventory)÷2}]
Based on consolidated financial statements
2022 7,712,885 1,013,606 10,520,293 943,322 20,190,106 6,601,087 18,756,104 3,639,061 61,352 29,057,604 811,518 542,473 788,521 23,626 2,166,138 799,919 119,890 913,085 269,715 2,102,609 16,032,226 20,077,519 14,979,280 1,098,841 52,187,866
11.6%
4.1
2021 8,894,766 799,218 11,384,887 1,299,624 22,378,495 2,490,097 11,809,911 2,118,424 36,685 16,455,117 294,777 874,229 810,325 48,253 2,027,584 533,008 105,271 736,109 321,128 1,695,516 12,280,579 13,473,618 14,184,841 1,445,366 41,384,404
9.7%
4.5
(KRW mil, %)
2020
Note
7,088,063
592,903
7,862,310
876,270
16,419,546
1,719,095
10,639,866
1,674,081
46,587
14,079,629
134,963
650,762
603,779
33,271
1,422,775
502,117
80,237
337,386
224,961
1,144,701
9,387,886 11,818,090 9,790,766 1,046,403 32,043,145
8.5%
4.9
Samsung Electronics Business Report
238 / 413
Inventory counts
(1) Inspection date End of May and November (twice a year) For the difference in inventories between the inspection date and at the end of the year, the Company checks
all the warehouse record during the period in order to confirm the existence of the inventories as of the date of the financial statements.
(2) Inspection method Internal warehouse: Closed & entire quantity inspection Sample inspection for semi-conductor and DP work-in-progress inventories, SVC materials Outside warehouse
Perform check for the possession confirmation documents and sample tests at the third party warehouse and inventoryin-transit. External auditors join and observe the inspection and carry out sample tests to check the existence and completeness. For the HQ, the most recent inventory inspection was conducted from May 29 to June 5, 2022, and the subsidiaries conducted the inventory inspection during the same period as HQ.
Inventory aging and valuation
Inventories are stated at the lower of cost or net realizable value. Inventory as of December 31, 2022 are as follows:
Category Finished goods Work in process Raw material
Acquisition cost 17,526,178
21,612,965
16,268,974
Inventory valuation reserve
-1,493,952
-1,535,446
-1,289,694
Balance 16,032,226 20,077,519 14,979,280
(KRW mil)
Note
Material in transit Total
1,098,841 56,506,958
-4,319,092
1,098,841 52,187,866
Based on consolidated financial statements
D. Fair value estimation
Refer to 3. Financial Instruments by Category and 25. Financial Risk Management in . Financial Affairs.
Samsung Electronics Business Report
239 / 413
IV. Management Discussion and Analysis
1. Note on forward-looking statements
This annual report includes forward-looking statements that relate to future events and can be generally identified by phrases containing words such as "believes," "expects," "anticipates," "foresees," "forecasts," "estimates" or other words or phrases of similar meaning. These forward-looking statements are not guarantees of future performance and may involve known and unknown risks, uncertainties and other factors that may affect our actual results, performance, achievements or financial position, making them materially different from the actual future results, performance, achievements or financial position expressed or implied by these forward-looking statements. Unless otherwise specified, all data presented in this report is from our consolidated financial statements.
Uncertain events that could positively or negatively affect the Company's management condition and financial performance include, but are not limited to:
· Trends of financial markets domestically and abroad, including changes in exchange rates and interest rates · The Company's strategic decision making, including disposals and purchases of businesses · Unexpected sudden changes in core businesses within DX, DS, SDC and Harman · Other changes domestically and abroad that can affect management condition and financial performance
The Company assumes no obligation to revise or update this report to reflect risks or uncertainties that arise after the reporting period.
(Responsibility statement) In accordance with article 3(2) c) of the Transparency Law (Luxembourg), Jong-Hee Han and Hark-kyu Park, as a CEO and the executive in charge of reporting confirm that, to the best of their knowledge, the consolidated financial statements and the statutory non-consolidated financial statements prepared in accordance with the applicable set of accounting standards give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation taken as a whole and that the management report includes a fair review of the development and performance of the business and the position of the Company and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face.
2. Overview
The business environment remained challenging in 2022 as uncertainties in the global economy intensified due to increasingly aggressive monetary tightening globally, the Russia-Ukraine war, and supply issues involving raw materials and energy. Despite the formidable economic conditions, Samsung Electronics achieved a total revenue of KRW 302 trillion and operating profit of KRW 43 trillion on a consolidated basis and a total revenue of KRW 212 trillion and operating profit of KRW 25 trillion on a standalone basis.
Our financial structure remained sound--we recorded a debt ratio of 26.4%, capital adequacy ratio of 79.1%, and ROE of 16.9% on a consolidated basis. On a standalone basis, the respective figures were 24.2%, 80.5%, and 12.6%. Our brand value in 2022 was evaluated at an all-time high of USD 87.7 billion (Interbrand; November 2022), up 17% from last year's figure and maintaining our position as the world's fifth most valuable brand.
On the business side, we further solidified our market power and industry leadership by launching the Galaxy Z Fold 4 and Z Flip 4 while strengthening our lineup of Neo QLED TVs and Bespoke products; and we further enhanced the profitability and cost competitiveness of the component business based on our capabilities in core technologies, which include the world's first adoption of multi-step EUV technology.
In 2023, global economic uncertainties, such as continued monetary tightening and prolonged supply issues for raw
Samsung Electronics Business Report
240 / 413
materials and energy, are likely to remain high, while intensifying competition for our main products and a rapidly changing paradigm in the IT industry will present numerous hurdles. However, we will leverage such challenges as opportunities and devote all our energy--via relentless innovations and thorough preparations--to improve our earnings and ensure swift responses to future opportunities.
Samsung Electronics Business Report
241 / 413
3. Financial position and performance (consolidated)
A. Financial position
(KRW mil)
Classification
2022
2021
Increase/decrease
change
Current assets
218,470,581
218,163,185
307,396
0.1%
- Cash and cash equivalents
49,680,710
39,031,415
10,649,295
27.3%
- Short-term financial instruments
65,102,886
81,708,986
-16,606,100
-20.3%
- Other current financial assets
443,690
3,409,791
-2,966,101
-87.0%
- Trade and other receivables
35,721,563
40,713,415
-4,991,852
-12.3%
- Inventories
52,187,866
41,384,404
10,803,462
26.1%
- Other current assets
15,333,866
11,915,174
3,418,692
28.7%
Non-current assets
229,953,926
208,457,973
21,495,953
10.3%
- Other non-current financial assets
12,802,480
15,491,183
-2,688,703
-17.4%
- Associates and joint ventures
10,893,869
8,932,251
1,961,618
22.0%
- Property, plant and equipment
168,045,388
149,928,539
18,116,849
12.1%
- Intangible assets
20,217,754
20,236,244
-18,490
-0.1%
- Other non-current assets
17,994,435
13,869,756
4,124,679
29.7%
Total assets
448,424,507
426,621,158
21,803,349
5.1%
Current liabilities
78,344,852
88,117,133
-9,772,281
-11.1%
Non-current liabilities
15,330,051
33,604,094
-18,274,043
-54.4%
Total liabilities
93,674,903
121,721,227
-28,046,324
-23.0%
Equity attributable to owners of the parent
345,186,142
296,237,697
48,948,445
16.5%
Non-controlling interest
9,563,462
8,662,234
901,228
10.4%
Total equity
354,749,604
304,899,931
49,849,673
16.3%
Total liabilities and equity
448,424,507
426,621,158
21,803,349
5.1%
Capital adequacy ratio
79.1%
71.5%
7.6%p
Debt-to-equity ratio
26.4%
39.9%
-13.5%p
Inventory turnover
4.1
4.5
-0.4
Presented in accordance with K-IFRS. If the agenda item related to the approval of financial statements is rejected or adjusted at the AGM, the details will be published in future reports.
Samsung Electronics Business Report
242 / 413
Samsung Electronics' total assets in 2022 were KRW 448.4245 trillion, an increase of KRW 21.8033 trillion (5.1%) from the previous year. The increase is mainly attributable to inventories, which increased by KRW 10.8035 trillion, and to an increase in tangible assets caused by facility investments worth KRW 18.1168 trillion for the semiconductor and DP businesses.
Total liabilities were KRW 93.6749 trillion, a decrease of KRW 28.0463 trillion (23.0%) from the previous year. This includes a decrease of KRW 9.7723 trillion (11.1%) in current liabilities and a decrease of KRW 18.2740 trillion (54.4%) in non-current liabilities. The changes are attributable to the KRW 8.5405 trillion and KRW 18.0869 trillion decreases in short-term borrowings and deferred income tax liabilities, respectively.
Total equity was KRW 354.7496 trillion, an increase of KRW 49.8497 trillion (16.3%) from the previous year. Retained earnings grew by KRW 44.8816 trillion year-on-year from net income of KRW 54.7300 trillion and dividends of KRW 9.8094 trillion. Other components of equity increased by KRW 4.0668 trillion due to factors such as the overseas operations translation difference.
In terms of financial ratios, the Company maintained a sound financial structure as the capital adequacy ratio increased by 7.6%pts from the previous year to 79.1% and the debt-to-equity ratio decreased by 13.5%pts from the previous year to 26.4%.
B. Performance
(KRW mil)
Classification
2022
2021
Increase/decrease
Change
Sales
302,231,360
279,604,799
22,626,561
8.1%
Cost of sales
190,041,770
166,411,342
23,630,428
14.2%
Gross profit
112,189,590
113,193,457
-1,003,867,
-0.9%
Selling and administrative expenses
68,812,960
61,559,601
7,253,359
11.8%
Operating profit
43,376,630
51,633,856
-8,257,226
-16.0%
Other income
1,962,071
2,205,695
-243,624
-11.0%
Other expenses
1,790,176
2,055,971
-265,795
-12.9%
Gain on valuation using the equity method of accounting
1,090,643
729,614
361,029
49.5%
Financial income
20,828,995
8,543,187
12,285,808
143.8%
Financial expenses
19,027,689
7,704,554
11,323,135
147.0%
Income before income tax expense
46,440,474
53,351,827
-6,911,353
-13.0%
Income tax expense
-9,213,603
13,444,377
-22,657,980
-168.5%
Net income
55,654,077
39,907,450
15,746,627
39.5%
Equity attributable to owners of the parent
54,730,018
39,243,791
15,486,227
39.5%
Non-controlling interests
924,059
663,659
260,400
39.2%
Presented in accordance with K-IFRS.
If the agenda item related to the approval of financial statements is rejected or adjusted at the AGM, the details will be published in future reports.
In 2022, revenue increased year-on-year by KRW 22.6266 trillion (8.1%) to an all-time annual high of KRW 302.2314 trillion, driven by expanding sales of premium products, such as Neo QLED TV, Bespoke, and flagship smartphones, as
Samsung Electronics Business Report
243 / 413
well as currency effects on the DS Division. However, operating profit decreased year-on-year by KRW 8.2572 trillion (16.0%) to KRW 43.3766 trillion due to a decline in semiconductor ASP and the impacts of increased logistics costs from the finished product businesses.
Income before income taxes decreased year-on-year by KRW 6.9114 trillion (13.0%) to KRW 46.4405 trillion, and net income increased by KRW 15.7466 trillion (39.5%) to KRW 55.6541 trillion.
We continued to maintain a sound financial structure, highlighted by a year-on-year increase in ROE of 3.2%pts to 16.9%, and an increase in net profit ratio of 4.1%pts to 18.4%.
Samsung Electronics Business Report
244 / 413
[Performance by division]
Classification
Division
2022 Amount
DX Division
182,489,720
DS Division
98,455,270
Revenue
SDC
34,382,619
Harman
13,213,694
Overall revenue
302,231,360
DX Division
12,746,074
DS Division
23,815,810
Operating profit
SDC
5,952,973
Harman
880,548
Overall operating profit
43,376,630
Includes inter-divisional revenue and operating profit.
Share 60.4% 32.6% 11.4% 4.4% 100.0% 29.4% 54.9% 13.7% 2.0% 100.0%
2021 Amount 166,259,437 95,387,173 31,712,526 10,039,922 279,604,799 17,386,554 29,192,021
4,457,365 599,097
51,633,856
Share 59.5% 34.1% 11.3% 3.6% 100.0% 33.7% 56.5% 8.6% 1.2% 100.0%
(KRW mil)
Change
Amount
(%)
16,230,283
9.8%
3,068,097
3.2%
2,670,093
8.4%
3,173,772 31.6%
22,626,561
8.1%
-4,640,480 -26.7%
-5,376,211 -18.4%
1,495,608 33.6%
281,451 47.0%
-8,257,226 -16.0%
(DX Division)
The DX Division's revenue in 2022 increased by KRW 16.2303 trillion (9.8%) from the previous year to KRW 182.4897 trillion, but operating profit decreased by KRW 4.6405 trillion (26.7%) to KRW 12.7461 trillion. Revenue growth was driven by sales of premium products, which include Neo QLED TVs, Bespoke products, and flagship smartphones, but operating profit declined due to the impacts of increased logistics costs.
In the DX Division, the VD/DA businesses are sustaining growth led by sales of premium products, including those for Neo QLED TVs featuring premium technology, as well as for products tailored to experience-oriented lifestyles, such as our Lifestyle TVs, Bespoke products, and new home appliance products. In the Visual Display Business, we are expanding our leadership in the premium, ultra-large, over 75" TV market with QLED TVs featuring quantum dot technology, and we are growing market power with continued releases of new Lifestyle TV products, such as The Terrace and The Premier. In addition, we keep pushing the boundary of the overall market with diverse new products such as The Wall micro LED TV, soundbars, and LED signage.
Based on positive responses for our new products, Samsung has remained atop the global TV market for 17 consecutive years, spanning from 2006 to 2022, fortifying our industry leadership.
In 2023, the Company will continue to innovate to lift demand for premium TVs and sales of Lifestyle products. We will leverage micro LED technology to lead form factor in the industry; and we will present new lifestyles through additional design differentiations, which include an expansion of our lineup of lifestyle products that reflect changing patterns of how consumers use screens, including the way they connect mobile devices and content and how they interact with fitness training and gaming at home. Furthermore, as part of our Company's new environmental strategy, we will strive to ensure sustainable growth by adopting more components made from recycled plastic in our eco-friendly remote controls and by releasing new TV products that offer ultra-low-power technology.
In the Digital Appliance Business, we continue to launch products and services that not only offer advanced functions based on highly-efficient, eco-friendly technologies, but also increase convenience in our consumers' lives, all based on a deep understanding of the changing life patterns of our consumers. We are also creating new value with smart appliances that connect with various devices as well as a suite of services centering on Bixby and SmartThings.
In 2023, we aim to keep innovating user experiences by expanding global sales through differentiated Bespoke product
Samsung Electronics Business Report
245 / 413
lineups. For our high margin B2B businesses, which include system air conditioners and built-in home appliances, we will strengthen our competitiveness to win more orders and maintain growth momentum by offering differentiated eco-friendly features and adopting customized products, for example. In addition, we will offer customized services by connecting products so our consumers can enjoy unparalleled user experiences; and we will fortify our status as a global brand in home appliances by strengthening activities that promote ESG by reducing energy use and expanding adoption of eco-friendly materials, to name a few.
Even amid challenging market conditions, including prolonged geopolitical issues and effects of inflation and the economic downturn, the DX Division's MX Business achieved solid results, including an increase in market share in the flagship smartphone market on the back of bolstered product competitiveness.
In the premium segment, following the launch of the Galaxy Z Flip and Galaxy Z Fold 2 in 2020, we released the S-series in 2021 to deliver experiences tailored to the various lifestyles of our users, further expanding our premium user base. Foldables, along with S-series models, are spearheading growth of our flagship products by offering unique user experiences. Moreover, the Galaxy Ecosystem allowed customers to experience expanded connectivity between various products and services and take advantage of collaborations with global partners, leading growth in the tablet, PC, and wearables businesses to exceed market and thus highlight strength in this segment in 2021. In 2022, facing heightened market uncertainties, including geopolitical issues, and stagnant demand, we focused our capabilities on our flagship products, increasing the sales portion and ensuring smooth supply of S22 Ultra--the top model in the S-series--thereby fortifying our status in the flagship market.
In 2023, we will aggressively pursue strategies to overcome challenges in the mobile market, which is expected to contract. We will push to expand our premium customer base by promoting the S23 and S23 Ultra to strengthen our leadership in the flagship market; and for foldables, we will stay atop the global market by further fortifying our market-leading position via our technology and broad cooperation with partners. In addition, we will actively address demand to transition to 5G via mass-market products in emerging markets, such as Southeast Asia and Latin America, to pursue overall growth in smartphones. Furthermore, by closely collaborating with the DX Division, the MX Business will expand our Multi Device experience, which enables convenient use of not only mobile products, but also TVs and home appliances, enabling our customers to enjoy an ultimate experience via the Galaxy Ecosystem.
Under a management philosophy that prioritizes future-oriented values and customer experiences, we will continue to preemptively address changing market landscapes and diversifying customer needs. We are endeavoring to preemptively secure core technologies and platforms--such as eXtended Reality (XR), chipsets, and digital health/wallets--that will power next-gen growth engines based on open cooperation; all while continuing to achieve solid results and lead the mobile market.
(DS Division)
In the DS Division, revenue in 2022 increased by KRW 3.0681 trillion (3.2%) year-on-year to KRW 98.4553 trillion, but operating profit decreased by KRW 5.3762 trillion (18.4%) to KRW 23.8158 trillion compared to the prior year due to the repercussions of a decline in semiconductor ASP in the second half of the year.
The Memory Business is focusing on bolstering competitive edges by maintaining its dominant position in cost competitiveness via technology leadership and through timely responses to market demand, even amid challenging business conditions that include a global economic slowdown and sluggish demand. In 2023, we expect customer inventory adjustments to continue and macro factors to keep dampening consumer sentiment in the short-term, and we will prepare for various scenarios--including a potential demand recovery in the second half--and continue to monitor market conditions to proactively address changes.
For DRAM, we further strengthened our technological competitiveness by preemptively establishing a DRAM mass production system that applies multi-step EUV technology--a world's first. We are focusing on qualitative growth by
Samsung Electronics Business Report
246 / 413
operating portfolios centered on high-value and high-capacity products. Furthermore, we will actively address DDR5 demand from server and PC resulting from full-fledged adoption of a new CPU while ensuring timely responses to growing demand centering on high-capacity server and mobile products via an optimized product mix.
For NAND, we will work toward bolstering cost competitiveness and fortifying market leadership by securing a lineup of advanced products via promoting the full-fledged adoption of 8th-generation V-NAND in 2023, and by migrating to 7thgeneration V-NAND products, which demonstrates our exceptional technological capabilities.
System LSI is sustaining growth momentum by maximizing revenue with the goal of transforming into a platform supplier by fully realizing synergies among various application products. Moreover, based on our product competitiveness, we will continue to expand our customer base and actively secure new technologies to prepare for market changes. For SoCs, we are securing additional customers, including for mobile- and automotive-use SoCs, while reinforcing our product lineup by leveraging our 5G technology, and we are continuing to prepare for the future by developing next-generation IP technologies. For image sensors, we launched 200MP sensors for mobile products for the first time in the world, leveraging our technological capabilities in micro-pixel ISOCELL; and for automotive image sensors, we continue to increase orders.
For Foundry in 2023, we expect growth to slow with the depressed market carried forth from 2H22 likely to keep weighing on demand and influencing inventory adjustments at customers, so we aim to use the year as an opportunity to sharpen our competitive edges by improving our fundamentals while working to overcome the downturn. For advanced nodes, we are concentrating on an early ramp of the 2nd generation 3nm GAA process and on the development of the next-generation 2nm process. For matured nodes, we aim to develop specialty processes that are customized to customer needs and expand our customer base to include various industries by diversifying within applications, including HPC, automotives, and IoT. In addition, we will endeavor to strengthen our services that promote shared growth with our customers by providing a platform offering customer-centric design and improved VoC functionality.
(SDC)
SDC's revenue in 2022 was KRW 34.3826 trillion, up KRW 2.6701 trillion (8.4%) from the previous year, and operating profit increased by KRW 1.4956 trillion (33.6%) to KRW 5.9530 trillion. Both revenue and operating profit increased on the back of expanded sales of value-added OLED panels and currency effects.
The mobile display business achieved solid earnings, led mainly by high-end products, despite a decline in smartphone demand due to weakened consumer sentiment caused by concerns over inflation, rate hikes, and the economic downturn. We actively addressed our customers' increasingly sophisticated needs by establishing an optimal product portfolio that ranges from mass-market through to premium products with our Flexible and Rigid OLED panels. Indeed, our industryleading technological capabilities have been recognized based on our products' differentiated technologies and performance.
In the large display business, we delivered tangible achievements with our preemptive business restructuring, which includes the transition to QD-OLED. We have commenced our QD-OLED business in earnest and it is operating seamlessly, with stable mass production via the early securing of yields and a successful entry into the premium market.
In 2023, we expect the business landscape to remain challenging due to unstable market conditions triggered by inflation and tight monetary policies and as our peers enter the market in earnest. For the mobile panel business, we will leverage our technological gap in the high-end smartphone market, which is likely to stay relatively solid; and we will strengthen our market dominance through our superior cost competitiveness. Moreover, we will further solidify our leadership by diversifying our product portfolio by expanding into IT, gaming, and automotive products.
In the large panel business, amid expectations for sluggish demand due to prolonged economic uncertainties, we will keep enhancing profitability by strengthening sales foundations in the premium market based on a stabilized yield.
Samsung Electronics Business Report
247 / 413
(Harman)
For Harman in 2022, revenue increased by KRW 3.1738 trillion (31.6%) to KRW 13.2137 trillion and operating profit increased by KRW 0.2815 trillion (47.0%) to KRW 0.8805 trillion. Both revenue and operating profit grew thanks to improved earnings from the automotive sector on the back of alleviated chip supply issues and as consumer audio sales remained strong.
Harman recorded its strongest results since its acquisition in the automotive components, consumer audio, and professional solution markets, despite a challenging business environment marked by disruptions in global logistics. Harman was able to expand its business capabilities through internal innovations as well as synergies with mobile, IT, display, and semiconductor technologies from various businesses of Samsung Electronics.
As a leader in the car component market, we supply car manufacturers with products that apply innovative technologies, all while maintaining quality at a level befitting a premium brand. In the infotainment market, we gained early dominance by preemptively addressing the transition to digital cockpits, and we won the industry's first order for 5G Telematics Control Units (TCUs) via our development of differentiated technologies. We will focus our capabilities on providing a more convenient, pleasant, and safe in-cabin experience by preparing for the era of autonomous vehicles based on such technological innovations.
In the consumer audio market, we have used our innovative technologies to firmly establish the brand's reputation among consumers and audiophiles. In particular, JBL has sold the most Bluetooth speakers in the global market for seven consecutive years, and it is sustaining notable growth momentum in the wireless earphone market.
In 2023, we expect to see a significant decline in global GDP growth compared to 2022 and additional deterioration of the business environment, including stagnant automotive and audio markets. However, we will strive to secure product and cost competitiveness via thorough preparations and technology innovations while remaining committed to enhancing shareholder value by achieving solid earnings.
C. New and closed businesses
N/A
Samsung Electronics Business Report
248 / 413
D. Changes in organizational structure
In December 2021, the Company merged and restructured the CE and IM Divisions to form the DX Division and renamed the Mobile Communications Business to the Mobile eXperience (MX) Business. Also, SDC and the DS Division have been separated to align with the corporate organizational structure.
[As of December 2021]
Business organization
Before CE Division (Visual Display, Digital Appliances, Health & Medical Equipment) IM Division (Mobile, Network)
DS Division (Memory, System LSI, Foundry, DP)
After
DX Division (Visual Display, Digital Appliances, Health & Medical Equipment, Mobile eXperience, Network)
DS Division (Memory, System LSI, Foundry) SDC (DP)
Regional headquarters
Harman Division
Korea, North America, Latin America, Europe, CIS, Southwest Asia, Southeast Asia, China, Middle East, Africa Americas (DS), Europe (DS), China (DS), Southeast Asia (DS), Japan (DS)
Harman
Korea, North America, Latin America, Europe, CIS, Southwest Asia, Southeast Asia, China, Middle East, Africa Americas (DS), Europe (DS), China (DS), Southeast Asia (DS), Japan (DS)
Samsung Electronics Business Report
249 / 413
E. Foreign exchange risk
The Company experiences currency gains and losses based on the different functional currency of each entity due to global operations. As such, the Company is exposed to foreign currency volatility from exchange positions of currencies, especially related to the US dollar, Euro and Indian rupee.
(closing rate end at year-end by currency)
Currency
2022
2021
Change
Change (%)
USD
1,267.30
1,185.50
81.80
6.9%
EUR
1,351.20
1,342.34
8.86
0.7%
INR
15.31
15.93
-0.62
-3.9%
The foreign currency exposure to financial assets and liabilities of a 5% currency rate change against the Korean won (before income tax) are presented below:
(KRW mil)
Currency
December 31, 2022
Increase
Decrease
December 31, 2021
Increase
Decrease
USD
258,655
-258,655
250,489
-250,489
EUR
92,546
-92,546
107,519
-107,519
INR
52,096
-52,096
24,216
-24,216
To minimize foreign exchange risk arising from operating activities, the Company maintains the same level of equity and liability in each currency regardless of foreign exchange fluctuations. The Company's foreign exchange management policy requires normal business transactions (including imports and exports) to be conducted in the local currency or for the cashin currency to be matched with the cash-out currency.
The Company effectively manages its foreign exchange risk by regular monitoring foreign exchange rates and limits all foreign exchange transactions besides the purpose of hedging risks.
F. Recognition of asset impairment loss
The Company conducts an annual review on asset impairment of CGUs (cash generating unit). The recoverable amount of a CGU is based on the calculation of value in use, and the value in use is calculated using a BTCF (before tax cash flow) assumption that based on the financial budget for the next five years (or longer if mid- to long-term plans for new businesses with emerging technologies are deemed appropriate) approved by the management committee. In calculating terminal-year cash flow for period that exceeds the term, assumption of fixed average growth (does not exceed industry average) was used.
Impairment losses are recognized to the extent the carrying amount exceeds the recoverable amount of a CGU. The recoverable amount is determined by choosing the greater figure between the use-value and fair-value, which deducts the disposal amount per cost. Recognized impairment gains or losses in 2022 reached KRW 26.4 billion for tangible assets and KRW 6.3 billion for intangible assets.
Refer to 3. Notes to consolidated financial statements of III. Financial Affairs and B. Equity Investments in other corporations of IX. Affiliates and Subsidiaries for more details about asset impairment loss.
Samsung Electronics Business Report
250 / 413
4. Liquidity, financing, and expenditure
Due to large investments made by the Company, maintaining adequate levels of liquidity is critical. The Company strives to achieve this goal by periodically forecasting its cash flow, estimating required cash levels, and managing income and expenses.
The Company preemptively manages risks by predicting cash flow on a regular basis. We efficiently manage liquidity risk through cash pooling by region, which allows the use of internal funds in case of lack of funds in the region. The cash pooling program allows sharing of surplus funds among entities and contributes to minimizing liquidity risk and strengthening the Company's competitive position by reducing capital operating expenses and finance expenses.
In addition, the Company provides payment guarantees, securing the limit of borrowing for overseas subsidiaries to prepare for any potential need for large-scale liquidity.
A. Current status of liquidity
The Company has ample liquidity, and its cash coverage (liquid funds/borrowings) is 1,115%.
Cash coverage (liquid funds/borrowings)
2022 1,115%
2021 675%
The Company's liquidity as of December 31, 2022, is presented below:
Classification Liquid funds
2022
2021
Cash and cash equivalents
49,680,710
39,031,415
Short-term financial instruments
Short-term financial assets at amortized cost Financial assets at fair value through profit or loss
Total financial assets
65,102,886 414,610 29,080
115,227,286
81,708,986 3,369,034
40,757 124,150,192
Borrowings
Short-term borrowings
5,147,315
13,687,793
Current portion of long-term liabilities
1,089,162
1,329,968
Debentures
536,093
508,232
Long-term borrowings
3,560,672
2,866,156
Total financial liabilities
10,333,242
18,392,149
Net cash (liquid funds borrowings)
104,894,044
105,758,043
Current portion of long-term liabilities is current portion of long-term borrowings and current portion of debentures.
(KRW mil)
Change
10,649,295 -16,606,100 -2,954,424
-11,677 -8,922,906
-8,540,478 -240,806 27,861 694,516
-8,058,907 -863,999
Samsung Electronics Business Report
251 / 413
As of the end of 2022, the Company had KRW 115.2273 trillion of financial assets. These liquid funds include: i) cash and cash equivalents; ii) short-term financial instruments; iii) short-term financial assets at amortized cost; and iv) financial assets at fair value through other comprehensive income. This balance decreased by KRW 8.9229 trillion from KRW 124.1502 trillion at the end of the previous year.
The Company's borrowings (including debentures) are KRW 10.3332 trillion, a decrease of KRW 8.0589 trillion from KRW 18.3921 trillion at the end of the previous year.
The Company's liquidity includes an inflow of KRW 62.1813 trillion in cash flows from operating activities and an outflow of KRW 53.1267 trillion in acquisition of tangible and intangible assets, and KRW 9.8144 in dividends. The Company's net cash (liquid funds borrowings) in 2022 is KRW 104.8940 trillion, which is a decrease of KRW 0.8640 trillion from KRW 105.7580 trillion at the end of the previous year.
B. Financing and expenditures
(Borrowings) As of December 31, 2022, the Company's borrowings (including debentures) are presented below:
Classification Short-term borrowings Collateralized borrowings
Creditor
Annual interest rate (%)
Woori Bank, etc.
0.016.7
2022 3,569,357
(KRW mil) 2021
11,556,101
Non-collateralized borrowings
CitiBank, etc.
0.138.5
1,577,958
2,131,692
Total short-term borrowings
-
Liquid long-term borrowings
-
5,147,315
13,687,793
Bank borrowings
BNP, etc.
38.953.2
208,915
40,415
Capital lease liabilities
CSSD, etc.
3.5
874,019
811,902
Total liquid long-term borrowings Long-term borrowings Bank borrowings Capital lease liabilities Total long-term borrowings
Industrial Bank of Korea, etc. CSSD, etc.
-
1.65.9 3.5
1,082,934
33,846 3,526,826 3,560,672
852,317
1,500 2,864,656 2,866,156
Classification
Debentures USD denominated straight bonds
Issuance date
Maturity date
Annual interest rate
(%)
Oct 2, 1997 Oct 1, 2027
7.7
2022
31,683 (USD 25,000,000)
(KRW mil) 2021
35,565 (USD 30,000,000)
Samsung Electronics Business Report
252 / 413
USD denominated debenture bonds
May 11, 2015
May 15, 2025
4.2
EUR denominated debenture bonds
May 27, 2015
May 27, 2022
2.0
Sub Total
Premium on bonds payable (discount on bonds payable)
Total
Deduction: Current debentures
Non-current debentures
(Borrowings and payment of borrowings)
506,920 (USD 400,000,000)
-
538,603 3,718
542,321 (6,228) 536,093
474,200 (USD 400,000,000)
469,819 (EUR 350,000,000)
979,584 6,299
985,883 (477,651)
508,232
The Company's short-term borrowing increases or decreases depending on the discount amount of trade receivables. In 2022, short-term borrowing decreased by KRW 8.5405 trillion, while KRW 0.4816 trillion of long-term borrowing increased due to increased capital lease liabilities.
(Plan for payment of borrowings) The Company's plan for payment of borrowings (including debentures) is presented below:
Year of payment
Amount of payment
2023
2024
2025
2026
2027~
Total
Amount calculated excluding bond discount, premium on bonds payable, and present value of bonds payable discount.
(KRW mil)
6,384,334 873,525
1,235,366 589,082
1,912,869 10,995,176
(Compliance to bond management contract conditions)
The Company's bonds are subject to conditions to protect investors such as constraint on collateral, constraint on disposal of assets, etc., and the Company complies with these conditions.
5. Off-balance sheet activities
- Refer to 2. Notes to consolidated financial statements in III. Financial Affairs
Samsung Electronics Business Report
253 / 413
6. Other information for investment decision making
A. Significant accounting policies and estimation
- The Company applied the following major amended and enacted standards for the annual period beginning on January 1, 2022:
Amendments to Korean IFRS 1116, Lease
During the year ended December 31, 2020, the amendments to Korean IFRS 1116 introduced a practical expedient that provided practical relief to lessees in accounting for rent concessions occurring as a direct consequence of COVID-19. The amendments extend the practical expedient to apply to reduction in lease payments originally due on or before 30 June 2022. The application of the amendments does not have a significant impact on the consolidated financial statements.
Amendments to Korean IFRS 1103, Business Combinations
The amendments add to Korean IFRS 1103 a requirement that, for obligations within the scope of IAS 37, an acquirer applies Korean IFRS 1037 Provisions, Contingent Liabilities and Contingent Assets or Korean IFRS 2121 Levies to determine whether at the acquisition date a present obligation exists as a result of the past events. The amendments also add an explicit statement that an acquirer does not recognize contingent assets acquired in a business combination. The application of the amendments does not have a significant impact on the consolidated financial statements.
Amendments to Korean IFRS 1016 Property, Plant and Equipment
The amendments prohibit deducting from the cost of an item of property, plant and equipment any proceeds from selling items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity recognizes the proceeds from selling such items, and the cost of producing those items, in profit or loss. The application of the amendments does not have a significant impact on the consolidated financial statements.
Amendments to Korean IFRS 1037 Provisions, Contingent Liabilities and Contingent Assets
The amendments specify that the `cost of fulfilling' a contract comprises the `costs that relate directly to the contract'. Costs that relate directly to a contract consist of both the incremental costs of fulfilling that contract and an allocation of other costs that relate directly to fulfilling the contract. The application of the amendments does not have a significant impact on the consolidated financial statements.
B. Environment and employees
- Refer to 3. Matters related to sanctions in XI. Other information for environmental sanctions or administrative actions.
- No significant changes in employee positions during this period.
C. Legal regulations
- Refer to 3. Matters related to sanctions in XI. Other information for major legal regulations on the Company's businesses.
Samsung Electronics Business Report
254 / 413
D. Derivatives and risk management policy
- To manage exchange rate risk, overseas companies hedge by buying or selling currency forwards for a foreign currency position that is not among the companies' functional currencies.
- Refer to 5. Risk management and derivative trading in II. Businesses Overview and 3. Notes to Financial Statements in III. Financial Affairs for the Company's key derivatives and risk management policy.
Samsung Electronics Business Report
255 / 413
V. Auditor's Report
1. Introduction
Deloitte Anjin conducted audits on the consolidated/separate financial statements of financial position of the Company as of December 31, 2022, December 31, 2021, and December 31, 2020, and the related consolidated/separate statements of profit or loss, comprehensive income, changes in equity and cash flows for the years then ended and expressed an unqualified opinion on those financial statements.
All of the Company's subsidiaries received unqualified opinion for the years ended December 31, 2022, 2021, and 2020.
Period end
Company Auditor Audit Opinion Emphasis of Matter
Key Audit Matter(s)
Dec 31, 2022
Deloitte Anjin
Unqualified
Not applicable
(Consolidated) 1. Sales deduction related to the sales promotion
activities of products (Separate) 1. Sales deduction related to the sales promotion
activities of products
Dec 31, 2021
Deloitte Anjin
Unqualified
Not applicable
(Consolidated) 1. Sales deduction related to the sales promotion
activities of products (Separate) 1. Sales deduction related to the sales promotion
activities of products
Dec 31, 2020
Deloitte Anjin
Unqualified
Not applicable
(Consolidated) 1. Sales deduction related to the sales promotion
activities of products 2. Impairment of goodwill and intangible assets
with indefinite useful lives (Separate) 1. Sales deduction related to the sales promotion
activities of products
Audit opinion on both separate and consolidated financial statements.
Samsung Electronics Business Report
256 / 413
[Audit Contract Description]
Fiscal Period
Auditor
Description
Year ended Dec 31, 2022
Year ended Dec 31, 2021
Year ended Dec 31, 2020
Deloitte Anjin Deloitte Anjin Deloitte Anjin
- Review of the interim separate/consolidated financial statements - Audit of separate/consolidated financial statements - Audit of Internal Control over Financial Reporting (ICFR)
- Review of the interim separate/consolidated financial statements - Audit of separate/consolidated financial statements - Audit of Internal Control over Financial Reporting (ICFR)
- Review of the interim separate/consolidated financial statements - Audit of separate/consolidated financial statements - Audit of Internal Control over Financial Reporting (ICFR)
Contract
Audit Total fee Hours
(KRW mil)
Actual Fee Hours Claimed spent
8,424 78,000 8,424 78,146
7,900 76,741 7,900 76,999
8,400 85,721 8,400 86,128
< Review plan for the period ended December 31, 2022 >
Review Period
Planned Dates
2022 1Q
Pre-review Review
Mar 7, 2022 ~ Mar 25, 2022 Apr 5, 2022 ~ May 13, 2022
2022 2Q
Pre-review Review
Jun 6, 2022 ~ Jun 24, 2022 Jul 6, 2022 ~ Aug 12, 2022
2022 3Q
Pre-review Review
Sep 7, 2022 ~ Sep 23 2022 Oct 7, 2022 ~ Nov 11, 2022
Audit of IT systems and automated internal controls
Mar 16, 2022 ~ Jan 13, 2023
Early substantive audit procedures (annual audit)
Mar 7, 2022 ~ Dec 31, 2022
Audit of Internal Control over Financial Reporting ("ICFR")
Apr 5, 2022 ~ Jan 20, 2023
Update of early substantive audit procedures and audit of financial statements
Jan 9, 2023 ~ Feb 15, 2023
Above schedule is for the review and audit of separate and consolidated financial statements, and audit of Internal Control over
Financial Reporting ("ICFR")
[Non-Audit Service Contract Description]
Fiscal Period
Year ended Dec 31, 2022
Year ended Dec 31, 2021
Year ended Dec 31, 2020
Contract Date Not Applicable
Jun 2017 Jun 2017
Non-audit Service Description -
E-discovery advisory services E-discovery advisory services
(KRW mil)
Period for Service Compensation
Note
-
-
-
Jan Dec 2021
394 Deloitte Anjin
Jan Dec 2020
59 Deloitte Anjin
Samsung Electronics Business Report
257 / 413
[Details of internal audit committee's discussion with Auditors]
No.
Date
Participants
Method
Audit Committee: 3 members 1 Jan 25, 2022 Company: Head of Audit Team
Auditor: Signing partner and 1 other
Face-to-face meeting
Audit Committee: 3 members 2 Apr 26, 2022 Company: Head of Audit Team
Auditor: Signing partner and 4 others
Face-to-face meeting
3
Jul 26, 2022
Audit Committee: 3 members Company: Head of Audit Team Auditor: Signing partner and 4 others
Face-to-face meeting
Audit Committee: 3 members 4 Oct 25, 2022 Company: Head of Audit Team
Auditor: Signing partner and 4 others
Face-to-face meeting
Audit Committee: 3 members 5 Jan 27, 2023 Company: Head of Audit Team
Auditor: Signing partner and 4 others
Face-to-face meeting
Details of discussion
- Key Audit Matters and others audit focus areas - Progress of audit of Internal Control over Financial
Reporting - Other required communications at the completion stage
of the audit
- Yearly plan for communication with those charged with governance
- Audit plan for the year ending December 31, 2022 - Reporting on progress of quarterly review
- Annual audit plan and its progress - Plan for the Key Audit Matters selection - Progress of audit of Internal Control over Financial
Reporting - Discussion of quarterly review focus areas and other
required communications - Annual audit plan and its progress - Plan for the Key Audit Matters selection - Progress of audit of Internal Control over Financial
Reporting - Discussion of quarterly review focus areas and other
required communications
- Key Audit Matters and others audit focus areas - Progress of audit of Internal Control over Financial
Reporting - Other required communications at the completion stage
of the audit
Samsung Electronics Business Report
258 / 413
2. Change of Independent Auditor
There are 232 subsidiaries as of December 31, 2022, and Samsung R&D Institute Ukraine (SRUKR) newly appointed PwC, and Samsung Venture Capital Union SVIC No. 52, No. 55, No. 56, and No. 57 appointed KPMG as the external auditor, respectively.
There are 228 subsidiaries as of December 31, 2021. Samsung Electronics Singapore Pte. Ltd. (SESP) and Samsung Electronics Industry and Commerce Ltd (SETK-P) newly appointed Deloitte, and Gf-System Co., Ltd. newly appointed Anjin as the external auditor. And Samsung Electronics Benelux B.V. (SEBN) have changed the external auditor to E&Y from Deloitte, and Dowinsys Co., Ltd to Anjin from Samduk, respectively. Appointment of auditor was decided at the entities' own discretion.
Upon termination of the contract with previous auditor, Samil PwC, Deloitte Anjin has been designated as the Company's external auditor for three years ending December 31, 2022, in accordance with periodic designation regulation of Article 11 (1) and (2) of the "Act on External Audit of Stock Companies, Etc.", Article 17 of the "Enforcement Decree of the Act on External Audit of Stock Companies, Etc.", and Article 10 and Article 15 (1) of "Regulations on External Audit and Accounting".
There are 241 subsidiaries as at December 31, 2020. For the year ending December 31, 2020, 6 domestic subsidiaries, including Samsung Display Co., Ltd., changed external auditor from Samil PwC to Deloitte Anjin, 24 overseas subsidiaries, including Samsung Electronics America, Inc. (SEA), changed PwC to Deloitte, and 2 overseas subsidiaries, Samsung Electronica da Amazonia Ltda. (SEDA) and Samsung Gulf Electronics Co., Ltd. (SGE), changed KPMG to Deloitte. These changes in external auditors were to improve efficiency in audit of consolidated financial statements due to designation of the Company's external auditor.
Details of change in subsidiaries' external auditors are as follows:
Subsidiaries Samsung Display Co., Ltd. Samsung Electronics Service Co., Ltd. Samsung Electronics Service CS Co., Ltd. Samsung Electronics Sales Co., Ltd. Samsung Electronics Logitech Co., Ltd. Mirero System Co., Ltd. Samsung Electronics America, Inc. (SEA) Samsung Semiconductor, Inc. (SSI) Samsung Mexicana S.A. de C.V (SAMEX) Samsung International, Inc. (SII) Samsung Austin Semiconductor LLC. (SAS) Samsung Electronics Mexico S.A. De C.V. (SEM) Samsung Electronics (UK) Ltd. (SEUK) Samsung Electronics Holding GmbH (SEHG) Samsung Semiconductor Europe GmbH (SSEG) Samsung Electronics GmbH (SEG) Samsung Electronics Benelux B.V. (SEBN) Samsung Vina Electronics Co., Ltd. (SAVINA) Samsung Asia Private Ltd. (SAPL) Samsung Electronics Australia Pty. Ltd. (SEAU)
Previous auditor Samil PwC Samil PwC Samil PwC Samil PwC Samil PwC Samil PwC PwC PwC PwC PwC PwC PwC PwC PwC PwC PwC PwC PwC PwC PwC
Current Auditor Deloitte Anjin Deloitte Anjin Deloitte Anjin Deloitte Anjin Deloitte Anjin Deloitte Anjin
Deloitte Deloitte Deloitte Deloitte Deloitte Deloitte Deloitte Deloitte Deloitte Deloitte Deloitte Deloitte Deloitte Deloitte
Samsung Electronics Business Report
259 / 413
Thai Samsung Electronics Co., Ltd. (TSE) Samsung Display Vietnam Co., Ltd. (SDV) Samsung Electronics Vietnam Co., Ltd. (SEV) Samsung Electronics Vietnam THAINGUYEN Co., Ltd. (SEVT) Samsung Electronics HCMC CE Complex Co., Ltd. (SEHC) Samsung (CHINA) Investment Co., Ltd. (SCIC) Shanghai Samsung Semiconductor Co., Ltd. (SSS) Samsung Electronics Saudi Arabia Ltd. (SESAR) Samsung Electronics Turkey (SETK) Samsung Electronics Rus Company LLC (SERC) Samsung Eletronica da Amazonia Ltda. (SEDA) Samsung Gulf Electronics Co., Ltd. (SGE)
PwC PwC PwC PwC PwC PwC PwC PwC PwC PwC KPMG KPMG
Deloitte Deloitte Deloitte Deloitte Deloitte Deloitte Deloitte Deloitte Deloitte Deloitte Deloitte Deloitte
The newly acquired subsidiary, TeleWorld Solutions, Inc.(TWS), appointed PwC as their external auditor. Appointment of auditor was decided at the entities' own discretion.
3. Regarding Internal Control
[Audit opinion of Internal Control over Financial Reporting (ICFR)]
Fiscal Period
Year ended Dec 31, 2022
Year ended Dec 31, 2021
Year ended Dec 31, 2020
Group Auditor
Opinion
Deloitte Anjin
[Audit Opinion] The Company maintained, in all material respects, effective internal control over financial reporting As of December 31, 2022, based on Conceptual Framework for Designing and Operating Internal Control over Financial Reporting.
Deloitte Anjin
[Audit Opinion] The Company maintained, in all material respects, effective internal control over financial reporting As of December 31, 2021, based on Conceptual Framework for Designing and Operating Internal Control over Financial Reporting.
Deloitte Anjin
[Audit Opinion] The Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2020, based on Conceptual Framework for Designing and Operating Internal Control over Financial Reporting.
Remarks Not applicable Not applicable Not applicable
Samsung Electronics Business Report
260 / 413
1. Board of Directors
VI. Corporate Governance
A. Overview
The Board of Directors consisted of 11 directors, 5 of whom are Executive Directors (Jong-hee Han, Kye-hyun Kyung, Taemoon Roh, Hark-kyu Park, and Jung-bae Lee) and 6 Independent Directors (Han-jo Kim, Sun-uk Kim, Jeong Kim, Junsung Kim, Eun-nyeong Heo, and Myung-hee Yoo). The Board has appointed Han-jo Kim as Chairman as he will be able to mediate the different opinions of Directors and is most qualified to manage Board activities. The roles of Board Chairman and CEO have been separated to enhance the Board's independence and transparency.
The Board has six committees: Management Committee, Audit Committee, Independent Director Recommendation Committee, Related Party Transactions Committee, Compensation Committee, and Sustainability Committee.
[As of December 31, 2022]
Classification
Composition
Board of Directors
5 Executive Directors
6 Independent Directors
Management Committee
5 Executive Directors
Members
Jong-hee Han, Kye-hyun Kyung, Tae-moon Roh, Hark-kyu Park, Jung-bae Lee
Han-jo Kim, Sun-uk Kim, Jeong Kim, Jun-sung Kim, Eun-nyeong Heo, Myung-hee Yoo
Jong-hee Han, Kye-hyun Kyung, Tae-moon Roh, Hark-kyu Park, Jung-bae Lee
Head
Han-jo Kim (Independent)
Jong-hee Han (Executive)
Audit Committee
3 Independent Directors
Han-jo Kim, Sun-uk Kim, Jeong Kim
Han-jo Kim (Independent)
Independent Director Recommendation Committee
2 Independent Director Jeong Kim, Sun-uk Kim
Related Party Transactions Committee
3 Independent Directors
Sun-uk Kim, Han-jo Kim, Jeong Kim
Jeong Kim (Independent)
Sun-uk Kim (Independent)
Compensation Committee
3 Independent Directors
Jeong Kim, Han-jo Kim, Jun-sung Kim
-
Role
- Make resolutions on matters provided for by the relevant laws and regulations or the Articles of Incorporation, matters delegated by a general meeting of shareholders, as well as on important matters concerning basic policies and business execution.
- Supervise management.
- Deliberate and decide on matters related to finance, general management, and on matters specifically delegated by the Board.
- Review and audit matters concerning management of the Company, including the Company's financial situation.
- Assess the independence, diversity, and ability of potential candidates for Independent Director positions.
- Recommend candidates.
- Voluntarily comply with fair transaction regulations to enhance corporate transparency.
- Ensure the objectivity and transparency of the decision-making process for Director compensation.
Sustainability Committee
6 Independent Directors
Han-jo Kim, Sun-uk Kim, Jeong Kim, Jun-sung Kim, Eun-nyeong Heo, Myung-hee Yoo
Han-jo Kim (Independent)
- Promote sustainability management in ESG areas and enhance shareholder value.
Jan 27, 2022: Independent Director Jeong Kim was appointed as the Head of Independent Director Recommendation Committee. Mar 16, 2022: Kye-hyun Kyung, Tae-moon Roh, Hark-kyu Park, and Jung-bae Lee were newly appointed as Executive Directors; Wha-jin Han and Jun-sung Kim as Independent Directors; and Han-jo Kim was reappointed as Independent Director at the AGM. Mar 16, 2022: Ki-nam Kim, Hyun-suk Kim, and Dong-jin Koh resigned from their position as Executive Director. Mar 19, 2022: Terms of Jae-wan Bahk and Curie Ahn as Independent Director expired. Apr 1, 2022: Executive Director Jong-hee Han was appointed as the Head of Management Committee. Apr 20, 2022: Wha-jin Han resigned from her position as Independent Director. Apr 26, 2022: Independent Director Han-jo Kim was appointed as the Head of Audit Committee.
Samsung Electronics Business Report
261 / 413
Apr 28, 2022: Independent Director Han-jo Kim was appointed as the Head of Sustainability Committee. May 17, 2022: Independent Director Byung-gook Park passed away. Jul 28, 2022: Independent Director Sun-uk Kim was appointed as Independent Director Recommendation Committee member at the Board meeting. Jul 28, 2022: Independent Director Jeong Kim was appointed as Compensation Committee member at the Board meeting. Nov 3, 2022: Eun-nyeong Heo and Myung-hee Yoo were newly appointed as Independent Directors at the EGM. Nov 3, 2022: Independent Directors Eun-nyeong Heo and Myung-hee Yoo were appointed as Sustainability Committee members at the Board meeting. Jan 27, 2023: Independent Director Jeong Kim was appointed as the Head of Compensation Committee.
Samsung Electronics Business Report
262 / 413
The number of Independent Directors and changes in the number are shown below.
Number of Directors
Number of Independent Directors
Changes of Independent Directors
Appointed
Dismissed
Resigned
11
6
5
-
2
Mar 16, 2022: Wha-jin Han and Jun-sung Kim were newly appointed as Independent Directors and Han-jo Kim was reappointed as an Independent Director at the AGM. Mar 19, 2022: Terms of Jae-wan Bahk and Curie Ahn as Independent Director expired. Apr 20, 2022: Wha-jin Han resigned from her position as Independent Director. May 17, 2022: Independent Director Byung-gook Park passed away. Nov 3, 2022: Eun-nyeong Heo and Myung-hee Yoo were newly appointed as Independent Directors at the EGM.
B. Agendas considered and voting results
Date
Agenda
Results
Approval of FY21 financial statements and fullyear business report
Appointment of SCC member
Jan 27 Reported Items 1) Report on FY21 internal accounting management system activities 2) Report on evaluation of FY21 internal accounting management system activities
Appointment of CEO
Decision to convene the 53rd AGM
Decisions on the 53rd AGM agenda items Reported Items
1) FY21 annual audit report
2) FY21 full-year business report
3) Report on FY21 internal accounting management system activities
Agenda item 1: Approval of FY21 financial statements, including balance sheet, income statement, and the statement of appropriation of retained earnings, etc.
Agenda item 2: Appointment of Directors
2-1: Appointment of Independent Directors
2-1-1: Appointment of Han-jo Kim
Feb 15
2-1-2: Appointment of Wha-jin Han 2-1-3: Appointment of Jun-sung Kim
2-2: Appointment of Executive Directors
2-2-1: Appointment of Kye-hyun Kyung
2-2-2: Appointment of Tae-moon Roh
2-2-3: Appointment of Hark-kyu Park
2-2-4: Appointment of Jung-bae Lee
2-3: Appointment of Audit Committee Members
2-3-1: Appointment of Han-jo Kim
2-3-2: Appointment of Jeong Kim
Agenda item 3: Approval of remuneration limit for Directors
Revision of internal accounting management regulations
Approval of 2022 social contribution matching fund
Donation to Chung-nam Samsung Institute
Approved Approved Approved Approved Approved
Approved Approved Approved
Ki-nam Kim (100%) For For
For For For
For For -
Hyun-suk Kim (100%)
For
For
Dong-jin Koh (100%)
For
For
Executive Directors
(attendance)
Jong-hee Kye-hyun
Han
Kyung
(90%)
(100%)
Tae-moon Roh (88%)
For
For
Hark-kyu Park (100%)
Jung-bae Lee (100%)
For
For
For
For
For
For
For
For
For
N/A
N/A
N/A
N/A
(newly
(newly
(newly
(newly
appointed) appointed) appointed) appointed)
For
For
For
For
For
For
For
For
For
Samsung Electronics Business Report
263 / 413
Date
Agenda
Results
Purchase of product liability insurance
Appointment of Chairman of the Board
Appointment of CEO
Mar 16 Appointment of Board committee members Setting remuneration of Directors Participation in Samsung Biologics' rights offering Approval of 1Q22 interim business report and quarterly dividend Real estate lease agreement of company building of SEC in Seocho Purchase of employee insurance policy
Apr 28 Charitable contributions
Lease agreement with Samsung SDI
Approved Approved Approved Approved Approved Approved
Approved
Approved Approved Approved Approved
Donation to incentive fund for DS Division's suppliers
Approved
Jul 28
Establishment of plans on safety and health
Approval of 2022 half-year business report and quarterly dividend
Appointment of Board committee members
Joining of the New Technology Investment Association
Revision of regulation on establishment and operation of SCC
Purchase of package insurance policy for domestic operations
Purchase of mobile device insurance
Real estate lease agreement with Samsung Display
Donation to the Inter-University Semiconductor Research Center of Seoul National University to help cover operating costs
Decision to convene the EGM
Approved Approved Approved Approved Approved Approved Approved Approved
Approved Approved
Decisions on the EGM agenda items
Approved
Reported Items
Sep 1
1) Audit report Agenda item 1: Appointment of Independent
Directors
1-1: Appointment of Eun-nyeong Heo
1-2: Appointment of Myung-hee Yoo
Setting the record date of shareholder register for the EGM
Promotion of JY Lee to Chairman
Approval of 3Q22 interim business report and quarterly dividend
Oct 27 Donation to the Korea Chamber of Commerce and Industry
Reported Items
Approved Approved Approved
1) Report on the CEO candidate pool
Appointment of Board committee members Nov 3 Contribution for support related to the tragedy
in Itaewon and to strengthen the public safety system Approval of transaction with affiliate company Nov 30 Payment of retirement pension plan
Approved
Approved
Approved Approved
Ki-nam Kim (100%) For
N/A (resigned)
Hyun-suk Kim (100%) For
N/A (resigned)
Dong-jin Koh (100%) For
N/A (resigned)
Executive Directors
(attendance)
Jong-hee Kye-hyun
Han
Kyung
(90%)
(100%)
For
For
For
For
For
For
For
For
For
For
For
Tae-moon Roh (88%)
For For For For
For
Hark-kyu Park (100%)
For For For For
For
Jung-bae Lee (100%)
For For For For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
Absent
-
For
For
For
Absent
-
For
For
For
Absent
-
For
For
For
Absent
-
For
For
For
Absent
-
For
For
For
Absent
-
For
For
For
Absent
-
For
For
For
Absent
-
For
Absent
For
For
For
-
Absent
For
For
For
-
Absent
For
For
For
-
For
For
For
-
-
For
For
For
-
-
For
For
For
-
-
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
Samsung Electronics Business Report
264 / 413
Date
Agenda
Results
Approval of business plan for 2023 Contribution to Community Chest of Korea's
annual fundraising campaign for 2023 Contribution to UNDP sourced from Samsung
Global Goals Sponsorship of the WorldSkills Competition
Reported Items
1) Report on the evaluation of the effectiveness of the compliance control system
2) Report on results of the compliance review
3) Report on measures to develop a compliance culture
Dec 20 Appointment of the Chief Compliance Officer
Approved Approved Approved Approved
Approved
Ki-nam Kim (100%)
N/A (resigned)
Hyun-suk Kim (100%)
N/A (resigned)
Dong-jin Koh (100%)
N/A (resigned)
Executive Directors
(attendance)
Jong-hee Han (90%)
Kye-hyun Kyung (100%)
For
For
For
For
Tae-moon Roh (88%) For
For
Hark-kyu Park (100%) For
For
Jung-bae Lee (100%) For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
Date
Agenda
Approval of FY21 financial statements and full-year business report
Appointment of SCC member
Results Jae-wan Bahk (67%)
Approved For
Approved For
Jan 27
Reported Items
1) Report on FY21 internal accounting management system activities
2) Report on evaluation of FY21 internal accounting management system activities
Appointment of CEO
Approved For
Decision to convene the 53rd AGM Approved For
Decisions on the 53rd AGM agenda items
Approved
For
Reported Items
1) FY21 annual audit report
2) FY21 full-year business report
3) Report on FY21 internal accounting
management system activities
Agenda item 1: Approval of FY21
financial statements, including
balance sheet, income statement,
and the statement of appropriation
Feb 15
of retained earnings, etc.
Agenda item 2: Appointment of
Directors
2-1: Appointment of Independent
Directors
2-1-1: Appointment of Han-jo Kim
2-1-2: Appointment of Wha-jin Han
2-1-3: Appointment of Jun-sung Kim
2-2: Appointment of Executive Directors
2-2-1: Appointment of Kye-hyun Kyung
2-2-2: Appointment of Tae-moon Roh
2-2-3: Appointment of Hark-kyu Park
Sun-uk Kim (90%)
Byunggook Park
(100%)
Jeong Kim (100%)
Independent Directors
(attendance)
Curie Han-jo Wha-jin
Ahn Kim
Han
(67%) (100%) (100%)
Jun-sung Eun-nyeong Myung-hee
Kim
Heo
Yoo
(100%) (100%) (100%)
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
N/A
N/A
(newly (newly
appointed) appointed)
N/A (newly appointed)
N/A (newly appointed)
Samsung Electronics Business Report
265 / 413
Date
Agenda
Results Jae-wan
Bahk
(67%)
2-2-4: Appointment of Jung-bae Lee
2-3: Appointment of Audit Committee Member
2-3-1: Appointment of Han-jo Kim
2-3-2: Appointment of Jeong Kim
Agenda item 3: Approval of remuneration limit for Directors
Revision of internal accounting management regulations
Approved For
Sun-uk Kim (90%)
For
Approval of 2022 social contribution matching fund
Approved
For
For
Donation to Chung-nam Samsung Institute*
Approved
For
For
Purchase of product liability insurance
Approved For
For
Appointment of Chairman of the Board
Approved Absent
For
Appointment of CEO
Approved Absent
For
Mar 16
Appointment of Board committee members
Approved Absent
For
Setting remuneration of Directors Approved Absent
For
Participation in Samsung Biologics' rights offering
Approved
Absent
For
Approval of 1Q22 interim business report and quarterly dividend
Approved
For
Real estate lease agreement of company building of SEC in Seocho
Approved
For
Purchase of employee insurance policy
Approved
For
Apr 28
Charitable contributions
Approved
For
Lease agreement with Samsung SDI Approved
For
Donation to incentive fund for DS Division's suppliers
Approved
For
Establishment health
of
plans
on
safety
and
Approved
For
Approval of 2022 half-year business report and quarterly dividend
Approved
For
Appointment of Board committee members
Approved
For
Joining of the New Technology Investment Association
Approved
For
Revision of regulation on establishment and operation of SCC
Approved
For
Jul 28 Purchase of package insurance policy for domestic operations
Approved
N/A (term expired)
For
Purchase of mobile device insurance Approved
For
Real estate lease agreement with Samsung Display
Approved
For
Donation to the Inter-University
Semiconductor Research Center of Seoul National University to help
Approved
For
cover operating costs
Decision to convene the EGM
Approved
For
Decisions on the EGM agenda items Approved
For
Sep 1
Reported Items
1) Audit report
Byunggook Park
(100%)
For For For For For For For For For For For For For For For For
N/A (resigned)
Jeong Kim (100%)
For For For For For For For For For For For For For For For For For For For For For For For
For
For For
Independent Directors
(attendance)
Curie Han-jo Wha-jin
Ahn Kim
Han
(67%) (100%) (100%)
Jun-sung Eun-nyeong Myung-hee
Kim
Heo
Yoo
(100%) (100%) (100%)
For
For
N/A
N/A
For
For
(newly (newly
appointed) appointed)
For
For
For
For
Absent For
For
For
Absent For
For
For
Absent For
For
For
Absent For
For
For
Absent For
For
For
For
For
For
For
N/A
N/A
For
For
(newly
(newly
appointed) appointed)
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
N/A
N/A
(term For (resigned) For
expired)
For
For
For
For
For
For
For
For
For
For
Samsung Electronics Business Report
266 / 413
Date
Agenda
Results Jae-wan
Bahk
(67%)
Agenda item 1: Appointment of
Independent Directors
1-1: Appointment of Eun-nyeong Heo
Sun-uk Kim (90%)
Byunggook Park
(100%)
Jeong Kim (100%)
Independent Directors
(attendance)
Curie Han-jo Wha-jin
Ahn Kim
Han
(67%) (100%) (100%)
Jun-sung Eun-nyeong Myung-hee
Kim
Heo
Yoo
(100%) (100%) (100%)
1-2: Appointment of Myung-hee Yoo
Setting the record date of shareholder register for the EGM
Approved
For
For
For
For
Promotion of JY Lee to Chairman Approved
For
For
For
For
Approval of 3Q22 interim business report and quarterly dividend
Approved
For
For
For
For
Oct 27 Donation to the Korea Chamber of Commerce and Industry
Approved
For
For
For
For
Nov 3
Reported Items
1) Report on the CEO candidate pool Appointment of Board committee
members Contribution for support related to
the tragedy in Itaewon and to strengthen the public safety system Approval of transaction with affiliate company
Payment of retirement pension plan
Approved Approved Approved Approved
Absent Absent
For For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
Approval of business plan for 2023 Approved
For
Contribution to Community Chest of
Korea's annual fundraising
Approved
For
campaign for 2023
Contribution to UNDP sourced from Samsung Global Goals
Approved
For
Nov 30 Sponsorship of the WorldSkills Competition
Approved
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
Reported Items
1) Report on the evaluation of the
effectiveness of the compliance
control system
2) Report on results of the compliance
review
3) Report on measures to develop a
compliance culture
Dec 20
Appointment of the Chief Compliance Officer
Approved
For
For
For
For
For
For
*CEO Ki-nam Kim did not vote as it is a transaction between a Director and the Company in accordance with the Commercial Act and Ki-nam Kim
has a special interest in the agenda item.
Mar 16, 2022: Kye-hyun Kyung, Tae-moon Roh, Hark-kyu Park, and Jung-bae Lee were newly appointed as Executive Directors, Wha-jin Han and
Jun-sung Kim as Independent Directors; and Han-jo Kim was reappointed as an Independent Directors at the AGM.
Mar 16, 2022: Ki-nam Kim, Hyun-suk Kim, and Dong-jin Koh resigned from their positions as Executive Director.
Mar 19, 2022: Terms of Jae-wan Bahk and Curie Ahn as Independent Director expired.
Apr 20, 2022: Wha-jin Han resigned from her position as Independent Director.
May 17, 2022: Independent Director Byung-gook Park passed away.
Nov 3, 2022: Eun-nyeong Heo and Myung-hee Yoo were newly appointed as Independent Directors at the EGM.
Samsung Electronics Business Report
267 / 413
C. Committees
(1) Composition of Board Committees
[As of December 31, 2022]
Committee
Composition
Members
Responsibilities and authorities
Note
Jong-hee Han (head), Kye-hyun
Appointment of Executive
Management 5 Executive Directors
Kyung, Tae-moon Roh,
Director Jong-hee Han as
Hark-kyu Park, Jung-bae Lee
the Head (April 1, 2022)
Appointment of
Related Party
3 Independent
Sun-uk Kim (head), Han-jo Kim,
Independent Director
Transactions
Directors
Jeong Kim
Sun-uk Kim as the Head
See below
(April 27, 2021)
Compensation
3 Independent Directors
Jeong Kim, Han-jo Kim, Jun-sung Kim
-
Sustainability
6 Independent Directors
Han-jo Kim (head), Sun-uk Kim, Jeong Kim, Jun-sung Kim, Eunnyeong Heo, Myung-hee Yoo
Appointment of Independent Director Han-jo Kim as the Head
(April 28, 2022)
The Audit Committee and Independent Director Recommendation Committee were excluded according to Corporate Disclosure Guidelines.
Mar 16, 2022: Kye-hyun Kyung, Tae-moon Roh, Hark-kyu Park, and Jung-bae Lee were newly appointed as Executive Directors, Wha-jin Han and
Jun-sung Kim as Independent Directors; and Han-jo Kim was reappointed as an Independent Director at the AGM.
Mar 16, 2022: Ki-nam Kim, Hyun-suk Kim, and Dong-jin Koh resigned from their positions as Executive Director.
Mar 19, 2022: Terms of Jae-wan Bahk and Curie Ahn as Independent Director expired.
Apr 1, 2022: Executive Director Jong-hee Han was appointed as the Head of Management Committee.
Apr 20, 2022: Wha-jin Han resigned from her position as Independent Director.
Apr 28, 2022: Independent Director Han-jo Kim was appointed as the Head of Sustainability Committee.
May 17, 2022: Independent Director Byung-gook Park passed away.
Jul 28, 2022: Independent Director Jeong Kim was appointed as Compensation Committee member at the Board meeting.
Nov 3, 2022: Eun-nyeong Heo and Myung-hee Yoo were newly appointed as Independent Directors at the EGM.
Nov 3, 2022: Independent Directors Eun-nyeong Heo and Myung-hee Yoo were appointed as Sustainability Committee members at the Board meeting.
Jan 27, 2023: Independent Director Jeong Kim was appointed as the Head of Compensation Committee.
(The Management Committee)
Responsibilities: The Management Committee deliberates and decides on matters specified by Board regulations and resolutions or specifically delegated by the Board. The composition and operation of the management committee are determined by the Board.
- Authorities:
(A) General management
1. Annual or mid to long-term management policy and strategy 2. Key management strategy 3. Business planning and restructuring 4. Establishment, relocation, and withdrawal of overseas branch and corporation 5. Initiating cooperation such as strategic partnership with foreign companies 6. Acquisition or disposal of domestic and overseas subsidiaries
(provided that the value of transaction exceeds 0.1% of total equity) 7. Other major management issues 8. Establishment, relocation, and withdrawal of branches and operations 9. Appointment or dismissal of supervisors 10. Suspension or shutdown of production over 5% of the total production in the recent year
Samsung Electronics Business Report
268 / 413
11. Licensing agreements and technology transfer, partnership in regards to technology of over 0.5% of the total equity 12. Acquisitions and transfers of patents related to new material and new technology of over 0.5% of the total equity 13. Collection and destruction of products corresponding to over 5% of the total sales in the recent business year 14. Contracting for over 5% of the total sales in the recent business year 15. Contracting or canceling of single sales agency and suppliers over 5% of the total sales in the recent business year 16. Establishment of basic principles of organization management 17. Decision making on basic principles and any changes related to wages, bonus, and fringe benefits 18. Appointments, dismissals and changes of transfer agent 19. Closing of shareholder register and setting reference date 20. Establishment of corporate guidelines for business and management related activities
(B) Matters related to Finance
1. Acquisitions or disposals of equity investments with a value no less than 0.1% and less than 2.5% of the total equity 2. Direct overseas investments with a value no less than 0.1% and less than 2.5% of the total equity 3. New debt guarantee (excluding extension of period) or collateral issuance with a value no less than 0.1% and less
than 2.5% of the total equity A. Collateral: Only in the case of providing collateral for others B. Guarantee: Excludes performance guarantee (e.g., bid, contract, defect, difference guarantee) and tax payment
guarantee 4. New credit agreement contract (excluding extension of period) with a value no less than 0.1% and less than 5% of
the total equity 5. Approval of related party transactions:
Related party transactions with affiliates involving cash (loans and payments), equity (stocks and bonds) or assets (such as real estate and intangible property rights) with a value between KRW 3 billion and/or less than KRW 5 billion, as defined in the Monopoly Regulation and Fair Trade Act Excluding cases where existing contracts are renewed without significant change. 6. Issuance of corporate bonds 7. Acquisition and disposal of real estate with a value of over 0.1% of the total equity, provided that the transaction is with a third party 8. Any matters that the CEO deems necessary and important for the business (e.g., capex)
(C) All other matters except for those delegated to the Board and other committees in accordance with Board regulations
(Related Party Transactions Committee)
- Responsibilities: Improve management transparency through the establishment of a voluntary compliance system
- Authorities:
1. Right to receive reports on related party transactions: The Committee can request reports on related party transactions with affiliates According to the Monopoly Regulation and Fair Trade Act, the Related Party Transactions committee is permitted to conduct preliminary reviews and approves on related party transactions over KRW 5 billion and other transactions that are deemed as significant
2. Right to order ex officio investigation of related party transactions 3. Right to propose corrective measures for related party transactions
(Compensation Committee)
- Responsibilities: Provide transparent and objective decision making process related to remuneration of directors
- Authorities:
1. Propose remuneration limit of directors at AGM 2. Establish the director remuneration system 3. Other matters delegated by the Board
Samsung Electronics Business Report
269 / 413
(Sustainability Committee)
- Responsibilities: Promote sustainability management in ESG areas and enhance shareholder value
- Authorities:
1. Matters related to corporate sustainability management - Key strategies and policies on sustainability management - Report on key activities for sustainability management including environment, society, and governance - Plans for publishing the Company's Sustainability Report
2. Matters related to shareholder value enhancement - Preliminary review on shareholder return policies - Report on key issues related to shareholder rights and interests - Other matters that may significantly impact sustainability management and shareholder value that are deemed necessary for the Committee to discuss
3. Establishment, composition, operation of organizations under the committee including research groups, councils, etc.
4. Other matters delegated by the Board
Samsung Electronics Business Report
270 / 413
(2) Committee Activities
The Management Committee (2022)
Date
Agenda
Investment in Memory Business
Investment in Memory Business
Jan 27
(Pyeongtaek) Establishment of overseas
subsidiary
Lease agreement
Investment in Memory Business (Pyeongtaek Line 3)
Investment in Memory Business
Feb 25 (Pyeongtaek Line 4) Investment in Memory Business
Investment in DS Division
Establishment of overseas subsidiary
Appointment of the Head of Management Committee
Investment in Memory Business (2023)
Investment in Memory Business (2025)
Investment in Memory Business
Investment in Foundry Business (Pyeongtaek)
April 1 Investment in Foundry Business
Investment in Test & System Package (Cheonan)
Investment in Test & System Package
Lease agreement
Investment in semiconductor research center (Giheung)
Investment in semiconductor research center
Apr 5 Investment in memory business
Investment in semiconductor research center
Apr 28 Investment in Memory Business
Purchase of liability insurance
Investment in Foundry Business
May
(Pyeongtaek)
27 Investment in Foundry Business
(Pyeongtaek)
Investment in Memory Business
Jun 30 Investment in Cheonan plant
Partnership agreement
Jul 13 Licensing agreement
Jul 28 Investment in Memory Business
Investment in Memory Business (Pyeongtaek Line 3)
Nov 17 Investment in Memory Business (Pyeongtaek Line 4)
Investment in Memory Business
Voting results
Approved Approved
Ki-nam Kim
(100%) For
For
Approved
For
Approved
For
Approved
For
Approved
For
Approved
For
Approved
For
Approved
For
Approved
Approved
Approved Approved Approved Approved Approved
Approved Approved Approved
Approved Approved Approved Approved Approved Approved
N/A (resigned)
Approved
Approved Approved Approved Approved Approved
Approved
Approved Approved
Hyun-suk Kim
(100%) For For For For For For For For For
N/A (resigned)
Dong-jin Koh
(100%) For For For For For For For For For
N/A (resigned)
Director
(attendance)
Jong-hee Kye-hyun
Han
Kyung
(100%)
(100%)
For
For
Tae-moon Roh (89%)
Hark-kyu Park (89%)
For
For
N/A
N/A
N/A
For
(newly
(newly
(newly
appointed) appointed) appointed)
For
For For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
Absent
For
For
Absent
For
For
For
For
For
For
For
For
For
For
For
For
For
Jung-bae Lee
(100%)
N/A (newly appointed)
For For For For For For For For For For For For For For For For For For For For For For For For For
Samsung Electronics Business Report
271 / 413
Director
Date
Agenda
Voting results
Ki-nam Kim
Hyun-suk Kim
Dong-jin Koh
(attendance)
Jong-hee Kye-hyun
Han
Kyung
Tae-moon Roh
Hark-kyu Park
Jung-bae Lee
(100%)
(100%)
(100%)
(100%)
(100%)
(89%)
(89%)
(100%)
Participation in an overseas subsidiary's share placing
Rejected
Against
Against
Against
Against
Against
Dec 14 Licensing agreement
Approved
For
For
For
For
For
Agenda item 4 for the Management Committee meeting held on November 17, 2022, was rejected, because concerning the issue of securing investment
resources of an overseas subsidiary, the Committee concluded that the overseas subsidiary is capable of carrying out a capital increase with its own
reserve fund even if the Headquarters does not participate in the share placing.
The Related Party Transactions Committee (2022)
Date
Agenda
Voting results
Jan 25 Report on 4Q21 related party transactions
-
Prior review on large-scale related party
-
Feb 11 transactions
1) Purchase of product liability insurance
Prior review on large-scale related party
-
Mar 11 transactions
1) Participation in Samsung Biologics' rights offering
Prior review on large-scale related party transactions
-
1) Real estate lease agreement of company building
of SEC in Seocho
Apr 26 2) Purchase of employee insurance policy
3) Charitable contributions
4) Lease agreement with Samsung SDI
Report on 1Q22 related party transactions
-
Prior review on large-scale related party transactions
-
1) Joining of the New Technology Investment Association
2) Purchase of package insurance policy for
Jul 26
domestic operations
3) Purchase of mobile device insurance
4) Real estate lease agreement with Samsung Display
Report on 2Q22 related party transactions
-
Oct 25 Report on 3Q22 related party transactions
-
Prior review on large-scale related party transactions
-
Nov 28 1) Payment of retirement pension plan
2) Approval of 2023 large-scale product and service
transactions
Sun-uk Kim (100%) -
-
-
-
Directors
(attendance)
Jae-wan Bahk
Han-jo Kim
(100%)
(100%)
-
-
-
-
-
-
Jeong Kim (100%)
N/A (newly appointed)
-
-
-
-
N/A (term expired)
-
-
-
-
-
-
-
-
Samsung Electronics Business Report
272 / 413
The Compensation Committee (2022)
Date
Agenda
Review on 2022 fixed annual salary for
Feb 11
each Executive Director Review on 2022 remuneration limit for
Directors
Voting results
Approved Approved
Byung-gook Park (100%)
For
For
Jae-wan Bahk (100%)
For
For
Directors (attendance)
Jeong Kim (100%)
For
For
Han-jo Kim (-)
N/A (newly appointed)
Jun-sung Kim (-)
N/A (newly appointed)
The Sustainability Committee (2022)
Date
Agenda
Feb 11
Reporting Item 1) Social contribution activities 2.0
2) Current status on joining the UN Global Compact
3) Updates of IR activities
Voting results
-
Jae-wan Bahk (100%)
Sun-uk Byung-gook Jeong
Kim
Park
Kim
(100%) (100%) (100%)
-
-
-
-
-
-
-
-
-
-
-
-
Directors
(attendance)
Curie Han-jo
Ahn
Kim
(100%) (100%)
Wha-jin Han (-)
Jun-sung Eun-nyeong Myung-hee
Kim
Heo
Yoo
(100%)
(-)
(-)
-
-
N/A
N/A
-
-
(newly (newly
appointed) appointed)
-
-
Apr 28
1) Appointment of the head of the Sustainability Committee
Reporting Item
2) Updates of IR activities 3) Results of ESG meetings with
investors 4) Plans for publishing the
Sustainability Report 5) Key tasks in company-wide
sustainability management 6) Results of survey on corporate
reputation
Reporting Item
Approved
-
For
For
-
-
-
-
-
-
-
-
-
-
Jul 28 1) Updates of IR activities
-
N/A (term expired)
-
2) Progress on promoting diversity and inclusion
-
-
Sep 1
1) Promotion of SEC's Environmental Strategy (proposal)
Approved
For
Reporting Item
1) Updates of IR activities
-
-
2) Internal and external sustainability management trends
-
-
Oct 27 3) Joining of the Semiconductor Climate Consortium
-
-
4) Progress on promoting
establishment of a standardized workplace for persons with
-
-
disabilities as a subsidiary
For
For
For
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
N/A (term expired)
-
N/A (resigned)
-
N/A
N/A
(newly (newly
appointed) appointed)
-
-
-
For
For
For
-
-
-
-
-
-
-
-
-
-
-
-
Samsung Electronics Business Report
273 / 413
D. Director independence
(1) Appointment of Directors
The Board nominates Executive Director candidates and the Independent Director Recommendation Committee nominates Independent Director candidates. Directors are then appointed at the general meeting.
A candidate for Director needs to meet the requirements of relevant laws and the Articles of Incorporation. Executive Directors are appointed based on his or her expertise and leadership among a list of candidates that is constantly updated. Independent Directors should have no material interests with the Company and its major shareholder, possess knowledge and experience in IT, accounting, finance, law, economics, EHS, etc., and be able to fulfill the roles and responsibilities of supervising management from an independent position. The company has not set separate standards with respect to the independence of Directors besides the requirements in relevant laws and the Article of Incorporation.
Please refer to VIII. Executives and Employees for more information about the career of each Director.
The Board submits shareholders' proposal for appointment of Directors at the general shareholder meeting as a separate agenda if the proposal satisfies related laws and regulations.
The composition of the Board of Directors, as appointed by shareholders, is as follows:
[As of December 31, 2022]
Position
Name
Term (No. of reappointments)
Reasons for appointment
Executive Director (CEO)
Jong-hee Han
Mar 2020
Mar 2023 (None)
Director Jong-hee Han is an expert in display R&D and played a leading role in continuously achieving the top position in the global TV market. He will contribute to further solidifying TV leadership amid intensifying competition by using his outstanding business capabilities.
Nominator The Board
Responsibility
Transaction with the Company
Relationship with the
Company's major
shareholders
Overall management
of the DX Division
N/A
Related party
Samsung Electronics Business Report
274 / 413
Position
Executive Director (CEO)
Executive Director
Name
Term (No. of reappointments)
Reasons for appointment
Kye-hyun Kyung
Tae-moon Roh
Mar 2022
Mar 2025 (None)
Mar 2022
Mar 2025 (None)
As the Head of the DS Division, Director Kyehyun Kyung has developed technologies in all three major memory products-- DRAM, flash, and solution. He was judged to be the most qualified person to improve organization's fundamentals through communicative and empathetic leadership as well as to firmly solidify our position as a leader in the global semiconductor market.
Director Tae-moon Roh has served in various core positions in the MX Business, and in 2021, delivered record results--the highest since 2014--achieving KRW 104 trillion in revenue through products such as S21 and foldables. He is expected to contribute significantly to enhancing corporate fundamentals, such as improving profitability and solidifying business fundamentals.
Nominator The Board The Board
Responsibility
Transaction with the Company
Relationship with the
Company's major
shareholders
Overall management
of the DS Division
N/A
Related party
Overall management
of the MX Business
N/A
Related party
Samsung Electronics Business Report
275 / 413
Position
Executive Director
Executive Director
Name
Hark-kyu Park
Jung-bae Lee
Term (No. of reappointments)
Reasons for appointment
Mar 2022
Mar 2025 (None)
Mar 2022
Mar 2025 (None)
Director Hark-kyu Park has held numerous key positions in core businesses and proved his risk management capabilities. Furthermore, he has successfully led business innovations with a broad perspective. As the Head of Corporate Management Office of the DX Division, his responsibilities include overall corporate support, management analysis, and even auditing to deliver business achievements, and he contributes significantly to coordinating management issues across the entire Company.
Director Jung-bae Lee is an expert who has the experience of serving in key positions, including development, quality, and strategy. He oversaw the Company achievement of being the top firm in terms of DRAM revenue for a 30th consecutive year by securing product competitiveness, and he spearheaded the efforts to regain the title of No.1 global semiconductor revenue in 2021, demonstrating his extensive experience and outstanding capabilities in DS Division businesses.
Nominator The Board The Board
Responsibility
Transaction with the Company
Relationship with the
Company's major
shareholders
Overall management
N/A
Related party
Overall
management of the Memory
N/A
Related party
Business
Samsung Electronics Business Report
276 / 413
Position
Independent Director
Independent Director
Independent Director
Independent Director
Name Han-jo Kim
Sun-uk Kim Jeong Kim
Jun-sung Kim
Term (No. of reappointments)
Reasons for appointment
Mar 2019
Mar 2025 (1)
Mar 2018
Mar 2024 (1)
Mar 2018
Mar 2024 (1)
Mar 2022
Mar 2025 (None)
Director Han-jo Kim has built expertise in finance and business management through his experience as a President of Korea Exchange Bank and now serves as the chairman of a social contribution foundation. He will contribute to the Company by providing valuable insight on overall business issues and by utilizing expertise in finance, co-growth, etc.
Director Sun-uk Kim is a legal expert and has experience as a professor at a school of law and the Legislation Minister. She can present a new perspective to the Board based on objective and juridical reasoning.
Director Jeong Kim is an IT expert and an entrepreneur. He will contribute to the Board's strategic decisions by utilizing his expertise, wide network, and business capability.
Director Jun-sung Kim is an expert in the global economy and investment who has experience analyzing and investing in stock markets in advanced economies. He will effectively represent foreign markets and investors and contribute significantly to establishing investment strategies in line with current trends via global networking.
Nominator
Independent Director
Recommendation Committee
Independent Director
Recommendation Committee
Independent Director
Recommendation Committee
Independent Director
Recommendation Committee
Responsibility
Transaction with the Company
Relationship with the
Company's major
shareholders
Overall management
N/A
N/A
Overall management
N/A
N/A
Overall management
N/A
N/A
Overall management
N/A
N/A
Samsung Electronics Business Report
277 / 413
Position
Name
Term (No. of reappointments)
Reasons for appointment
Nominator
Responsibility
Transaction with the Company
Relationship with the
Company's major
shareholders
Director Eun-nyeong
Heo is an expert in
energy, resources, and
the environment and, in
particular, how they
Independent Eun-nyeong
Director
Heo
Nov 2022
Nov 2025 (None)
relate to economy and policy. As a renowned international scholar, he will contribute to strengthening the
Independent Director
Recommendation Committee
Overall management
N/A
N/A
Company's
management in the
relevant fields and
provide practical advice
to the Board.
Director Myung-hee Yoo
is an expert in
international trade who
served as Korea's Trade
Independent Myung-hee
Director
Yoo
Nov 2022
Nov 2025 (None)
Minister. Backed by her diplomatic communication skills and global network, she will enhance
Independent Director
Recommendation Committee
Overall management
N/A
N/A
communication with the
Company's key
investors and
stakeholders.
Relationship with Company's major shareholders is in accordance with Article 542-8 of the Commercial Act.
Feb 15, 2022: Executive Directors Ki-nam Kim, Hyun-suk Kim, and Dong-jin Koh resigned from their positions as CEO; and Executive Director Jong-
hee Han was appointed as CEO at the Board meeting.
Mar 16, 2022: Kye-hyun Kyung, Tae-moon Roh, Hark-kyu Park, and Jung-bae Lee were newly appointed as Executive Directors, Wha-jin Han and
Jun-sung Kim as Independent Directors; and Han-jo Kim was reappointed as an Independent Director at the AGM.
Mar 16, 2022: Ki-nam Kim, Hyun-suk Kim, and Dong-jin Koh resigned from their positions as Executive Director.
Mar 16, 2022: Executive Director Kye-hyun Kyung was appointed as CEO at the Board meeting.
Mar 19, 2022: Terms of Jae-wan Bahk and Curie Ahn as Independent Director expired.
Apr 20, 2022: Wha-jin Han resigned from her position as Independent Director.
May 17, 2022: Independent Director Byung-gook Park passed away.
Nov 3, 2022: Eun-nyeong Heo and Myung-hee Yoo were newly appointed as Independent Directors at the EGM.
Samsung Electronics Business Report
278 / 413
(2) Independent Director Recommendation Committee
The Independent Director Recommendation Committee assesses the independence and ability of potential candidates and recommends selected candidates to be appointed at the AGM. As of the reporting date (December 31, 2022), the committee is composed of two Independent Directors (Jeong Kim, Sun-uk Kim).
Date
Agenda
Voting results
Jeong Kim (100%)
Byung-gook Park (100%)
Directors (attendance)
Curie Ahn (100%)
Wha-jin Han (-)
Sun-uk Kim (100%)
Appointment of Head of the Committee Approved
For
For
For
Jan 27 Decision on date of Independent Director candidate recommendation
Approved
For
For
For
N/A
N/A
(newly appointed) (newly appointed)
Feb 11
Recommendation of Independent Director candidate
Approved
For
For
For
Aug 30
Recommendation of Independent Director candidate
Approved
For
N/A (resigned)
N/A (term expired)
N/A (resigned)
For
Jan 27, 2022: Independent Director Jeong Kim was appointed as the Head of Independent Director Recommendation Committee.
Mar 16, 2022: Wha-jin Han was appointed as Independent Director Recommendation Committee member at the AGM.
Mar 19, 2022: Terms of Curie Ahn as Independent Director expired.
Apr 20, 2022: Wha-jin Han resigned from her position as Independent Director.
May 17, 2022: Independent Director Byung-gook Park passed away.
Jul 28, 2022: Independent Director Sun-uk Kim was appointed as Independent Director Recommendation Committee member at the Board meeting.
Samsung Electronics Business Report
279 / 413
(3) Expertise of Independent Directors
1) Support team for Independent Directors
[As of December 31, 2022]
Team
Number of employees
Position (total years served/ years in support team)
Board of
Directors
3
Office
Vice President: 1 person (17 years and 11 months / 1 month)
Principal Professional: 1 person (19 years and 11 months / 3 year and 5 months)
Senior Professional: 1 person (15 years and 11 months / 5 years and 11 months)
Key activities
Support operation of annual shareholders' meeting, Board meetings, and Committee meetings
Support education for Independent Directors and their activities
Establish database on Director candidates Provide information for resolution process to each
Directors Administrative work for meetings Record meeting agendas for the Board and
committee meetings
2) Education programs to provide updates on key management issues for Independent Directors Inspection of domestic and overseas business sites
Date
Organizer
Participants
Apr 28, 2022 MX Business Jul 28, 2022 Memory Business Nov 30, 2022 Foundry Business
Han-jo Kim, Sun-uk Kim, Byunggook Park, Jeong Kim, Jun-sung Kim
Han-jo Kim, Sun-uk Kim, Jeong Kim, Jun-sung Kim
Han-jo Kim, Sun-uk Kim, Jeong Kim, Jun-sung Kim, Eun-nyeong Heo, Myung-hee Yoo
Orientation for newly appointed Independent Directors
Reasons for absence N/A
N/A
N/A
Education contents
On-site visit to check the current management status of businesses
On-site visit to check the current management status of businesses
On-site visit to check the current management status of businesses
Date
Organizer
Participants
Apr 27, 2022 Corporate Management Office Jun-sung Kim
Nov 28, 2022
Corporate Management Office
Eun-nyeong Heo, Myunghee Yoo
New Independent Directors are subject to the orientation.
Orientation for Independent Directors
Reasons for absence
N/A
N/A
Education contents
Key issues regarding Board activities and management Key issues regarding Board activities and management
Date
Organizer
Nov 27, 2020 Planning Team
Participants
Jae-wan Bahk, Sun-uk Kim, Byung-gook Park, Jeong Kim, Curie Ahn, Han-jo Kim
Reasons for absence
N/A
Education contents
Changing environment in post-COVID19 era and mid- to long-term strategy
Samsung Electronics Business Report
280 / 413
2. Audit System
A. Profiles of Audit Committee members
As of December 31, 2022, SEC operates an Audit Committee consisting of three Independent Directors. Director Han-jo Kim qualifies as an expert in finance in accordance with relevant regulations.
Name
Major experience
Accounting/financial expertise1)
Classification
Relevant experience
Han-jo Kim
2021present: CEO/Rep Director, Hana Nanum Foundation
20192021: CEO/Rep Director, Hana Foundation 20152019: CEO/Rep Director, Hana Nanum
Foundation 20152016: Vice Chairman, Hana Financial Group 20142015: President, Korea Exchange Bank 20132014: President, KEB Capital Inc.
Type 42)
20152016: Vice Chairman, Hana Financial Group
20142015: President, Korea Exchange
Bank 20132014: President, KEB Capital 20122013: Head of Corporate Business
Group, Korea Exchange Bank 19992002, 20042005: Head of Branch,
Korea Exchange Bank
2018present: Professor Emeritus, School of Law,
Ewha Womans University
Sun-uk Kim
19952018: Professor, Ewha Law School, Ewha Womans University
20102014: President, Ewha Womans University
20052007: Minister of Government Legislation
2013-present: Co-Founder and Executive Chairman,
Kiswe Mobile
2011-2013: Chief Strategy Officer, Alcatel-Lucent
2005-2013: President, Alcatel-Lucent Bell Labs
Jeong Kim 2002-2013: Professor of Electrical and Computer
Engineering & Mechanical Engineering, University of
Maryland 1998-2001: President, Lucent Technologies 1992-1998: Founder, Chairman & CEO, Yurie Systems
1) Defined in Public Disclosure Guideline and Article 37-2 of the Enforcement Decree of the Commercial Act 2) Experience at financial, government, securities-related organizations in charge of accounting or finance or in charge of supervision over accounting
or finance for an aggregate of at least five years During the reporting period, Independent Director Jae-wan Bahk resigned from his position and Independent Director Jeong Kim was appointed as Audit Committee member at the AGM on March 16, 2022.
B. Audit Committee independence
Pursuant to related laws and the Articles of Incorporation, SEC has prepared internal audit regulations which encompass composition, operation, authority, and responsibility of the Audit Committees to carry out audit related activities.
The Audit Committee is exclusively composed of Independent Directors recommended by the Board and appointed at the general shareholder meeting. Currently, it includes financial expert Han-jo Kim and legal expert Sun-uk Kim. Committee members do not have any relation to the Company's major shareholders that may undermine the independence of the Committee. Also, the Audit Committee satisfies requirements of relevant laws (e.g., the stipulation that the role of head of the committee be held by an Independent Director).
Samsung Electronics Business Report
281 / 413
Requirements
Requirement status
Applicable acts, etc.
The audit committee shall consist of at least three directors.
The ratio of independent directors shall exceed two thirds of the total number of members.
Satisfied: the committee consists of three Directors
Satisfied: all members are independent directors)
Article 415-2 (2) of the Commercial Act, Article 2 of the Company's Audit Committee Regulation
At least one member of the committee shall be an accounting or financing expert.
The representative of the committee shall be an Independent Director.
Satisfied: Independent Director Han-jo Kim
Satisfied: Independent Director Han-jo Kim
Article 542-11 (2) of the Commercial Act, Article 3 of the Company's Audit Committee Regulation
Other conditions (related party of the major shareholder, etc.)
Satisfied (n/a)
Article 542-11 (3) of the Commercial Act
[As of December 31, 2022]
Name
Term (No. of reappointments)
Reasons for appointment
Nominator
Relationship with the Company
Relationship with the
Company's major
shareholders
Concurrent positions
As an expert in finance
with broad experience
Han-jo
Mar 2019Mar
and expertise, he will
Independent Director
Kim
2025
offer impartial judgement
Recommendation
N/A
N/A
-
(Head)
(1)
on overall management
Committee
activities while carrying
out his duties.
Based on the legal
expertise and experience
running organizations in
Sun-uk Kim
Mar 2018Mar 2024 (1)
areas including administration, finance, international affairs, etc., she can carry out the
Independent Director Recommendation Committee
N/A
N/A
-
duties in an aboveboard
manner with strict
standards.
As a global business
leader with the
experience of operating
Jeong Kim
Mar 2018Mar 2024 (1)
a number of companies transparently and fairly, he will offer independent
Independent Director Recommendation Committee
N/A
N/A
and objective
perspective while
carrying out his duties
Relationship with the Company and Company's major shareholders is in accordance with Article 542-8 of the Commercial Act.
Chairman of Kiswe Mobile (2013present)
The Audit Committee reviews accounting documents including financial statements and audit process related documents presented by the external auditor, and if needed, requests the external auditor to perform additional reviews on accounting books and records. To ensure the reliability of accounting related disclosures, the audit committee receives and reviews a report on internal accounting control systems prepared by internal accounting managers. In addition, the Committee attends the Board meetings and other significant meetings. The Committee receives reports on deliberations of the Management Committee and on business performance from Directors and requests additional reviews and supplementation of data as needed.
Samsung Electronics Business Report
282 / 413
C. Major activities of the Audit Committee (2022)
Date
Agenda
Voting results
- Report on 2021 internal accounting
-
management system activities
- Report on evaluation of 2021 internal -
accounting management system
activities - Communication between external
-
Jan
auditor and audit committee
25 - Report on 2021 financial statement
-
and business report
-
- Report on 4Q21 non-audit activities
- Report on 4Q21 external
-
contributions
- Report on 2021 audit activities
-
- Review of the 53rd AGM agenda
Feb 11
- Revisions of internal accounting management system activities
- Report on activities of internal
compliance system in 2021
Approved
-
- Appointment of the Head of the Audit -
Committee
Approved
- Communication between external
auditor and audit committee
-
- Report on evaluation of 2021
external audit activities
Approved
- Decision on the terms and conditions
of the audit contract with the
designated external auditor
Apr - Report on 1Q22 interim business
-
26
report
- Report on 1Q22 non-audit activities
- Report on plans for reviewing 2022
-
internal accounting management
-
system activities
- Report on 1Q22 external
contributions
- Report on plans for evaluating 2022
-
internal accounting management
system activities
-
-
- Communication between external
Jul 26
auditor and audit committee - Report on 2022 half-year business
-
report
- Report on 2Q22 non-audit activities
-
Jae-wan Bahk (100%) For -
N/A (resigned)
Directors (attendance)
Sun-uk Kim (100%)
Han-jo Kim (100%)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
For
For
-
-
-
-
For
For
-
-
For
For
Jeong Kim (100%)
N/A (newly appointed)
For For
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Samsung Electronics Business Report
283 / 413
- Interim report on 2022 internal accounting management system activities
- Report on 2Q22 external contributions
- Report on 1H22 audit activities - Revision of external auditor
appointment regulations - Interim report on evaluation of 2022
internal accounting management system activities
-
-
Approved
-
Aug 30
- Review of the EGM agenda
-
- Communication between external
auditor and audit committee
-
Oct 25
- Report on 3Q22 interim business report
- Report on 3Q22 non-audit activities
-
- Report on 3Q22 external
-
contributions
- Decision on compliance with the
appointment of an external auditor
Oct - Decision on appointing an external
27
auditor
- Establishment of the 2022
Retirement Pension Committee
Approved Approved
-
-
-
-
-
-
-
-
-
-
For
For
For
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
For
For
For
For
For
For
-
-
-
D. Education programs for the Audit Committee
In accordance with the working guide for internal accounting management system, we are conducting additional training to ensure the expertise of the Audit Committee. Organized by external experts, finance team, and audit team, education on changes to internal control, internal accounting management system is provided more than once a year.
E. Previous education sessions
Date Jul 28, 2020
Organizer External experts
Jul 27, 2021 May 25, 2022
External experts
Corporate Finance & Accounting Team, External experts
Participants
Jae-wan Bahk Sun-uk Kim Han-jo Kim Jae-wan Bahk Sun-uk Kim Han-jo Kim
Jeong Kim
Reasons for absence N/A
N/A
N/A
Education contents
Internal accounting management system
Internal accounting management system
Introduction materials
Samsung Electronics Business Report
284 / 413
F. Support team for the Audit Committee
[As of December 31, 2022]
Team
Composition
Audit team
1 Executive Vice President, 1 Principal Professional, 2 Senior Professionals
Internal accounting 1 Vice President,
assessment support 1 Lawyer,
group
1 Senior Professional
Service years on team
Executive Vice President: 3 years Principal professional: 5 years Senior Professional: 2 year and 5 months (average)
Vice President: 4 years Lawyer: 1 year and 9 months Senior Professional: 1 year and 11 months
Major tasks
Support the Audit Committee
Support assessment of the internal accounting management system
G. Compliance Officer
[As of December 31, 2022] Name Date of birth Sex Current position
1. Personal information and major career Career
Jung-ho Park
September 1971
Male Corporate Compliance Team leader at Samsung Electronics (December 2022present)
May 2004: HR Team, Corporate Management Office, SEC (lawyer) Dec 2014: Corporate Legal Team, Corporate Legal Office, SEC (Vice President) Mar 2018: Legal & Compliance Team, DS Division, SEC (Vice President) Jan 2020: Compliance Team, SEC (Vice President) Dec 2022: Head of Compliance Team, SEC (Executive Vice President)
Academic background
Bachelor's Degree in Law (Seoul National University) Master's Degree in Human Resources & Labor Relations (Michigan State University)
2. Date of Board resolution
December 20, 2022
3. Disqualifications
N/A
4. Others
N/A
Compliance officer meets the eligibility requirement (lawyer) stated in Article 542-13 (5) of the Commercial Act. Dec 20, 2022: Jung-ho Park, Head of Compliance Team, was newly appointed as the compliance officer upon the Board's approval.
Samsung Electronics Business Report
285 / 413
H. Major compliance activities
The Company conducts compliance assessments on a regular and ad-hoc basis and reflects the results in the Company's business activities to improve compliance of the Company and its employees.
Date
Assessment subject
Jan 2022 Mar 2022 Apr 2022
Current status of management of secret information
Compliance of domestic and overseas third-party production customers
Compliance of domestic organizations involved with development
Voluntary compliance of overseas subsidiaries
Assessment area Business secrets Technology leak, product liability, etc. Business secrets, technology misuse, etc. Status of compliance program
Results
Jun 2022
Compliance of overseas production subsidiaries Compliance of overseas sales subsidiaries
Technology misuse, anti-corruption, etc. Fair transaction, business secrets, etc.
Compliance of domestic and overseas third-party production customers
Technology leak, product liability, etc.
Jul 2022 Aug 2022
Compliance of overseas sales subsidiaries
Compliance of domestic sales & marketing organizations Monitoring external contributions and related party transaction risks
Compliance of overseas production subsidiaries
Sep 2022
Compliance of domestic organizations involved with development
Compliance of subsidiaries
Fair transaction, business secrets, etc.
Fair transaction, business secrets, etc. Anti-corruption, fair transaction Technology misuse, anti-corruption, etc. Business secrets
Overall result was satisfactory. Internal policies were followed in areas where there was room for improvement.
Business secrets, personal information, etc.
Oct 2022
Compliance of domestic and overseas third-party production customers
Monitoring external contributions and related party transaction risks
Technology leak, product liability, etc. Anti-corruption, fair transaction, etc.
Compliance of patent application process
Technology misuse, business secrets, etc.
Nov 2022
Violation of equipment company's business secrets Business secrets
Compliance of domestic organizations involved with development
Business secrets
Dec 2022 Compliance of overseas production subsidiaries Technology misuse, anti-corruption, etc.
Compliance of domestic and overseas third-party production customers
Assessment conducted in the final month of each quarter. Each assessment was conducted on selected organizations.
Technology leak, product liability, etc.
Samsung Electronics Business Report
286 / 413
I. Support team for the Compliance Officer
[As of December 31, 2022]
Team
Composition
Service years (average)
Compliance team, etc.
2 Vice Presidents, 15 Principal Professionals /
Engineers, 11 Lawyers, 36 Senior Professionals, 5 Professionals
(Total: 69)
Vice Presidents (7 years and 1 months) Principal Professionals (8 years and 3 months) Lawyers (4 years and 9 months) Senior Professionals (5 years and 2 months) Professionals (1 year and 10 months)
Major tasks
Supports activities of the Compliance Officer
Samsung Electronics Business Report
287 / 413
3. General meeting of shareholders
A. Voting method
As of December 31, 2022, the Company has not adopted cumulative voting or paper voting and has adopted electronic voting, which was used at the AGM on March 16, 2022, and the EGM on November 3, 2022. On January 30, 2020, the Board resolved to adopt electronic voting to enhance convenience in exercising voting rights for shareholders in accordance with Article 368-4 (Exercise of Voting Rights by Electronic Means) of the Commercial Act. E-voting has been used at every AGM since it was introduced at the AGM on March 18, 2020. The convocation notice of general meeting of shareholders includes the information that voting rights can be exercised electronically. Owners of shares as of the last day of every settlement term can exercise their voting rights via the electronic voting system of Korea Securities Depository ten days prior to general meeting date until the day before the meeting, without being present at the meeting.
[As of December 31, 2022] Classification
Cumulative voting
Paper voting
Electronic voting
Adoption
Excluded
Not adopted
Adopted
Implementation
-
-
AGM (2021) EGM (2022)
The Company as of the reporting date employs proxy voting and it contacts shareholders directly to recommend delegating voting rights, contacts
shareholders by mail or email, and also made a power of attorney form available on the Company website.
B. Minority shareholder rights
No minority shareholder rights were exercised during the reporting period.
C. Competition over management rights
No competition over management rights occurred during the reporting period.
D. Voting shares
As of December 31, 2022, SEC has 5,969,782,550 issued shares of common stock, and 822,886,700 issued shares of preferred stock with no voting rights. There are 597,466,009 shares of common stock with limited voting rights under relevant laws. Thus, the total number of shares with full voting rights is 5,372,316,541.
[As of December 31, 2022]
Classification
Share type Number of shares
Note
Common
5,969,782,550
-
Number of issued shares (A)
Preferred
822,886,700
-
Samsung Electronics Business Report
288 / 413
Classification
Share type Number of shares
Note
Shares with no voting rights (B)
Common
-
-
Shares with no voting rights according to Articles of Incorporation (C)
Preferred
Shares with limited voting rights under relevant laws (D)
Common Common
822,886,700
-
596,959,2001)
508,157,148 shares held by Samsung Life Insurance & 88,802,052 shares held by Samsung Fire & Marine Insurance
506,809
Restricted by the Insurance Business Act: Shares held by Samsung Life Insurance in certain special accounts
Common
5,372,316,541
-
Shares with voting rights
(F = A - B - C - D)
Preferred
-
-
1) Pursuant to Korea's Monopoly Regulation and Fair Trade Act, owners can exercise certain rights on some shares in accordance with related laws, including the right to vote on agendas such as the appointment or dismissal of directors and revisions to the Articles of Incorporation.
E. Stock affairs
Preemptive rights in the Articles of Incorporation
1. New shares to be issued by the Company shall be allocated to the shareholders in proportion to their respective shareholdings in accordance with Paragraph 6, Article 8. If shares are not subscribed for as a result of waiver or loss of the preemptive right of the shareholders to subscribe for new shares, or if fractional shares remain at the time of allocation of new shares, such shares may be disposed of by a resolution of the Board of Directors in accordance with applicable laws and regulations.
2. Notwithstanding the above Paragraph 1, new shares may be allocated to persons other than shareholders in the following cases:
a. If the Company issues new shares or causes underwriters to underwrite new shares by a resolution of the Board of Directors in accordance with applicable laws and regulations including the Financial Investment Services and Capital Markets Act;
b. If the Company allocates new shares preferentially to members of the Employee Stock Ownership Association by a resolution of the Board of Directors in accordance with applicable laws and regulations including the Financial Investment Services and Capital Markets Act;
c. If the Company issues new shares for the issuance of depositary receipts (DR) by a resolution of the Board of Directors in accordance with the applicable laws and regulations including the Financial Investment Services and Capital Markets Act;
d. If the Company issues new shares by public offering in accordance with Article 11-3;
e. If new shares are issued by the exercise of stock options in accordance with Article 11-4;
f. If the Company issues new shares to the extent of 20% of the total issued and outstanding shares to domestic or foreign financial institutions for the purpose of obtaining financing urgently or to the relevant partner company for the purpose of inducing technology therefrom, etc., by a resolution of the Board of Directors; provided that the issue price of the new shares shall not be less than the price prescribed by the Financial Investment Services and Capital Markets Act and other applicable laws and regulations.
(Note) Paragraph 6, Article 8 In the case of rights issue, bonus issue or stock dividend, the holders of common shares shall be entitled to common shares, and the holders of preferred shares shall be entitled to preferred shares, in proportion to their respective shareholdings; provided that in the case of rights issue and
Samsung Electronics Business Report
289 / 413
stock dividend the Company may, if necessary, issue only one kind of shares, where all the shareholders shall be entitled to such kind of shares to be issued. (Note) Article 11-3 (Public Offering)
1. The Company may issue new shares by public offering to the extent that the new shares do not exceed 20% of the total number of issued and outstanding shares by a resolution of the Board of Directors, pursuant to Article 165-6, Paragraph 1, Item 3 of the Financial Investment Services and Capital Markets Act.
2. If the Company issues new shares by public offering, the type, quantity and issue price of the shares to be newly issued shall be determined by a resolution of the Board of Directors; provided that the issue price of such new shares shall not be less than the price prescribed by the Financial Investment Services and Capital Markets Act and other applicable laws and regulations.
(Note) Article 11-4 (Stock Options)
1. The Company may grant stock options to its officers and employees (including officers and employees of the related companies as set forth in Article 542-3, Paragraph 1 of the Commercial Code; the same shall apply for the purpose of this Article) by a special resolution of the general meeting of shareholders pursuant to Article 542-3 of the Commercial Code, to the extent permitted by the Commercial Code; provided, however, that the Company may grant the stock options to its officers and employees (except for the directors of the Company) by a resolution of the Board of Directors to the extent determined by the relevant laws and regulations.
2. The person to whom stock options may be granted are the officers and employees who have contributed or have the capacity to contribute to the establishment, management, overseas business, technical innovation, etc. of the Company; provided, however, that the officers and employees who may not be entitled to stock options under the relevant laws and regulations shall be excluded.
3. The shares to be issued to the officers or employees by the exercise of their stock options (in case the Company pays, either in cash or treasury shares, the difference between the exercise price of stock options and the market price, they refer to the shares which are the basis for such calculation) shall be common shares in registered form or preferred shares in registered form.
4. Total number of shares to be delivered in accordance with the exercise of stock options shall be up to the extent permitted by the relevant laws and regulations.
5. The stock options may be exercised until an expiry date determined by a resolution of the general meeting of shareholders or the Board of Directors and such expiry date shall be determined within a period not exceeding eight (8) years from the date when two (2) years have elapsed from the date of the general meeting of shareholders or the date of the Board of Directors' meeting at which a resolution to grant such stock options is adopted; provided, however, that the person to whom a stock option is granted should serve the Company for at least two (2) years after the date of such resolution in order to exercise such stock option, unless otherwise set forth by relevant laws and regulations.
6. The terms and conditions for stock options, such as the contents and exercise price thereof shall be determined by a special resolution of the general meeting of shareholders or by a resolution of the Board of Directors in accordance with the relevant laws and regulations and the Articles of Incorporation; provided, however, that such matters which are not provided for as matters reserved for resolutions of the general meeting of shareholders or the Board of Directors' meeting under the relevant laws and regulations or the Articles of Incorporation may be determined by the Board of Directors or a committee authorized by the Board of Directors.
7. The Company may cancel the grant of stock options by a resolution of the Board of Directors in any of the following cases:
a. In case the relevant officer or employee voluntarily retires from his/her office or leaves the Company after the grant of stock options; b. In case the relevant officer or employee causes substantial damages to the Company due to his/her willful misconduct or negligence; c. In case any of the causes for cancellation set forth in the stock option agreement occurs.
Settlement date
Dec 31
Annual General Meetings of Shareholders
Within 3 months after the end of every business year
Record date (closing period)
Last day of fiscal year (One month from Jan 1)
Transfer agent
Korea Securities Depository (T: +82-51-519-1500): 40 Munhyeongeumyung-ro, Nam-gu, Busan, Korea
Shareholder benefit
n/a
Published on
Joongang Daily
With Act on Electronic Registration of Stocks, Bonds, etc. ("Electronic Securities Act") taking effect Sep 16, 2019, rights specified on stocks and
Samsung Electronics Business Report
290 / 413
subscription warrants are subject to mandatory electronic registration, therefore, "Stock types" are no longer applicable. Related information is published on Joongang Daily in pursuant to our Articles of Incorporation, as well as on our website (https://www.samsung.com/sec/ir).
F. Results of shareholder meetings
[As of December 31, 2022]
Date
Agenda
1. Appointment of Independent Directors
EGM (Nov 3, 2022)
1-1: Appointment of Eun-nyeong Heo as an Independent Director 1-2: Appointment of Myung-hee Yoo as an Independent Director
AGM (Mar 16, 2022)
1. Approval of FY21 financial statements, including balance sheet, income statement, and the statement of appropriation of retained earnings, etc. 2. Appointment of Directors 2-1: Appointment of Independent Directors
2-1-1: Appointment of Han-jo Kim as Independent Director 2-1-2: Appointment of Wha-jin Han as Independent Director 2-1-3: Appointment of Jun-sung Kim as Independent Director 2-2: Appointment of Executive Directors 2-2-1: Appointment of Kye-hyun Kyung as Executive Director 2-2-2: Appointment of Tae-moon Roh as Executive Director 2-2-3: Appointment of Hark-kyu Park as Executive Director 2-2-4: Appointment of Jung-bae Lee as Executive Director 2-3: Appointment of Audit Committee Member 2-3-1: Appointment of Han-jo Kim as Audit Committee Member 2-3-2: Appointment of Jeong Kim as Audit Committee Member 3. Approval of remuneration limit for Directors
AGM (Mar 17, 2021)
1. Approval of Balance Sheet, Income Statement, and Statement of Appropriation of Retained Earnings, etc. for 2020
2. Appointment of Directors 2.1: Appointment of Independent Directors 2.1.1: Appointment of Byung-gook Park as Independent Director 2.1.2: Appointment of Jeong Kim as Independent Director 2.2: Appointment of Executive Directors 2.2.1: Appointment of Ki-nam Kim as Executive Director 2.2.2: Appointment of Hyun-suk Kim as Executive Director 2.2.3: Appointment of Dong-jin Koh as Executive Director 3. Appointment of Sun-uk Kim as Independent Director for Audit Committee Member 4. Approval of remuneration limit for Directors
AGM (Mar 18, 2020)
1. Approval of Balance Sheet, Income Statement, and Statement of Appropriation of Retained Earnings (draft), etc. for 2019
2. Appointment of Executive Directors 2.1: Appointment of Jong-hee Han as Executive Director 2.2: Appointment of Yoon-ho Choi as Executive Director 3. Approval of remuneration limit for Directors
Results
Approved Approved Approved
Approved Approved Approved
Approved Approved Approved Approved
Approved Approved Approved Approved
Approved Approved
Approved Approved Approved Approved Approved
Approved
Approved Approved Approved
Samsung Electronics Business Report
291 / 413
VII. Information on Shareholders
1. Ownership of shares by the major shareholder(s) and related parties
[As of December 31, 2022]
Name
Relationship1)
Type of share
Samsung Life Insurance
Samsung Life Insurance (special accounts)
Samsung C&T
Samsung Fire & Marine
Insurance
Samsung Welfare Foundation
Samsung Foundation Of Culture
Ra-hee Hong
Major shareholder
Major shareholder
Affiliate Affiliate
Funded foundation
Funded foundation
Related party of the major shareholder
Common Preferred Common Preferred Common Common
Common
Common Common Preferred
Jae-yong Lee
Related party of the major shareholder
Common Preferred
Boo-jin Lee
Executive member of affiliate
Common Preferred
Seo-hyun Lee
Jong-hee Han
Kye-hyun Kyung
Tae-moon Roh
Hark-kyu Park
Related party of the major shareholder
Executive member of affiliate
Executive member of affiliate
Executive member of affiliate
Executive member of affiliate
Common Preferred Common Common Common Common
Ownership
Period start
Period end
Shares
Stake (%)
Shares
Stake (%)
508,157,148
8.51 508,157,148
8.51
43,950
0.01
43,950
0.01
Notes
-
-
13,860,804
0.23
10,246,942
0.17 Open market transactions
548,463
0.07
403,278
0.05 Open market transactions
298,818,100
5.01 298,818,100
5.01
-
88,802,052
1.49
88,802,052
1.49
-
4,484,150
0.08
4,484,150
0.08
-
1,880,750
137,244,666 206,633
97,414,196 137,757
55,394,044 137,755
55,394,044 137,755 5,000 0 0 0
0.03
1,880,750
2.30 117,302,806
0.03
206,633
1.63
97,414,196
0.02
137,757
0.93
55,394,044
0.02
137,755
0.93
55,394,044
0.02
137,755
0.00
15,000
0.00
18,050
0.00
13,000
0.00
22,500
0.03
-
1.96
Extended-hours transactions
0.03
-
1.63
-
0.02
-
0.93
-
0.02
-
0.93
-
0.02
-
0.00 Open market transactions
0.00
Newly appointed
0.00
Newly appointed
0.00
Newly appointed
Samsung Electronics Business Report
292 / 413
Name
Relationship1)
Type of share
Jung-bae Lee
Han-jo Kim
Ki-nam Kim Hyun-suk
Kim Dong-jin Koh
Curie Ahn Byung-gook
Park
Executive member of affiliate
Executive member of affiliate
Executive member of affiliate
Executive member of affiliate
Executive member of affiliate
Executive member of affiliate
Executive member of affiliate
Common Common Common Common Common Common Common
Ownership
Period start
Period end
Shares
Stake (%)
Shares
Stake (%)
0
0.00
15,000
0.00
Notes
Newly appointed
2,175 210,000 99,750 75,000
3,800
0.00
3,655
0.00
0
0.00
0
0.00
0
0.00
0
0.00 Open market transactions
0.00
Resigned from his position as registered director
0.00
Resigned from his position as registered director
0.00
Resigned from his position as registered director
0.00
Term expiration
1,000
0.00
0
0.00
Position vacated
Common 1,261,846,679
21.14 1,237,981,437
20.74
-
Total
Preferred
1,212,313
0.15
1,067,128
0.13
-
Common shares carry full voting rights while preferred shares do not. (Owners of certain common shares have limited voting rights in accordance with relevant laws. See D. Voting shares in 3. General meeting of shareholders in VI. Corporate Governance for detailsfor more details.) For changes after December 31, 2022, please refer to `Ownership status of securities, etc. of executives and major shareholder' published in Korean in DART (https://dart.fss.or.kr). 1) In accordance with Article 3 Paragraph 1 of Enforcement Decree of the Act on Corporate Governance of Financial Companies.
2. Matters related to the major shareholder
A. Overview of the major shareholder (corporation or organization)
(1) Basic information of the major shareholder (Samsung Life Insurance Co., Ltd.) 1) Legal, commercial name: Samsung Life Insurance Co., Ltd. 2) Date of establishment: April 24, 1957 3) Address, phone number, and English language website of the corporate headquarters - Address: 11, Seocho-daero 74-gil, Seocho-gu, Seoul, Republic of Korea - Phone: +82-2-1588-3114 - Website: https://www.samsunglife.com 4) CEO and major shareholder of the major shareholder (Samsung Life Insurance)
Name
Number of investors
CEO
Name
Share ratio (%)
Major shareholder
Name
Share ratio (%)
Samsung Life Insurance Co., Ltd
100,800
Young-muk Jeon
0.00 Samsung C&T
As of December 31, 2022, based on common shares.
5) Changes to the CEO and major shareholder of the major shareholder (Samsung Life Insurance)
19.34
Samsung Electronics Business Report
293 / 413
Date of change
Name
CEO Share ratio (%)
Major shareholder
Name
Share ratio (%)
Mar 19, 2020
Sung-chul Hyun
0.00
-
-
Mar 19, 2020
Young-muk Jeon
-
-
-
Mar 23, 2020
Young-muk Jeon
0.00
-
-
Mar 24, 2020
Young-muk Jeon
0.00
-
-
Mar 16, 2021
Young-muk Jeon
0.00
-
-
Apr 29, 2021
-
-
Kun-hee Lee
-
Apr 29, 2021
-
- Samsung C&T
19.34
Mar 19, 2020: Sung-chul Hyun resigned from his position as CEO, and Executive Director Young-muk Jeon was appointed as CEO. Apr 29, 2021: The major shareholder changed to Samsung C&T as the shares of the previous major shareholder (who passed away on October 25, 2020) were inherited.
(2) Financial status of the recent settlement term of the major shareholder (Samsung Life Insurance)
(KRW mil)
Classification
Name of the corporation or organization
Samsung Life Insurance Co., Ltd
Total assets
316,165,903
Total liabilities
291,997,434
Total equity
24,168,469
Revenue
40,330,993
Operating profit
1,386,595
Net profit
The financial status is as of December 31, 2022, based on the consolidated K-IFRS financial statements.
1,720,794
(3) Business conditions of the major shareholder (Samsung Life Insurance) Samsung Life Insurance is a company in which life insurance and its related reinsurance contract are the key purpose of business operations, and it operates businesses in accordance with the Insurance Business Act and other related laws.
Its key subsidiary, Samsung Card, is a specialized credit finance business company that operates specialized credit finance businesses (including credit card business, facility leasing business, and installment financing business) in accordance with the Specialized Credit Finance Business Act and other related laws.
Please refer to the business report (interim and half-year) of Samsung Life Insurance published in DART (https://dart.fss.or.kr) for more details of the major shareholder.
B. Certain transaction that may cause changes in the major shareholder
N/A
Samsung Electronics Business Report
294 / 413
C. Overview of the major shareholder of the major shareholder
(1) Basic information of the major shareholder (Samsung C&T) of the major shareholder (Samsung Life Insurance)
1) Legal, commercial name: Samsung C&T Corporation
2) Date of establishment and period of existence: Dongwha Real Estate was first established on December 23, 1963, and the company name was changed to Cheil Industries in July 2014. It merged with Samsung C&T Corporation (founded as Samsung Sanghoe on March 1, 1938, and established as Samsung C&T in January 1951) and changed the company name to Samsung C&T Corporation on September 2, 2015 (merger registration date).
3) Address, phone number, and English language website of the corporate headquarters
- Address: 26, Sangil-ro 6-gil, Gangdong-gu, Seoul, Republic of Korea - Phone: +82-2-2145-5114 - Website: https://www.samsungcnt.com
4) CEO and major shareholder of the major shareholder (Samsung C&T) of the major shareholder
Name
Number of investors
Name
CEO Share ratio (%)
Jung-suk Koh
0.00
Samsung C&T
174,953
Se-chul Oh
0.00
Seung-hwan Han
0.00
As of December 31, 2022, based on common shares
Major shareholder
Name
Share ratio (%)
Jae-yong Lee
18.13
5) Changes to the CEO and major shareholder of the major shareholder (Samsung C&T) of the major shareholder (Samsung Life Insurance)
Date of change
Name
CEO Share ratio (%)
Major shareholder
Name
Share ratio (%)
Mar 19, 2021
Young-ho Lee
-
-
-
Mar 19, 2021
Keum-yong Chung
-
-
-
Mar 19, 2021
Se-chul Oh
0.00
-
-
Mar 19, 2021
Seung-hwan Han
0.00
-
-
Mar 19, 2021
Jung-suk Koh
0.00
-
-
Apr 29, 2021
-
-
Jae-yong Lee
18.13
Mar 19, 2021: Young-ho Lee and Keum-yong Chung resigned from their positions as CEO, Executive Directors Se-chul Oh and Seung-hwan Han were appointed as CEOs, and Jung-suk Koh was reappointed as CEO. Apr 29, 2021: The share ratio (common share) of the major shareholder was changed (17.48%18.13%) as the shares were inherited (by Jae-yong Lee and three others).
(2) Financial status of the recent settlement term of the major shareholder (Samsung C&T) of the major shareholder (Samsung Life Insurance)
(KRW mil)
Samsung Electronics Business Report
295 / 413
Classification
Name of the corporation or organization
Samsung C&T
Total assets
Total liabilities
Total equity
Revenue
Operating profit
Net profit
The financial status is as of December 31, 2022, based on the consolidated K-IFRS financial statements.
58,981,492 27,017,371 31,964,121 43,161,653 2,528,524 2,544,957
Samsung Electronics Business Report
296 / 413
(3) Business conditions of the major shareholder (Samsung C&T) of the major shareholder (Samsung Life Insurance)
Samsung C&T is consisted of Engineering & Construction, Trading & Investment, Fashion, and Resort Groups as well as biomedicine OEM and biosimilar businesses. The Engineering & Construction Group operates businesses in building, civil infrastructure, plant, and housing areas domestically and globally; Trading & Investment trades internationally in various fields, including resource development, steel, chemical, industrial materials, and textiles. The Fashion Group manufactures and sells clothing, and processes and sells wool products (fabric). The Resort Group manages landscaping business, Everland (dry park), Caribbean Bay (water park), golf course, food supply services, and food distribution business (Samsung Welstory).
Please refer to the business report (interim and half-year) of Samsung C&T published in DART (https://dart.fss.or.kr) for more details of the major shareholder of the major shareholder.
3. Change of the major shareholder
[As of December 31, 2022]
Date of change
Name of major Number of shares Share
Shareholder
owned
ratio (%)
Reason for change
Note
Apr 29, 2021
Samsung Life Insurance
1,263,050,053
21.16
Shares of the previous major shareholder were inherited by beneficiaries
-
Number of shares owned and share ratio are the sum of those of the major shareholder and its related parties, and the number of shares is based on shares with voting rights (including those with limited voting rights in accordance with relevant laws).
Samsung Electronics Business Report
297 / 413
4. Ownership of shares
A. Share ownership status
[As of December 31, 2022]
Classification
Name
Samsung Life Insurance
Shareholders with over 5% voting shares1)
National Pension Service
BlackRock Fund Advisors
Samsung C&T
Number of shares owned
Share ratio (%)
518,404,090
8.68
449,387,577
7.53
300,391,061
5.03
298,818,100
5.01
Note Including special accounts
Based on January 28, 2019
-
Employee Stock Ownership Association
-
-
-
Number of shares owned and share ratio of BlackRock Fund Advisors is based on the "Report on Mass Holding of Securities" disclosed on DART (https://dart.fss.or.kr) on February 7, 2019. The number of shares owned and share ratio of Samsung Life Insurance includes special accounts. 1) Including shares with limited voting rights in accordance with relevant laws. For more information, please refer toV. Corporate Governance-3.
General meeting of shareholders-D. Voting shares
B. Minority shareholders
[As of December 31, 2022]
Classification
Number of shareholders
Shareholder
Total shareholders
Portion (%)
Number of shares
Shares owned1)
Total number of shares
Minority shareholder
5,813,977
5,814,080
99.99 3,992,080,268 5,969,782,550
Shareholders with shares less than 1/100 of total issued stocks 1) Number of voting shares, including those with limited voting rights in accordance with relevant laws.
Note Portion (%)
66.87 -
Samsung Electronics Business Report
298 / 413
5. Stock price and stock transactions
A. Domestic stock market
Type
Stock price (KRW)
Common stock
Volume (shares)
High Low Average High (day) Low (day) Month
Jul 2022 61,900
Aug 2022 61,700
Sep 2022 58,400
Oct 2022 59,500
Nov 2022 Dec 2022
62,900
62,600
56,200
58,600
52,600
55,200
59,200
55,300
59,548
60,273
55,595
56,711
61,091
59,081
24,982,097 18,251,170 22,503,249 22,458,970 21,087,633 16,631,445
6,597,211
5,767,902
7,503,086 11,456,060
6,677,933 6,756,411
301,826,933 251,681,339 288,615,372 326,537,635 290,682,036 234,543,029
High
57,000
56,500
Stock price (KRW)
Low
51,500
54,200
Preferred stock
Average High (day)
54,614 1,186,949
55,364 1,461,200
Volume (shares)
Low (day)
403,293
400,765
Month
17,923,841 16,784,714
Stock price is based on the closing exchange rate of the applicable trading day.
53,700 46,900 50,788 1,933,302 457,773 22,399,891
53,600 49,300 51,642 2,294,508 673,346 24,238,262
58,000
56,200
53,000
50,500
55,677
53,600
1,735,156 1,050,714
414,256
371,155
19,724,856 13,711,304
Samsung Electronics Business Report
299 / 413
B. Overseas stock market
Name of stock exchange: London Stock Exchange (common stock)
Type
Jul 2022 Aug 2022 Sep 2022 Oct 2022 Nov 2022 Dec 2022
USD
1,193.00
1,176.50
1,066.00
1,044.00
1,193.00
1,188.50
High
KRW
1,566,170 1,527,803 1,433,877 1,499,706 1,575,118 1,568,939
Price per GDR
Low
USD KRW
Common stock
USD Average
KRW
1,067.50 1,385,508 1,134.48 1,482,596
1,075.00 1,448,778 1,137.86 1,499,080
907.00 1,302,906
992.71 1,379,218
930.20 1,334,651
983.74 1,401,900
1,033.00 1,464,794 1,123.45 1,533,059
1,101.50 1,397,143 1,133.38 1,469,026
Volume (shares)
High (day) Low (day)
Month
22,992 6,503 253,038
23,926 4,184 241,613
18,880 5,145 251,472
40,134 8,647 434,156
28,096 4,992 278,312
19,921 2,281 238,590
Stock price in KRW is based on the closing exchange rate of the applicable trading day. High and low price in KRW are based on the KRW/USD closing exchange rate of the applicable trading day; average price in KRW is based on monthly average KRW/USD exchange rate. Conversion ratio between GDRs and original shares is 1:25.
Name of stock exchange: Luxembourg Stock Exchange (preferred stock)
Type
Jul 2022 Aug 2022 Sep 2022 Oct 2022 Nov 2022 Dec 2022
USD
1,092.00
1,082.00
986.00
955.00
1,090.00
1,068.00
High
KRW
1,433,578 1,405,085 1,326,269 1,371,858 1,439,127 1,409,867
Price per GDR
Low
USD KRW
Preferred stock
USD Average
KRW
979.00 1,270,644 1,041.19 1,360,685
992.00 1,336,918 1,048.18 1,380,929
821.00 1,177,971
910.38 1,264,829
824.00 1,182,275
895.90 1,276,725
928.00 1,315,904 1,024.18 1,397,592
998.00 1,265,863 1,026.80 1,330,888
High (day)
3,429
12,020
4,845
4,688
4,141
4,125
Volume (shares)
Low (day)
328
345
502
270
164
192
Month
19,559
31,347
39,750
24,646
26,804
26,944
Stock price in KRW is based on the closing exchange rate of the applicable trading day.
High and low price in KRW are based on the KRW/USD closing exchange rate of the applicable trading day; average price in KRW is based on
monthly average KRW/USD exchange rate.
Conversion ratio between GDRs and original shares is 1:25.
Samsung Electronics Business Report
300 / 413
VIII. Executives and Employees
1. Executives and employees
A. Registered Executives
[As of December 31, 2022]
Name
Date Gender of
birth
Position
Registered Executive
Full/ parttime
Responsibility
Major career
Jong-hee Han
M
Kye-hyun Kyung
M
Tae-moon Roh
M
Hark-kyu Park
M
Jung-bae Lee
M
Han-jo Kim
M
Sun-uk Kim
F
- Bachelor's degree in
Mar Vice 1962 Chairman
Executive Director
Full
- CEO (head of the DX Division)
Electronic Engineering from Inha University
- Head of DX Division
- Doctor's degree in
Control and
Mar 1963
President
Executive Director
Full
- CEO (head of the DS Division)
Measurement Engineering from Seoul National
University
- Head of DS Division
Sep 1968
President
Executive Director
Full
- Head of MX Business
- Doctor's degree in Electrical Engineering from Pohang University of Science and Technology
- Head of MX Business
Nov 1964
President
Executive Director
Full
- CFO
- Master's degree in Business and Technology Management from Korea Advanced Institute of Science and Technology
- Head of Corporate Management Office
- Doctor's degree in
Electronic Engineering
Feb 1967
President
Executive Director
Full
- Head of Memory from Seoul National
Business
University
- Head of Memory
Business
- Board Chair
- Head of Audit
Jul 1956
Director
Independent Director
Part
Committee - Related Party Transactions Committee Member - Compensation Committee Member - Head of
- Bachelor's degree in French language and Literature from Yonsei University - Chairman of Hana Foundation
Sustainability
Committee
- Audit Committee
Member
- Doctor's degree in
- Head of the
Administrative Law
Dec 1952
Director
Independent Director
Part
Related Party Transactions Committee
from University of Konstanz - Professor Emeritus at
- Independent
Ewha Womans
Director
University
Recommendation
(Shares)
Number of shares
Relationship
owned1)
with the
Common
major Preferred shareholder2)
Length of service (months)
Term expiration
15,000
Executive - Member of an
affiliate
34
Mar 17, 2023
18,050
Executive - Member of an
affiliate
10
Mar 15, 2025
13,000
Executive - Member of an
affiliate
10
Mar 15, 2025
22,500
Executive - Member of an
affiliate
10
Mar 15, 2025
15,000
Executive - Member of an
affiliate
10
Mar 15, 2025
3,655
Executive - Member of an
affiliate
46
Mar 19, 2025
-
Executive - Member of an
affiliate
58
Mar 22, 2024
Samsung Electronics Business Report
301 / 413
Committee Member - Sustainability Committee Member
- Audit Committee
Member
- Related Party
Transactions
Committee Member - Doctor's degree in
- Compensation Reliability
Jeong Kim
M
Aug 1960
Director
Independent Director
Part
Committee Member - Head of
Engineering from the University of Maryland
Independent
- President of Kiswe
Director
Mobile
Recommendation
Committee
-Sustainability
Committee Member
-
Executive - Member of an
affiliate
58
Mar 22, 2024
Jun-sung Kim
M
- Bachelor's degree in
Economics & Business
Administration from
Oct 1967
Director
Independent Director
Part
- Compensation Committee Member - Sustainability Committee Member
Carnegie Mellon University - Managing Director of Government of Singapore
Investment Corporation
(GIC) Total Return
Group
-
Executive - Member of an
affiliate
10
Mar 15, 2025
Eunnyeong M
Heo
- Doctor's degree in
Mineral Economics
Aug 1964
Director
Independent Director
Part
- Sustainability Committee Member
from The Pennsylvania State University - Professor of College of
Engineering at Seoul
National University
Executive
-
- Member of an
affiliate
2
Nov 2, 2025
- Doctor's degree in
Administrative Law
from Vanderbilt
Myung-
hee
F
Yoo
Jun 1967
Director
Independent Director
Part
- Sustainability Committee Member
University - Visiting Professor of
Graduate School of
Executive
-
- Member of an
affiliate
2
Nov 2, 2025
International Studies
at Seoul National
University
1) As of the reporting date; for changes after the reporting date, please refer to `Ownership status of securities, etc. of executives and major shareholder'
published in Korean in DART (https://dart.fss.or.kr).
2) In accordance with Article 3 Paragraph 1 of the Enforcement Decree of the Act on Corporate Governance of Financial Companies.
Feb 15, 2022: Executive Directors Ki-nam Kim, Hyun-suk Kim, and Dong-jin Koh resigned from their positions as CEO; and Executive Director Jong-
hee Han was appointed as CEO at the Board meeting.
Mar 16, 2022: Kye-hyun Kyung, Tae-moon Roh, Hark-kyu Park, and Jung-bae Lee were newly appointed as Executive Directors; Wha-jin Han and
Jun-sung Kim were newly appointed as Independent Directors; and Han-jo Kim was reappointed as Independent Director at the AGM.
Mar 16, 2022: Ki-nam Kim, Hyun-suk Kim, and Dong-jin Koh resigned from their positions as Executive Director.
Mar 16, 2022: Executive Director Kye-hyun Kyung was appointed as CEO at the Board meeting.
Mar 19, 2022: Terms of Jae-wan Bahk and Curie Ahn as Independent Director expired.
Apr 20, 2022: Wha-jin Han resigned from her position as Independent Director.
May 17, 2022: Independent Director Byung-gook Park passed away.
Nov 3, 2022: Eun-nyeong Heo and Myung-hee Yoo were newly appointed as Independent Directors at the EGM.
Samsung Electronics Business Report
302 / 413
B. Registered executive director candidates (or to be retired)
[As of Dec 31, 2022]
Name Gender Date of birth
Executive or Independent
Director
Career highlights
Due Date of appointment or
retirement
Relationship with the major shareholder1)
- Bachelor's degree in Electronic Engineering from Inha
University
- Head of Product R&D Team, Visual Display Business,
SEC
Appointment
Jong-Hee Han
M
Mar 1962
- Head of R&D Office, Visual Display Business, SEC Executive Director - Head of R&D Team, Visual Display Business, SEC
- Head of Visual Display Business, SEC
Mar 15, 2023
Executive member of an affiliate
- Head of DX Division, SEC
- President & CEO, SEC
- Vice Chairman & CEO, SEC
- Head of Digital Appliances Business, SEC
This is an agenda item for the 54th AGM, which is held after the disclosure of the report, and if it is rejected or adjusted at the AGM, the details will
be published in future reports.
1) In accordance with Article 3 Paragraph 1 of the Enforcement Decree of the Act on Corporate Governance of Financial Companies.
C. Registered Executives with concurrent positions
[As of December 31, 2022]
Concurrent office holder
Company
Name Jeong Kim Myung-hee Yoo
Position Independent Director Independent Director
Name of company
Kiswe Mobile Hyundai Construction
Equipment
Position Chairman Independent Director
Period 2013present 2022present
D. Employees
[As of December 31, 2022]
(KRW mil)
Division
Gender
Number of employees1)
Regular
Contractbased
Others
Total
Average length
of service (years)
Total compensation
(KRW mil)
Average compensation per employee2)
(KRW mil)
Non-affiliated3) Male Female Total
M
38,023
333
-
38,356
16.0
DX
F
12,171
94
-
12,042
12.8
-
-
M
51,079
126
-
51,205
10.5
-
-
DS
F
19,958
24
-
19,801
10.7
-
- 26,721 11,771 38,492
Gender
M
89,102
459
-
89,561
12.9
12,408,336
143
total
F
32,129
118
-
31,843
11.5
3,189,421
110
Total
121,231
577
-
121,404
12.5
15,597,757
135
Total compensation for 2022 and average compensation per employee were calculated before income tax and other deductions based on the earned income payment record submitted to the district tax office in accordance with Article 20 of the Income Tax Act. 1) Separate basis; represents employees of domestic headquarters in Korea, including employees on leave and excluding 11 registered executives (5
Executive Directors and 6 Independent Directors). 2) Calculated based on average number of employees: 115,231 employees (male: 86,373, female: 28,858).
D. Remuneration of non-registered Executives
Samsung Electronics Business Report
303 / 413
[As of December 31, 2022]
(KRW mil)
Classification
Number of employees1)
Total compensation
Average compensation per employee
Note
Non-registered Executives
918
646,246
703
-
Total compensation for 2022 and average compensation per employee is calculated based on the earned income payment record (before earned income tax credit) submitted to the district tax office in accordance with Article 20 of the Income Tax Act. Total compensation for 2022 includes incentives, and timing of the incentives being paid differ every year. Average compensation per employee is calculated based on the average of the 919 employees. 1) In office as of the reporting date, and non-registered executives whose earned income was not domestic were excluded.
2. Remuneration for Directors
A. Summary on total remuneration
<Remuneration of directors and auditors>
(1) Remuneration approved at the annual general meetings of shareholders
Registered Directors
Number of persons1) 5
Amount approved at shareholders' meeting2)
-
(KRW mil)
Note -
Independent Directors
3
-
-
Audit Committee members or Auditor
3
-
-
Total
11
41,000
-
1) As of the day of AGM, as approved on the occasion 2) Remuneration limit for directors (including those retired) approved at the AGM on March 16, 2022, as per Article 388 of the Commercial Act and
our Articles of Incorporation.
(2) Remuneration Paid
[Remuneration paid for directors and auditors]
Number of persons1)
Total amount of remuneration2)
Average remuneration per Director
Note
(KRW mil)
11
30,024
2,729
-
There are no recognized expenses (compensation expenses) in this term from granting stock options. Based on the Income Tax Act that incumbent or retired registered directors, independent directors, and members of audit committee in the fiscal year received in accordance with Article 159 of the Financial Investment Services and Capital Markets Act and Article 168 of the Enforcement Decree of the same Act. 1) Based on the number of persons as of the reporting date. 2) Earned income as per Income Tax Act (Article 20: Wage and Salary Income, Article 21: Other Income, Article 22: Retirement income). Includes remuneration that newly appointed or resigned directors received as non-registered executives.
Samsung Electronics Business Report
304 / 413
[Remuneration paid, by Director type]
Registered Directors (excluding Independent Directors and Audit Committee
members) Independent Directors (excluding Audit Committee members) Audit Committee members
Number of persons1)
5
3 3
Total amount of remuneration2)
(KRW mil)
Average remuneration per Director
28,930
5,786
449
150
644
215
Auditor
-
-
-
There are no recognized expenses (compensation expenses) in this term from granting stock options. Based on the Income Tax Act that incumbent or retired registered directors, independent directors, and members of audit committee in the fiscal year received in accordance with Article 159 of the Financial Investment Services and Capital Markets Act and Article 168 of the Enforcement Decree of the same Act. Remuneration for Independent Director Jeong Kim appointed as Audit Committee member at the AGM on March 16, 2022 was included in the total amount of remuneration for Audit Committee members. 1) Based on the number of persons as of the reporting date. 2) Earned income as per Income Tax Act (Article 20: Wage and Salary Income, Article 21: Other Income, Article 22: Retirement income). Includes remuneration that newly appointed or resigned directors received as non-registered executives.
(3) Criteria and methodology
Remuneration of directors is paid in accordance with internal regulations for Executive treatment and Independent Director treatment within the remuneration limit approved at the AGM.
Type
Criteria and methodology
Registered Directors (excluding Independent Directors and Audit Committee members)
Independent Directors (excluding Audit Committee members)
Audit Committee members
· Salary: In accordance with internal regulations for executive treatment (Board resolution), remuneration is determined based on position, responsibilities, and performance results.
· Traditional-holiday bonuses: 100% of monthly wage for each · Target achievement incentive: Paid on biannual basis within the range of 0200% of monthly wage, and CEO
decides the amount according to the level of target achieved. (Adjusted according to division performance.) · Performance incentive: Paid once a year within 050% of salary based on the compensation resources
calculated according to financial factors such as profit after tax (± assessed considerations) and cost of capital for the fiscal year by business unit. (Adjusted according to individual performance.) · Long-term incentive: Calculated within the director remuneration limit, based on the average salary of 3 years, using ROE, stock performance, and EBIT margin as criteria. Paid over the course of 3 years. · Fringe benefits: Medical services, checkups, group accident insurance are provided in line with the internal regulations for executive treatment (Board resolution)
· Salary: In accordance with internal regulations for independent director treatment, remuneration is determined based on responsibilities, etc.
· Fringe benefits: Medical services, checkups, group accident insurance are provided in line with the internal regulations for independent director treatment
· Salary: In accordance with internal regulations for independent director treatment, remuneration is determined based on responsibilities, etc.
· Fringe benefits: Medical services, checkups, group accident insurance are provided in line with the internal regulations for independent director treatment
Samsung Electronics Business Report
305 / 413
<Remuneration for individual Directors and Auditors who are paid KRW 500 million or more >
(1) Summary on Remuneration by Executive
(KRW mil)
Name
Position
Total amount of remuneration
Remuneration not included in total amount
Jong-hee Han
CEO
4,635
-
Kye-hyun Kyung
CEO
2,953
-
Tae-moon Roh
Executive Director
4,100
-
Hark-kyu Park
Executive Director
1,946
-
Jung-bae Lee
Executive Director
2,802
-
Ki-nam Kim
Chairman (former CEO)
5,672
-
Hyun-suk Kim
Senior Advisor (former CEO)
3,133
-
Dong-jin Koh
Senior Advisor (former CEO)
3,689
-
Based on the Income Tax Act that incumbent or retired registered directors, independent directors, and members of audit committee in the fiscal year received in accordance with Article 159 of the Financial Investment Services and Capital Markets Act and Article 168 of the Enforcement Decree of the same Act. Earned income as per Income Tax Act (Article 20: Wage and Salary Income, Article 21: Other Income, Article 22: Retirement income). Includes remuneration that directors who were newly appointed or resigned during the fiscal year received as non-registered executives.
(2) Criteria and methodology
(KRW mil)
Name
Type of remuneration
Total amount
Criteria and methodology
Salary
Jong-hee Earned Han (CEO) Income
Bonus
Profit from exercising
In accordance with internal regulations for executive treatment (Board resolution),
1,229
remuneration is determined based on position (vice chairman), responsibilities, and performance results. He was paid KRW 77 million per month from January to February,
KRW 170 million in March, and KRW 101 million per month from April to December.
- Traditional-holiday bonuses: 100% of monthly wage for each
- Target achievement incentive: Paid on biannual basis within the range of 0200% of
monthly wage, and CEO decides the amount according to the level of target
achieved. (Adjusted according to division performance.)
- Performance incentive: Paid once a year within 050% of salary based on the
compensation resources calculated according to financial factors such as profit after
tax and cost of capital for the fiscal year by business unit. (Adjusted according to
individual performance)
- Long-term incentive: Calculated within the director remuneration limit, based on the
3,228 average salary of 3 years, using ROE, stock performance, and EBIT margin as
criteria. Paid over the course of 3 years.
Quantitative indicators suggest that the Company achieved a ROE of 15.7%, EBIT
margin of 20.7%, and stock performance of 54.8% over 20172019; and that the DX
Division achieved revenue of KRW 182.5 trillion and operating profit of KRW 12.7
trillion in 2022. Qualitative indicators include his contributions to leading the
improvement of product competitiveness of the DX Division by enhancing the
company-wide common platform and boosting future competitiveness by reinforcing
B2B and services businesses. The bonus amount was determined based on the
indicators listed above.
-
n/a
Samsung Electronics Business Report
306 / 413
stock option Other Income
Retirement Income
Other Income
- Fringe benefits: Medical services, checkups, vehicle, and group accident insurance 179 are provided in line with the internal regulations for executive treatment (Board
resolution)
-
n/a
-
n/a
Name
Kye-hyun Kyung (CEO)
Type of remuneration
Salary
Earned Income
Bonus
Profit from exercising
stock option
Other Income
Retirement Income
(KRW mil)
Total amount
Criteria and methodology
In accordance with internal regulations for executive treatment (Board resolution),
1,019
remuneration is determined based on position (president), responsibilities, and performance results. He was paid KRW 53 million per month from January to February,
KRW 170 million in March, and KRW 83 million per month from April to December.
- Traditional-holiday bonuses: 100% of monthly wage for each
- Target achievement incentive: Paid on biannual basis within the range of 0200% of
monthly wage, and CEO decides the amount according to the level of target
achieved. (Adjusted according to division performance.)
- Performance incentive: Paid once a year within 050% of salary based on the
compensation resources calculated according to financial factors such as profit after
tax and cost of capital for the fiscal year by business unit. (Adjusted according to
individual performance)
- Long-term incentive: Calculated within the director remuneration limit, based on the
1,795
average salary of 3 years, using ROE, stock performance, and EBIT margin as criteria. Paid over the course of 3 years.
Quantitative indicators suggest that the Company achieved a ROE of 15.7%, EBIT
margin of 20.7%, and stock performance of 54.8% over 20172019; and that the
DS Division achieved revenue of KRW 98.5 trillion and operating profit of KRW 23.8
trillion in 2022. Qualitative indicators include his contributions to boosting future
competitiveness of the semiconductor businesses, including through the
development of the highly advanced 12nm-class DRAM, the world's first mass
production of 3nm products in foundry, and the development of industry's first
200MP image sensor. The bonus amount was determined based on the indicators
listed above.
-
n/a
- Fringe benefits: Medical services, checkups, vehicle, and group accident insurance 139 are provided in line with the internal regulations for executive treatment (Board
resolution)
-
n/a
Other Income
-
n/a
Name
Tae-moon Roh
Type of remuneration
Earned Income
Salary
(KRW mil)
Total amount
Criteria and methodology
1,144
In accordance with internal regulations for executive treatment (Board resolution), remuneration is determined based on his position (president), responsibilities, and
Samsung Electronics Business Report
307 / 413
(Director)
Bonus
Profit from exercising
stock option Other Income Retirement Income Other Income
performance results. He was paid KRW 82 million per month from January to February, 131 million in March and 94 million per month from April to December.
- Traditional-holiday bonuses: 100% of monthly wage for each - Target achievement incentive: Paid on biannual basis within the range of 0200% of
monthly wage, and CEO decides the amount according to the level of target achieved. (Adjusted according to division performance.) - Performance incentive: Paid once a year within 050% of salary based on the compensation resources calculated according to financial factors such as profit after tax and cost of capital for the fiscal year by business unit. (Adjusted according to individual performance) - Long-term incentive: Calculated within the director remuneration limit, based on the 2,822 average salary of 3 years, using ROE, stock performance, and EBIT margin as criteria. Paid over the course of 3 years. Quantitative indicators suggest that the Company achieved ROE of 15.7%, EBIT margin of 20.7%, and stock performance of 54.8% in 20172019; and that the MX Business achieved revenue of KRW 115.4 trillion and operating profit of KRW 10.5 trillion in 2022. Qualitative indicators include his contributions to leading the efforts to fortify the Company's leadership position through technology innovations in mobile and by strengthening our sales strategy by region, as well as to improving the Company's brand image through risk management. The bonus amount was determined based on the indicators listed above.
-
n/a
- Fringe benefits: Medical services, checkups, vehicle, and group accident insurance 135 are provided in line with the internal regulations for executive treatment (Board
resolution)
-
n/a
-
n/a
Name
Hark-kyu Park
(Director)
Type of remuneration
Salary
Earned Income
Bonus
(KRW mil)
Total amount
Criteria and methodology
In accordance with internal regulations for executive treatment (Board resolution),
889
remuneration is determined based on his position (president), responsibilities, and performance results. He was paid KRW 67 million per month from January to February,
KRW 94 million in March and KRW 74 million per month from April to December.
- Traditional-holiday bonuses: 100% of monthly wage for each
- Target achievement incentive: Paid on biannual basis within the range of 0200% of
monthly wage, and CEO decides the amount according to the level of target
achieved. (Adjusted according to division performance.)
- Performance incentive: Paid once a year within 050% of salary based on the
compensation resources calculated according to financial factors such as profit after
881 tax and cost of capital for the fiscal year by business unit. (Adjusted according to
individual performance)
- Long-term incentive: Calculated within the director remuneration limit, based on the
average salary of 3 years, using ROE, stock performance, and EBIT margin as
criteria. Paid over the course of 3 years.
Quantitative indicators suggest that the Company achieved ROE of 15.7%, EBIT
margin of 20.7%, and stock performance of 54.8% in 20172019; and that the DX
Samsung Electronics Business Report
308 / 413
Name
Type of remuneration
Profit from exercising
stock option Other Income Retirement Income
Total amount
177
-
Criteria and methodology
Division achieved revenue of KRW 182.5 trillion and operating profit of KRW 12.7 trillion in 2022. Qualitative indicators include his contributions to driving solid performance through preemptive management of business risks and advanced operation of resources amid global economic crises; and securing future growth engines by effectively distributing mid- to long-term investment resources. The bonus amount was determined based on the indicators listed above.
n/a
- Fringe benefits: Medical services, checkups, vehicle, and group accident insurance are provided in line with the internal regulations for executive treatment (Board resolution) n/a
Other Income
-
n/a
Name
Jung-bae Lee
(Director)
Type of remuneration
Salary
Earned Income
Bonus
Profit from exercising
stock option
Other Income
Total amount 841
1,770
191
(KRW mil)
Criteria and methodology
In accordance with internal regulations for executive treatment (Board resolution), remuneration is determined based on his position (president), responsibilities, and performance results. He was paid KRW 55 million per month from January to February, KRW 110 million in March and KRW 69 million per month from April to December. - Traditional-holiday bonuses: 100% of monthly wage for each - Target achievement incentive: Paid on biannual basis within the range of 0200% of
monthly wage, and CEO decides the amount according to the level of target achieved. (Adjusted according to division performance.) - Performance incentive: Paid once a year within 050% of salary based on the compensation resources calculated according to financial factors such as profit after tax and cost of capital for the fiscal year by business unit. (Adjusted according to individual performance) - Long-term incentive: Calculated within the director remuneration limit, based on the average salary of 3 years, using ROE, stock performance, and EBIT margin as criteria. Paid over the course of 3 years. Quantitative indicators suggest that the Company achieved ROE of 15.7%, EBIT margin of 20.7%, and stock performance of 54.8% in 20172019; and that the Memory Business achieved revenue of KRW 68.5 trillion and operating profit of KRW 20.8 trillion in 2022. Qualitative indicators include contributing to fortifying the Company's market leadership for DRAM/Flash and enhancing future competitiveness of the Company's memory products, including the development of the highly advanced 12nm-class DRAM and 8th generation V-NAND. The bonus amount was determined based on the indicators listed above.
n/a
- Fringe benefits: Medical services, checkups, vehicle, and group accident insurance are provided in line with the internal regulations for executive treatment (Board resolution)
Samsung Electronics Business Report
309 / 413
Name
Type of remuneration
Retirement Income
Other Income
Total amount -
Criteria and methodology n/a n/a
Name Ki-nam Kim
Type of remuneration
Salary
Earned Income
Bonus
Profit from exercising
stock option
Other Income
Retirement Income
Total amount 1,723
3,735
214
-
(KRW mil)
Criteria and methodology
In accordance with internal regulations for executive treatment (Board resolution), remuneration is determined based on position (chairman), responsibilities, and performance results. He was paid KRW 144 million per month from January to December. - Traditional-holiday bonuses: 100% of monthly wage for each - Target achievement incentive: Paid on biannual basis within the range of 0200% of
monthly wage, and CEO decides the amount according to the level of target achieved. (Adjusted according to division performance.) - Performance incentive: Paid once a year within 050% of salary based on the compensation resources calculated according to financial factors such as profit after tax and cost of capital for the fiscal year by business unit. (Adjusted according to individual performance) - Long-term incentive: Calculated within the director remuneration limit, based on the average salary of 3 years, using ROE, stock performance, and EBIT margin as criteria. Paid over the course of 3 years. Quantitative indicators suggest that the Company achieved a ROE of 15.7%, EBIT margin of 20.7%, and stock performance of 54.8% over 20172019; and that the DS Division achieved revenue of KRW 98.5 trillion and operating profit of KRW 23.8 trillion in 2022. Qualitative indicators include contributing to the Company's management, including through securing new technologies and presenting mid- to long-term R&D strategies. The bonus amount was determined based on the indicators listed above.
n/a
- Fringe benefits: Medical services, checkups, vehicle, and group accident insurance are provided in line with the internal regulations for executive treatment (Board resolution)
n/a
Other Income
-
n/a
Name
Hyun-suk Kim
Type of remuneration
Earned Income
Salary Bonus
(KRW mil)
Total amount
Criteria and methodology
878 2,122
In accordance with internal regulations for executive treatment (Board resolution), remuneration is determined based on his position (president-level), responsibilities, and performance results. He was paid KRW 73 million per month from January to December.
- Traditional-holiday bonuses: 100% of monthly wage for each - Target achievement incentive: Paid on biannual basis within the range of 0200% of
monthly wage, and CEO decides the amount according to the level of target achieved. (Adjusted according to division performance.)
Samsung Electronics Business Report
310 / 413
Profit from exercising
stock option
Other Income
Retirement Income
Other Income
- Performance incentive: Paid once a year within 050% of salary based on the compensation resources calculated according to financial factors such as profit after tax and cost of capital for the fiscal year by business unit. (Adjusted according to individual performance)
- Long-term incentive: Calculated within the director remuneration limit, based on the average salary of 3 years, using ROE, stock performance, and EBIT margin as criteria. Paid over the course of 3 years.
Quantitative indicators suggest that the Company achieved ROE of 15.7%, EBIT margin of 20.7%, and stock performance of 54.8% in 20172019; and that the DX Division achieved revenue of KRW 182.5 trillion and operating profit of KRW 12.7 trillion in 2022. Qualitative indicators include his contributions to the Company's management, including through discovering new business areas and providing insight on future changes, as a person in charge of future technologies. The bonus amount was determined based on the indicators listed above.
-
n/a
- Fringe benefits: Medical services, checkups, vehicle, and group accident insurance 132 are provided in line with the internal regulations for executive treatment (Board
resolution)
-
n/a
-
n/a
Name
Dong-jin Koh
Type of remuneration
Salary
Earned Income
Bonus
Profit from exercising
Total amount 936
2,659
-
(KRW mil)
Criteria and methodology
In accordance with internal regulations for executive treatment (Board resolution), remuneration is determined based on his position (president-level), responsibilities, and performance results. He was paid KRW 78 million per month from January to December. - Traditional-holiday bonuses: 100% of monthly wage for each - Target achievement incentive: Paid on biannual basis within the range of 0200% of
monthly wage, and CEO decides the amount according to the level of target achieved. (Adjusted according to division performance.) - Performance incentive: Paid once a year within 050% of salary based on the compensation resources calculated according to financial factors such as profit after tax and cost of capital for the fiscal year by business unit. (Adjusted according to individual performance) - Long-term incentive: Calculated within the director remuneration limit, based on the average salary of 3 years, using ROE, stock performance, and EBIT margin as criteria. Paid over the course of 3 years. Quantitative indicators suggest that the Company achieved ROE of 15.7%, EBIT margin of 20.7%, and stock performance of 54.8% in 20172019; and that the DX Division achieved revenue of KRW 182.5 trillion and operating profit of KRW 12.7 trillion in 2022. Qualitative indicators include his contributions to the Company's management, including through discovering the next-generation executives and enhancing capabilities of the Company's human resources, as a person in charge of talent innovations. The bonus amount was determined based on the indicators listed above.
n/a
Samsung Electronics Business Report
311 / 413
Name
Type of remuneration
stock option
Other Income
Retirement Income
Other Income
Total amount
Criteria and methodology
- Fringe benefits: Medical services, checkups, vehicle, and group accident insurance 94 are provided in line with the internal regulations for executive treatment (Board
resolution)
-
n/a
-
n/a
< Remuneration for five highest-paid Executive Directors who are paid KRW 500 million or more >
(1) Summary on remuneration by Executive
Name Eun-seung Jung
position Senior Advisor
Total amount of remuneration
8,073
(KRW mil)
Remuneration not included in total amount
-
Ki-nam Kim
Chairman
5,672
-
Sebastian Seung
President
5,580
-
Won-jin Lee
President
5,453
-
Jun-young Jeon
Senior Advisor
5,251
-
Earned income as per Income Tax Act (Article 20: Wage and Salary Income, Article 21: Other Income, Article 22: Retirement income).
(2) Criteria and methodology
Name
Type of remuneration
Salary
Eun-seung Earned
Jung
Income
Bonus
Total amount
Criteria and methodology
942 1,954
In accordance with internal regulations for executive treatment (Board resolution), remuneration is determined based on position (president-level), responsibilities, and performance results. He was paid KRW 79 million per month from January to December.
- Traditional-holiday bonuses: 100% of monthly wage for each - Target achievement incentive: Paid on biannual basis within the range of 0200% of
monthly wage, and CEO decides the amount according to the level of target achieved. (Adjusted according to division performance.) - Performance incentive: Paid once a year within 050% of salary based on the compensation resources calculated according to financial factors such as profit after tax and cost of capital for the fiscal year by business unit. (Adjusted according to individual performance) - Long-term incentive: Calculated within the director remuneration limit, based on the average salary of 3 years, using ROE, stock performance, and EBIT margin as criteria. Paid over the course of 3 years. Quantitative indicators suggest that the Company achieved a ROE of 15.7%, EBIT margin of 20.7%, and stock performance of 54.8% over 20172019; and that the DS Division achieved revenue of KRW 98.5 trillion and operating profit of KRW 23.8 trillion in 2022. Qualitative indicators include his contributions to boosting future
Samsung Electronics Business Report
312 / 413
Profit from exercising
stock option Other Income
Retirement Income
Other Income
competitiveness of semiconductor businesses, including establishment of technology development strategies for the DS Division and strengthening the next-generation research. The bonus amount was determined based on the indicators listed above.
-
n/a
192 4,985
-
- Fringe benefits: Medical services, checkups, vehicle, and group accident insurance are provided in line with the internal regulations for executive treatment (Board resolution)
- In accordance with internal regulations for severance pay of executives (Board resolution), calculated by multiplying KRW 79 million (monthly wage at the time of retirement), 19 (years of service), and a variable within a 1.03.5 range.
n/a
Name Ki-nam Kim
Type of remuneration
Salary
Earned Income
Bonus
Profit from exercising
stock option
Other Income
Retirement Income
Total amount 1,723
3,735
214
-
(KRW mil)
Criteria and methodology
In accordance with internal regulations for executive treatment (Board resolution), remuneration is determined based on position (chairman), responsibilities, and performance results. He was paid KRW 144 million per month from January to December. - Traditional-holiday bonuses: 100% of monthly wage for each - Target achievement incentive: Paid on biannual basis within the range of 0200% of
monthly wage, and CEO decides the amount according to the level of target achieved. (Adjusted according to division performance.) - Performance incentive: Paid once a year within 050% of salary based on the compensation resources calculated according to financial factors such as profit after tax and cost of capital for the fiscal year by business unit. (Adjusted according to individual performance) - Long-term incentive: Calculated within the director remuneration limit, based on the average salary of 3 years, using ROE, stock performance, and EBIT margin as criteria. Paid over the course of 3 years. Quantitative indicators suggest that the Company achieved a ROE of 15.7%, EBIT margin of 20.7%, and stock performance of 54.8% over 20172019; and that the DS Division achieved revenue of KRW 98.5 trillion and operating profit of KRW 23.8 trillion in 2022. Qualitative indicators include his contributions to the Company's management, including through securing new technologies and presenting mid- to long-term R&D strategies. The bonus amount was determined based on the indicators listed above.
n/a
- Fringe benefits: Medical services, checkups, vehicle, and group accident insurance are provided in line with the internal regulations for executive treatment (Board resolution)
n/a
Other Income
-
n/a
Samsung Electronics Business Report
313 / 413
Name
Sebastian Seung
Type of remuneration
Salary
Earned Income
Bonus
Profit from exercising
stock option
Other Income
Retirement Income
Total amount 2,116
3,351
112
-
(KRW mil)
Criteria and methodology
In accordance with internal regulations for executive treatment (Board resolution), remuneration is determined based on position (president), responsibilities, and performance results. He was paid KRW 176 million per month from January to December. - Traditional-holiday bonuses: average of KRW 91 million - Target achievement incentive: Paid on biannual basis of the incentive based on the
payment rate decided by CEO according to the level of target achieved by the relevant division and the amount set for the individual. - Performance incentive: Paid twice a year of the incentive based on the payment rate decided by CEO according to the level of achievement for the annual individual target (securing core technologies, such as AI, security, and IoT, and leading IPs; enhancing competitiveness in software) and the amount set for the individual. Quantitative indicators suggest that the DX Division achieved revenue of KRW 182.5 trillion and operating profit of KRW 12.7 trillion in 2022. Qualitative indicators include his contributions to the Company's management, including through securing new technologies and improving external reputation. The bonus amount was determined based on the indicators listed above.
n/a
- Fringe benefits: Medical services, checkups, vehicle, and group accident insurance are provided in line with the internal regulations for executive treatment (Board resolution)
n/a
Other Income
-
n/a
Name
Type of remuneration
Salary
Won-jin Lee
Earned Income
Bonus
(KRW mil)
Total amount
Criteria and methodology
1,999 3,357
In accordance with internal regulations for executive treatment (Board resolution), remuneration is determined based on position (president), responsibilities, and performance results. He was paid KRW 167 million per month from January to December.
- Traditional-holiday bonuses: average of KRW 153 million - Target achievement incentive: Paid on biannual basis of the incentive based on the
payment rate decided by CEO according to the level of target achieved by the relevant division and the amount set for the individual. - Performance incentive: Paid once a year of the incentive based on the payment rate decided by CEO according to the level of achievement for the annual individual target (strengthening gaming, media, and advertising services; and bolstering service partnership) and the amount set for the individual. Quantitative indicators suggest that the VD Business achieved revenue of KRW 33.3 trillion and operating profit of KRW 1.7 trillion in 2022 and include revenue related to the MX Business and the growth of the service businesses he is in charge of. Qualitative indicators include his contributions to the Company's management by securing new growth engines based on services, breaking away from a business structure centered on products. The bonus amount was determined based on the
Samsung Electronics Business Report
314 / 413
Profit from exercising
stock option
Other Income
Retirement Income
Other Income
indicators listed above.
-
n/a
- Fringe benefits: Medical services, checkups, vehicle, and group accident insurance 97 are provided in line with the internal regulations for executive treatment (Board
resolution)
-
n/a
-
n/a
Name
Jun-young Jeon
Type of remuneration
Salary
Earned Income
Bonus
Profit from exercising
stock option Other Income
Retirement Income
Other Income
Total amount 643
1,173
83 3,352
-
(KRW mil)
Criteria and methodology
In accordance with internal regulations for executive treatment (Board resolution), remuneration is determined based on his position (EVP-level), responsibilities, and performance results. He was paid KRW 54 million per month from January to December. - Traditional-holiday bonuses: 100% of monthly wage for each - Target achievement incentive: Paid on biannual basis within the range of 0200% of
monthly wage, and CEO decides the amount according to the level of target achieved. (Adjusted according to division performance.) - Performance incentive: Paid once a year within 050% of salary based on the compensation resources calculated according to financial factors such as profit after tax and cost of capital for the fiscal year by business unit. (Adjusted according to individual performance) - Long-term incentive: Calculated within the director remuneration limit, based on the average salary of 3 years, using ROE, stock performance, and EBIT margin as criteria. Paid over the course of 3 years. Quantitative indicators suggest that the Company achieved ROE of 15.7%, EBIT margin of 20.7%, and stock performance of 54.8% in 20172019; and that the DS Division achieved revenue of KRW 98.5 trillion and operating profit of KRW 23.8 trillion in 2022. Qualitative indicators include his contributions to establishing a stable supply chain of raw materials and diversifying vendors for fab equipment. The bonus amount was determined based on the indicators listed above.
n/a
- Fringe benefits: Medical services, checkups, vehicle, and group accident insurance are provided in line with the internal regulations for executive treatment (Board resolution)
- In accordance with internal regulations for severance pay of executives (Board resolution), calculated by multiplying KRW 54 million (monthly wage at the time of retirement), 19 (years of service), and a variable within a 1.0-3.5 range.
n/a
B. Stock options granted and exercised
Samsung Electronics Business Report
315 / 413
(1) Status of stock options granted to registered Directors
As of December 31, 2022, there were no accumulated-basis unexercised stock options granted to registered Directors, auditors, or people who instruct another person to conduct business.
Type
Number1)
Registered Director
5
Independent Director
3
Audit Committee member or auditor
Person who instructs another person to conduct business
Total
1) Based on the number of persons as of the reporting date.
3 1,148 1,159
Total fair value of stock options -
(KRW mil)
Note -
Samsung Electronics Business Report
316 / 413
IX. Affiliates and Subsidiaries
1. Affiliates & subsidiaries
A. Affiliates
As of December 31, 2022, Samsung Group is consisted of 63 domestic affiliates. Among the Samsung Group's 63 domestic affiliates, sixteen (16) affiliates including Samsung Electronics are listed, and forty-seven (47) affiliates are unlisted.
[As of December 31, 2022]
No. of Affiliates
Name of affiliated group
Listed
Unlisted
Total
Samsung
16
47
63
Samsung Electronics Business Report
317 / 413
B. Ownership status of affiliates and subsidiaries
1) Domestic
Investee Investor
Samsung C&T
Corporation
Samsung BioLogics
Samsung Life
Insurance
Samsung SDI
Samsung C&T Corporation
43.1 19.3
Samsung SDS
Samsung Engineering
Samsung Electromechanics
Samsung Electronics
Samsung Heavy
Industries
Samsung Securities
17.1 7.0
5.0 0.1
Samsung Card
Samsung Fire & Marine
Insurance
MULTI CAMPUS
S1 Corporation
Cheil Worldwide
Hotel Shilla
Samsung BioLogics
Samsung Life Insurance
0.1 0.1
0.1 0.0 0.1 0.2 8.7 2.9 29.4 71.9 15.0 0.0 5.4 0.4 7.5
Samsung SDI
11.7
0.4
11.0
0.1
Samsung SDS
Samsung Electromechanics
Samsung Electronics Samsung Heavy Industries
Samsung Securities.
Samsung Card
Samsung Fire & Marine Insurance
S1 Corporation
2.1
31.2
19.6 22.6
23.7
15.2
0.2
1.5
47.2
25.2 5.1
1.3
3.1
1.9 3.0 1.3
1.0
Cheil Worldwide
0.1
Hotel Shilla
SDC
Samsung Asset Management
Samsung Electronics
Service
Miracom
Samsung Global
Research Harman International Industries, Inc.
Total
15.2 0.1 74.3 19.3 19.7 39.7 19.0 23.8 15.2 20.8 29.4 71.9 15.0 62.4 20.7 28.6 17.1
Percent of ownership as of December 31, 2022 based on common shares
Samsung Electronics Business Report
318 / 413
Investee Samsung
Investor
Display
Samsung C&T Corporation
Samsung Medison
Samsung BioEpis
Samsung Venture Investment
Samsung Life
Service
16.7
Samsung Futures
Samsung Active Asset
Management
Samsung SRA Asset Management
Samsung FN REITs
Samsung Welstory
Samsung Samsung Samsung
Samsung
Asset Electronics Electronics Service CS Electronics
Management Logitech Service
Sales
Samsung Card
Customer Service
100.0
Samsung BioLogics
100.0
Samsung Life Insurance
99.8
100.0 19.7
100.0
Samsung SDI 15.2
16.3
Samsung SDS
Samsung Electromechanics
Samsung Electronics
Samsung Heavy Industries
Samsung Securities.
84.8
68.5
Samsung Card
Samsung Fire & Marine Insurance
S1 Corporation
17.0
16.3
17.0
16.7
100.0
100.0 99.3
100.0
3.6 100.0
18.9
Cheil Worldwide
Hotel Shilla
SDC
Samsung Asset Management
Samsung Eelectronics
Service
Miracom
Samsung Global
Research
Harman International Industries, Inc.
Total
100.0
68.5 100.0 100.0
100.0 99.8 100.0 100.0 100.0
100.0 42.1 100.0 100.0 100.0 99.3 100.0 100.0 100.0
Percent of ownership as of December 31, 2022 based on common shares
Samsung Electronics Business Report
319 / 413
Investee Investor
Samsung C&T Corporation
Samsung Corning Advanced Glass
Samsung Hedge Asset
Management
Samsung Fire & Marine
Insurance Service
Samsung Claim
Adjustment Service
SEMES
Suwon Samsung Bluewings
FC
STECO
Shilla HM
SD Flex
Samsung BioLogics
Samsung Life Insurance
SBTM
S-1CRM
SU Materials
S-Core
Samsung SDI
50.0
HDC
STM
Shilla Duty
Open Hands
Free LTD
100.0
Samsung SDS
Samsung Electromechanics
Samsung Electronics
Samsung Heavy Industries
Samsung Securities.
Samsung Card
Samsung Fire & Marine Insurance
S1 Corporation
91.5
70.0
100.0 100.0
81.8
100.0
100.0
0.6
Cheil Worldwide
100.0
5.2
Hotel Shilla
100.0
100.0
50.0
SDC
Samsung Asset Management
Samsung Eelectronics
Service
Miracom
Samsung Global
Research Harman International Industries, Inc.
Total
50.0
50.0
100.0
50.0 100.0 100.0 100.0 91.5 100.0 70.0 100.0 50.0 100.0 100.0 50.0
0.5 88.1 100.0 50.0 100.0
Percent of ownership as of December 31, 2022 based on common shares
Samsung Electronics Business Report
320 / 413
Investee Cheil
Investor
Fashion Retail
Miracom
Samsung C&T Corporation
Samsung BioLogics
Samsung Life Insurance
100.0
Samsung Global
Research
Samsung Lions
1.0
14.8
Samsung Life
Financial Service
Samsung Fire & Marine
Financial Service
Samwoo Architects & Engineers
Seoul Lakeside
CC
SECUI
100.0 100.0 8.7
100.0
CVnet
SHP Corporation
Harman International
Korea
Human TSS
Stellarforest
40.1
Samsung SDI
29.6
Samsung SDS
Samsung Electromechanics
Samsung Electronics
Samsung Heavy Industries
Samsung Securities.
Samsung Card
Samsung Fire & Marine Insurance
S1 Corporation
83.6 23.8 29.8 1.0
0.6
100.0
56.5 9.4
100.0
100.0
Cheil Worldwide
5.4
67.5
Hotel Shilla
100.0
SDC
Samsung Asset Management
Samsung Eelectronics
Service
Miracom
Samsung Global Research
Harman International Industries, Inc.
100.0
Total
100.0 89.6 100.0 67.5 100.0 100.0 100.0 100.0 65.2 49.5 100.0 100.0 100.0 100.0
Percent of ownership as of December 31, 2022 based on common shares
Samsung Electronics Business Report
321 / 413
2) Overseas
Investor
Samwoo Architects & Engineers Samwoo Architects & Engineers Samwoo Architects & Engineers Samwoo Architects & Engineers Samwoo Architects & Engineers Samsung C&T America Inc. Samsung C&T America Inc. Samsung C&T America Inc. Samsung C&T America Inc. Samsung C&T America Inc. Samsung C&T America Inc. Samsung Renewable Energy Inc. Samsung Renewable Energy Inc. Samsung Renewable Energy Inc. Samsung Renewable Energy Inc. Samsung Renewable Energy Inc. Samsung Renewable Energy Inc. Samsung Renewable Energy Inc. Samsung Renewable Energy Inc. Samsung Renewable Energy Inc. Samsung Renewable Energy Inc. Samsung Renewable Energy Inc. Samsung Renewable Energy Inc. Samsung Renewable Energy Inc. Samsung Renewable Energy Inc. Samsung Renewable Energy Inc. Samsung Renewable Energy Inc. Samsung Renewable Energy Inc. Samsung Renewable Energy Inc. Samsung Renewable Energy Inc. Samsung Renewable Energy Inc. Samsung Renewable Energy Inc. Samsung Renewable Energy Inc. Samsung Renewable Energy Inc. Samsung Renewable Energy Inc. Samsung Renewable Energy Inc. Samsung Renewable Energy Inc. Samsung Renewable Energy Inc. Samsung Renewable Energy Inc. Samsung Renewable Energy Inc. Samsung Renewable Energy Inc. Samsung Renewable Energy Inc. Samsung Renewable Energy Inc. Samsung Renewable Energy Inc. Samsung Renewable Energy Inc. Samsung Renewable Energy Inc. Samsung Renewable Energy Inc. Samsung Green repower, LLC
Investee
SAMOO AUSTIN INC SAMOO HU Designer and Engineering Services Limited SAMOO DESIGNERS & ENGINEERS INDIA PRIVATE LIMITED SAMOO (KL) SDN. BHD. SAMOO Design Consulting Co.,Ltd Meadowland Distribution Samsung Green repower, LLC Samsung Solar Construction Inc. QSSC, S.A. de C.V. Samsung Solar Energy LLC Equipment Trading Solutions Group, LLC SP Armow Wind Ontario LP SRE GRW EPC GP Inc. SRE GRW EPC LP SRE SKW EPC GP Inc. SRE SKW EPC LP SRE WIND PA GP INC. SRE WIND PA LP SRE GRS Holdings GP Inc. SRE GRS Holdings LP SRE K2 EPC GP Inc. SRE K2 EPC LP SRE KS HOLDINGS GP INC. SRE KS HOLDINGS LP SP Belle River Wind LP SRE Armow EPC GP Inc. SRE Armow EPC LP North Kent Wind 1 LP SRE Wind GP Holding Inc. South Kent Wind LP Inc. Grand Renewable Wind LP Inc. SRE North Kent 2 LP Holdings LP SRE Solar Development GP Inc. SRE Solar Development LP SRE Windsor Holdings GP Inc. SRE Southgate Holdings GP Inc. SRE Solar Construction Management GP Inc. SRE Solar Construction Management LP SRE BRW EPC GP INC. SRE BRW EPC LP SRE North Kent 1 GP Holdings Inc SRE North Kent 2 GP Holdings Inc SRE Belle River GP Holdings Inc SRE NK1 EPC GP Inc SRE NK1 EPC LP SRE Summerside Construction GP Inc. SRE Summerside Construction LP Monument Power, LLC
Ownership
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 20.0 100.0 70.0 50.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 42.5 100.0 100.0 35.0 100.0 50.0 45.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Samsung Electronics Business Report
322 / 413
Investor
SP Armow Wind Ontario GP Inc Samsung C&T Oil & Gas Parallel Corp. Samsung C&T Oil & Gas Parallel Corp. SRE GRW EPC GP Inc. SRE SKW EPC GP Inc. PLL Holdings LLC SRE WIND PA GP INC. SRE GRS Holdings GP Inc. SRE GRS Holdings GP Inc. SRE K2 EPC GP Inc. SRE KS HOLDINGS GP INC. SRE KS HOLDINGS GP INC. SP Belle River Wind GP Inc SRE Armow EPC GP Inc. SRE Wind GP Holding Inc. SRE Wind GP Holding Inc. SRE Wind GP Holding Inc. South Kent Wind GP Inc. Grand Renewable Wind GP Inc. North Kent Wind 1 GP Inc SRE Solar Development GP Inc. SRE Solar Construction Management GP Inc. SRE BRW EPC GP INC. SRE North Kent 1 GP Holdings Inc SRE North Kent 2 GP Holdings Inc SRE Belle River GP Holdings Inc SRE NK1 EPC GP Inc SRE Summerside Construction GP Inc. Samsung Solar Energy LLC Samsung Solar Energy LLC Samsung Solar Energy LLC Samsung Solar Energy 1 LLC Samsung Solar Energy 2 LLC Samsung C&T Deutschland GmbH Samsung C&T Deutschland GmbH Samsung C&T Deutschland GmbH Samsung C&T Deutschland GmbH Samsung C&T Malaysia SDN. BHD Samsung C&T Singapore Pte., Ltd. Samsung C&T Singapore Pte., Ltd. Samsung C&T Singapore Pte., Ltd. Samsung C&T Singapore Pte., Ltd. Samsung C&T Singapore Pte., Ltd. S&G Biofuel PTE.LTD S&G Biofuel PTE.LTD Vista Contracting and Investment Global Pte. Ltd. CHEIL HOLDING INC. Samsung C&T Hongkong Ltd. Samsung C&T Hongkong Ltd. Samsung C&T Hongkong Ltd.
Investee
SP Armow Wind Ontario LP PLL Holdings LLC PLL E&P LLC SRE GRW EPC LP SRE SKW EPC LP Parallel Petroleum LLC SRE WIND PA LP Grand Renewable Solar GP Inc. SRE GRS Holdings LP SRE K2 EPC LP KINGSTON SOLAR GP INC. SRE KS HOLDINGS LP SP Belle River Wind LP SRE Armow EPC LP SP Armow Wind Ontario GP Inc South Kent Wind GP Inc. Grand Renewable Wind GP Inc. South Kent Wind LP Inc. Grand Renewable Wind LP Inc. North Kent Wind 1 LP SRE Solar Development LP SRE Solar Construction Management LP SRE BRW EPC LP North Kent Wind 1 GP Inc SRE North Kent 2 LP Holdings LP SP Belle River Wind GP Inc SRE NK1 EPC LP SRE Summerside Construction LP Samsung Solar Energy 1 LLC Samsung Solar Energy 2 LLC Samsung Solar Energy 3, LLC CS SOLAR LLC 5S ENERGY HOLDINGS, LLC SungEel Recycling Park Thüringen GmbH POSS-SLPC, S.R.O Solluce Romania 1 B.V. S.C. Otelinox S.A WARIS GIGIH ENGINEERING AND TECHNOLOGY SDN. BHD. Samsung Chemtech Vina LLC Samsung C&T Thailand Co., Ltd PT. INSAM BATUBARA ENERGY Malaysia Samsung Steel Center Sdn.Bhd S&G Biofuel PTE.LTD PT. Gandaerah Hendana PT. Inecda VISTA CONTRACTING AND DEVELOPMENT BANGLADESH LTD. SAMSUNG CONST. CO. PHILS. Samsung C&T Thailand Co., Ltd SAMSUNG TRADING (SHANGHAI) CO., LTD Samsung Precision Stainless Steel(pinghu) Co.,Ltd.
Ownership
0.0 83.6 90.0 0.0 0.0 61.0 0.0 50.0 0.0 0.0 50.0 0.0 0.0 0.0 50.0 50.0 50.0 0.0 0.0 0.0 0.0 0.0 0.0 50.0 0.0 50.0 0.0 0.0 100.0 100.0 100.0 50.0 50.0 100.0 20.0 20.0 99.9 70.0 48.3 0.2 65.2 30.0 12.6 95.0 95.0 100.0 75.0 6.8 100.0 45.0
Samsung Electronics Business Report
323 / 413
Investor
Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics
Investee
Samsung Japan Corporation Samsung R&D Institute Japan Co. Ltd. Samsung Electronics America, Inc. Samsung Electronics Canada, Inc. Samsung Electronics Mexico S.A. De C.V. Samsung Electronics Ltd. Samsung Electronics (UK) Ltd. Samsung Electronics Holding GmbH Samsung Electronics Iberia, S.A. Samsung Electronics France S.A.S Samsung Electronics Hungarian Private Co. Ltd. Samsung Electronics Italia S.P.A. Samsung Electronics Europe Logistics B.V. Samsung Electronics Benelux B.V. Samsung Electronics Overseas B.V. Samsung Electronics Polska, SP.Zo.o Samsung Electronics Portuguesa, Unipessoal, Lda. Samsung Electronics Nordic Aktiebolag Samsung Electronics Austria GmbH Samsung Electronics Slovakia s.r.o Samsung Electronics Europe Holding Cooperatief U.A. Samsung Electronics Display (M) Sdn. Bhd. Samsung Electronics (M) Sdn. Bhd. Samsung Vina Electronics Co., Ltd. Samsung Asia Pte. Ltd. Samsung India Electronics Private Ltd. Samsung R&D Institute India-Bangalore Private Limited Samsung Electronics Australia Pty. Ltd. PT Samsung Electronics Indonesia Thai Samsung Electronics Co., Ltd. Samsung Malaysia Electronics (SME) Sdn. Bhd. Samsung Electronics Hong Kong Co., Ltd. Suzhou Samsung Electronics Co., Ltd. Samsung (CHINA) Investment Co., Ltd. Samsung Electronics Suzhou Semiconductor Co., Ltd. Tianjin Samsung Electronics Co., Ltd. Samsung Electronics Taiwan Co., Ltd. Tianjin Samsung Telecom Technology Co., Ltd. Shanghai Samsung Semiconductor Co., Ltd. Samsung Electronics Suzhou Computer Co., Ltd. Samsung Semiconductor (China) R&D Co., Ltd. Samsung (China) Semiconductor Co., Ltd. Samsung SemiConductor Xian Co., Ltd. Samsung Gulf Electronics Co., Ltd. Samsung Electronics Egypt S.A.E Samsung Electronics South Africa(Pty) Ltd. Samsung Electronics Latinoamerica(Zona Libre), S. A. Samsung Eletronica da Amazonia Ltda. Samsung Electronics Argentina S.A. Samsung Electronics Chile Limitada
Ownership
100.0 100.0 100.0 100.0 63.6 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 55.7 100.0 75.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 91.8 100.0 100.0 69.1 100.0 100.0 48.2 100.0 90.0 100.0 73.7 100.0 100.0 100.0 100.0
0.1 100.0 100.0 87.0 98.0
4.1
Samsung Electronics Business Report
324 / 413
Investor
Samsung Electronics Samsung Electronics Samsung Electronics Samsung Biologics Samsung BioEpis Samsung BioEpis Samsung BioEpis Samsung BioEpis Samsung BioEpis Samsung BioEpis Samsung BioEpis Samsung BioEpis Samsung BioEpis Samsung BioEpis Samsung BioEpis Samsung Display Samsung Display Samsung Display Samsung Display Samsung Display Samsung Display Samsung Display SEMES SEMES Samsung Electronics America, Inc. Samsung Electronics America, Inc. Samsung Electronics America, Inc. Samsung Electronics America, Inc. Samsung Electronics America, Inc. Samsung Electronics America, Inc. Samsung Electronics America, Inc. Samsung Electronics America, Inc. Samsung Electronics America, Inc. Samsung Electronics America, Inc. Samsung Electronics America, Inc. Samsung Electronics America, Inc. Dacor Holdings, Inc. Samsung Semiconductor, Inc. Samsung Electronics Canada, Inc. Samsung Research America, Inc SAMSUNG NEXT LLC Samsung International, Inc. Samsung Electronics Mexico S.A. De C.V. Harman International Industries, Inc. Harman International Industries, Inc. Harman International Industries, Inc. Harman International Industries, Inc. Harman International Industries, Inc. Harman International Industries, Inc. Harman International Industries, Inc.
Investee
Samsung Electronics Rus Company LLC Samsung Electronics Rus Kaluga LLC Tianjin Samsung LED Co., Ltd. Samsung Biologics America, Inc. Samsung Bioepis United States Inc. SAMSUNG BIOEPIS UK LIMITED Samsung Bioepis NL B.V. Samsung Bioepis CH GmbH Samsung Bioepis PL Sp z o.o. SAMSUNG BIOEPIS AU PTY LTD SAMSUNG BIOEPIS NZ LIMITED Samsung Biopeis TW Limited Samsung Bioepis HK Limited SAMSUNG BIOEPIS IL LTD SAMSUNG BIOEPIS BR PHARMACEUTICAL LTDA Intellectual Keystone Technology LLC Samsung Display Slovakia, s.r.o. Samsung Display Vietnam Co., Ltd. Samsung Display Noida Private Limited Samsung Display Dongguan Co., Ltd. Samsung Display Tianjin Co., Ltd. Novaled GmbH SEMES America, Inc. SEMES (XIAN) Co., Ltd. NeuroLogica Corp. Dacor Holdings, Inc. Samsung HVAC America, LLC SmartThings, Inc. Samsung Oak Holdings, Inc. Joyent, Inc. TeleWorld Solutions, Inc. Samsung Semiconductor, Inc. Samsung Research America, Inc Samsung Electronics Home Appliances America, LLC Samsung International, Inc. Harman International Industries, Inc. Dacor, Inc. Samsung Austin Semiconductor LLC. AdGear Technologies Inc. SAMSUNG NEXT LLC SAMSUNG NEXT FUND LLC Samsung Mexicana S.A. de C.V Samsung Electronics Digital Appliance Mexico, SA de CV Harman International Japan Co., Ltd. Harman International Industries Canada Ltd. Harman Becker Automotive Systems, Inc. Harman Professional, Inc. Harman Connected Services, Inc. Harman Financial Group LLC Harman Belgium SA
Ownership
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 41.9 100.0 100.0 100.0 100.0 95.0
9.9 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Samsung Electronics Business Report
325 / 413
Investor
Harman International Industries, Inc. Harman International Industries, Inc. Harman International Industries, Inc. Harman International Industries, Inc. Harman International Industries, Inc. Harman International Industries, Inc. Harman International Industries, Inc. Harman International Industries, Inc. Harman International Industries, Inc. Harman Becker Automotive Systems, Inc. Harman Professional, Inc. Harman Professional, Inc. Harman Professional, Inc. Harman Connected Services, Inc. Harman Connected Services, Inc. Harman Connected Services, Inc. Harman Connected Services, Inc. Harman Connected Services, Inc. Harman Financial Group LLC Harman Financial Group LLC Harman Financial Group LLC Samsung Electronics (UK) Ltd. Samsung Electronics Holding GmbH Samsung Electronics Holding GmbH Samsung Electronics Hungarian Private Co. Ltd. Samsung Electronics Hungarian Private Co. Ltd. Samsung Electronics Benelux B.V. Samsung Electronics Benelux B.V. Samsung Electronics Benelux B.V. Samsung Electronics Benelux B.V. Samsung Electronics Benelux B.V. Samsung Electronics Benelux B.V. Samsung Electronics Benelux B.V. Samsung Electronics Benelux B.V. Samsung Electronics Benelux B.V. Samsung Electronics Benelux B.V. Samsung Electronics Benelux B.V. Samsung Electronics Benelux B.V. Samsung Electronics Benelux B.V. Samsung Electronics Benelux B.V. Samsung Electronics Benelux B.V. Samsung Electronics Benelux B.V. Samsung Electronics Benelux B.V. Samsung Electronics Benelux B.V. Samsung Electronics Benelux B.V. Samsung Electronics Benelux B.V. Samsung Electronics Benelux B.V. Samsung Electronics Benelux B.V. Samsung Electronics Benelux B.V. Samsung Electronics Benelux B.V.
Investee
Harman France SNC Red Bend Software SAS Harman Inc. & Co. KG Harman KG Holding, LLC Harman Becker Automotive Systems Italy S.R.L. Harman Finance International, SCA Harman Finance International GP S.a.r.l Harman Industries Holdings Mauritius Ltd. Harman International Mexico, S. de R.L. de C.V. Harman International Estonia OU Harman Singapore Pte. Ltd. Harman da Amazonia Industria Eletronica e Participacoes Ltda. Harman do Brasil Industria Eletronica e Participacoes Ltda. Harman Connected Services Engineering Corp. Harman Connected Services AB. Harman Connected Services UK Ltd. Harman Connected Services Corp. India Pvt. Ltd. Global Symphony Technology Group Private Ltd. Harman International (India) Private Limited Harman International Mexico, S. de R.L. de C.V. Harman de Mexico, S. de R.L. de C.V. Samsung Semiconductor Europe Limited Samsung Semiconductor Europe GmbH Samsung Electronics GmbH Samsung Electronics Czech and Slovak s.r.o. Samsung Electronics Slovakia s.r.o Samsung Electronics Mexico S.A. De C.V. SAMSUNG ELECTRONICS BALTICS SIA Samsung Electronics West Africa Ltd. Samsung Electronics East Africa Ltd. Samsung Electronics Saudi Arabia Ltd. Samsung Electronics Egypt S.A.E Samsung Electronics Israel Ltd. Samsung Electronics Tunisia S.A.R.L Samsung Electronics Pakistan(Private) Ltd. Samsung Electronics South Africa Production (pty) Ltd. Samsung Electronics Türkiye Samsung Electronics Industry and Commerce Ltd. Samsung Semiconductor Israel R&D Center, Ltd. Samsung Electronics Levant Co.,Ltd. Samsung Electronics Maghreb Arab Samsung Electronics Venezuela, C.A. Samsung Eletronica da Amazonia Ltda. Samsung Electronics Chile Limitada Samsung Electronics Peru S.A.C. Samsung Electronics Ukraine Company LLC Samsung R&D Institute Ukraine Samsung R&D Institute Rus LLC Samsung Electronics Central Eurasia LLP Samsung Electronics Caucasus Co. Ltd
Ownership
100.0 100.0 66.0 100.0 100.0 100.0 100.0 100.0 99.9 100.0 100.0
0.0 0.0 100.0 100.0 100.0 1.6 100.0 0.0 0.1 0.0 100.0 100.0 100.0 31.4 44.3 36.4 100.0 100.0 100.0 100.0 99.9 100.0 99.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 13.0 95.9 100.0 100.0 100.0 100.0 100.0 100.0
Samsung Electronics Business Report
326 / 413
Investor
Samsung Electronics Benelux B.V. Samsung Electronics Benelux B.V. Samsung Electronics Nordic Aktiebolag AKG Acoustics Gmbh AKG Acoustics Gmbh Harman Professional Denmark ApS Harman Becker Automotive Systems GmbH Harman Becker Automotive Systems GmbH Harman Holding Gmbh & Co. KG Harman Holding Gmbh & Co. KG Harman Holding Gmbh & Co. KG Harman Holding Gmbh & Co. KG Harman Inc. & Co. KG Harman Inc. & Co. KG Harman Inc. & Co. KG Harman Connected Services GmbH Harman KG Holding, LLC Harman Becker Automotive Systems Manufacturing Kft Harman Becker Automotive Systems Manufacturing Kft Harman Becker Automotive Systems Manufacturing Kft Harman Becker Automotive Systems Manufacturing Kft Harman Becker Automotive Systems Manufacturing Kft Harman Hungary Financing Ltd. Harman Finance International GP S.a.r.l Harman Consumer Nederland B.V. Harman Consumer Nederland B.V. Harman Consumer Nederland B.V. Harman Audio Iberia España Sociedad Limitada Harman Connected Services AB. Harman Connected Services AB. Harman Connected Services AB. Harman Connected Services AB. Harman International Industries Limited Harman International Industries Limited Harman International Industries Limited Harman Connected Services UK Ltd. Samsung Electronics Austria GmbH Samsung Electronics Europe Holding Cooperatief U.A. Samsung Electronics Europe Holding Cooperatief U.A. Samsung Electronics Europe Holding Cooperatief U.A. Samsung Electronics Europe Holding Cooperatief U.A. Samsung Electronics Europe Holding Cooperatief U.A. Samsung Electronics Europe Holding Cooperatief U.A. Samsung Electronics Europe Holding Cooperatief U.A. Samsung Electronics Europe Holding Cooperatief U.A. Samsung Electronics Europe Holding Cooperatief U.A. Samsung Electronics Europe Holding Cooperatief U.A. Samsung Electronics Europe Holding Cooperatief U.A. Samsung Electronics Singapore Pte. Ltd. Samsung Electronics Singapore Pte. Ltd.
Investee
Samsung Electronics Uzbekistan Ltd. Corephotonics Ltd. Samsung Nanoradio Design Center Harman Professional Denmark ApS Studer Professional Audio GmbH Martin Professional Japan Ltd. Harman International Romania SRL Apostera UA, LLC Harman Becker Automotive Systems GmbH Harman Deutschland GmbH Harman Becker Automotive Systems Manufacturing Kft Harman RUS CIS LLC Harman Holding Gmbh & Co. KG Harman Management Gmbh Harman Hungary Financing Ltd. Harman Connected Services OOO Harman Inc. & Co. KG Harman Professional Kft Harman Consumer Nederland B.V. Harman International Romania SRL Red Bend Ltd. Harman do Brasil Industria Eletronica e Participacoes Ltda. Harman International Industries Limited Harman Finance International, SCA AKG Acoustics Gmbh Harman Audio Iberia España Sociedad Limitada Harman Holding Limited Harman France SNC Harman Finland Oy Harman Connected Services GmbH Harman Connected Services Poland Sp.zoo Harman Connected Services Solutions (Chengdu) Co., Ltd. Harman Automotive UK Limited Harman International Industries PTY Ltd. Harman de Mexico, S. de R.L. de C.V. Harman Connected Services Morocco Samsung Electronics Switzerland GmbH Samsung Electronics Czech and Slovak s.r.o. Samsung Electronics Romania LLC SAMSUNG Zhilabs, S.L. Porta Nuova Varesine Building 2 S.r.l. Samsung Electronics Poland Manufacturing SP.Zo.o Samsung Electronics Greece S.M.S.A Samsung Electronics Air Conditioner Europe B.V. FOODIENT LTD. Samsung Denmark Research Center ApS Samsung Cambridge Solution Centre Limited Novaled GmbH Samsung Electronics Display (M) Sdn. Bhd. iMarket Asia Co., Ltd.
Ownership
100.0 100.0 100.0 100.0 100.0 40.0
0.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 34.0 100.0 100.0 100.0 100.0 100.0 100.0
0.0 100.0 100.0 100.0
0.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 68.6 100.0 100.0 49.0 100.0 100.0 100.0 100.0 100.0 100.0 40.0 25.0
11.4
Samsung Electronics Business Report
327 / 413
Investor
Investee
Samsung Asia Pte. Ltd.
Samsung Electronics Japan Co., Ltd.
Samsung Asia Pte. Ltd.
Samsung Electronics Singapore Pte. Ltd.
Samsung Asia Pte. Ltd.
Samsung Electronics New Zealand Limited
Samsung Asia Pte. Ltd.
Samsung Electronics Philippines Corporation
Samsung Asia Pte. Ltd.
Samsung R&D Institute BanglaDesh Limited
Samsung Asia Pte. Ltd.
Samsung Electronics Vietnam Co., Ltd.
Samsung Asia Pte. Ltd.
Samsung Electronics Vietnam THAINGUYEN Co., Ltd.
Samsung Asia Pte. Ltd.
Samsung Electronics HCMC CE Complex Co., Ltd.
Samsung India Electronics Private Ltd.
Samsung Nepal Services Pvt, Ltd
Samsung India Electronics Private Ltd.
Red Brick Lane Marketing Solutions Pvt. Ltd.
PT Samsung Electronics Indonesia
PT Samsung Telecommunications Indonesia
Thai Samsung Electronics Co., Ltd.
Laos Samsung Electronics Sole Co., Ltd
Samsung Electronics Hong Kong Co., Ltd.
iMarket Asia Co., Ltd.
Suzhou Samsung Electronics Co., Ltd.
Samsung Suzhou Electronics Export Co., Ltd.
Samsung (CHINA) Investment Co., Ltd.
Suzhou Samsung Electronics Co., Ltd.
Samsung (CHINA) Investment Co., Ltd.
Samsung Mobile R&D Center China-Guangzhou
Samsung (CHINA) Investment Co., Ltd.
Samsung R&D Institute China-Shenzhen
Samsung (CHINA) Investment Co., Ltd.
Tianjin Samsung Electronics Co., Ltd.
Samsung (CHINA) Investment Co., Ltd.
Beijing Samsung Telecom R&D Center
Samsung (CHINA) Investment Co., Ltd.
Samsung Electronics Suzhou Computer Co., Ltd.
Samsung (CHINA) Investment Co., Ltd.
Samsung Electronics China R&D Center
Harman International (China) Holdings Co., Ltd.
Harman (Suzhou) Audio and Infotainment Systems Co., Ltd.
Harman International (China) Holdings Co., Ltd.
Harman Technology (Shenzhen) Co., Ltd.
Harman International (China) Holdings Co., Ltd.
Harman (China) Technologies Co., Ltd.
Harman Holding Limited
Harman Commercial (Shanghai) Co., Ltd.
Harman Holding Limited
Harman International (China) Holdings Co., Ltd.
Harman Holding Limited
Harman Automotive Electronic Systems (Suzhou) Co., Ltd.
Samsung Gulf Electronics Co., Ltd.
Samsung Electronics Egypt S.A.E
Samsung Electronics Maghreb Arab
Samsung Electronics Tunisia S.A.R.L
Harman Industries Holdings Mauritius Ltd.
Harman International (India) Private Limited
Global Symphony Technology Group Private Ltd.
Harman Connected Services Corp. India Pvt. Ltd.
Red Bend Ltd.
Red Bend Software Ltd.
Samsung Electronics Latinoamerica(Zona Libre), S. A. Samsung Electronics Latinoamerica Miami, Inc.
Samsung Electronics Latinoamerica(Zona Libre), S. A. Samsung Electronica Colombia S.A.
Samsung Electronics Latinoamerica(Zona Libre), S. A. Samsung Electronics Panama. S.A.
Samsung Eletronica da Amazonia Ltda.
Samsung Electronics Argentina S.A.
Harman do Brasil Industria Eletronica e Participacoes Ltda.
Harman da Amazonia Industria Eletronica e Participacoes Ltda.
Samsung Electronics Central Eurasia LLP
Samsung Electronics Caucasus Co. Ltd
Samsung SDI
Intellectual Keystone Technology LLC
Samsung SDI
Samsung SDI Japan Co., Ltd.
Samsung SDI
Samsung SDI America, Inc.
Samsung SDI
Samsung SDI Hungary., Zrt.
Samsung SDI
Samsung SDI Europe GmbH
Samsung SDI
Samsung SDI Battery Systems GmbH
Samsung SDI
Samsung SDI Vietnam Co., Ltd.
Samsung SDI
Samsung SDI Energy Malaysia Sdn, Bhd.
Samsung SDI
Samsung SDI India Private Limited
Samsung SDI
Samsung SDI(Hong Kong) Ltd.
Samsung SDI
Samsung SDI China Co., Ltd.
Ownership
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
11.3 100.0 19.2 100.0 100.0 43.1 100.0 26.3 100.0 100.0 100.0 100.0 100.0 100.0 100.0
0.1 1.0 100.0 98.4 100.0 100.0 100.0 100.0 2.0
100.0
0.0 41.0 89.2 91.7 100.0 100.0 100.0 100.0 100.0 100.0 97.6 100.0
Samsung Electronics Business Report
328 / 413
Investor
Samsung SDI
Samsung SDI
Samsung SDI Samsung SDI Samsung SDI Samsung SDI Samsung SDI(Hong Kong) Ltd. Samsung SDI(Hong Kong) Ltd. Samsung Electro-Mechanics Samsung Electro-Mechanics Samsung Electro-Mechanics Samsung Electro-Mechanics Samsung Electro-Mechanics Samsung Electro-Mechanics Samsung Electro-Mechanics Samsung Electro-Mechanics Samsung Electro-Mechanics Samsung Electro-Mechanics Samsung Electro-Mechanics Samsung Electro-Mechanics Samsung Electro-Mechanics Samsung Electro-Mechanics Calamba Premier Realty Corporation Samsung Electro-Mechanics Pte Ltd. Samsung Fire & Marine Insurance Samsung Fire & Marine Insurance Samsung Fire & Marine Insurance Samsung Fire & Marine Insurance Samsung Fire & Marine Insurance Samsung Fire & Marine Insurance Samsung Fire & Marine Insurance Samsung Heavy Industries Co.,Ltd. Samsung Heavy Industries Co.,Ltd. Samsung Heavy Industries Co.,Ltd. Samsung Heavy Industries Co.,Ltd. Samsung Heavy Industries Co.,Ltd. Samsung Heavy Industries Co.,Ltd. Samsung Heavy Industries Co.,Ltd. Samsung Heavy Industries Co.,Ltd. SAMSUNG HEAVY INDUSTRIES NIGERIA LIMITED Samsung Life Insurance Samsung Life Insurance Samsung Life Insurance Samsung Asset Management Samsung Asset Management Samsung Asset Management Samsung Asset Management Samsung Asset Management Samsung Asset Management Samsung Asset Management
Investee
Samsung SDI-ARN (Xi'An) Power Battery Co., Ltd.
Samsung SDITianjinBattery Co.,Ltd.
STARPLUS ENERGY LLC. Novaled GmbH SAMSUNG SDI WUXI CO.,LTD. iMarket Asia Co., Ltd. Samsung SDI India Private Limited Tianjin Samsung SDI Co., Ltd. Samsung Electro-Machanics Japan Co., Ltd. Samsung Electro-Mechanics America, Inc. Samsung Electro-Mechanics GmbH Samsung Electro-Mechanics Philippines, Corp. Calamba Premier Realty Corporation Samsung Electro-Mechanics Pte Ltd. Samsung Electro-Mechanics Vietnam Co., Ltd. Samsung Electro-Mechanics Software India Bangalore Private Limited Dongguan Samsung Electro-Mechanics Co., Ltd. Tianjin Samsung Electro-Mechanics Co., Ltd. Samsung High-Tech Electro-Mechanics(Tianjin) Co., Ltd. Samsung Electro-Mechanics (Shenzhen) Co., Ltd. Kunshan Samsung Electro-Mechanics Co., Ltd. iMarket Asia Co., Ltd. Batino Realty Corporation Samsung Electro-Mechanics Software India Bangalore Private Limited Samsung Fire & Marine Management Corporation
SAMSUNG FIRE & MARINE INSURANCE COMPANY OF EUROPE LTD. PT. Asuransi Samsung Tugu SAMSUNG VINA INSURANCE COMPANY LIMITED Samsung Reinsurance Pte. Ltd. Samsung Property & Casualty Insurance Company(China), Ltd Samsung Fire & Marine Insurance Management Middle East Limited Camellia Consulting Corporation Samsung Heavy Industries India Pvt.Ltd. SAMSUNG HEAVY INDUSTRIES (M) SDN.BHD Samsung Heavy Industries(Ningbo) Co., Ltd Samsung Heavy Industries(Rongcheng) Co., Ltd SAMSUNG HEAVY INDUSTRIES NIGERIA LIMITED Samsung Heavy Industries Mozambique LDA Samsung Heavy Industries Rus LLC SHI - MCI FZE Porta Nuova Varesine Building 2 S.r.l. Samsung Life Insurance (Thailand) Public Co., Ltd Beijing Samsung Real Estate Co.. Ltd Samsung Asset Management (New York), Inc. Samsung Global SME Private Equity Manager Fund Co., Ltd. Samsung Asset Management U.S. Holdings, Inc. Samsung Private Equity Fund 2022 GP, Ltd. Samsung Co-Investment 2021 GP, Ltd. Samsung Asset Management(London) Ltd. Samsung Private Equity Manager I Co., Ltd.
Ownership
65.0
80.0
51.0 50.1 100.0 8.7 0.0 80.0 100.0 100.0 100.0 100.0 39.8 100.0 100.0 99.9 100.0 81.8 95.0 100.0 100.0 8.7 100.0 0.1 100.0 100.0 70.0 75.0 100.0 37.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 70.0 51.0 48.9 90.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Samsung Electronics Business Report
329 / 413
Investor
Samsung Asset Management Samsung Asset Management (Hong Kong) Ltd. Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation
Investee
Samsung Asset Management (Hong Kong) Ltd. Samsung Asset Management (Beijing) Ltd. Samsung C&T Japan Corporation Samsung C&T America Inc. Samsung E&C America, INC. Samsung Renewable Energy Inc. QSSC, S.A. de C.V. Samsung C&T Oil & Gas Parallel Corp. Samsung C&T Lima S.A.C. Samsung C&T Deutschland GmbH Samsung C&T U.K. Ltd. Samsung C&T ECUK Limited Whessoe engineering Limited POSS-SLPC, S.R.O Solluce Romania 1 B.V. SAM investment Manzanilo.B.V Samsung C&T (KL) Sdn.,Bhd. Samsung C&T Malaysia SDN. BHD Erdsam Co., Ltd. Samsung Chemtech Vina LLC Samsung C&T Thailand Co., Ltd PT. INSAM BATUBARA ENERGY Samsung C&T India Private Limited Samsung C&T Corporation India Private Limited Malaysia Samsung Steel Center Sdn.Bhd Samsung C&T Singapore Pte., Ltd. S&G Biofuel PTE.LTD SAMSUNG C&T Mongolia LLC. Samsung C&T Eng.&Const. Mongolia LLC. S&WOO CONSTRUCTION PHILIPPINES,INC. VSSC STEEL CENTER LIMITED LIABILITY COMPANY Vista Contracting and Investment Global Pte. Ltd. SAMSUNG CONST. CO. PHILS. CHEIL HOLDING INC. Samsung C&T Renewable Energy Australia Pty Ltd Samsung C&T Hongkong Ltd. Samsung C&T Taiwan Co., Ltd. Samsung Precision Stainless Steel(pinghu) Co.,Ltd. SAMSUNG C&T (SHANGHAI) CO., LTD. Samsung C&T (Xi'an) Co., Ltd. WARIS GIGIH ENGINEERING AND TECHNOLOGY SDN. BHD. SAMSUNG C&T CORPORATION SAUDI ARABIA SAM Gulf Investment Limited Samsung C&T Chile Copper SpA SCNT Power Kelar Inversiones Limitada Samsung C&T Corporation Rus LLC Samsung SDI America, Inc. Samsung SDI(Hong Kong) Ltd. Beijing Samsung Real Estate Co.. Ltd CHEIL INDUSTRIES ITALY SRL
Ownership
100.0 100.0 100.0 100.0 100.0 100.0 80.0 100.0 100.0 100.0 100.0 100.0 100.0 50.0 80.0 53.3 100.0 100.0 100.0 51.7 93.0 34.8 100.0 100.0 70.0 100.0 50.5 70.0 100.0 100.0 70.0 100.0 25.0 40.0 100.0 100.0 100.0 55.0 100.0 100.0 30.0 100.0 100.0 100.0 100.0 100.0
8.3 2.4 10.0 100.0
Samsung Electronics Business Report
330 / 413
Investor
Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung C&T Corporation Samsung Welstory Samsung Welstory Samsung Welstory MULTICAMPUS Pengtai Greater China Company Limited Pengtai Greater China Company Limited PENGTAI CHINA CO.,LTD. PENGTAI CHINA CO.,LTD. PENGTAI INTERACTIVE ADVERTISING CO.,LTD PENGTAI INTERACTIVE ADVERTISING CO.,LTD iMarket Asia Co., Ltd. Samsung Securities Samsung Securities Samsung Securities Samsung SDS Samsung SDS Samsung SDS Samsung SDS Samsung SDS Samsung SDS Samsung SDS Samsung SDS Samsung SDS Samsung SDS Samsung SDS Samsung SDS Samsung SDS Samsung SDS Samsung SDS Samsung SDS Samsung SDS Samsung SDS Samsung SDS Samsung SDS Samsung SDS Samsung SDS Samsung SDS Samsung SDS Samsung SDS Samsung SDS Samsung SDS Samsung SDS Samsung SDS Samsung SDS Samsung SDS Samsung SDS
Investee
Samsung Fashion Trading Co. ,Ltd SAMSUNG C&T CORPORATION VIETNAM CO., LTD Samsung C&T Corporation UEM Construction JV Sdn Bhd iMarket Asia Co., Ltd. WELSTORY VIETNAM COMPANY LIMITED Shanghai Ever-Hongjun Business Mgt Service Co.,LTD Shanghai Welstory Food Company Limited LANGUAGE TESTING INTERNATIONAL, INC. PENGTAI CHINA CO.,LTD. PengTai Taiwan Co., Ltd. PENGTAI E-COMMERCE CO.,LTD PENGTAI MARKETING SERVICE CO.,LTD. Medialytics Inc. Beijing Pengtai Baozun E-commerce Co., Ltd. iMarket China Co., Ltd. Samsung Securities (America), Inc. Samsung Securities (Europe) Limited. Samsung Securities (Asia) Limited. iMarket Asia Co., Ltd. Samsung SDS America, Inc. SAMSUNG SDS GSCL Canada., Ltd. Neo EXpress Transportation (NEXT) Inc. Samsung SDS Europe, Ltd. Samsung SDS Global SCL Hungary, Kft. Samsung SDS Global SCL Slovakia, S.R.O. Samsung SDS Global SCL Poland Sp. Z.o.o. Samsung GSCL Sweden AB Samsung SDS Global SCL France SAS Samsung SDS Global SCL Italy S.R.L. A Socio Unico Samsung SDS Global Supply Chain Logistics Spain S.L.U Samsung SDS Global SCL Netherlands Cooperatief U.A. Samsung SDS Global SCL Germany GmbH Samsung SDS Global SCL Romania S.R.L Samsung SDS Asia Pacific Pte, Ltd. Samsung Data Systems India Private Limited Samsung SDS Vietnam Co., Ltd. PT. Samsung SDS Global SCL Indonesia Samsung SDS Global SCL Philippines Co., Ltd.Inc. Samsung SDS Global SCL Thailand Co.,Ltd Samsung SDS Global SCL Malaysia SDN.BHD. SAMSUNG SDS Global SCL Austraila Pty.,Ltd. SDS-ACUTECH CO., Ltd. ALS SDS Joint Stock Company SDS-MP Logistics Joint Stock Company Samsung SDS China Co., Ltd. Samsung SDS Global SCL Hong Kong Co., Ltd. SAMSUNG SDS Global SCL Egypt Samsung SDS Global SCL South Africa (PTY) Ltd. Samsung SDS Global SCL Nakliyat ve Lojistik Anonim Sirketi Samsung SDS Global Supply Chain Logistics Middle East DWC-LLC
Ownership
100.0 100.0 60.0 19.3 100.0 85.0 81.6 82.4 100.0 100.0 100.0 100.0 100.0 51.0 80.0 100.0 100.0 100.0 40.6 100.0 100.0 51.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 50.0 51.0 51.0 100.0 100.0 100.0 100.0 100.0 100.0
Samsung Electronics Business Report
331 / 413
Investor
Investee
Samsung SDS
Samsung SDS Latin America Solucoes Em Tecnologia Ltda.
Samsung SDS
INTE-SDS Logistics S.A. de C.V.
Samsung SDS
Samsung SDS Rus Limited Liability Company
Samsung SDS America, Inc.
Samsung SDS Mexico, S.A. DE C.V.
Samsung SDS America, Inc.
Samsung SDS Global SCL Panama S.A.
Samsung SDS America, Inc.
Samsung SDS Global SCL Chile Limitada
Samsung SDS America, Inc.
Samsung SDS Global SCL Peru S.A.C
Samsung SDS America, Inc.
Samsung SDS Global SCL Colombia S.A.S
Samsung SDS America, Inc.
Samsung SDS Latin America Solucoes Em Tecnologia Ltda.
Samsung SDS Europe, Ltd.
Samsung SDS Global SCL Netherlands Cooperatief U.A.
Samsung SDS Global SCL Netherlands Cooperatief U.A. Samsung SDS Global SCL Poland Sp. Z.o.o.
Samsung SDS Global SCL Netherlands Cooperatief U.A. Samsung SDS Global SCL Romania S.R.L
Samsung SDS Global SCL Netherlands Cooperatief U.A. Samsung SDS Rus Limited Liability Company
Samsung SDS China Co., Ltd.
Samsung SDS Global Development Center Xi'an
Samsung Engineering
Samsung Engineering America Inc.
Samsung Engineering
Samsung Project Management Inc.
Samsung Engineering
Samsung Engineering Hungary Ltd.
Samsung Engineering
Samsung Engineering Italy S.R.L.
Samsung Engineering
Samsung Engineering (Malaysia) SDN. BHD.
Samsung Engineering
PT Samsung Engineering Indonesia Co., Ltd.
Samsung Engineering
Samsung Engineering (Thailand) Co., Ltd.
Samsung Engineering
Samsung Engineering India Private Limited
Samsung Engineering
Samsung Engineering Vietnam Co., Ltd.
Samsung Engineering
Samsung Engineering Global Private Limited
Samsung Engineering
Samsung Engineering Construction(Shanghai) Co., Ltd
Samsung Engineering
Samsung Engineering Construction Xi' an Co., Ltd.
Samsung Engineering
Samsung Saudi Arabia Co., Ltd.
Samsung Engineering
Muharraq Wastewater Services Company W.L.L.
Samsung Engineering
Muharraq STP Company B.S.C.
Samsung Engineering
Muharraq Holding Company 1 Ltd.
Samsung Engineering
Samsung Ingenieria Mexico Construccion Y Operacion S.A. De C.V.
Samsung Engineering
Samsung Engineering Trinidad Co., Ltd.
Samsung Engineering
Samsung Ingenieria Manzanillo, S.A. De C.V.
Samsung Engineering
Grupo Samsung Ingenieria Mexico, S.A. De C.V.
Samsung Engineering
Samsung Ingenieria Energia S.A. De C.V.
Samsung Engineering
Samsung Engineering Bolivia S.A
Samsung Engineering
Samsung Ingenieria DUBA S.A. de C.V.
Samsung Engineering
Samsung Engineering Kazakhstan L.L.P.
Samsung Engineering America Inc.
SEA Construction, LLC
Samsung Engineering America Inc.
SEA Louisiana Construction, L.L.C.
Samsung Engineering (Malaysia) SDN. BHD.
Muharraq Wastewater Services Company W.L.L.
Samsung Engineering India Private Limited
Samsung Engineering Global Private Limited
Samsung Engineering India Private Limited
Samsung Saudi Arabia Co., Ltd.
Samsung Saudi Arabia Co., Ltd.
Samsung EPC Company Ltd.
Muharraq Holding Company 1 Ltd.
Muharraq Holding Company 2 Ltd.
Muharraq Holding Company 2 Ltd.
Muharraq STP Company B.S.C.
Samsung Ingenieria DUBA S.A. de C.V.
Asociados Constructores DBNR, S.A. de C.V.
S1 Corporation
S-1 CORPORATION HUNGARY LLC
S1 Corporation
S-1 CORPORATION VIETNAM CO., LTD
S1 Corporation
Samsung Beijing Security Systems
Ownership
99.7 51.0 100.0 99.0 100.0 100.0 100.0 100.0 0.3 0.0 0.0 0.0 0.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 81.0 100.0 100.0 100.0 100.0 100.0 100.0 99.8 6.6 65.0 99.9 100.0 99.9 100.0 100.0 100.0 100.0 100.0 100.0 100.0 0.3 0.0 0.0 75.0 100.0 89.9 49.0 100.0 100.0 100.0
Samsung Electronics Business Report
332 / 413
Investor
Cheil Worldwide Cheil Worldwide Cheil Worldwide Cheil Worldwide Cheil Worldwide Cheil Worldwide Cheil Worldwide Cheil Worldwide Cheil Worldwide Cheil Worldwide Cheil Worldwide Cheil Worldwide Cheil Worldwide Cheil Worldwide Cheil Worldwide Cheil Worldwide Cheil Worldwide Cheil Worldwide Cheil Worldwide Cheil Worldwide Cheil Worldwide Cheil Worldwide Cheil Worldwide Cheil Worldwide Cheil Worldwide Cheil Worldwide Cheil Worldwide Cheil Worldwide Cheil Worldwide Cheil Worldwide Cheil Worldwide Cheil Worldwide Cheil Worldwide Cheil Worldwide Cheil Worldwide Cheil Worldwide Hotel Shilla Hotel Shilla Hotel Shilla Hotel Shilla HDC Shilla Duty Free LTD SBTM SBTM SBTM SBTM SBTM SBTM Samsung Venture Investment Iris Americas, Inc. Iris Americas, Inc.
Investee
PENGTAI INTERACTIVE ADVERTISING CO.,LTD Cheil USA Inc. Cheil Central America Inc. Iris Worldwide Holdings Limited CHEIL EUROPE LIMITED Cheil Germany GmbH Cheil France SAS CHEIL SPAIN S.L Cheil Benelux B.V. Cheil Nordic AB Cheil India Private Limited Cheil (Thailand) Ltd. Cheil Singapore Pte. Ltd. CHEIL VIETNAM COMPANY LIMITED Cheil Integrated Marketing Philippines, Inc. CHEIL MALAYSIA SDN. BHD. Cheil New Zealand Limited Pengtai Greater China Company Limited CHEIL CHINA Cheil Hong Kong Ltd. Caishu (Shanghai) Business Consulting Co., Ltd Cheil MEA FZ-LLC Cheil South Africa (Pty) Ltd CHEIL KENYA LIMITED Cheil Communications Nigeria Ltd. Cheil Worldwide Inc./Jordan LLC. Cheil Ghana Limited Cheil Egypt LLC Cheil Brasil Comunicacoes Ltda. Cheil Mexico, S.A. de C.V. Cheil Chile SpA. Cheil Peru S.A.C. CHEIL ARGENTINA S.A. Cheil Rus LLC Cheil Ukraine LLC Cheil Kazakhstan LLC Samsung Hospitality America Inc. Shilla Travel Retail Pte. Ltd. Samsung Shilla Business Service Beijing Co., Ltd. Shilla Travel Retail Hong Kong Limited HDC SHILLA (SHANGHAI) CO., LTD Samsung Hospitality U.K. Ltd. Samsung Hospitality Europe GmbH SAMSUNG HOSPITALITY ROMANIA SRL Samsung Hospitality Vietnam Co., Ltd. Samsung Hospitality Philippines Inc. Samsung Hospitality India Private Limited Samsung Venture Investment (Shanghai) Co., Ltd. Iris (USA) Inc. Iris Atlanta, Inc.
Ownership
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 99.0 100.0 100.0 100.0
3.1 100.0 100.0 100.0 100.0 100.0 99.0 99.0 100.0 100.0 99.9 100.0 98.0 100.0 100.0 98.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 99.0 100.0 100.0 100.0 100.0 100.0
Samsung Electronics Business Report
333 / 413
Investor
Iris Americas, Inc. Cheil USA Inc. Cheil USA Inc. Cheil USA Inc. Cheil USA Inc. Iris Worldwide Holdings Limited Iris Nation Worldwide Limited Iris Nation Worldwide Limited Iris Nation Worldwide Limited Iris Nation Worldwide Limited Iris Nation Worldwide Limited Iris Nation Worldwide Limited Iris Nation Worldwide Limited Iris Nation Worldwide Limited Iris Nation Worldwide Limited Iris Nation Worldwide Limited Iris Nation Worldwide Limited Iris Nation Worldwide Limited Iris Nation Worldwide Limited Iris Nation Worldwide Limited Iris Nation Worldwide Limited Iris Nation Worldwide Limited Iris Nation Worldwide Limited Iris Nation Worldwide Limited Iris Nation Worldwide Limited Iris Nation Worldwide Limited Iris Nation Worldwide Limited Iris Nation Worldwide Limited Iris London Limited Iris Promotional Marketing Ltd Iris Ventures 1 Limited Founded Partners Limited Iris Germany GmbH Iris Germany GmbH CHEIL EUROPE LIMITED CHEIL EUROPE LIMITED Cheil Germany GmbH Cheil Germany GmbH Centrade Integrated SRL Centrade Integrated SRL Cheil India Private Limited Cheil Singapore Pte. Ltd. Cheil Singapore Pte. Ltd. Cheil Integrated Marketing Philippines, Inc. Shilla Travel Retail Pte. Ltd. Samsung Shilla Business Service Beijing Co., Ltd. Shilla Travel Retail Hong Kong Limited Shilla Travel Retail Hong Kong Limited Cheil MEA FZ-LLC Cheil MEA FZ-LLC
Investee
89 Degrees, Inc. The Barbarian Group LLC McKinney Ventures LLC Cheil India Private Limited Cheil Mexico, S.A. de C.V. Iris Nation Worldwide Limited Iris Americas, Inc. Irisnation Latina No.2, S. de R.L. de C.V. Irisnation Latina, S. de R.L. de C.V. Pricing Solutions Ltd Iris London Limited Iris Promotional Marketing Ltd Iris Ventures 1 Limited Founded Partners Limited Iris Korea Limited Iris Digital Limited Iris Amsterdam B.V. Iris Ventures (Worldwide) Limited Iris Culture Limited Concise Consultants Limited Atom42 Ltd WDMP Limited Pricing Solutions (UK) Limited Iris Services Limited Dooel Skopje Irisnation Singapore Pte. ltd. Iris Worldwide Integrated Marketing Private Limited Iris Sydney PTY Ltd Iris Worldwide (Thailand) Limited Iris Partners LLP Holdings BR185 Limited Iris Germany GmbH Founded, Inc. Pepper NA, Inc. Pepper Technologies Pte. Ltd. Beattie McGuinness Bungay Limited Cheil Italia S.r.l Cheil Austria GmbH Centrade Integrated SRL Centrade Cheil HU Kft. Centrade Cheil Adriatic D.O.O. Experience Commerce Software Private Limited Pengtai Greater China Company Limited PT. CHEIL WORLDWIDE INDONESIA Cheil Philippines Inc. Shilla Retail Plus Pte. Ltd. Tianjin Samsung International Travel Service Co., Ltd Shilla Retail Limited Shilla Travel Retail Duty Free HK Limited One Agency FZ-LLC One RX Project Management Design and Production Limited Company
Ownership
100.0 100.0 100.0
0.0 2.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 49.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 95.7 100.0 30.0 100.0 100.0 100.0 100.0 100.0 0.0
Samsung Electronics Business Report
334 / 413
Investor
Investee
Cheil MEA FZ-LLC
Cheil Egypt LLC
Cheil South Africa (Pty) Ltd
CHEIL KENYA LIMITED
Cheil South Africa (Pty) Ltd
Cheil Communications Nigeria Ltd.
One Agency FZ-LLC
One RX India Private Limited
One Agency FZ-LLC
One RX Project Management Design and Production Limited Company
One Agency FZ-LLC
ONE RX INTERIOR DECORATION L.L.C
One Agency FZ-LLC
ONE AGENCY PRINTING L.L.C
One Agency FZ-LLC
One Agency South Africa (Pty) Ltd
ONE RX INTERIOR DECORATION L.L.C
One RX India Private Limited
Holdings BR185 Limited
Brazil 185 Participacoes Ltda
Brazil 185 Participacoes Ltda
Iris Router Marketing Ltda
Cheil Brasil Comunicacoes Ltda.
CHEIL ARGENTINA S.A.
Percent of ownership as of December 31, 2022 based on common shares
Ownership
0.1 1.0 1.0 100.0 100.0 100.0 100.0 100.0 0.0 100.0 100.0 2.0
Samsung Electronics Business Report
335 / 413
C. Related statute & regulation
Restrictions on cross-holdings within Samsung Group in accordance with the Monopoly Regulation and Fair Trade Act
(1) Date of announcement by authorities of companies deemed Samsung Group companies for the current year: May 1, 2022
(2) Summary of Regulation
- Restriction on cross-holdings - Restriction on debt guarantee between affiliates - Restriction on affiliate voting rights of financial & insurance companies - Decision making of board committee and public disclosure of large-scale inter-affiliate transactions - Public disclosure of important matters of unlisted companies - Other public disclosures related to Group status
D. Concurrent position with other affiliates
[As of December 31, 2022]
Name Yong-kwan Kim
Yeon-sung Kim
Seung-ho Ryu Jeong-jun Choi Han-jong Yoo Khi-jae Cho Hyun-woo Kim Myeong-cheol Kim Doug-yong Sung Jae-kyun Oh Dong-wook Park
Seung-hwan Han
Kyu-tae Yoo
Position Executive VP
Executive VP
Executive VP Executive VP
VP Executive VP Executive VP Executive VP
VP VP VP
President
Executive VP
Concurrent position
Name of company
Position
Samsung Medison
Representative Director
Samsung Electronics Sales
Auditor
Samsung Electronics Logitech
Auditor
Samsung Electronics Service
Auditor
Samsung Medison
Auditor
Samsung Venture Investment
Auditor
Samsung Global Research
Auditor
Samsung Display
Auditor
SEMES
Auditor
SEMES
Non-Executive director
SEMES
Non-Executive director
STECO
Auditor
STECO
Non-Executive director
Samsung C&T Corporation Samsung Welstory
Representative Director
Samsung Medison
Internal Director
Full/part time Full time Part time Part time Part time Part time Part time Part time Part time Part time Part time Part time Part time Part time Part time Full time Full time
Samsung Electronics Business Report
336 / 413
E. Equity investments in other corporations
The total book value of equity investments in other corporations as of December 31, 2022 is KRW 58,762 billion (for the purpose of management participation, etc.)
(As of December 31, 2022)
No. of investees
Investment Purpose
Listed
Unlisted
Total
Beginning Balance
Management Participation
General Investment
Simple Investment
20
80
100 57,768,459
-
-
-
-
5
35
40 121,807
25
115
140 57,890,266
Invested amount Increase(decrease)
Acquisition (Disposal)
Valuation gain(loss)
(KRW Million)
Ending Balance
1,107,793
-197,848
58,678,404
-
-
-
-14,928
-23,426
83,453
1,092,865
-221,274
58,761,857
Samsung Electronics Business Report
337 / 413
X. Transactions with Affiliates and Subsidiaries
1. Credit offerings for affiliates and subsidiaries
As of December 31, 2022, SEC provides a debt guarantee for financing of subsidiaries, including Samsung Electronics
America, Inc. (SEA) and other subsidiaries as listed below.
(USD thousand)
Company Relationship Creditor
Limit of guarantee
Type
Purpose
Guarantee start date
Guarantee expiry date Beginning of
End of
period
period
Transactions
Beginning Increase/ of period decrease
End of period
Interest Rate (%)
SEA
Subsidiary BOA etc.
Payment Operating guarantee fund
Apr 16, 2022
Dec 16, 2023
1,328,000
1,278,000
-
-
-
SEM
Subsidiary
BBVA etc.
Payment Operating guarantee fund
Mar 28, 2022
Nov 8, 2023
906,000
715,000
-
-
-
SAMCOL Subsidiary
Citibank etc.
Payment guarantee
Operating fund
Jun 14, 2022
Dec 16, 2023
310,000
210,000
-
-
-
SEDA
Subsidiary
BRADESCO Payment Operating
etc.
guarantee fund
Oct 1, 2022
Dec 16, 2023
409,000
409,000
-
-
-
SECH
Subsidiary
Citibank etc.
Payment guarantee
Operating fund
Jun 14, 2022
Dec 16, 2023
62,000
62,000
-
-
-
SEPR
Subsidiary
BBVA etc.
Payment Operating guarantee fund
Jun 1, 2022
Dec 16, 2023
150,000
150,000
-
-
-
SSA
Subsidiary SCB etc.
Payment Operating guarantee fund
Jun 14, 2022
Dec 16, 2023
318,000
318,000
-
-
-
SEMAG SETK SETK-P
Subsidiary Subsidiary Subsidiary
SocGen etc. BNP etc. BNP etc.
Payment guarantee
Payment guarantee
Payment guarantee
Operating fund
Operating fund
Operating fund
Nov 9, 2022 Jun 14, 2022 Nov 9, 2022
Dec 16, 2023 Dec 16, 2023 Dec 16, 2023
110,000 807,000 130,000
110,000 777,000 130,000
102,275 33,334
137,120
-7,685
239,395 25,649
37.6% 34.4%
SECE
Subsidiary Citibank
Payment Operating guarantee fund
Dec 17, 2022
Dec 16, 2023
73,722
60,000
-
-
-
SEEG Subsidiary HSBC
Payment Operating guarantee fund
Jun 14, 2022
Jun 13, 2023
85,000
85,000
-
-
-
SEIN
Subsidiary BNP etc.
Payment Operating guarantee fund
Jun 14, 2022
Nov 8, 2023
70,000
70,000
-
-
-
SJC
Subsidiary
Mizuho Bank etc.
Payment Operating guarantee fund
Apr 28, 2022
Dec 16, 2023
877,579
832,572
-
-
-
SEUC
Subsidiary
Credit
Payment Operating
Agricole etc. guarantee fund
Jun 14, 2022
Dec 16, 2023
150,000
150,000
-
-
-
SEDAM SECA
Subsidiary Subsidiary
Citibank etc. BoA
Payment guarantee
Payment guarantee
Operating fund
Operating fund
Jun 14, 2022 Nov 9, 2022
Dec 16, 2023 Nov 8, 2023
141,000 70,000
537,000 70,000
-
155,768 155,768 11.6%
-
-
-
SELA
Subsidiary Citibank
Payment Operating guarantee fund
Dec 17, 2022
Dec 16, 2023
120,000
60,000
-
-
-
SEEH
Subsidiary
HSBC etc.
Payment Operating guarantee fund
Jun 14, 2022
Dec 16, 2023
712,400
888,400
-
-
-
SERK
Subsidiary
SMBC etc.
Payment Operating guarantee fund
Nov 9, 2022
Dec 16, 2023
290,000
45,000
-
-
-
SELV SEIL SAPL
Subsidiary Subsidiary Subsidiary
Citibank Citibank BOA etc.
Payment guarantee
Payment guarantee
Payment guarantee
Operating fund
Operating fund
Operating fund
Dec 17, 2022 Dec 17, 2022 Jun 14, 2022
Dec 16, 2023 Dec 16, 2023 Dec 16, 2023
10,000 15,600 345,000
10,000 15,600 404,000
10,947
-
-1,283
-
9,664 1.3%
-
SAVINA Subsidiary HSBC
Payment Operating guarantee fund
Jun 14, 2022
Jun 13, 2023
51,000
51,000
-
-
-
SCIC
Subsidiary
HSBC etc.
Payment Operating guarantee fund
Jun 14, 2022
Dec 16, 2023
300,000
300,000
-
-
-
SME
Subsidiary SCB
Payment Operating guarantee fund
Nov 9, 2022
Nov 8, 2023
110,000
110,000
-
-
-
SAMEX Subsidiary Citibank
Payment Operating guarantee fund
Dec 17, 2022
Dec 16, 2023
5,000
5,000
-
-
-
SEASA Subsidiary Citibank
Payment Operating guarantee fund
Dec 17, 2022
Dec 16, 2023
2,000
2,000
-
-
-
SSAP
Subsidiary SCB
Payment Operating guarantee fund
Nov 9, 2022
Nov 8, 2023
35,000
35,000
-
-
-
SEPM Subsidiary HSBC
Payment Operating guarantee fund
Jun 14, 2022
Jun 13, 2023
35,000
35,000
-
-
-
SESAR Subsidiary HSBC
Payment Operating guarantee fund
Jun 14, 2022
Jun 13, 2023
50,000
20,000
-
-
-
Samsung Electronics Business Report
338 / 413
AdGear Technologies Subsidiary BOA
Inc.
Payment Operating guarantee fund
Nov 9, 2022
Nov 8, 2023
2,000
2,000
-
-
-
Harman International Subsidiary Industries, Inc.
JP Morgan
Payment Operating guarantee fund
Jun 14, 2022
Jun 13, 2023
100,000
100,000
-
-
-
Harman International Subsidiary Japan Co., Ltd.
MUFG
Payment Operating guarantee fund
Nov 9, 2022
Nov 8, 2023
25,000
25,000
-
-
-
Harman RUS CIS LLC
Subsidiary
SocGen
Payment Operating guarantee fund
Nov 9, 2021
May 31, 2022
15,000
-
-
-
-
Harman Holding Limited
Subsidiary
HSBC
Payment Operating guarantee fund
Jun 14, 2022
Jun 13, 2023
30,000
30,000
-
-
-
Harman do
Brasil Industria
Eletronica e
Participacoes
Ltda. Harman da Amazonia
Subsidiary
SocGen
Payment Operating guarantee fund
Nov 9, 2022
Nov 8, 2023
15,000
15,000
-
-
-
Industria
Eletronica e
Participacoes
Ltda.
Harman
International Industries
Subsidiary
HSBC
Payment Operating guarantee fund
Jun 14, 2022
Jun 13, 2023
-
30,000
-
-
-
Limited
Total
8,265,301
8,146,572
146,556
283,920 430,476
Separate basis. See 1. Subsidiaries subject to consolidated accounting (detailed) in XII. Appendix for names of subsidiaries. The approval decision is resolved by the Management Committee when the guarantee amount per transaction is between 0.1% and/or less than 2.5%, and by the Board of Directors when the guarantee amount per transaction is 2.5% and above. SEC receives fees on the debt it guarantees depending on the maturity date of each debt guarantee, general loan interest rate, etc. The Company claimed approximately USD 547 thousand in guarantee fees in 2022 and did not receive it in 2022.
2. Acquisitions and disposals of assets with affiliates and subsidiaries
In 2022, the Company sold assets to affiliates, including Samsung (China) Semiconductor Co., Ltd. (SCS), to increase production capacity of such affiliates. Also, the Company acquired assets including facility equipment from affiliates to improve efficiency of domestic production.
(KRW mil)
Company Relationship Transaction type Transaction date1) Asset
Purpose of transaction
Amount2)
Gain or loss on disposal
SCS
Affiliates
Asset sale/purchase
Dec 26, 2022
Machinery, etc.
Enhance capacity and production efficiency
16,177
4,072
SESS
Affiliates
Asset sale/purchase
Jul 12, 2022
Machinery, etc.
Enhance capacity and production efficiency
5,346
639
SEHC
Affiliates
Asset sale/purchase
Dec 14, 2022
Machinery, etc.
Enhance capacity and production efficiency
4,471
259
SAS
Affiliates
Asset purchase
Nov 21, 2022
Machinery, etc.
Enhance capacity and production efficiency
2,457
-
SEVT
Affiliates
Asset purchase
Nov 29, 2022
Machinery, etc.
Enhance capacity and production efficiency
831
-
SEA
Affiliates
Asset sale
Aug 9, 2022
Machinery, etc.
Enhance capacity and production efficiency
632
37
TSLED
Affiliates
Asset sale
Dec 21, 2022
Machinery, etc.
Enhance capacity and production efficiency
338
73
SEV
Affiliates
Asset sale/purchase
Dec 21, 2022
Machinery, etc.
Enhance capacity and production efficiency
306
42
SERK
Affiliates
Asset sale
May 19, 2022
Machinery, etc.
Enhance capacity and production efficiency
282
18
Samsung Electronics Business Report
339 / 413
SEUZ
Affiliates
Asset sale
June 22, 2022
Machinery, etc.
Enhance capacity and production efficiency
224
6
SII
Affiliates
Asset sale
May 9, 2022
Machinery, etc.
Enhance capacity and production efficiency
216
-10
Samsung Life Insurance
Affiliates
Asset sale
Dec 27, 2022
Machinery, etc.
Enhance capacity and production efficiency
188
-74
SEH
Affiliates
Asset sale
Apr 13, 2022
Machinery, etc.
Enhance capacity and production efficiency
142
14
SIEL
Affiliates
Asset sale
Oct 12, 2022
Machinery, etc.
Enhance capacity and production efficiency
112
26
Samsung Medison
Affiliates
Asset sale
Mar 17, 2022
Machinery, etc.
Enhance capacity and production efficiency
5
5
Separate basis
See 1. Subsidiaries subject to consolidated accounting (detailed) in XII. Appendix for names of subsidiaries.
The above acquisition and disposal transactions of assets are not subject to the Board's approval.
1) Most recent transaction.
2) Properly calculated by an appropriate method based upon market value assessment. Transaction was made under normal conditions (eg, terms of
cash payment within the 15th, 30th of the following month of transaction).
Samsung Electronics Business Report
340 / 413
3. Business transactions with affiliates and subsidiaries
In 2022, the Company had transactions such as sales and purchases with affiliates, including Samsung Semiconductor, Inc. (SSI).
(KRW mil)
Company
Relationship Type of transaction
Date
Details
Amount
SSI SEA SEVT
Affiliates Affiliates Affiliates
Sales, purchases, etc. Sales, purchases, etc. Sales, purchases, etc.
JanDec 2022 JanDec 2022 JanDec 2022
Semiconductors, etc.
HHPs, consumer electronics, etc.
HHPs, etc.
41,440,223 35,513,203 34,609,927
SEV
Affiliates
Sales, purchases, etc. JanDec 2022
HHPs, etc.
22,246,267
SSS
Affiliates
Sales, purchases, etc. JanDec 2022
Semiconductors, etc.
SIEL
Affiliates
Sales, purchases, etc. JanDec 2022
HHPs, consumer electronics, etc.
Separate basis; Transactions worth 5% and above of revenue of the current business year are subject to public disclosure. See 1. Subsidiaries subject to consolidated accounting (detailed) in XII. Appendix for names of subsidiaries.
16,490,868 13,238,315
4. Transactions with stakeholders other than affiliates and subsidiaries
As of December 31, 2022, the Company's outstanding loan amount is KRW 140.1 billion related to support for supplier companies for product competitiveness and mutual development as well as home loan and educational expenses for employee welfare.
Loans
(KRW mil)
Company
Relationship
Account title
Beginning of period
(Jan 1, 2022)
Transaction Change
End of period (Dec 31, 2022)
Elentec Co., Ltd., etc.
Partner company and employee
Short-term loans
42,999
4,162
47,161
Bumjin I&D, etc.
Partner company and employee
Long-term loans
71,604
21,294
92,898
Total
114,603
25,456
Separate basis; amounts reflect the discounted present value of debts before accounting for impaired debts (impairment losses).
140,059
Samsung Electronics Business Report
341 / 413
XI. Other Information
1. Changes in public disclosure
- N/A
2. Contingent liabilities
A. Litigation
The Company is involved in various claims, disputes, and investigations conducted by regulatory bodies, which arose during the normal course of business with numerous entities. Although the outflow of resources and timing of these matters are uncertain, as of the reporting date, the Company believes the outcome will not have a material impact on the financial position of the Company.
Samsung Electronics and SDC are liable to fulfill in solidarity the debts of SDC which relate to the periods prior to SDC's separation from the Company.
For information related to other contingent liabilities and commitments, see retained earnings in 3. Notes to consolidated financial statements and 5. Notes to non-consolidated financial statements in . Financial Affairs.
B. Guarantees
SEA SEM SAMCOL SEDA SECH SEPR SSA SEMAG SETK SETK-P SECE SEEG SEIN SJC SEUC SEDAM SECA SELA SEEH SERK SELV SEIL SAPL SAVINA SCIC SME SAMEX SEASA
Company
Relationship
Creditor
Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary
BOA etc. BBVA etc. Citibank etc. BRADESCO etc. Citibank etc. BBVA etc. SCB etc. SocGen etc. BNP etc. BNP etc. Citibank etc. HSBC BNP etc. Mizuho Bank etc. Credit Agricole etc. Citibank etc. BoA Citibank HSBC etc. SOCGEN etc. Citibank Citibank BOA etc. HSBC HSBC etc. SCB Citibank Citibank
Guarantee
Expiry date
16-Dec-23 08-Nov-23 16-Dec-23 16-Dec-23 16-Dec-23 16-Dec-23 16-Dec-23 16-Dec-23 16-Dec-23 16-Dec-23 16-Dec-23 13-Jun-23 08-Nov-23 16-Dec-23 16-Dec-23 16-Dec-23 08-Nov-23 16-Dec-23 16-Dec-23 16-Dec-23 16-Dec-23 16-Dec-23 16-Dec-23 13-Jun-23 16-Dec-23 08-Nov-23 16-Dec-23 16-Dec-23
Beginning of period
102,275 33,334 10,947 -
Transactions
Increase Decrease
137,120 155,768 -
-7,685 -1,283 -
(USD thousand)
End of period
239,395 25,649 155,768 9,664 -
Limit of guarantee
1,278,000 715,000 210,000 409,000 62,000 150,000 318,000 110,000 777,000 130,000 60,000 85,000 70,000 832,572 150,000 537,000 70,000 60,000 888,400 45,000 10,000 15,600 404,000 51,000 300,000 110,000 5,000 2,000
Samsung Electronics Business Report
342 / 413
SSAP
Subsidiary SCB
08-Nov-23
-
-
-
-
35,000
SEPM
Subsidiary HSBC
13-Jun-23
-
-
-
-
35,000
SESAR
Subsidiary HSBC
13-Jun-23
-
-
-
-
20,000
AdGear Technologies Inc.
Subsidiary BOA
08-Nov-23
-
-
-
-
2,000
Harman International Industries, Inc.
Subsidiary JP Morgan
13-Jun-23
-
-
-
- 100,000
Harman International Japan Co., Ltd.
Subsidiary MUFG
08-Nov-23
-
-
-
-
25,000
Harman RUS CIS LLC
Subsidiary SocGen
31-May-22
-
-
-
-
-
Harman Holding Limited
Subsidiary HSBC
13-Jun-23
-
-
-
-
30,000
Harman do Brasil Industria Eletronica e Participacoes Ltda. Harman da Amazonia Industria Eletronica e Participacoes Ltda.
Subsidiary SocGen
08-Nov-23
-
-
-
-
15,000
Harman International Industries Limited
Subsidiary HSBC
13-Jun-23
-
-
-
-
30,000
Harman Finance International, SCA
Subsidiary JP Morgan etc.
01-Mar-22 396,304
- -396,304
-
-
SDN
Subsidiary SIEL
22-Nov-24 571,121
- -57,755 513,366 603,960
SAS
Subsidiary Epcor
The date of debt expiration
-
-
-
- 340,000
DOWOOINSYS VINA COMPANY LIMITED
Subsidiary ANZ
09-Nov-25
- 20,000
- 20,000
20,000
Total
1,113,981 312,888 -463,027 963,842 9,110,532
Consolidated basis.
Debt guarantees for Harman Finance International and SCA are provided by Harman International Industries, Inc.; SDN by SDC; and SAS by SEA;
and DOWOOINSYS VINA COMPANY LIMITED by Dowooinssys Co., Ltd.
For names of subsidiaries, see 1. Subsidiaries subject to consolidated accounting (detailed) in XII. Appendix.
SEC requires Board approval for individual guarantees exceeding 2.5% of total equity; the approval decision is delegated to the Management Committee
when the guarantee amount is between 0.1% and/or less than 2.5%.
SDC requires Board approval for individual guarantees over KRW 10,000 million.
SEC claims fees on the debt guarantees depending on the maturity date of each debt guarantee, general loan interest rate, etc.: the Company in 2022
claimed approximately USD 547,000 as guarantee fee and, as of the reporting date, has not collected the amount; and SDC in 2022 claimed approximately USD
3,080,000 as guarantee fee to SDN and, as of the reporting date, has not collected the amount.
3. Sanctions and others
A. Sanctions of investigative and judicial agencies
[Summary]
Date
Apr 18, 2019.
Dec 9, 2019
Feb 14, 2020 Jan 25, 2021 Feb 4, 2021
Agency
Seoul Central District Court
Seoul Central District Court (Appeal in progress)
Suwon District Court
Seoul High Court (Retrial)
Subject
Employees of SEC
Employees of SEC
SEC and employees
of SEC Employees
of SEC Employees
of SEC
Punishment or measure
Fine
Imprisonment
Fine Imprisonment Imprisonment
Amount of monetary sanction
100
-
12 -
Amount of embezzlement/breach
of trust -
-
Approximately 8,681
-
(KRW mil)
Relevant laws
Article 14 Paragraph 4 and Article 68 Subparagraph 4 of the Monopoly Regulation and Fair Trade Act
Article 155 Paragraph 1, Article 31 Paragraph 1, and Article 30 of the Criminal Act
Articles 23, 24, 29, 67, 68, 70, 71, etc., of the former Occupational Safety and Health Act Act on the Aggravated Punishment, etc. of Specific Economic Crimes
Articles 90, 81, etc., of the Trade Union and Labor Relations Adjustment Act
Samsung Electronics Business Report
343 / 413
Date
Agency
Subject
Punishment or measure
Amount of monetary sanction
Amount of embezzlement/breach
of trust
Relevant laws
Subsidiary
Supreme Court of Korea
and employees (Samsung Electronics
Fine, Imprisonment
50
Articles 90, 81, etc., of the Trade Union
-
and Labor Relations Adjustment Act, Article 10 of the Punishment of Tax
Offenses Act
Service)
Article 33 Paragraph 7, Article 34,
Jul 7, Gwangju Employees 2022 District Court of SEC
Fine
6
-
Article 18 Paragraph 1, etc., of the Environmental Testing and Inspection
Act
The Fair Trade Commission on November 21, 2018, filed a complaint against Chairman Kun-hee Lee for omitting Samoo Architects & Engineers and Seoyoung Engineering from Samsung affiliates when submitting required materials in 2014 under Article 14 Paragraph 4 of the Monopoly Regulation and Fair Trade Act, and the prosecution filed a summary indictment.
Chairman Kun-hee Lee on April 18, 2019, was ordered to pay a fine of KRW 100 million by the Seoul Central District Court, and the fine was subsequently paid.
On December 9, 2019, the Seoul Central District Court ruled on allegations that an SEC executive ordered executives and employees of Samsung Biologics and Samsung Bioepis to hide or destroy evidence related to the alleged fraudulent accounting. For violating Article 30, Article 31 Paragraph 1, and Article 155 Paragraph 1 of the Criminal Act, prison sentences were handed down to Executive Vice President K (27 service years) of 1 year and 6 months; Executive Vice President L (31 service years) of 1 year and 6 months; Executive Vice President M (9 service years) of 2 years; Vice President N (16 service years) of 1 year and 6 months and a 3-year suspended sentence; Vice President O (10 service years) of 1 year and 6 months and a 3-year suspended sentence.
An appeal against the decision has been filed. The Company will check on future developments of the court proceedings and relevant matters.
On February 14, 2020, regarding matters related to a CO2 leak accident at the Giheung plant on September 4, 2018, the Suwon District Court ordered the Company to pay a fine of KRW 7 million and Executive Vice President P (27 service years), the person in general charge of safety and health, to pay KRW 5 million for violating Article 23 (Safety Measures), Article 24 (Health Measures), and Article 29 (Safety and Health Measures in Contracting) of the former Occupational Safety and Health Act, and the fines were subsequently paid.
To prevent recurrences and comply with the relevant law, the Company has strengthened the capabilities of its employees and partner companies to guarantee safety and health.
Regarding matters related to the allegations of violation of the Act on the Aggravated Punishment, etc., of Specific Economic Crimes (embezzlement) by five of the Company's executives (Vice Chairman Jae-yong Lee, former Vice Chairman Geesung Choi, former President Choong-ki Chang, former President Sang-jin Park, and former Senior Vice President Seongsoo Hwang) in the case of an influence-peddling scandal involving South Korea's president, the Supreme Court of Korea on August 29, 2019 rejected part of a lower court's ruling and ordered a retrial to the Seoul High Court. On January 18, 2021 at the retrial, the Seoul High Court sentenced Vice Chairman Jae-yong Lee, former Vice Chairman Gee-sung Choi, and former President Choong-ki Chang each to 2 years and 6 months in prison. Former President Sang-jin Park and former Senior Vice President Seong-soo Hwang each received sentences of 2 years and 6 months in prison and a 4-year suspended sentence. The judgments were confirmed on January 25, 2021.
To prevent recurrences, the Company has strengthened its process regarding external contributions and newly established the Samsung Compliance Committee, an external and independent organization.
Samsung Electronics Business Report
344 / 413
On February 4, 2021, the Supreme Court dismissed an appeal regarding the violation of Articles 90 and 81 of the Trade Union and Labor Relations Adjustment Act by SEC and employees of SEC and confirmed the sentences of 1 year and 4 months for Executive Vice President A (29 service years), 1 year and 2 months and a 2-year suspended sentence for former Executive Vice President B, 10 months and a 2-year suspended sentence for Executive Vice President C (34 service years), 1 year and a 2-year suspended sentence for former Executive Vice President D, 1 year for Senior Vice President E (32 service years), 1 year and 2 months and a 2-year suspended sentence for Senior Vice President F (24 service years), 10 months and a 2-year suspended sentence for Vice President G (27 service years), 10 months and a 2-year suspended sentence for Vice President H (18 service years) as ordered by the Seoul High Court on August 10, 2020; and SEC and former SEC Chairman of the Board (39 service years) were pronounced not guilty. Moreover, regarding the violation of Articles 90 and 81 of the Trade Union and Labor Relations Adjustment Act and violation of Article 10 of the Punishment of Tax Offenses Act with regard to receiving fake tax invoices (amount of violation approximately KRW 1,678 million) by Samsung Electronics Service and employees, the court issued a penalty of KRW 50 million for Samsung Electronics Service (amount of tax collected is approximately KRW 97 million), and confirmed sentencing of prison terms for Samsung Electronics Service's former CEO (4 service years) of 1 year and 4 months, Senior Vice President I (11 service years) of 1 year, Vice President J (21 service years) of 10 months and a 2-year suspended sentence.
To prevent recurrence, the Company has specified the guarantee of labor's three primary rights in the code of conduct and provides education on the prevention of unfair labor practices to all employees.
On January 20, 2021, the Suncheon Branch of Gwangju District Court ordered SEC employees A (11 service years) and B (8 service years) to pay a fine of KRW 3 million each for violating Article 18, etc., of the Environmental Testing and Inspection Act, and on July 7, 2022 at the retrial, the Gwangju District Court dismissed the appeal, and the employees subsequently paid the fine. To prevent recurrence, the Company is conducting regular cross measurement, etc.
Samsung Electronics Business Report
345 / 413
B. Sanctions of administrative agencies
(1) Sanctions of Fair Trade Commission (FTC)
[Summary]
Date
Oct 4, 2018
Nov 21, 2018
Aug 23, 2019
Jun 22, 2021
Aug 27, 2021
Nov 17, 2021
Mar 17, 2022 Jun 27, 2022
Agency FTC FTC FTC FTC FTC
FTC FTC FTC
Subject
SEC
Employees of SEC
SEC
SEC and employees of
SEC
SEC
Subsidiary (Samsung Display) Subsidiary (Samsung Electronics Service CS) Employees of
SEC
SEC
Punishment or measure
Corrective order, penalty surcharge
Prosecution charge
Corrective measure, fine
Prosecution charge Corrective measure, penalty surcharge Corrective measure, penalty surcharge
Fine
Warning
Fine
(KRW mil)
Amount of monetary sanction
Reasons and relevant laws
Article 3 (Prohibition, etc. against Unfair Labeling or
488
Advertising) Paragraph 1 Subparagraph 2 of the Act on Fair Labeling and Advertising and Article 3 Paragraph 2 of the
Enforcement Decree of the same Act
Article 14 (Designation of Business Groups Subject to - Limitations on Cross Shareholding) Paragraph 4 of the
Monopoly Regulation and Fair Trade Act
Article 5 Paragraph 4 (Duty to Provide Online Completion
0.5
Service) and Article 10 Paragraph 1 (Cybermall Operators' Indication Duty) of the Act on the Consumer Protection in
Electronic Commerce, etc.
-
Article 23 (Prohibition on Unfair Trade Practices) Paragraph 1 Subparagraph 7 of the Monopoly Regulation and Fair Trade Act
101,217
Article 23 (Prohibition on Unfair Trade Practices) Paragraph 1 Subparagraph 7 of the Monopoly Regulation and Fair Trade Act
22,857
Article 23 (Prohibition on Unfair Trade Practices) Paragraph 1 Subparagraph 7 of the Monopoly Regulation and Fair Trade Act
2.4
Article 11-4 (Disclosure of Status of Business Groups) of the Monopoly Regulation and Fair Trade Act
Article 31 (Designation of Business Groups Subject to - Limitations on Cross Shareholding) Paragraph 4 of the
Monopoly Regulation and Fair Trade Act
10
Article 5 (Duty to Prepare Agency Transaction Contract) Paragraph 1 of the Fair Agency Transactions Act
On October 4, 2018, regarding matters related to the advertising of the Company's air purifying products, including air purifiers, the Fair Trade Commission issued a corrective order against the Company and ordered the Company to pay a penalty surcharge of KRW 488 million for violating Article 3 (Prohibition, etc., against Unfair Labeling or Advertising) Paragraph 1 Subparagraph 2 of the Act on Fair Labeling and Advertising and Article 3 Paragraph 2 of the Enforcement Decree of the same Act, and the Company has subsequently paid the fine. In litigation to cancel the order, the Supreme Court on March 11, 2021 ruled partially in favor of the Company.
The Fair Trade Commission on November 21, 2018, filed a complaint against Chairman Kun-hee Lee for omitting Samoo Architects & Engineers and Seoyoung Engineering from Samsung affiliates when submitting required materials in 2014 under Article 14 (Designation of Business Groups Subject to Limitations on Cross Shareholding) Paragraph 4 of the Monopoly Regulation and Fair Trade Act.
Please refer to A. Sanctions of investigative and judicial agencies for more information, such as the details of the punishment.
Samsung Electronics Business Report
346 / 413
On August 23, 2019, regarding matters related to Milk Music, the Fair Trade Commission issued corrective measures against the Company and ordered the Company to pay a fine of KRW 0.5 million under the Act on the Consumer Protection in Electronic Commerce, etc., for violating Article 5 Paragraph 4 (Duty to Provide Online Completion Service) and Article 10 Paragraph 1 (Cybermall Operators' Indication Duty). The Company subsequently paid the fine.
On June 22, 2021, the Fair Trade Commission, regarding matters related to food service transactions with Samsung Welstory, filed a complaint against the Company and the former Head of Future Strategy Office Gee-sung Choi, a retiree, for violating Article 23 (Prohibition on Unfair Trade Practices) Paragraph 1 Subparagraph 7 of the Monopoly Regulation and Fair Trade Act.
On August 27, 2021, the Fair Trade Commission, regarding matters related to food service transactions with Samsung Welstory, issued corrective measures and ordered Samsung Electronics and Samsung Display to pay penalties (SEC: KRW 101.217 billion; SD: 22.857 billion) for violating Article 23 Paragraph 1 Subparagraph 7 of the Act of the Monopoly Regulation and Fair Trade Act. The administrative litigation against the disposition is in progress, and on January 27, 2022, the decision to suspend the execution of the corrective measures was finalized.
On November 5, 2021, the Fair Trade Commission, regarding a voluntary correction disclosure of Status of Large Business Groups (omission of member of the Board of Directors) of the Company's subsidiary, Samsung Electronics Service CS, ordered the company to pay a fine of KRW 2.4 million for violating Article 11-4 (Disclosure of Status of Business Groups) of the Monopoly Regulation and Fair Trade Act, and on November 17, 2021, the company has subsequently paid the fine.
To prevent recurrences and comply with the relevant law, Samsung Electronics Service CS has strengthened its internal management standard, including adding more people in charge.
On March 17, 2022, the Fair Trade Commission issued a warning against SEC's Vice Chairman Jae-yong Lee for omitting three companies--Balbec KPL Korea, Balbec KPL Partners, and Balbec KPL Asset Management--controlled by an Independent Director of Samsung Card from the affiliate list of Samsung, a business group subject to limitations on cross shareholding, when submitting materials in 2018 and 2019 pursuant to Article 31 Paragraph 4.
On June 27, 2022, the Fair Trade Commission ordered the Company to pay a fine of KRW 10 million for violating Article 5 (Duty to Prepare Agency Transaction Contract) Paragraph 1 of the Fair Agency Transactions Act, and the Company is in the middle of a procedure to object to the order.
To comply with the Monopoly Regulation and Fair Trade Act, the Act on Fair Labeling and Advertising, Fair Agency Transactions Act, and relevant laws, the Company has strengthened its internal management standard and is providing relevant prevention education for executives and employees.
(2) Sanctions of other administrative or public agencies (including financial supervision and tax authorities)
[Summary]
Date
Jan 18, 2019
Jan 3, 2019Feb 23, 2022
Agency
Yongin Fire Station
Ministry of Employment and
Labor
Subject
SEC (Giheung site)
SEC (Pyeongtaek, Onyang, Cheonan,
Giheung/ Hwaseong sites)
Punishment or measure
Fine
Fine
(KRW mil)
Amount of
monetary sanction
Reasons and relevant laws
Article 20 (Fire Safety Control of Specific Objects of Fire
0.5
Service) Paragraph 6 of the Act on Fire Prevention and Installation, Maintenance, and Safety Control of Firefighting
Systems
Article 48 (Submission of Hazard Prevention Plans)
Paragraph 1 of the former Occupational Safety and Health
14.7
Act, Article 46 (Implementation of Process-Safety Reports)
Paragraph 1, etc., of the Occupational Safety and Health
Act
Samsung Electronics Business Report
347 / 413
Date
Dec 2, 2019 Dec 28, 2020
Mar 2, 2021 Aug 10, 2021
Jul 8, 2020
Sep 18, 2020
Apr 1, 2021
Sep 29, 2021
Agency
Ministry of Employment and
Labor
Ministry of Environment
Ministry of Justice
Korea Communications
Commission Ministry of Employment and
Labor
Ministry of Employment and
Labor
Ministry of Employment and
Labor
Subject
SEC (Gwangju site)
SEC (Gwangju site)
Amount
Punishment of or measure monetary
Reasons and relevant laws
sanction
Article 41 (Preparation and Keeping of Material Safety Data
Sheets) Paragraph 3, Article 10 (Record and Report of
Industrial Accidents) Paragraph 2, etc., of the former
Fine
386.3
Occupational Safety and Health Act, Article 57 (Prohibition on Concealing Occurrence of
Industrial Accidents and Reporting Thereof) Paragraph 3, Article 164 (Retention of Documents) Paragraph 1, etc., of the Occupational Safety and Health Act
Cancellation of designation of
green enterprise
Article 16-3 (Cancellation of Designation of Green - Enterprise) Paragraph 1 Subparagraph 1 of the
Environmental Technology and Industry Support Act
SEC
Fine
0.1
Article 19 (Obligation to Report by Employers of Aliens) of the Immigration Act
Subsidiary (Samsung Electronics Sales)
Corrective order, fine
Subsidiary (Samsung Electronics Sales)
Suspension of construction work order,
fine
Subsidiary
(Samsung Electronics Service
Fine
CS)
Subsidiary (Samsung Electronics Service)
Partial suspension of work order,
fine
Article 3 (Prohibition of Discriminative Subsidy Payment)
36
Paragraph 1 and Article 4 (Restriction on Payment of Excessive Subsidies and Public Announcement) Paragraph
5 of the Mobile Device Distribution Improvement Act
Article 55 (Measures for Suspension of Work by the
5
Minister of Employment and Labor in Cases of Serious Accidents) and Article 68 (Safety and Health Coordinators)
Paragraph 1 of the Occupational Safety and Health Act
1
Article 15 (Reporting, etc. on Insured Status) of the Employment Insurance Act
Article 16 (Supervisors) Paragraph 1, Article 41 (Measures for Preventing Health Impairments Caused by Abusive Language of Customers) Paragraph 7, Article 53 14 (Corrective Measures by Minister of Employment and Labor) Paragraph 3, and Article 114 (Posting of Material Safety Data Sheets and Education) Paragraph 3 of the Occupational Safety and Health Act
Nov 23, 2021
Ministry of Employment and
Labor
Subsidiary (Samsung Display)
Fine
0.2
Article 46 (Implementation of Process-Safety Reports) Paragraph 1 of the Occupational Safety And Health Act
Oct 13, 2022
City of Gwangju
SEC (Gwangju site)
Fine
3.2 Article 39 Paragraph 1 of the Clean Air Conservation Act
Dec 14, 2022
Ministry of Environment
SEC (Overall domestic
operations)
Fine
2.0
Article 17 Paragraph 2 of the Act on the Allocation and Trading of Greenhouse-gas Emission Permits
Samsung Electronics Business Report
348 / 413
Date
Dec 22, 2022
Agency
Ministry of Environment
Subject
Punishment or measure
Amount of
monetary sanction
Reasons and relevant laws
SEC (Gwangju site)
Fine
1.6
Article 31 Paragraph 1 Subparagraph 4 of the Clean Air Conservation
Dec 23, 2022
Ministry of Employment and
Labor
SEC (Gwangju site)
Fine
0.08
Article 37 Paragraph 1 of the Occupational Safety And Health Act
With regards to a CO2 leak accident at the Giheung plant on September 4, 2018, pursuant to the results of a special investigation by the Yongin Fire Station conducted from November 27 through December 6, 2018, the Company was ordered to pay a fine of KRW 0.5 million for violating Article 20 Paragraph 6 of the Occupational Safety and Health Act on January 18, 2019, and the Company has subsequently paid the fine.
To prevent recurrence and strengthen compliance, the Company has built a legal safety assessment evaluation system and conducts regular assessment.
Pursuant to the results of the 2nd process safety management (PSM) inspection on the Pyeongtaek site (P1-2) by the Ministry of Employment and Labor over September 10 through September 13, 2018, the Company was ordered to pay a fine of KRW 10 million for violating Article 48 (Submission, etc. of Plans for Prevention of Harm and Dangers) Paragraph 1 of the former Occupational Safety and Health Act on January 3, 2019 and has subsequently paid the fine.
Pursuant to results of monitoring the implementation of a PSM system on the Onyang site by the Ministry of Employment and Labor on February 19, 2020, the Company was ordered to pay a fine of KRW 0.2 million for violating Article 46 (Implementation of Process-Safety Reports) Paragraph 1, etc., of the Occupational Safety and Health Act on February 25, 2020 and has subsequently paid the fine.
Pursuant to results of monitoring the implementation of a PSM system on the Cheonan site by the Ministry of Employment and Labor from May 2628, 2020, the Company was ordered to pay a fine of KRW 0.9 million for violating Article 46 (Implementation of Process-Safety Reports) Paragraph 1, etc., of the Occupational Safety and Health Act on June 29, 2020 and has subsequently paid the fine.
Pursuant to results of monitoring the implementation of a PSM system on the Pyeongtaek site by the Ministry of Employment and Labor from November 1618, 2020, the Company was ordered to pay a fine of KRW 2.1 million for violating Article 46 (Implementation of Process-Safety Reports) Paragraph 1, etc., of the Occupational Safety and Health Act on November 26, 2020 and has subsequently paid the fine.
Pursuant to results of monitoring the implementation of a PSM system on the Giheung·Hwaseong site by the Ministry of
Employment and Labor from December 711, 2020, the Company was ordered to pay a fine of KRW 0.9 million for violating Article 46 (Implementation of Process-Safety Reports) Paragraph 1, etc. of the Occupational Safety and Health Act on December 14, 2020 and has subsequently paid the fine.
Pursuant to the regular assessment of the implementation of a PSM system at the Onyang site by the Ministry of Employment and Labor from February 2123, 2022, the rating went up by one stage, but the Company was ordered to pay a fine of KRW 0.6 million for violating Article 46 (Implementation of Process-Safety Reports) Paragraph 1 of the Occupational Safety and Health Act on April 21, 2022 and has subsequently paid the fine.
The Company took measures regarding the violations above and submitted a report on improvements to the Ministry of Employment and Labor. We also established a PSM Innovation Organization and a PSM Management System which manages activities related to approval, design, 12 key tasks, expertise improvement, etc. We also foster development of onsite process safety experts and conduct voluntary process safety evaluation.
Samsung Electronics Business Report
349 / 413
Following the investigation on MSDS warning signs compliance on November 28, 2019 at Gwangju office by the Ministry of Employment and Labor, the Company on December 2, 2019, was ordered to pay a fine of KRW 1.4 million for violating Article 41 (Preparation, Keeping, etc. of Material Safety Data Sheets) Paragraph 3, etc., of the Occupational Safety and Health Act, and has subsequently paid the fine. (Paragraph 3 has since been deleted.) We conducted a company-wide investigation on the handling space of chemical substances and implemented relevant improvement measures. In addition, we are improving the prior evaluation process on new G-EHS chemical substances and providing education for supervisors in departments handling chemical substances.
Regarding the industrial incident at Gwangju site on May 19, 2020, the Company delayed the submission of industrial accident questionnaire to the Gwangju Regional Employment and Labor Office of the Ministry of Employment and Labor and as a result was ordered to pay a fine of KRW 7 million for violating Article 57 (Prohibition of Concealment; Reporting of Incidents) Paragraph 3 of Occupational Safety and Health Act on June 26, 2020, and the Company has subsequently paid the fine. To prevent the recurrence and strengthen compliance, the Company has provided special education for the on-site environment and safety managers and supervisors.
With regards to the investigation from August 18, 2020 to January 18, 2021 by the Gwangju Regional Employment and Labor Office of Ministry of Employment and Labor on the Gwangju operation, the Company was ordered to pay the following fines regarding industrial incidents that have taken place since 2015: KRW 6 million for violating Article 10 (Recording and Reporting of Industrial Accidents) Paragraph 2 of the Occupational Safety and Health Act on September 1, 2020 (Paragraph 2 has since been deleted); KRW 60.4 million and 11.5 million, respectively, for violating Article 57 (Prohibition of Concealment; Reporting of Incidents) Paragraph 3 and Article 164 (Preservation of Documents) Paragraph 1 of the Occupational Safety and Health Act on September 10 and 23, 2020. The Company has subsequently paid the fines. Other fines include: KRW 20 million for violating Article 57 (Prohibition of Concealment; Reporting of Incidents) Paragraph 3 of the Occupational Safety and Health Act on October 19, 2020; and KRW 280 million for violating Article 10 (Prohibition of Concealment; Reporting of Incidents) Paragraph 2 of the former Occupational Safety and Health Act on December 28, 2020. The Company subsequently paid the fines.
To prevent the recurrence and strengthen compliance, the Company has provided special education for the on-site environment and safety managers and supervisors.
On March 2, 2021, Yeongsangang River Basin Environmental Office of Ministry of Environment, based on its air pollutant measurement, cancelled the Green Enterprise designation on our Gwangju site in pursuant to Article 16-3 (Cancellation of Designation of Green Enterprise) Paragraph 1 Subparagraph 1 of the Environmental Technology and Industry Support Act.
To enhance the credibility of the measurement, the Company is conducting regular cross measurement, etc.
On August 10, 2021, the Suwon Immigration Office ordered the Company to pay a fine of KRW 100,000 for violating the obligation to report changes to the employment status of non-Korean employees under Article 19 (Obligation to Report by Employers of Aliens) Paragraph 1 of the Immigration Act and the Company has subsequently paid the fine. To strengthen compliance of the deadline for reporting changes in employment of non-Korean employees no longer employed by the Company, the Company has improved the exit process.
On July 7, 2022, the Gwangju District Court ruled that two employees of the Company had violated Article 18, etc., of the Environmental Testing and Inspection Act, and on October 13, 2022, the City of Gwangju levied a fine of KRW 3.2 million for violating Article 39 (Self-Measurement) Paragraph 1 of the Clean Air Conservation Act concerning the record of the results of self-measurement of air pollutants, and the Company subsequently paid the fine.
To enhance credibility of measurements, the Company conducts regular cross measurements, etc.
Pursuant to the results of the inspection of the air pollution prevention facilities on the Gwangju site by the Ministry of Environment on November 2829, 2022, the Company was ordered to pay a fine of KRW 1.6 million for violating Article 31 (Operation of Emission Facilities and Prevention Facilities) Paragraph 1 of the Clean Air Conservation Act on December 22, 2022, and it has subsequently paid the fine.
Samsung Electronics Business Report
350 / 413
To prevent the recurrence and strengthen compliance, the Company has strengthened inspection of the air pollution prevention facilities. On December 14, 2022, the Ministry of Environment ordered the Company to pay a fine of KRW 2 million for violating Article 17 (Revocation of Allocation of Emission Permits) Paragraph 2 of the Act on the Allocation and Trading of Greenhouse-gas Emission Permits, and the Company is currently in the process of objecting to the order.
Pursuant to the results of the inspection of the Occupational Safety and Health Management on the Gwangju site by the Ministry of Employment and Labor on December 1921, 2022, the Company was ordered to pay a fine of KRW 80 thousand for violating Article 37 (Installation and Affixing of Safety and Health Signs) Paragraph 1 of the Occupational Safety and Health Act on December 23, 2022, and it has subsequently paid the fine.
To prevent the recurrence and strengthen compliance, the Company has strengthened monitoring of the installation and affixing of safety signs.
Korea Communications Commission ordered Samsung Electronics Sales to implement corrective measures and to pay a fine of KRW 36 million for violating Article 3 (Prohibition of Discriminative Subsidy Payment) Paragraph 1 and Article 4 (Restriction on Payment of Excessive Subsidies and Public Announcement) Paragraph 5 of the Mobile Device Distribution Improvement Act on July 8, 2020 and have subsequently paid the fine.
In order to prevent reoccurrences and comply with the relevant law, Samsung Electronics Sales strengthened its internal management standard, provided education for executives and employees.
Regarding a fatal accident on September 16, 2020 during the construction of an elevator wall structure, part of the construction process of newly-opening Hongdae branch of Samsung Digital Plaza, a site inspection was conducted on September 17, 2020 and Seoul West District Office of Seoul Regional Employment and Labor Office of Ministry of Employment and Labor on September 18, 2020 ordered Samsung Electronics Sales to suspend construction in pursuant to Article 55 (Suspension, etc. of Work on Occurrence of Serious Accidents) of the Occupational Safety and Health Act. In addition, Samsung Electronics Sales was ordered to pay a fine of KRW 5 million for violating Article 68 (Safety and Health Coordinator) Paragraph 1 of the Occupational Safety and Health Act and has subsequently paid the fine, and the Company appointed a safety and health coordinator.
To prevent reoccurrences and comply with the relevant law, Samsung Electronics Sales provided a special training for onsite safety managers and supervisors.
On April 1, 2021, Samsung Electronics Service CS was ordered by the Jungbu Regional Employment and Labor Office of Ministry of Employment and Labor to pay a fine of KRW 1 million for the delayed report of the attainment of the employment insurance, violating Article 15 (Reporting, etc. on Insured Status) of the Employment Insurance Act, and the Company has subsequently paid the fine.
To prevent reoccurrences and strengthen compliance, Samsung Electronics Service CS is monitoring the revision of the Employment Insurance Act periodically and providing education for managers.
Regarding an electrocution accident of a worker who was repairing a washing machine on September 28, 2021, the Southern Seoul District Office of the Seoul Regional Employment and Labor Office of the Ministry of Employment and Labor ordered Samsung Electronics Service on September 29, 2021 to partially suspend work in pursuant to Article 53 (Corrective Measures by Minister of Employment and Labor) of the Occupational Safety and Health Act.
In response, Samsung Electronics Service submitted plans to improve safety and health measures for all of its domestic worksites, and the order of partial suspension was withdrawn on November 10, 2021.
Moreover, on November 15, 2021, Samsung Electronics Service was ordered to pay fines of KRW 14 million in total for violating Article 16 (Supervisors) Paragraph 1, Article 41 (Measures for Preventing Health Impairments Caused by Abusive Language of Customers) Paragraph 7, and Article 114 (Posting of Material Safety Data Sheets and Education) Paragraph 3 of the Occupational Safety and Health Act, and on December 28, 2021, it has subsequently paid the fine.
Pursuant to results of monitoring the implementation of a PSM system at the Giheung site by the Ministry of Employment and Labor from November 1516, 2021, Samsung Display was ordered to pay a fine of KRW 0.16 million for violating
Samsung Electronics Business Report
351 / 413
Article 46 (Implementation of Process-Safety Reports) Paragraph 1, etc., of the Occupational Safety and Health Act on November 23, 2021 and has subsequently paid the fine.
C. Sanctions from Korea Exchange
- N/A
D. Return of short-swing profits
- N/A
4. Subsequent events and other matters
A. Subsequent events
- N/A
B. External contributions
Contribution
Contribution to Samsung Dream Scholarship Foundation Management plans for Social Contribution Fund for 2020 Donation to Chung-nam Samsung Institute Donation to support emergency relief related to COVID-19
Donation to Samsung Welfare Foundation, etc.
Performance incentive to suppliers of the DS division Donation to Ho-Am Foundation Donation to Heemang 2021 Nanum Campaign Contribution to the United Nations Development Programme (Samsung Global Goals)
Amount KRW 1.12 billion
KRW 11.89 billion KRW 2.576 billion KRW 23.0 billion
KRW 51.8 billion
Approximately KRW 62.0 billion KRW 4.1 billion KRW 33.8 billion USD 1,421,154 (approximately KRW 1.57 billion)
Details
The contribution was made to support education of low-income high school students.
The Social Contribution Fund consists of voluntary contributions of employees and matching funds raised by SEC. SEC plans to contribute KRW 11.89 billion in matching funds for 2020.
The contribution was made to support adolescent education.
The contribution was made to improve education of the region.
The contribution was made to support emergency relief measures for persons and communities impacted by COVID-19.
The contribution was made to support Dream Class, a program to support learning for underprivileged middle school students (Samsung Welfare Foundation, KRW 10.6 billion)
The contribution was made to improve facilities and research infrastructure at Samsung Medical Center and support research for MERS vaccine development (Samsung Life Public Welfare Foundation, KRW 26.5 billion)
The contribution was made for the Ho-Am Prize (Ho-Am Foundation) The contribution was made to provide funds for legal expenses for faculty
members and Samsung scholarships for students (Sungkyunkwan University, KRW 14.7 billion) The incentive was provided to prevent safety incidents at sites, enhance productivity, and promote co-growth with suppliers For the first and secondary suppliers of the DS division stationed at the sites The contribution was made to help award those with significant contributions in the field of academia, art, and human welfare
The contribution was made to Community Chest of Korea to fulfill corporate social responsibilities and help the marginalized.
The contribution was made to the UNDP (United Nations Development Programme) for relief activities in different countries.
Date of Board approval
Jan 30, 2020 Feb 21, 2020 Feb 26, 2020
Apr 29, 2020
May 27, 2020 Nov 30, 2020
Samsung Electronics Business Report
352 / 413
Contribution Management plans for Social Contribution Fund for 2021 Donation to Chung-nam Samsung Institute
Donation to Samsung Welfare Foundation, etc.
Performance incentive to suppliers of the DS division
Amount KRW 11.61 billion KRW 2.446 billion
KRW 60.1 billion
Approximately KRW 63.2 billion
Details
The Fund consists of voluntary contributions of employees and matching funds raised by SEC. SEC plans to contribute KRW 11.61 billion in matching funds in 2021.
The contribution will be used for educating adolescents and vulnerable population.
The contribution was made to improve education of the region.
The contribution was made to support Dream Class, a program to support learning for underprivileged middle school students (Samsung Welfare Foundation, KRW 11.5 billion)
The contribution was made to support facilities and research infrastructure at Samsung Medical Center and support the operation of emergency helicopters (Samsung Life Public Welfare Foundation, KRW 29.9 billion)
The contribution was made to provide funds for legal expenses for faculty members and Samsung scholarships for students (Sungkyunkwan University, KRW 15 billion)
The contribution was made to help award those with significant contributions in the field of academia, art, and human welfare (Ho-Am Foundation, KRW 3.7 billion)
The incentive was provided to prevent safety incidents at sites, enhance productivity, and promote co-growth with suppliers
For the first and secondary suppliers of the DS division stationed at the sites
Date of Board approval
Feb 16, 2021
Apr 29, 2021
Samsung Electronics Business Report
353 / 413
Contribution
Amount
Details
Sponsoring the WorldSkills Competition
EUR 1.5 million (approximately KRW 2.09 billion)
The contribution was made to support WorldSkills International and WorldSkills Shanghai 2020.
Participated in Joint Investment Technology Development Agreement
Contribution to Joint Investment Technology Development Agreement Fund
KRW 15 billion
Fund supervised by the Ministry of SMEs and Startups. The contribution was made to establish an agreement fund with the
Ministry of SMEs and Startups, which will be allocated to chosen SMEs based on evaluations of tasks related to robotics, AI, biohealth, system semiconductors, and domestic production of materials, parts, and equipment.
Donation to Heemang 2022 Nanum Campaign
KRW 25.6 billion
The contribution was made to Community Chest of Korea to fulfill corporate social responsibilities and help the marginalized.
Contribution to the United Nations Development Programme (Samsung Global Goals)
USD 2,689,094 (approximately KRW 3.20 billion)
The contribution was made to the UNDP (United Nations Development Programme) for relief activities in different countries.
Management plans for Social Contribution Fund for 2022
KRW 11.75 billion
The Fund consists of voluntary contributions of employees and matching funds raised by SEC. SEC plans to contribute KRW 11.75 billion in matching funds in 2022.
The contribution will be used for educating adolescents and vulnerable population.
Donation to Chung-nam Samsung Institute
KRW 2.324 billion The contribution was made to improve education of the region.
The contribution was made to support Dream Class, a program to support
learning for underprivileged middle school students (Samsung Welfare
Foundation, KRW 4.4 billion)The contribution was made to support the
construction expenses for the renovation of Samsung Medical Center
Donation to Samsung Welfare Foundation, etc.
KRW 46.8 billion
(Samsung Life Public Welfare Foundation, KRW 23.2 billion)The contribution was made to provide funds for legal expenses for faculty members and Samsung scholarships for students (Sungkyunkwan
University, KRW 15 billion) The contribution was made to help award those with significant
contributions in the field of academia, art, and human welfare (Ho-Am
Foundation, KRW 4.2 billion)
Performance incentive to suppliers of the DS division
Approximately KRW 74.0 billion
The incentive was provided to prevent safety incidents at sites, enhance productivity, and promote co-growth with suppliers
For the first and secondary suppliers of the DS division stationed at the sites
Donation to the Inter-
University Semiconductor Research Center of Seoul
KRW 5 billion
Support of operating costs for education infrastructure and employment of research talents for the Inter-University Semiconductor Research Center
National University to help
of Seoul National University
cover operating costs
External contributions are based on a resolution of the Board.
Date of Board approval
Oct 28, 2021 Oct 28, 2021 Nov 30, 2021 Nov 30, 2021 Feb 15, 2022
Apr 28, 2022
Jul 28, 2022
C. Green management
The Company is actively securing "Designation of Green Enterprise" and "Green Technology Certifications" to follow the Low Carbon Green Growth policy of the Korean government. In particular, greenhouse gas emission and energy consumption generated at our operations are reported to the government, required by relevant law. Also, relevant information are provided transparently to stakeholders through the Sustainability Report, etc.
Samsung Electronics Business Report
354 / 413
(Designation of Green Enterprise)
The Company strives to fulfill its responsibility as an eco-friendly enterprise by reducing pollutants, conserving resources and energy, establishing/utilizing a green management system, etc. As of December 31, 2022 (on a separate basis), our
business sites in Suwon, Gumi, Giheung, Hwaseong, Pyeongtaek, and Onyang have been designated as green enterprises
in accordance with Article 16-2 (Designation, etc., of Green Enterprise) of the Environmental Technology and Industry Support Act. In March 2021, the Green Enterprise designation was cancelled for Gwangju site pursuant to Article 16-3 (Cancellation of Designation of Green Enterprise) Paragraph 1 Subparagraph 1 of the Environmental Technology and Industry Support Act.
(Green Technology Certification)
The Company is acquiring Green Technology Certifications in accordance with Article 32 (Standardization and Certification and Green Technology Green Industries) Paragraph 2 of the Framework Act on Low Carbon Green Growth. By concentrating on developing eco-friendly products and expanding the supply of these products with our "Planet First" strategy, which strives to conduct business activities in a manner that respect people and the nature, the Company, as of December 31, 2022, has secured 11 valid Green Technology Certifications since the certification system was introduced in 2010. In addition, the Company has acquired `Green Technology' product certificates for 183 models of commercialized products.
Certified Green Technologies as of December 31, 2022, are as follows:
Division DX
Separate basis.
Certified Green Technologies
Technology to reduce stand-by power use by laptops using high-efficiency power conversion technology; enhance energy efficiency of dryers using high-efficiency heat pump and heat exchanger; and reduce stand-by power use by monitors etc.
No. 11
(Greenhouse gas emission and energy consumption management)
The Company is a "controlled entity" according to Article 42 (Coping with Climate Change and Management of Targets for Energy) Paragraph 6 of the Framework Act on Low Carbon, Green Growth. Thus, the Company has been reporting the amount of greenhouse gas emission and energy consumption, verified by a third-party, to the authorities and disclosing it to stakeholders according to Article 44 (Reporting on Quantity of Greenhouse Gases Emitted and Quantity of Energy Consumed) of the same Act since May 2011.
The reported amount of greenhouse gas emission and energy use on a separate basis are provided below:
2022
2021
Greenhouse gas (tCO2-eq)
15,208,803
15,208,803
Energy (TJ)
14,515,620
14,515,620
Separate basis. Domestic manufacturing facilities, office buildings, buildings owned by the Company, leased buildings, etc. Reported Greenhouse gas emission excludes ozone depletion substances (ODS). Amounts may differ based on the result of governmental evaluations on emissions.
(Unit: tCO2-eq, TJ)
2020 15,208,803 14,515,620
From 2015, in accordance with Article 8 (Designation of Business Entities Eligible for Allocation) of the Act on the Allocation and Trading of Greenhouse-Gas Emission Permits, the Company is an eligible business entity under the Act.
Samsung Electronics Business Report
355 / 413
D. Certification as health-friendly company
The Company operates various medical facilities--including an in-house clinic, physiotherapy room, musculoskeletal disorder prevention center, and mental health clinic--to promote employee health, and through health promotion programs, the Company helps employees care for their own health. In recognition of our efforts, the DS Division was certified as a health-friendly company by the Minister of Health and Welfare on December 7, 2022, pursuant to Article 6-2 Paragraph 1 of the National Health Promotion Act (Validity period: December 7, 2022December 6, 2025).
Samsung Electronics Business Report
356 / 413
XII. Appendix
1. Subsidiaries subject to consolidated financial statements (detailed)
As of December 31, 2022, Samsung Electronics' consolidated subsidiaries numbered 232 with the addition of 8 subsidiaries
and reduction of 4 subsidiary when compared to totals as of December 31, 2021. Below is the list of consolidated
subsidiaries.
Subsidiary
Date established
Major business
Assets as of Dec 31, 2022
(KRW mil)
Ownership
Classified as major subsidiary
(Y/N)
Samsung Electronics America, Inc. (SEA)
Jul 1978 Electronic goods sales
37,883,156 Over 50%
Y
Samsung International, Inc. (SII)
Oct 1983 Electronic goods production
1,595,348 Over 50%
Y
Samsung Mexicana S.A. de C.V (SAMEX)
Mar 1988 Electronic goods production
114,887 Over 50%
Y
Samsung Electronics Home Appliances America, LLC (SEHA) Aug 2017 Home appliance production
1,004,065 Over 50%
Y
Samsung Research America, Inc (SRA)
Oct 1988 R&D
824,812 Over 50%
Y
SAMSUNG NEXT LLC (SNX) SAMSUNG NEXT FUND LLC (SNXF) NeuroLogica Corp.
Aug 2016 Aug 2016 Feb 2004
Subsidiary management (overseas)
Tech/emerging-tech venture firm investments
Medical device production and sales
190,103 Over 50%
Y
305,097 Over 50%
Y
236,677 Over 50%
Y
Samsung HVAC America, LLC
Jul 2001 Air conditioner sales
62,570 Over 50%
N
Joyent, Inc.
Mar 2005 Cloud services
190,791 Over 50%
Y
Dacor Holdings, Inc.
Dec 1998 Subsidiary management (overseas)
8,533 Over 50%
N
Dacor, Inc.
Mar 1965 Home appliance production and sales
8,457 Over 50%
N
SmartThings, Inc. TeleWorld Solutions, Inc. (TWS) Samsung Semiconductor, Inc. (SSI)
Apr 2012 May 2002 Jul 1983
Smart home platform
Network equipment installation and optimization
Semiconductor and display panel sales
205,450 Over 50%
Y
31,801 Over 50%
N
12,199,102 Over 50%
Y
Samsung Austin Semiconductor LLC. (SAS)
Feb 1996 Semiconductor production
9,301,017 Over 50%
Y
Samsung Oak Holdings, Inc. (SHI)
Jun 2016 Subsidiary management (overseas)
550,459 Over 50%
Y
SEMES America, Inc.
Oct 1998 Semiconductor equipment services
2,292 Over 50%
N
Samsung Electronics Canada, Inc. (SECA)
Jul 1980 Electronic goods sales
1,652,195 Over 50%
Y
AdGear Technologies Inc.
Aug 2010 Digital advertising platform
125,162 Over 50%
Y
Samsung Eletronica da Amazonia Ltda. (SEDA)
Jan 1995 Electronic goods production and sales
4,600,508 Over 50%
Y
Samsung Electronics Mexico S.A. De C.V. (SEM)
Samsung Electronics Digital Appliance Mexico, SA de CV (SEDAM) Samsung Electronics Latinoamerica (Zona Libre), S. A. (SELA)
Samsung Electronics Latinoamerica Miami, Inc. (SEMI)
Jul 1995 Dec 2012 Apr 1989 May 1995
Electronic goods sales Home appliance production Electronic goods sales Electronic goods sales
1,816,895 Over 50%
Y
1,257,964 Over 50%
Y
1,234,491 Over 50%
Y
395,124 Over 50%
Y
Samsung Electronica Colombia S.A. (SAMCOL)
Mar 1997 Electronic goods sales
487,904 Over 50%
Y
Samsung Electronics Business Report
357 / 413
Subsidiary
Samsung Electronics Argentina S.A. (SEASA) Samsung Electronics Chile Limitada (SECH) Samsung Electronics Peru S.A.C. (SEPR) Samsung Electronics Venezuela, C.A. (SEVEN) Samsung Electronics Panama. S.A. (SEPA) Harman International Industries, Inc. Harman Becker Automotive Systems, Inc. Harman Connected Services, Inc. Harman Connected Services Engineering Corp. Harman da Amazonia Industria Eletronica e Participacoes Ltda. Harman de Mexico, S. de R.L. de C.V. Harman do Brasil Industria Eletronica e Participacoes Ltda. Harman Financial Group LLC Harman International Industries Canada Ltd. Harman International Mexico, S. de R.L. de C.V. Harman KG Holding, LLC Harman Professional, Inc. Beijing Integrated Circuit Industry International Fund, L.P China Materialia New Materials 2016 Limited Partnership Samsung Electronics (UK) Ltd. (SEUK) Samsung Electronics Ltd. (SEL) Samsung Semiconductor Europe Limited (SSEL) Samsung Electronics GmbH (SEG) Samsung Electronics Holding GmbH (SEHG) Samsung Semiconductor Europe GmbH (SSEG) Samsung Electronics France S.A.S (SEF) Samsung Electronics Italia S.P.A. (SEI) Samsung Electronics Iberia, S.A. (SESA) Samsung Electronics Portuguesa, Unipessoal, Lda. (SEP) Samsung Electronics Hungarian Private Co. Ltd. (SEH) Samsung Electronics Europe Logistics B.V. (SELS) Samsung Electronics Benelux B.V. (SEBN)
Date established
Major business
Jun 1996 Marketing and services
Dec 2002 Electronic goods sales
Apr 2010 Electronic goods sales
May 2010 Marketing and services
Jul 2012 Consulting
Jan 1980 Jun 1981 Feb 2002
Subsidiary management (overseas)
Audio product production, sales, and R&D
Connected Service Provider
Sep 2004 Connected Service Provider
Jul 2005 Audio product production and sales
Feb 1997 Audio product production
Nov 1958 Audio product sales and R&D
Jun 2004 Management Company
May 2005 Audio product sales
Dec 2014 Audio product sales
Mar 2009 Subsidiary management (overseas)
Jul 2006 Audio product sales and R&D
Dec 2014 Venture firm investments
Sep 2017 Venture firm investments
Jul 1995 Electronic goods sales
Jan 1999 Subsidiary management (overseas)
Apr 1997 Semiconductor and display panel sales
Dec 1984 Electronic goods sales
Feb 1982 Subsidiary management (overseas)
Dec 1987 Semiconductor and display panel sales
Jan 1988 Electronic goods sales
Apr 1991 Electronic goods sales
Jan 1989 Electronic goods sales
Sep 1982 Electronic goods sales
Oct 1989 Electronic goods production and sales
May 1991 Logistics
Jul 1995 Electronic goods sales
Assets as of Dec 31, 2022
102,325
Ownership Over 50%
Classified as major subsidiary
(Y/N)
Y
646,185 Over 50%
Y
357,460 Over 50%
Y
37 Over 50%
N
5,636 Over 50%
N
15,627,849 Over 50%
Y
2,930,229 Over 50%
Y
2,249,385 Over 50%
Y
2,980 Over 50%
N
134,845 Over 50%
Y
180,271 Over 50%
Y
273,861 Over 50%
Y
755 Over 50%
N
313 Over 50%
N
31,954 Over 50%
N
- Over 50%
N
892,007 Over 50%
Y
13,443 Over 50%
N
8,089 Over 50%
N
2,819,792 Over 50%
Y
6,711 Over 50%
N
102,683 Over 50%
Y
1,968,273 Over 50%
Y
651,158 Over 50%
Y
816,633 Over 50%
Y
1,053,910 Over 50%
Y
959,801 Over 50%
Y
1,098,852 Over 50%
Y
273,915 Over 50%
Y
2,374,317 Over 50%
Y
2,194,975 Over 50%
Y
2,377,730 Over 50%
Y
Samsung Electronics Business Report
358 / 413
Subsidiary
Samsung Electronics Europe Holding Cooperatief U.A. (SEEH) Samsung Electronics Nordic Aktiebolag (SENA) Samsung Electronics Slovakia s.r.o (SESK) Samsung Display Slovakia, s.r.o. (SDSK) Samsung Electronics Polska, SP.Zo.o (SEPOL) Samsung Electronics Poland Manufacturing SP.Zo.o (SEPM) Samsung Electronics Romania LLC (SEROM) Samsung Electronics Austria GmbH (SEAG) Samsung Electronics Switzerland GmbH (SESG) Samsung Electronics Czech and Slovak s.r.o. (SECZ) SAMSUNG ELECTRONICS BALTICS SIA (SEB) Samsung Electronics Greece S.M.S.A (SEGR) Samsung Electronics Air Conditioner Europe B.V. (SEACE) Samsung Nanoradio Design Center (SNDC) Samsung Denmark Research Center ApS (SDRC) Samsung Cambridge Solution Centre Limited (SCSC) Samsung Zhilabs, S.L. FOODIENT LTD. Samsung Electronics Rus Company LLC (SERC) Samsung Electronics Rus Kaluga LLC (SERK) Samsung Electronics Ukraine Company LLC (SEUC) Samsung R&D Institute Ukraine (SRUKR) Samsung Electronics Central Eurasia LLP (SECE) Samsung Electronics Overseas B.V. (SEO) Samsung R&D Institute Rus LLC (SRR) Samsung Electronics Caucasus Co. Ltd (SECC) Samsung Electronics Uzbekistan Ltd. (SEUZ) AKG Acoustics Gmbh Apostera UA, LLC Harman Audio Iberia Espana Sociedad Limitada Harman Automotive UK Limited Harman Becker Automotive Systems GmbH
Date established
Major business
Oct 2008 Subsidiary management (overseas)
Mar 1992 Electronic goods sales
Jun 2002 TV and monitor production
Mar 2007 Display panel processing
Apr 1996 Electronic goods sales
Feb 2010 Home appliance production
Sep 2007 Electronic goods sales
Jan 2002 Electronic goods sales
May 2013 Electronic goods sales
Jan 2010 Electronic goods sales
Oct 2001 Electronic goods sales
Apr 2010 Electronic goods sales
Apr 2017 Air conditioner sales
Feb 2004 R&D
Sep 2012 R&D
Sep 2012 R&D
Nov 2008 Network solution R&D and sales
Mar 2012 R&D
Oct 2006 Electronic goods sales
Jul 2007 TV production
Sep 2008 Electronic goods sales
Feb 2022 R&D
Sep 2008 Electronic goods sales
Jan 1997 Electronic goods sales
Nov 2011 R&D
Oct 2014 Marketing
Mar 2022 Marketing
Mar 1947 Audio product production and sales
Oct 2020 Connected Service Provider
Nov 2012 Audio product sales
Oct 2012 Jul 1990
Audio product production
Audio product production, sales, and R&D
Assets as of Dec 31, 2022
10,841,515
Ownership Over 50%
Classified as major subsidiary
(Y/N)
Y
697,034 Over 50%
Y
1,585,901 Over 50%
Y
28,179 Over 50%
N
1,172,265 Over 50%
Y
808,474 Over 50%
Y
371,708 Over 50%
Y
574,106 Over 50%
Y
390,327 Over 50%
Y
344,331 Over 50%
Y
146,994 Over 50%
Y
129,431 Over 50%
Y
286,316 Over 50%
Y
26,918 Over 50%
N
24,563 Over 50%
N
170,489 Over 50%
Y
9,812 Over 50%
N
2,349 Over 50%
N
876,346 Over 50%
Y
1,149,970 Over 50%
Y
244,279 Over 50%
Y
8,119 Over 50%
N
606,726 Over 50%
Y
1,960 Over 50%
N
52,581 Over 50%
N
2,500 Over 50%
N
6,418 Over 50%
N
350,440 Over 50%
Y
631 Over 50%
N
1,399 Over 50%
N
- Over 50%
N
3,962,309 Over 50%
Y
Samsung Electronics Business Report
359 / 413
Subsidiary
Date established
Major business
Harman Becker Automotive Systems Italy S.R.L. Harman Becker Automotive Systems Manufacturing Kft Harman Belgium SA Harman Connected Services AB. Harman Finland Oy Harman Connected Services GmbH Harman Connected Services Poland Sp.zoo Harman Connected Services UK Ltd. Harman Consumer Nederland B.V. Harman Deutschland GmbH Harman Finance International GP S.a.r.l Harman France SNC Harman Holding Gmbh & Co. KG Harman Hungary Financing Ltd. Harman Inc. & Co. KG Harman International Estonia OU Harman International Industries Limited Harman International Romania SRL Harman Finance International, SCA Harman Management Gmbh Harman Professional Kft Harman Professional Denmark ApS Red Bend Software Ltd. Red Bend Software SAS Studer Professional Audio GmbH Harman Connected Services OOO Harman RUS CIS LLC Samsung Gulf Electronics Co., Ltd.(SGE) Samsung Electronics Turkiye (SETK) Samsung Electronics Industry and Commerce Ltd. (SETK-P) Samsung Electronics Levant Co.,Ltd. (SELV) Samsung Electronics Maghreb Arab (SEMAG)
Dec 2005 Audio product sales Aug 1994 Audio product R&D and production Apr 1967 Audio product sales Oct 1984 Connected Service Provider Jul 1998 Connected Service Provider Dec 2005 Connected Service Provider Jun 2007 Connected Service Provider Sep 2008 Connected Service Provider Dec 1995 Audio product sales Mar 1998 Audio product sales Apr 2015 Subsidiary management (overseas) Nov 1995 Audio product sales Jun 2002 Management Company Jun 2012 Financing Company Jun 2012 Subsidiary management (overseas) May 2015 R&D Mar 1980 Audio product sales and R&D Feb 2015 R&D Apr 2015 Financing Company Apr 2002 Subsidiary management (overseas) Dec 2014 Audio product R&D and production Jul 1987 Audio product sales and R&D Aug 2004 Software design Oct 2002 Software design Nov 2003 Audio product sales and R&D Nov 1998 Connected Service Provider Aug 2011 Audio product sales May 1995 Electronic goods sales Dec 1984 Electronic goods sales Feb 2021 Electronic goods production Jul 2009 Electronic goods sales Nov 2009 Electronic goods sales
Assets as of Dec 31, 2022
1,047
Ownership Over 50%
Classified as major subsidiary
(Y/N)
N
3,291,277 Over 50%
Y
2,944 Over 50%
N
12,527 Over 50%
N
- Over 50%
N
51,968 Over 50%
N
10,015 Over 50%
N
54,603 Over 50%
N
489,585 Over 50%
Y
13,547 Over 50%
N
- Over 50%
N
167,450 Over 50%
Y
5,700,548 Over 50%
Y
45,415 Over 50%
N
4,540,799 Over 50%
Y
232 Over 50%
N
79,014 Over 50%
Y
17,145 Over 50%
N
10,320 Over 50%
N
- Over 50%
N
68,463 Over 50%
N
55,117 Over 50%
N
- Over 50%
N
7,259 Over 50%
N
4,586 Over 50%
N
37,721 Over 50%
N
52,838 Over 50%
N
1,031,216 Over 50%
Y
693,954 Over 50%
Y
130,961 Over 50%
Y
262,165 Over 50%
Y
291,185 Over 50%
Y
Samsung Electronics Business Report
360 / 413
Subsidiary
Date established
Major business
Samsung Electronics Egypt S.A.E (SEEG) Samsung Electronics Israel Ltd. (SEIL) Samsung Electronics Tunisia S.A.R.L (SETN) Samsung Electronics Pakistan(Private) Ltd. (SEPAK) Samsung Electronics Saudi Arabia Ltd. (SESAR) Samsung Semiconductor Israel R&D Center, Ltd. (SIRC) Corephotonics Ltd. Samsung Electronics South Africa(Pty) Ltd. (SSA) Samsung Electronics South Africa Production (pty) Ltd. (SSAP) Samsung Electronics West Africa Ltd. (SEWA) Samsung Electronics East Africa Ltd. (SEEA) Global Symphony Technology Group Private Ltd. Harman Connected Services Morocco Harman Industries Holdings Mauritius Ltd. Red Bend Ltd. Samsung Asia Pte. Ltd. (SAPL) Samsung Electronics Singapore Pte. Ltd. (SESP) Samsung Malaysia Electronics (SME) Sdn. Bhd. (SME) Samsung Electronics Display (M) Sdn. Bhd. (SDMA) Samsung Electronics (M) Sdn. Bhd. (SEMA) Samsung Vina Electronics Co., Ltd. (SAVINA) Samsung Electronics Vietnam Co., Ltd. (SEV) Samsung Electronics Vietnam THAINGUYEN Co., Ltd. (SEVT) Samsung Electronics HCMC CE Complex Co., Ltd. (SEHC) Samsung Display Vietnam Co., Ltd. (SDV) DOWOOINSYS VINA COMPANY LIMITED PT Samsung Electronics Indonesia (SEIN) PT Samsung Telecommunications Indonesia (STIN) Thai Samsung Electronics Co., Ltd. (TSE) Laos Samsung Electronics Sole Co., Ltd (LSE) Samsung Electronics Philippines Corporation (SEPCO) Samsung Electronics Australia Pty. Ltd. (SEAU)
Jul 2012 Electronic goods production and sales Sep 2012 Marketing Sep 2012 Marketing Nov 2012 Marketing Nov 2019 Electronic goods sales Oct 2007 R&D Jan 2012 R&D Jun 1994 Electronic goods sales Jul 2014 TV and monitor production Mar 2010 Marketing Dec 2011 Marketing Jan 2002 Subsidiary management (overseas) Apr 2012 Connected Service Provider Oct 2009 Subsidiary management (overseas) Feb 1998 Audio product production Jul 2006 Subsidiary management (overseas) Oct 2020 Electronic goods sales May 2003 Electronic goods sales Mar 1995 Electronic goods production Sep 1989 Home appliance production Jan 1995 Electronic goods sales Mar 2008 Electronic goods production Mar 2013 Telecom product production Feb 2015 Electronic goods production and sales Jul 2014 Display panel production Jun 2022 Display panel component production Aug 1991 Electronic goods production and sales Mar 2003 Electronic goods sales and service Oct 1988 Electronic goods production and sales Sep 2016 Marketing Mar 1996 Electronic goods sales Nov 1987 Electronic goods sales
Assets as of Dec 31, 2022
1,055,570
Ownership Over 50%
Classified as major subsidiary
(Y/N)
Y
16,764 Over 50%
N
5,294 Over 50%
N
3,765 Over 50%
N
469,588 Over 50%
Y
153,328 Over 50%
Y
21,964 Over 50%
N
573,688 Over 50%
Y
81,698 Over 50%
Y
33,487 Over 50%
N
18,273 Over 50%
N
61,038 Over 50%
N
73 Over 50%
N
93,636 Over 50%
Y
129,006 Over 50%
Y
26,894,611 Over 50%
Y
625,194 Over 50%
Y
541,255 Over 50%
Y
24,689 Over 50%
N
278,943 Over 50%
Y
129,160 Over 50%
Y
10,931,037 Over 50%
Y
15,718,299 Over 50%
Y
3,732,057 Over 50%
Y
7,471,680 Over 50%
Y
58,171 Over 50%
N
883,023 Over 50%
Y
58,012 Over 50%
N
3,263,473 Over 50%
Y
1,099 Over 50%
N
353,596 Over 50%
Y
593,991 Over 50%
Y
Samsung Electronics Business Report
361 / 413
Subsidiary
Date established
Major business
Samsung Electronics New Zealand Limited (SENZ) Samsung India Electronics Private Ltd. (SIEL) Red Brick Lane Marketing Solutions Pvt. Ltd. Samsung Display Noida Private Limited (SDN) Samsung R&D Institute India-Bangalore Private Limited (SRIBangalore) Samsung R&D Institute BanglaDesh Limited (SRBD) Samsung Nepal Services Pvt, Ltd (SNSL) Samsung Japan Corporation (SJC) Samsung R&D Institute Japan Co. Ltd. (SRJ) Samsung Electronics Japan Co., Ltd. (SEJ) Harman Connected Services Corp. India Pvt. Ltd. Harman International (India) Private Limited Harman International Industries PTY Ltd. Harman International Japan Co., Ltd. Harman Singapore Pte. Ltd. Samsung (CHINA) Investment Co., Ltd. (SCIC) Samsung Electronics Hong Kong Co., Ltd. (SEHK) Samsung Electronics Taiwan Co., Ltd. (SET) Tianjin Samsung Electronics Co., Ltd. (TSEC) Suzhou Samsung Electronics Co., Ltd. (SSEC) Samsung Suzhou Electronics Export Co., Ltd. (SSEC-E) Samsung Electronics Suzhou Computer Co., Ltd. (SESC) Tianjin Samsung Telecom Technology Co., Ltd. (TSTC) Beijing Samsung Telecom R&D Center (SRC-Beijing) Samsung Electronics China R&D Center (SRC-Nanjing) Samsung Mobile R&D Center China- Guangzhou (SRCGuangzhou) Samsung R&D Institute China-Shenzhen (SRC-Shenzhen) Shanghai Samsung Semiconductor Co., Ltd. (SSS) Samsung (China) Semiconductor Co., Ltd. (SCS) Samsung SemiConductor Xian Co., Ltd. (SSCX) Samsung Electronics Suzhou Semiconductor Co., Ltd. (SESS) Tianjin Samsung LED Co., Ltd. (TSLED)
Sep 2013 Electronic goods sales Aug 1995 Electronic goods production and sales Jan 2012 Marketing Jul 2019 Display panel production May 2005 R&D Aug 2010 R&D Nov 2017 Service Dec 1975 Semiconductor and display panel sales Aug 1992 R&D Sep 2008 Electronic goods sales Apr 2002 Connected Service Provider Jan 2009 Audio product sales and R&D Dec 2014 Subsidiary management (overseas) Jun 1991 Audio product sales and R&D Aug 2007 Audio product sales Mar 1996 Electronic goods sales Sep 1988 Electronic goods sales Nov 1994 Electronic goods sales Apr 1993 TV and monitor production Apr 1995 Home appliance production Apr 1995 Home appliance production Sep 2002 R&D Mar 2001 Telecom product production Sep 2000 R&D May 2004 R&D Jan 2010 R&D Mar 2013 R&D Oct 2001 Semiconductor and display panel sales Sep 2012 Semiconductor production Apr 2016 Semiconductor and display panel sales Dec 1994 Semiconductor processing May 2009 LED production
Assets as of Dec 31, 2022
178,053
Ownership Over 50%
Classified as major subsidiary
(Y/N)
Y
6,772,537 Over 50%
Y
2,082 Over 50%
N
597,383 Over 50%
Y
351,226 Over 50%
Y
16,386 Over 50%
N
506 Over 50%
N
1,445,517 Over 50%
Y
157,868 Over 50%
Y
906,235 Over 50%
Y
305,295 Over 50%
Y
370,100 Over 50%
Y
- Over 50%
N
77,535 Over 50%
Y
14,332 Over 50%
N
13,830,988 Over 50%
Y
1,366,841 Over 50%
Y
1,364,801 Over 50%
Y
392,205 Over 50%
Y
668,331 Over 50%
Y
504,994 Over 50%
Y
150,161 Over 50%
Y
643,732 Over 50%
Y
106,400 Over 50%
Y
25,344 Over 50%
N
109,198 Over 50%
Y
38,911 Over 50%
N
5,067,891 Over 50%
Y
17,095,000 Over 50%
Y
906,967 Over 50%
Y
1,494,205 Over 50%
Y
509,355 Over 50%
Y
Samsung Electronics Business Report
362 / 413
Subsidiary
Date established
Major business
Samsung Semiconductor (China) R&D Co., Ltd. (SSCR) Samsung Display Dongguan Co., Ltd. (SDD) Samsung Display Tianjin Co., Ltd. (SDT) SEMES (XIAN) Co., Ltd. Samsung Semiconductor Investment L.P. Harman (China) Technologies Co., Ltd. Harman (Suzhou) Audio and Infotainment Systems Co., Ltd. Harman Automotive Electronic Systems (Suzhou) Co., Ltd. Harman Commercial (Shanghai) Co., Ltd. Harman Connected Services Solutions (Chengdu) Co., Ltd. Harman Holding Limited Harman International (China) Holdings Co., Ltd. Harman Technology (Shenzhen) Co., Ltd. Samsung Display SU Materials STECO SEMES Samsung Electronics Service Samsung Electronics Service CS Samsung Electronics Sales Samsung Electronics Logitech Samsung Medison Stellarforest Mirero System Dowoo Insys GF Co., Ltd. Harman Korea SVIC #21 Venture Capital Union SVIC #22 Venture Capital Union SVIC #26 Venture Capital Union SVIC #28 Venture Capital Union
Apr 2003 R&D
Nov 2001 Display panel production
Jun 2004 Jul 2013 Dec 2021 Mar 2011
Display panel production
Semiconductor/FPD equipment services Tech/emerging-tech venture firm investments
Audio product production
Mar 2013 Audio product sales
Sep 2006 Audio product R&D and production
Oct 2010 Audio product sales
Aug 2007 Connected Service Provider
May 2007 Audio product sales
Jun 2009 Audio product sales and R&D
Sep 2004 Audio product sales and R&D
Apr 2012 Display panel production and sales
Aug 2011 Display panel component production
Jun 1995 Jan 1993 Oct 1998
Semiconductor component production
Semiconductor/FPD manufacturing equipment production and sales
Electronics goods repair services
Oct 2018 Customer management services
Jul 1996 Electronic goods sales
Apr 1998 Total logistics services
Jul 1985 Medical device production and sales
Dec 2022 Jan 1994 Mar 2010
Food manufacturing and processing
Semiconductor software development and supply
Display panel component production
Oct 2015 Jan 2005 Nov 2011 Nov 2011 Nov 2014 Feb 2015
Display panel component production
Semiconductor software development and supply Tech/emerging-tech venture firm investments Tech/emerging-tech venture firm investments Tech/emerging-tech venture firm investments Tech/emerging-tech venture firm investments
Assets as of Dec 31, 2022
76,826
Ownership Over 50%
Classified as major subsidiary
(Y/N)
Y
2,135,132 Over 50%
Y
1,446,605 Over 50%
Y
3,712 Over 50%
N
14,754 Over 50%
N
181,150 Over 50%
Y
9,890 Over 50%
N
351,647 Over 50%
Y
347 Over 50%
N
10,427 Over 50%
N
765,662 Over 50%
Y
589,116 Over 50%
Y
48,247 Over 50%
N
57,302,567 Over 50%
Y
36,204 Over 50%
N
133,987 Over 50%
Y
2,065,558 Over 50%
Y
711,020 Over 50%
Y
15,593 Over 50%
N
1,393,235 Over 50%
Y
415,659 Over 50%
Y
528,834 Over 50%
Y
895 Over 50%
N
39,440 Over 50%
N
128,665 Over 50%
Y
7,241 Over 50%
N
24,424 Over 50%
N
82,214 Over 50%
Y
56,370 Over 50%
N
50,614 Over 50%
N
370,503 Over 50%
Y
Samsung Electronics Business Report
363 / 413
Subsidiary
Date established
Major business
Assets as of Dec 31, 2022
SVIC #29 Venture Capital Union SVIC #32 Venture Capital Union SVIC #33 Venture Capital Union SVIC #37 Venture Capital Union SVIC #40 Venture Capital Union SVIC #42 Venture Capital Union SVIC #43 Venture Capital Union SVIC #45 Venture Capital Union SVIC #48 Venture Capital Union SVIC #52 Venture Capital Union SVIC #55 Venture Capital Union SVIC #56 Venture Capital Union SVIC #57 Venture Capital Union
Apr 2015 Aug 2016 Nov 2016 Nov 2017 Jun 2018 Nov 2018 Dec 2018 May 2019 Dec 2019 May 2021 Sep 2021 Nov 2021 Aug 2022
Tech/emerging-tech venture firm investments Tech/emerging-tech venture firm investments Tech/emerging-tech venture firm investments Tech/emerging-tech venture firm investments Tech/emerging-tech venture firm investments Tech/emerging-tech venture firm investments Tech/emerging-tech venture firm investments Tech/emerging-tech venture firm investments Tech/emerging-tech venture firm investments Tech/emerging-tech venture firm investments Tech/emerging-tech venture firm investments Tech/emerging-tech venture firm investments Tech/emerging-tech venture firm investments
Private Equity Fund for Semiconductor Growth
Mar 2017 Semiconductor industry investments
Private Equity Fund for Co-existence of System Semiconductor Firms
Apr 2020 Semiconductor industry investments
Companies with over KRW 75 billion in total assets as of December 31, 2022 are classified as major subsidiaries.
See II. Businesses Overview for detailed information about major business segments.
27,519 283,547 334,846 22,549 40,354 35,845 11,034 221,274 75,744 46,829 136,758 31,135 18,681 69,862 79,664
Ownership
Over 50% Over 50% Over 50% Over 50% Over 50% Over 50% Over 50% Over 50% Over 50% Over 50% Over 50% Over 50% Over 50% Over 50% Over 50%
Classified as major subsidiary
(Y/N) N Y Y N N N N Y Y N Y N N N Y
Samsung Electronics Business Report
364 / 413
(Changes in subsidiaries)
Americas
Europe/ CIS
MEA/Africa
Asia ex China
China
Domestic
Total
Increase
Decrease
As of
Dec 31
54
75
19 30 34
28 240 -
-
2019
Changes in 2020
1
-
-
- (1)
[Americas: 4]
[Americas: 3]
TeleWorld Solutions, Inc. (TWS)
Harman Connected Services South America
TWS LATAM B, LLC
S.R.L.
TWS LATAM S, LLC
EverythingDacor.com, Inc.
1
1
SNB Technologies, Inc. Mexico, S.A. de C.V [Asia ex China: 1]
Distinctive Appliances of California, Inc. [Asia ex China: 1]
Samsung Electronics Singapore Pte. Ltd. (SESP)
Martin Professional Pte. Ltd.
[Domestic: 1]
[China: 1]
Private Equity Fund for Co-existence of System Samsung Tianjin Mobile Development Center
Semiconductor Firms
(SRC-Tianjin)
As of
Dec 31
55
75
19 30 33
29 241 -
-
2020
Changes in 2021
(9)
(4)
1
- (3)
[Americas: 9]
Viv Labs. Inc.
Stellus Technologies, Inc.
SigMast Communications Inc.
Prismview, LLC
Zhilabs, Inc.
TWS LATAM B, LLC
[China: 1]
TWS LATAM S, LLC
Samsung Semiconductor Investment L.P.
SNB Technologies, Inc. Mexico, S.A. de C.VRT SV CO-INVEST, LP
[MEA/Africa: 1]
[Europe/CIS: 4]
2
(13)
Samsung (SETK-P)
Electronics
Industry
and
Commerce
Ltd.
Arcam Limited A&R Cambridge Limited
[Domestic: 3]
Harman Connected Services Limited
SVIC #52 Venture Capital Union
Martin Manufacturing (UK) Ltd.
SVIC #55 Venture Capital Union
[China: 4]
SVIC #56 Venture Capital Union
Samsung Suzhou Module Co., Ltd. (SSM)
Samsung Suzhou LCD Co., Ltd. (SSL)
Samsung Electronics Huizhou Co.,
Ltd.(SEHZ)
Shenzhen Samsung Electronics
Telecommunication Co., Ltd.(SSET)
[Domestic: 1]
SVIC #27 Venture Capital Union
As of
Dec 31
46
71
20 30 30
31 228 -
-
2021
Changes in 2022
(1)
1
-
2
-
[Europe/CIS: 4] Samsung R&D Institute Ukraine (SRUKR) Samsung Electronics Uzbekistan Ltd. (SEUZ) Apostera GmbH Apostera UA, LLC
2 4 [Asia ex China: 2] DOWOOINSYS VINA COMPANY LIMITED Red Brick Lane Marketing Solutions Pvt. Ltd.
[Domestic: 2] SVIC #57 Venture Capital Union Stellarforest
[Americas: 1] Dacor Canada Co.
[Europe/CIS: 3] AMX UK Limited Harman International s.r.o Apostera GmbH
As of
Dec 31
45
72
20 32 30
33 232 -
-
2022
Samsung Electronics Business Report
365 / 413
2. Affiliates
A. Domestic Affiliates
As of December 31, 2022, Samsung Group is consisted of 63 domestic affiliates. Among the Samsung Group's 63 domestic affiliates, sixteen (16) affiliates including Samsung Electronics are listed, and forty-seven (47) affiliates are unlisted.
[As of December 31, 2022]
Listing Listed
Unlisted Total
No. of affiliates
16
47
63
Name of affiliates
Samsung C&T; Samsung Biologics; Samsung Life Insurance; Samsung SDI; Samsung SDS; Samsung Engineering; Samsung Electro-mechanics; Samsung Electronics; Samsung Heavy Industries; Samsung Securities; Samsung Card; Samsung Fire & Marine Insurance; Multicampus; S1; Cheil Worldwide; Hotel Shilla
Samsung Display; Samsung Medison; Samsung Bioepis; Samsung Venture Investment Corporation; Samsung Life Service; Samsung Futures; Samsung Active Asset Management; Samsung SRA Asset Management; SamsungFN REIT Co.,Ltd; Samsung Welstory; Samsung Asset Management; Samsung Electronics Logitech; Samsung Electronics Service; Samsung Electronics Service CS; Samsung Electronics Sales; Samsung Card Customer Service; Samsung Corning Advanced Glass; Samsung Hedge Asset Management; Samsung Fire & Marine Insurance Service; Samsung Claim Adjustment Service; SUNGKYUNKWAN Holdings Co., Ltd.; SEMES; Suwon Samsung Bluewings FC; STECO; Shilla HM; SD Flex; SBTM; S-1CRM; SU Materials; S-Core; STM; HDC Shilla Duty Free LTD; OpenHands; Cheil Fashion Retail Co., Ltd.; Miracom; Samsung global research(SGR); Samsung Lions; Samsung Life Financial Service; Samsung Fire & Marine Insurance Financial Service; Samwoo Architects & Engineers; Seoul Lakeside CC; SECUI; CVnet Corporation; SHP Corporation; Harman International Korea; Human TSS; Stellarforest
Samsung Electronics Business Report
366 / 413
B. Foreign Affiliates
[As of December 31, 2022]
Listing Unlisted
No. of affiliates
573
Name of affiliates
SAMOO AUSTIN INC SAMOO HU Designer and Engineering Services Limited SAMOO DESIGNERS & ENGINEERS INDIA PRIVATE LIMITED SAMOO (KL) SDN. BHD. SAMOO Design Consulting Co.,Ltd Meadowland Distribution Samsung Green repower, LLC Samsung Solar Construction Inc. QSSC, S.A. de C.V. Samsung Solar Energy LLC Equipment Trading Solutions Group, LLC SP Armow Wind Ontario LP SRE GRW EPC GP Inc. SRE GRW EPC LP SRE SKW EPC GP Inc. SRE SKW EPC LP SRE WIND PA GP INC. SRE WIND PA LP SRE GRS Holdings GP Inc. SRE GRS Holdings LP SRE K2 EPC GP Inc. SRE K2 EPC LP SRE KS HOLDINGS GP INC. SRE KS HOLDINGS LP SP Belle River Wind LP SRE Armow EPC GP Inc. SRE Armow EPC LP North Kent Wind 1 LP SRE Wind GP Holding Inc. South Kent Wind LP Inc. Grand Renewable Wind LP Inc. SRE North Kent 2 LP Holdings LP SRE Solar Development GP Inc. SRE Solar Development LP SRE Windsor Holdings GP Inc. SRE Southgate Holdings GP Inc. SRE Solar Construction Management GP Inc. SRE Solar Construction Management LP SRE BRW EPC GP INC. SRE BRW EPC LP
Country
USA Hungary
India Malaysia
China USA USA USA Mexico USA USA Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada Canada
Samsung Electronics Business Report
367 / 413
Listing
No. of affiliates
Name of affiliates
SRE North Kent 1 GP Holdings Inc SRE North Kent 2 GP Holdings Inc SRE Belle River GP Holdings Inc SRE NK1 EPC GP Inc SRE NK1 EPC LP SRE Summerside Construction GP Inc. SRE Summerside Construction LP Monument Power, LLC PLL Holdings LLC PLL E&P LLC Parallel Petroleum LLC Grand Renewable Solar GP Inc. KINGSTON SOLAR GP INC. SP Armow Wind Ontario GP Inc South Kent Wind GP Inc. Grand Renewable Wind GP Inc. North Kent Wind 1 GP Inc SP Belle River Wind GP Inc Samsung Solar Energy 1 LLC Samsung Solar Energy 2 LLC Samsung Solar Energy 3, LLC CS SOLAR LLC 5S ENERGY HOLDINGS, LLC SungEel Recycling Park Thuringen GmbH POSS-SLPC, S.R.O Solluce Romania 1 B.V. S.C. Otelinox S.A WARIS GIGIH ENGINEERING AND TECHNOLOGY SDN. BHD. Samsung Chemtech Vina LLC Samsung C&T Thailand Co., Ltd PT. INSAM BATUBARA ENERGY Malaysia Samsung Steel Center Sdn.Bhd S&G Biofuel PTE.LTD PT. Gandaerah Hendana PT. Inecda VISTA CONTRACTING AND DEVELOPMENT BANGLADESH LTD. SAMSUNG CONST. CO. PHILS. SAMSUNG TRADING (SHANGHAI) CO., LTD Samsung Precision Stainless Steel(pinghu) Co.,Ltd. Samsung Japan Corporation Samsung R&D Institute Japan Co. Ltd. Samsung Electronics America, Inc. Samsung Electronics Canada, Inc.
Country
Canada Canada Canada Canada Canada Canada Canada
USA USA USA USA Canada Canada Canada Canada Canada Canada Canada USA USA USA USA USA Germany Slovakia Romania Romania Malaysia Vietnam Thailand Indonesia Malaysia Singapore Indonesia Indonesia Bangladesh Philippines China China Japan Japan USA Canada
Samsung Electronics Business Report
368 / 413
Listing
No. of affiliates
Name of affiliates
Samsung Electronics Mexico S.A. De C.V. Samsung Electronics Ltd. Samsung Electronics (UK) Ltd. Samsung Electronics Holding GmbH Samsung Electronics Iberia, S.A. Samsung Electronics France S.A.S Samsung Electronics Hungarian Private Co. Ltd. Samsung Electronics Italia S.P.A. Samsung Electronics Europe Logistics B.V. Samsung Electronics Benelux B.V. Samsung Electronics Overseas B.V. Samsung Electronics Polska, SP.Zo.o Samsung Electronics Portuguesa, Unipessoal, Lda. Samsung Electronics Nordic Aktiebolag Samsung Electronics Austria GmbH Samsung Electronics Slovakia s.r.o Samsung Electronics Europe Holding Cooperatief U.A. Samsung Electronics Display (M) Sdn. Bhd. Samsung Electronics (M) Sdn. Bhd. Samsung Vina Electronics Co., Ltd. Samsung Asia Pte. Ltd. Samsung India Electronics Private Ltd. Samsung R&D Institute India-Bangalore Private Limited Samsung Electronics Australia Pty. Ltd. PT Samsung Electronics Indonesia Thai Samsung Electronics Co., Ltd. Samsung Malaysia Electronics (SME) Sdn. Bhd. Samsung Electronics Hong Kong Co., Ltd. Suzhou Samsung Electronics Co., Ltd. Samsung (CHINA) Investment Co., Ltd. Samsung Electronics Suzhou Semiconductor Co., Ltd. Tianjin Samsung Electronics Co., Ltd. Samsung Electronics Taiwan Co., Ltd. Tianjin Samsung Telecom Technology Co., Ltd. Shanghai Samsung Semiconductor Co., Ltd. Samsung Electronics Suzhou Computer Co., Ltd. Samsung Semiconductor (China) R&D Co., Ltd. Samsung (China) Semiconductor Co., Ltd. Samsung SemiConductor Xian Co., Ltd. Samsung Gulf Electronics Co., Ltd. Samsung Electronics Egypt S.A.E Samsung Electronics South Africa(Pty) Ltd. Samsung Electronics Latinoamerica(Zona Libre), S. A.
Country
Mexico United Kingdom United Kingdom
Germany Spain France Hungary Italy
Netherlands Netherlands Netherlands
Poland Portugal Sweden Austria Slovakia Netherlands Malaysia Malaysia Vietnam Singapore
India India Australia Indonesia Thailand Malaysia Hong Kong China China China China Taiwan China China China China China China Utd.Arab Emir. Egypt South Africa Panama
Samsung Electronics Business Report
369 / 413
Listing
No. of affiliates
Name of affiliates
Samsung Eletronica da Amazonia Ltda. Samsung Electronics Argentina S.A. Samsung Electronics Chile Limitada Samsung Electronics Rus Company LLC Samsung Electronics Rus Kaluga LLC Tianjin Samsung LED Co., Ltd. Samsung Biologics America, Inc. Samsung Bioepis United States Inc. SAMSUNG BIOEPIS UK LIMITED Samsung Bioepis NL B.V. Samsung Bioepis CH GmbH Samsung Bioepis PL Sp z o.o. SAMSUNG BIOEPIS AU PTY LTD SAMSUNG BIOEPIS NZ LIMITED Samsung Biopeis TW Limited Samsung Bioepis HK Limited SAMSUNG BIOEPIS IL LTD SAMSUNG BIOEPIS BR PHARMACEUTICAL LTDA Intellectual Keystone Technology LLC Samsung Display Slovakia, s.r.o. Samsung Display Vietnam Co., Ltd. Samsung Display Noida Private Limited Samsung Display Dongguan Co., Ltd. Samsung Display Tianjin Co., Ltd. Novaled GmbH SEMES America, Inc. SEMES (XIAN) Co., Ltd. NeuroLogica Corp. Dacor Holdings, Inc. Samsung HVAC America, LLC SmartThings, Inc. Samsung Oak Holdings, Inc. Joyent, Inc. TeleWorld Solutions, Inc. Samsung Semiconductor, Inc. Samsung Research America, Inc Samsung Electronics Home Appliances America, LLC Samsung International, Inc. Harman International Industries, Inc. Dacor, Inc. Samsung Austin Semiconductor LLC. AdGear Technologies Inc. SAMSUNG NEXT LLC
Country
Brazil Argentina
Chile Russian Fed. Russian Fed.
China USA USA United Kingdom Netherlands Switzerland Poland Australia New Zealand Taiwan Hong Kong Israel Brazil USA Slovakia Vietnam India China China Germany USA China USA USA USA USA USA USA USA USA USA USA USA USA USA USA Canada USA
Samsung Electronics Business Report
370 / 413
Listing
No. of affiliates
Name of affiliates
SAMSUNG NEXT FUND LLC Samsung Mexicana S.A. de C.V Samsung Electronics Digital Appliance Mexico, SA de CV Harman International Japan Co., Ltd. Harman International Industries Canada Ltd. Harman Becker Automotive Systems, Inc. Harman Professional, Inc. Harman Connected Services, Inc. Harman Financial Group LLC Harman Belgium SA Harman France SNC Red Bend Software SAS Harman Inc. & Co. KG Harman KG Holding, LLC Harman Becker Automotive Systems Italy S.R.L. Harman Finance International, SCA Harman Finance International GP S.a.r.l Harman Industries Holdings Mauritius Ltd. Harman International Mexico, S. de R.L. de C.V. Harman International Estonia OU Harman Singapore Pte. Ltd. Harman da Amazonia Industria Eletronica e Participacoes Ltda. Harman do Brasil Industria Eletronica e Participacoes Ltda. Harman Connected Services Engineering Corp. Harman Connected Services AB. Harman Connected Services UK Ltd. Harman Connected Services Corp. India Pvt. Ltd. Global Symphony Technology Group Private Ltd. Harman International (India) Private Limited Harman de Mexico, S. de R.L. de C.V. Samsung Semiconductor Europe Limited Samsung Semiconductor Europe GmbH Samsung Electronics GmbH Samsung Electronics Czech and Slovak s.r.o. SAMSUNG ELECTRONICS BALTICS SIA Samsung Electronics West Africa Ltd. Samsung Electronics East Africa Ltd. Samsung Electronics Saudi Arabia Ltd. Samsung Electronics Israel Ltd. Samsung Electronics Tunisia S.A.R.L Samsung Electronics Pakistan(Private) Ltd. Samsung Electronics South Africa Production (pty) Ltd. Samsung Electronics Turkiye
Country
USA Mexico Mexico Japan Canada USA USA USA USA Belgium France France Germany USA
Italy Luxembourg Luxembourg
Mauritius Mexico Estonia Singapore Brazil Brazil USA Sweden United Kingdom India Mauritius India Mexico United Kingdom Germany Germany Czech Republic Latvia Nigeria Kenya Saudi Arabia Israel Tunisia Pakistan South Africa Turkiye
Samsung Electronics Business Report
371 / 413
Listing
No. of affiliates
Name of affiliates
Samsung Electronics Industry and Commerce Ltd. Samsung Semiconductor Israel R&D Center, Ltd. Samsung Electronics Levant Co.,Ltd. Samsung Electronics Maghreb Arab Samsung Electronics Venezuela, C.A. Samsung Electronics Peru S.A.C. Samsung Electronics Ukraine Company LLC Samsung R&D Institute Ukraine Samsung R&D Institute Rus LLC Samsung Electronics Central Eurasia LLP Samsung Electronics Caucasus Co. Ltd Samsung Electronics Uzbekistan Ltd. Corephotonics Ltd. Samsung Nanoradio Design Center Harman Professional Denmark ApS Studer Professional Audio GmbH Martin Professional Japan Ltd. Harman International Romania SRL Apostera UA, LLC Harman Becker Automotive Systems GmbH Harman Deutschland GmbH Harman Becker Automotive Systems Manufacturing Kft Harman RUS CIS LLC Harman Holding Gmbh & Co. KG Harman Management Gmbh Harman Hungary Financing Ltd. Harman Connected Services OOO Harman Professional Kft Harman Consumer Nederland B.V. Red Bend Ltd. Harman International Industries Limited AKG Acoustics Gmbh Harman Audio Iberia Espana Sociedad Limitada Harman Holding Limited Harman Finland Oy Harman Connected Services GmbH Harman Connected Services Poland Sp.zoo Harman Connected Services Solutions (Chengdu) Co., Ltd. Harman Automotive UK Limited Harman International Industries PTY Ltd. Harman Connected Services Morocco Samsung Electronics Switzerland GmbH Samsung Electronics Romania LLC
Country
Turkiye Israel Jordan Morocco Venezuela Peru Ukraine Ukraine Russian Fed. Kazakhstan Azerbaijan Uzbekistan Israel Sweden Denmark Switzerland Japan Romania Ukraine Germany Germany Hungary Russian Fed. Germany Germany Hungary Russian Fed. Hungary Netherlands Israel United Kingdom Austria Spain Hong Kong Finland Germany Poland China United Kingdom Australia Morocco Switzerland Romania
Samsung Electronics Business Report
372 / 413
Listing
No. of affiliates
Name of affiliates
SAMSUNG Zhilabs, S.L. Porta Nuova Varesine Building 2 S.r.l. Samsung Electronics Poland Manufacturing SP.Zo.o Samsung Electronics Greece S.M.S.A Samsung Electronics Air Conditioner Europe B.V. FOODIENT LTD. Samsung Denmark Research Center ApS Samsung Cambridge Solution Centre Limited iMarket Asia Co., Ltd. Samsung Electronics Japan Co., Ltd. Samsung Electronics Singapore Pte. Ltd. Samsung Electronics New Zealand Limited Samsung Electronics Philippines Corporation Samsung R&D Institute BanglaDesh Limited Samsung Electronics Vietnam Co., Ltd. Samsung Electronics Vietnam THAINGUYEN Co., Ltd. Samsung Electronics HCMC CE Complex Co., Ltd. Samsung Nepal Services Pvt, Ltd Red Brick Lane Marketing Solutions Pvt. Ltd. PT Samsung Telecommunications Indonesia Laos Samsung Electronics Sole Co., Ltd Samsung Suzhou Electronics Export Co., Ltd. Samsung Mobile R&D Center China-Guangzhou Samsung R&D Institute China-Shenzhen Beijing Samsung Telecom R&D Center Samsung Electronics China R&D Center Harman (Suzhou) Audio and Infotainment Systems Co., Ltd. Harman Technology (Shenzhen) Co., Ltd. Harman (China) Technologies Co., Ltd. Harman Commercial (Shanghai) Co., Ltd. Harman International (China) Holdings Co., Ltd. Harman Automotive Electronic Systems (Suzhou) Co., Ltd. Red Bend Software Ltd. Samsung Electronics Latinoamerica Miami, Inc. Samsung Electronica Colombia S.A. Samsung Electronics Panama. S.A. Samsung SDI Japan Co., Ltd. Samsung SDI America, Inc. Samsung SDI Hungary., Zrt. Samsung SDI Europe GmbH Samsung SDI Battery Systems GmbH Samsung SDI Vietnam Co., Ltd. Samsung SDI Energy Malaysia Sdn, Bhd.
Country
Spain Italy Poland Greece Netherlands United Kingdom Denmark United Kingdom Hong Kong Japan Singapore New Zealand Philippines Bangladesh Vietnam Vietnam Vietnam Nepal India Indonesia Laos China China China China China China China China China China China United Kingdom USA Colombia Panama Japan USA Hungary Germany Austria Vietnam Malaysia
Samsung Electronics Business Report
373 / 413
Listing
No. of affiliates
Name of affiliates
Samsung SDI India Private Limited Samsung SDI(Hong Kong) Ltd. Samsung SDI China Co., Ltd. Samsung SDI-ARN (Xi'An) Power Battery Co., Ltd. Samsung SDITianjinBattery Co.,Ltd. STARPLUS ENERGY LLC. SAMSUNG SDI WUXI CO.,LTD. Tianjin Samsung SDI Co., Ltd. Samsung Electro-Machanics Japan Co., Ltd. Samsung Electro-Mechanics America, Inc. Samsung Electro-Mechanics GmbH Samsung Electro-Mechanics Philippines, Corp. Calamba Premier Realty Corporation Samsung Electro-Mechanics Pte Ltd. Samsung Electro-Mechanics Vietnam Co., Ltd. Samsung Electro-Mechanics Software India Bangalore Private Limited Dongguan Samsung Electro-Mechanics Co., Ltd. Tianjin Samsung Electro-Mechanics Co., Ltd. Samsung High-Tech Electro-Mechanics(Tianjin) Co., Ltd. Samsung Electro-Mechanics (Shenzhen) Co., Ltd. Kunshan Samsung Electro-Mechanics Co., Ltd. Batino Realty Corporation Samsung Fire & Marine Management Corporation SAMSUNG FIRE & MARINE INSURANCE COMPANY OF EUROPE LTD. PT. Asuransi Samsung Tugu SAMSUNG VINA INSURANCE COMPANY LIMITED Samsung Reinsurance Pte. Ltd. () Samsung Fire & Marine Insurance Management Middle East Limited Camellia Consulting Corporation Samsung Heavy Industries India Pvt.Ltd. SAMSUNG HEAVY INDUSTRIES (M) SDN.BHD () () SAMSUNG HEAVY INDUSTRIES NIGERIA LIMITED Samsung Heavy Industries Mozambique LDA Samsung Heavy Industries Rus LLC SHI - MCI FZE Samsung Life Insurance (Thailand) Public Co., Ltd Beijing Samsung Real Estate Co.. Ltd Samsung Asset Management (New York), Inc. Samsung Global SME Private Equity Manager Fund Co., Ltd. Samsung Asset Management U.S. Holdings, Inc.
Country
India Hong Kong
China China China USA China China Japan USA Germany Philippines Philippines Singapore Vietnam India China China China China China Philippines USA United Kingdom Indonesia Vietnam Singapore China Utd.Arab Emir. USA India Malaysia China
China Nigeria Mozambique Russian Fed. Nigeria Thailand China USA Cayman Islands USA
Samsung Electronics Business Report
374 / 413
Listing
No. of affiliates
Name of affiliates
Samsung Private Equity Fund 2022 GP, Ltd. Samsung Co-Investment 2021 GP, Ltd. Samsung Asset Management(London) Ltd. Samsung Private Equity Manager I Co., Ltd. Samsung Asset Management (Hong Kong) Ltd. Samsung Asset Management (Beijing) Ltd. Samsung C&T Japan Corporation Samsung C&T America Inc. Samsung E&C America, INC. Samsung Renewable Energy Inc. Samsung C&T Oil & Gas Parallel Corp. Samsung C&T Lima S.A.C. Samsung C&T Deutschland GmbH Samsung C&T U.K. Ltd. Samsung C&T ECUK Limited Whessoe engineering Limited SAM investment Manzanilo.B.V Samsung C&T (KL) Sdn.,Bhd. Samsung C&T Malaysia SDN. BHD Erdsam Co., Ltd. Samsung C&T India Private Limited Samsung C&T Corporation India Private Limited Samsung C&T Singapore Pte., Ltd. SAMSUNG C&T Mongolia LLC. Samsung C&T Eng.&Const. Mongolia LLC. S&WOO CONSTRUCTION PHILIPPINES,INC. VSSC STEEL CENTER LIMITED LIABILITY COMPANY Vista Contracting and Investment Global Pte. Ltd. CHEIL HOLDING INC. Samsung C&T Renewable Energy Australia Pty Ltd Samsung C&T Hongkong Ltd. Samsung C&T Taiwan Co., Ltd. SAMSUNG C&T (SHANGHAI) CO., LTD. Samsung C&T (Xi'an) Co., Ltd. SAMSUNG C&T CORPORATION SAUDI ARABIA SAM Gulf Investment Limited Samsung C&T Chile Copper SpA SCNT Power Kelar Inversiones Limitada Samsung C&T Corporation Rus LLC CHEIL INDUSTRIES ITALY SRL Samsung Fashion Trading Co. ,Ltd SAMSUNG C&T CORPORATION VIETNAM CO., LTD Samsung C&T Corporation UEM Construction JV Sdn Bhd
Country
Cayman Islands Cayman Islands United Kingdom Cayman Islands
Hong Kong China Japan USA USA Canada USA Peru
Germany United Kingdom United Kingdom United Kingdom
Netherlands Malaysia Malaysia Hong Kong India India Singapore Mongolia Mongolia Philippines Vietnam Singapore Philippines Australia Hong Kong Taiwan China China
Saudi Arabia Utd.Arab Emir.
Chile Chile Russian Fed. Italy China Vietnam Malaysia
Samsung Electronics Business Report
375 / 413
Listing
No. of affiliates
Name of affiliates
WELSTORY VIETNAM COMPANY LIMITED Shanghai Ever-Hongjun Business Mgt Service Co.,LTD Shanghai Welstory Food Company Limited LANGUAGE TESTING INTERNATIONAL, INC. PENGTAI CHINA CO.,LTD. PengTai Taiwan Co., Ltd. PENGTAI E-COMMERCE CO.,LTD PENGTAI MARKETING SERVICE CO.,LTD. Medialytics Inc. Beijing Pengtai Baozun E-commerce Co., Ltd. iMarket China Co., Ltd. Samsung Securities (America), Inc. Samsung Securities (Europe) Limited. Samsung Securities (Asia) Limited. Samsung SDS America, Inc. SAMSUNG SDS GSCL Canada., Ltd. Neo EXpress Transportation (NEXT) Inc. Samsung SDS Europe, Ltd. Samsung SDS Global SCL Hungary, Kft. Samsung SDS Global SCL Slovakia, S.R.O. Samsung SDS Global SCL Poland Sp. Z.o.o. Samsung GSCL Sweden AB Samsung SDS Global SCL France SAS Samsung SDS Global SCL Italy S.R.L. A Socio Unico Samsung SDS Global Supply Chain Logistics Spain S.L.U Samsung SDS Global SCL Netherlands Cooperatief U.A. Samsung SDS Global SCL Germany GmbH Samsung SDS Global SCL Romania S.R.L Samsung SDS Asia Pacific Pte, Ltd. Samsung Data Systems India Private Limited Samsung SDS Vietnam Co., Ltd. PT. Samsung SDS Global SCL Indonesia Samsung SDS Global SCL Philippines Co., Ltd.Inc. Samsung SDS Global SCL Thailand Co.,Ltd Samsung SDS Global SCL Malaysia SDN.BHD. SAMSUNG SDS Global SCL Austraila Pty.,Ltd. SDS-ACUTECH CO., Ltd. ALS SDS Joint Stock Company SDS-MP Logistics Joint Stock Company Samsung SDS China Co., Ltd. Samsung SDS Global SCL Hong Kong Co., Ltd. SAMSUNG SDS Global SCL Egypt Samsung SDS Global SCL South Africa (PTY) Ltd.
Country
Vietnam China China USA China Taiwan China China China China China USA United Kingdom Hong Kong USA Canada USA United Kingdom Hungary Slovakia Poland Sweden France Italy Spain Netherlands Germany Romania Singapore India Vietnam Indonesia Philippines Thailand Malaysia Australia Thailand Vietnam Vietnam China Hong Kong Egypt South Africa
Samsung Electronics Business Report
376 / 413
Listing
No. of affiliates
Name of affiliates
Samsung SDS Global SCL Nakliyat ve Lojistik Anonim Sirketi Samsung SDS Global Supply Chain Logistics Middle East DWC-LLC Samsung SDS Latin America Solucoes Em Tecnologia Ltda. INTE-SDS Logistics S.A. de C.V. Samsung SDS Rus Limited Liability Company Samsung SDS Mexico, S.A. DE C.V. Samsung SDS Global SCL Panama S.A. Samsung SDS Global SCL Chile Limitada Samsung SDS Global SCL Peru S.A.C Samsung SDS Global SCL Colombia S.A.S Samsung SDS Global Development Center Xi'an Samsung Engineering America Inc. Samsung Project Management Inc. Samsung Engineering Hungary Ltd. Samsung Engineering Italy S.R.L. Samsung Engineering (Malaysia) SDN. BHD. PT Samsung Engineering Indonesia Co., Ltd. Samsung Engineering (Thailand) Co., Ltd. Samsung Engineering India Private Limited Samsung Engineering Vietnam Co., Ltd. Samsung Engineering Global Private Limited Samsung Engineering Construction(Shanghai) Co., Ltd Samsung Engineering Construction Xi' an Co., Ltd. Samsung Saudi Arabia Co., Ltd. Muharraq Wastewater Services Company W.L.L. Muharraq STP Company B.S.C. Muharraq Holding Company 1 Ltd. Samsung Ingenieria Mexico Construccion Y Operacion S.A. De C.V. Samsung Engineering Trinidad Co., Ltd. Samsung Ingenieria Manzanillo, S.A. De C.V. Grupo Samsung Ingenieria Mexico, S.A. De C.V. Samsung Ingenieria Energia S.A. De C.V. Samsung Engineering Bolivia S.A Samsung Ingenieria DUBA S.A. de C.V. Samsung Engineering Kazakhstan L.L.P. SEA Construction, LLC SEA Louisiana Construction, L.L.C. Samsung EPC Company Ltd. Muharraq Holding Company 2 Ltd. Asociados Constructores DBNR, S.A. de C.V. S-1 CORPORATION HUNGARY LLC S-1 CORPORATION VIETNAM CO., LTD Samsung Beijing Security Systems
Country
Turkiye Utd.Arab Emir.
Brazil Mexico Russian Fed. Mexico Panama Chile Peru Colombia China USA Canada Hungary
Italy Malaysia Indonesia Thailand
India Vietnam
India China China Saudi Arabia Bahrain Bahrain Utd.Arab Emir. Mexico Trinidad,Tobago Mexico Mexico Mexico Bolivia Mexico Kazakhstan USA USA Saudi Arabia Utd.Arab Emir. Mexico Hungary Vietnam China
Samsung Electronics Business Report
377 / 413
Listing
No. of affiliates
Name of affiliates
PENGTAI INTERACTIVE ADVERTISING CO.,LTD Cheil USA Inc. Cheil Central America Inc. Iris Worldwide Holdings Limited CHEIL EUROPE LIMITED Cheil Germany GmbH Cheil France SAS CHEIL SPAIN S.L Cheil Benelux B.V. Cheil Nordic AB Cheil India Private Limited Cheil (Thailand) Ltd. Cheil Singapore Pte. Ltd. CHEIL VIETNAM COMPANY LIMITED Cheil Integrated Marketing Philippines, Inc. CHEIL MALAYSIA SDN. BHD. Cheil New Zealand Limited CHEIL CHINA Cheil Hong Kong Ltd. Caishu (Shanghai) Business Consulting Co., Ltd Cheil MEA FZ-LLC Cheil South Africa (Pty) Ltd CHEIL KENYA LIMITED Cheil Communications Nigeria Ltd. Cheil Worldwide Inc./Jordan LLC. Cheil Ghana Limited Cheil Egypt LLC Cheil Brasil Comunicacoes Ltda. Cheil Mexico, S.A. de C.V. Cheil Chile SpA. Cheil Peru S.A.C. CHEIL ARGENTINA S.A. Cheil Rus LLC Cheil Ukraine LLC Cheil Kazakhstan LLC Samsung Hospitality America Inc. Shilla Travel Retail Pte. Ltd. Samsung Shilla Business Service Beijing Co., Ltd. Shilla Travel Retail Hong Kong Limited HDC SHILLA (SHANGHAI) CO., LTD Samsung Hospitality U.K. Ltd. Samsung Hospitality Europe GmbH SAMSUNG HOSPITALITY ROMANIA SRL
Country
China USA USA United Kingdom United Kingdom Germany France Spain Netherlands Sweden India Thailand Singapore Vietnam Philippines Malaysia New Zealand China Hong Kong China Utd.Arab Emir. South Africa Kenya Nigeria Jordan Ghana Egypt Brazil Mexico Chile Peru Argentina Russian Fed. Ukraine Kazakhstan USA Singapore China Hong Kong China United Kingdom Germany Romania
Samsung Electronics Business Report
378 / 413
Listing
No. of affiliates
Name of affiliates
Samsung Hospitality Vietnam Co., Ltd. Samsung Hospitality Philippines Inc. Samsung Hospitality India Private Limited Samsung Venture Investment (Shanghai) Co., Ltd. Iris (USA) Inc. Iris Atlanta, Inc. 89 Degrees, Inc. The Barbarian Group LLC McKinney Ventures LLC Iris Nation Worldwide Limited Iris Americas, Inc. Irisnation Latina No.2, S. de R.L. de C.V. Irisnation Latina, S. de R.L. de C.V. Pricing Solutions Ltd Iris London Limited Iris Promotional Marketing Ltd Iris Ventures 1 Limited Founded Partners Limited Iris Korea Limited Iris Digital Limited Iris Amsterdam B.V. Iris Ventures (Worldwide) Limited Iris Culture Limited Concise Consultants Limited Atom42 Ltd WDMP Limited Pricing Solutions (UK) Limited Iris Services Limited Dooel Skopje Irisnation Singapore Pte. ltd. Iris Worldwide Integrated Marketing Private Limited Iris Sydney PTY Ltd Iris Worldwide (Thailand) Limited Iris Partners LLP Holdings BR185 Limited Iris Germany GmbH Founded, Inc. Pepper NA, Inc. Pepper Technologies Pte. Ltd. Beattie McGuinness Bungay Limited Cheil Italia S.r.l Cheil Austria GmbH Centrade Integrated SRL Centrade Cheil HU Kft.
Country
Vietnam Philippines
India China USA USA USA USA USA United Kingdom USA Mexico Mexico Canada United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom Netherlands United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom Macedonia Singapore India Australia Thailand United Kingdom Brit.Virgin Is. Germany USA USA Singapore United Kingdom Italy Austria Romania Hungary
Samsung Electronics Business Report
379 / 413
Listing
No. of affiliates
Name of affiliates
Centrade Cheil Adriatic D.O.O. Experience Commerce Software Private Limited Pengtai Greater China Company Limited PT. CHEIL WORLDWIDE INDONESIA Cheil Philippines Inc. Shilla Retail Plus Pte. Ltd. Tianjin Samsung International Travel Service Co., Ltd Shilla Retail Limited Shilla Travel Retail Duty Free HK Limited One Agency FZ-LLC One RX Project Management Design and Production Limited Company One RX India Private Limited ONE RX INTERIOR DECORATION L.L.C ONE AGENCY PRINTING L.L.C One Agency South Africa (Pty) Ltd Brazil 185 Participacoes Ltda Iris Router Marketing Ltda
Country
Serbia/Monten. India
Hong Kong Indonesia Philippines Singapore
China Macau Hong Kong Utd.Arab Emir. Turkiye India Utd.Arab Emir. Utd.Arab Emir. South Africa Brazil Brazil
Samsung Electronics Business Report
380 / 413
3. Equity investments in other corporations (Details)
The total book value of equity investments in other corporations as of December 31, 2022 is KRW 58,762 billion (for the purpose of management participation, etc.).
[As of December 31, 2022]
(1,000 shares, KRW million, %)
Listing
Listed Listed Listed Listed Listed Listed Listed Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted
Name of Company
Samsung ElectroMechanics Samsung SDI Samsung Heavy Industries Hotel Shilla
Cheil Worldwide
Samsung SDS
Samsung BioLogics
Samsung Display
STECO
SEMES Samsung Electronics Service Samsung Electronics Sales Samsung Electronics Logitech Samsung Medison Samsung Global Research Samsung Venture Investment
Acquisition Date
1977.01 1977.01 1977.09 1979.12 1988.09 1992.07 2011.04 2012.04 1995.06 1992.12 1998.01 2000.12 1999.04 2011.02 1991.05 1999.11
Objective
Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation
Acquisition Cost
250 304 125 252 185 6,160 30,000 16,009,547 24,000 1,000 30,000 3,100 76 286,384 320 4,900
Beginning Balance
Qty 17,693
Owner ship (%)
23.7
Book Value
445,244
13,463
19.6 1,242,605
134,027
15.2 759,935
2,005
5.1 156,368
29,038
25.2 491,599
17,472
22.6 560,827
20,837
31.5 443,193
221,969
84.8 18,509,307
2,590
70.0
35,861
2,173
91.5
71,906
6,000
99.3
48,121
1,767 100.0 247,523
1,011 100.0
46,669
87,350
68.5 369,169
3,576
29.8
24,942
980
16.3
22,198
Increase/Decrease
Acquisition/Disposal Qty Amount
Valuation
-
-
-
-
-
-
-
- -75,056
-
- 10,224
-
-
-
-
-
-
1,380
1,152, 699
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- 63,857
-
-
-
-
- 9,875
Ending Balance
Current Financial Stats
Qty 17,693
Owner ship (%)
23.7
Book Value 445,244
Total Asset 10,997,171
Net Income (Loss)
993,519
13,463 19.6 1,242,605 30,257,525 1,952,149
134,027 15.2 684,879 14,491,679 -627,412
2,005
5.1 166,592 2,938,545 -50,164
29,038 25.2 491,599 2,751,445 193,732
17,472 22.6 560,827 11,952,424 1,099,745
22,217 31.2 1,595,892 16,582,051 798,056
221,969 84.8 18,509,307 57,302,567 4,365,588
2,590 70.0
35,861 133,987
5,544
2,173 91.5
71,906 2,065,558 185,762
6,000 99.3
48,121 711,020
9,446
1,767 100.0 247,523 1,393,235
13
1,011 100.0
46,669 415,659 12,376
87,350 68.5 433,026 528,834 69,172
3,576 29.8
24,942 178,806
241
980 16.3
32,073 204,057 12,157
Samsung Electronics Business Report
381 / 413
Listing
Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Listed Listed Listed Listed
Name of Company
Acquisition Date
Objective
Acquisition Cost
SVIC #21 SVIC #22 SVIC #26 SVIC #28 SVIC #32 SVIC #33 SVIC #42 SVIC #45 SVIC #52 SVIC #56 SVIC #57 Semiconductor Growth Fund System LSI Mutual benefit private equity trust Stellarforest iMarket Korea KT Skylife Yongpyong Resort ATech Solution
2011.11 2011.11 2014.11 2015.02 2016.08 2016.11 2018.11 2019.05 2021.05 2021.11 2022.08 2017.03 2020.04 2022.12 2000.12 2001.12 2007.05 2009.11
Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Simple Investment Simple Investment Simple Investment
19,800 19,800 19,800 7,425 19,800 4,950 4,950 19,800 9,900 22,084 14,850
500 25,000
900 1,900 3,344 1,869 26,348
Beginning Balance
Increase/Decrease
Qty -
Owner ship (%)
99.0
Book Value
5,707
Acquisition/Disposal -0 -4,737
Valuation -
1
99.0
75,458
-0 -25,938
-
2
99.0
96,443
-0 -20,790
-
1
99.0
69,710
-0 -34,224
-
2
99.0 171,141
-0 -27,720
-
2
99.0 166,974
-0 -44,352
-
-
99.0
18,657
0 24,820
-
2
99.0 173,042
0 18,281
-
-
99.0
9,900
0 39,699
-
-
99.0
22,084
0 10,296
-
-
-
-
0 18,860
-
50,000, 000
66.7
50,000
-
-
-
50,000, 000
62.5
50,000
-
-
-
-
-
-
180
900
-
647
1.9
6,926
-
-
-388
240
0.5
2,194
-
-
-240
400
0.8
1,958
-
-
-546
1,592
15.9
26,188
-
- -13,309
Ending Balance
Current Financial Stats
Qty 0
Owner ship (%)
99.0
Book Value 970
Total Asset 96,117
Net Income (Loss)
4,016
0 99.0
49,520
54,415 -14,289
1 99.0
75,653
45,827
-4,049
0 99.0
35,486 395,545 -19,969
1 99.0 143,421 283,767
3,175
1 99.0 122,622 334,846
9,875
0 99.0
43,477
35,845
-1,443
2
99.0 191,323 221,522
-3,064
0 99.0
49,599
46,829
-147
0 99.0
32,380
31,984
651
0
50,000, 000
50,000, 000
180
99.0 66.7 62.5 100.0
18,860 50,000 50,000
900
18,681 69,862 79,664
895
-320 -4,574
-49 -5
647
1.9
6,538 1,228,690 29,087
240
0.5
1,954 1,361,298 23,086
400
0.8
1,412 841,500
8,674
1,592 15.9
12,879 204,679
4,686
Samsung Electronics Business Report
382 / 413
Listing
Name of Company
Acquisition Date
Objective
Acquisition Cost
Listed Wonik Holdings
Listed Wonik IPS
Listed Dongjin Semichem
Listed Soulbrain Holdings
Listed Soulbrain
Listed S&S Tech
Listed YIK Corp
Listed KCTech
Listed Listed Listed
lotvacuum
NEW POWER PLASMA
FineSemitech
Listed DNF
Listed Unlisted Unlisted Unlisted
Marvell
The Korea Economic Daily Korea Business Banking
Cyber Bank
Unlisted FineChips
Unlisted Inkel
2013.12 2016.04 2017.11 2017.11 2020.07 2020.08 2020.08 2020.11 2020.11 2020.11 2021.03 2021.08 2021.10 1987.05 1995.01 2000.12 2001.12 2006.11
Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Simple Investment Simple Investment Simple Investment Simple Investment Simple Investment Simple Investment
15,411 16,214 48,277 30,752 24,866 65,933 47,336 20,720 18,990 12,739 43,009 20,964 11,705
150 5,000 8,000
10 130
Beginning Balance
Increase/Decrease
Qty 1,759
Owner ship (%)
2.3
Book Value
8,761
Acquisition/Disposal Qty Amount
-
-
Valuation -2,789
1,851
3.8
78,295
-
- -32,484
2,468
4.8 125,863
-
- -51,950
462
2.2
15,976
-
- -4,987
373
4.8 103,983
-
- -22,626
1,716
8.0
63,153
-
- -17,933
9,602
11.7
59,530
-
- -32,597
1,022
4.9
24,584
-
- -9,455
1,268
7.1
21,804
-
- -7,479
2,141
4.9
13,723
-
- -6,144
1,523
7.0
38,607
-
- -14,849
810
7.0
18,509
-
- -7,817
173
0.0
17,963
-
- -9,833
72
0.4
365
-
-
-
1,000
17.2
2,964
-
-
-
1,083
7.5
-
-
-
-
2
3.2
10
-
-
-
-
0.0
-
-
-
-
Ending Balance
Current Financial Stats
Qty 1,759
Owner ship (%)
2.3
Book Value 5,972
Total Asset 1,946,027
Net Income (Loss)
141,203
1,851
3.8
45,811 1,127,557 97,900
2,468
4.8
73,913 1,085,264 144,946
462
2.2
10,989 1,523,516 29,996
373
4.8
81,357 829,947 152,221
1,716
8.0
45,220 226,610 17,323
9,602
11.7
26,933 519,025 33,065
1,022
4.9
15,129 483,313 55,386
1,268
7.1
14,325 323,108 20,575
2,141
4.9
7,579 635,198 22,261
1,523
7.0
23,758 391,197 37,576
810
7.0
10,692 191,897
7,152
173
0.0
8,130 28,542,257 -207,204
72
0.4
365 517,215 44,984
1,000 17.2
2,964
86,276
1,236
1,083
7.5
-
-
-
2
3.3
10
15,919
3,878
0
0.0
0
56,198
-5,524
Samsung Electronics Business Report
383 / 413
Listing
Name of Company
Acquisition Date
Objective
Acquisition Cost
Unlisted Unlisted
Intellectual Discovery
Maltani Corp.
Unlisted Unlisted Unlisted Unlisted Unlisted
Pantech
AI Research Institute
Mico Ceramics
Shinsung Eng & Construction
Woobang
Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted
Sambo Computer
Daewoo Development Daewoo Songdo Development
Zyle Motor Sales
Sungwon Construction
Inhee
Unlisted Point Anybeam
Unlisted JNT
Unlisted Daishin Aju IB
Unlisted L&S
Unlisted KTCNP-GC
2011.05 2012.04 2013.06 2016.07 2020.11 2010.07 2010.07 2012.09 2012.12 2012.12 2012.12 2014.04 2014.04 2019.12 2011.02 2011.08 2012.07 2013.12
Simple Investment Simple Investment Simple Investment Simple Investment Management Participation Simple Investment Simple Investment Simple Investment Simple Investment Simple Investment Simple Investment Simple Investment Simple Investment Simple Investment Simple Investment Simple Investment Simple Investment Simple Investment
5,000 16,544 53,000 3,000 21,667
1 61 1,800 258 848 960
Beginning Balance
Increase/Decrease
Qty 357
Owner ship (%)
10.7
Book Value
1,922
Acquisition/Disposal Qty Amount
-
-
Valuation -
45
15.0
8,825
-
- -1,394
53,000
10.0
-
-
-
-
600
14.3
3,000
-
-
-
747
13.7
24,636
-
- 4,749
-
0.0
-
-
-
-
1
0.0
-
-
-
-
-
0.0
-
-
-
-
-
0.0
-
-
-
-
9
0.0
-
-
-
-
1
0.0
-
-
-
-
1
0.0
-
-
-
-
-
0.1
-
-
-
-
12
3.5
61
-
-
-
-
24.0
1,758
-
-
-
-
3.0
258
-
-
-258
-
7.5
1
-
-
-
-
3.6
1,816
- -1,594
-
Ending Balance
Current Financial Stats
Qty 357
Owner ship (%)
10.7
Book Value 1,922
Total Asset 79,972
Net Income (Loss)
14,984
45 15.0
7,431
72,421
2,891
53,000 10.0
-
8,151 -11,411
600 14.3
3,000
5,935
3,021
747 13.7
29,385 180,809 20,984
0
0.0
0 135,006 -17,958
1
0.0
0 493,942
4,378
0
0.0
0
55,572
-2,832
0
0.0
0 321,513
-3,342
9
0.0
0
19,369
-350
1
0.0
0 382,807
-8,162
1
0.0
0
27,744
-627
0
0.1
0
2,753
211
12
3.5
61
-
-
0 24.0
1,758
4,856
1,355
-
-
-
-
-
-
7.5
1
3,241
171
-
3.6
222
28,999
-4,695
Samsung Electronics Business Report
384 / 413
Listing
Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted
Name of Company
POSCO Social Enterprise Fund Bearport Resort SEA SECA SEDA SEM SELA SEASA SECH SEUK SEL SEHG SEF SEI SESA SEP SEH SELS SEBN
Acquisition Date
Objective
2013.12 2022.04 1978.07 1992.08 1994.01 1995.07 1989.04 1996.06 2002.12 1995.07 1998.12 1982.02 1991.08 1993.05 1989.01 1982.09 1991.05 1991.05 1995.07
Simple Investment Simple Investment Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation
Acquisition Cost
600
Beginning Balance
Qty -
Owner ship (%)
10.0
Book Value
60
-
-
-
-
59,362
492 100.0 17,166,557
3,823 13,224 3,032
-
77,205, 709
3,837
100.0 87.0 63.6
90,922 647,620 165,638
319
40 100.0
86,962
4,696 21,854
98.0
6,779
597
-
4.1
597
33,908 109,546 100.0 433,202
8,280 4,393 100.0
-
28,042
- 100.0 354,846
230 2,700 100.0 234,115
862
677 100.0 143,181
3,276 8,021 100.0 142,091
204 1,751 100.0
37,616
1,954
753 100.0 650,157
18,314 1,306 100.0
24,288
236 539,138 100.0 914,751
Increase/Decrease
Acquisition/Disposal Qty Amount
Valuation
-
-
-
51
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Ending Balance
Current Financial Stats
Qty 0
Owner ship (%)
10.0
Book Value 60
Total Asset 245
Net Income (Loss)
-481
51
0.5
0
94,074
641
492 100.0 17,166,557 37,883,156 219,670
0
77,205, 709
3,837
100.0 87.0 63.6
90,922 1,652,195 647,620 4,600,508 165,638 1,816,895
126,200 -38,490 110,386
40 100.0
86,962 683,447 43,364
21,854 98.0
6,779 102,325
9,879
-
4.1
597 646,185 43,112
109,546 100.0 433,202 2,819,792 243,396
4,393 100.0
-
7,030
-
- 100.0 354,846 651,158 114,185
2,700 100.0 234,115 1,053,910 72,776
677 100.0 143,181 959,801 59,143
8,021 100.0 142,091 1,098,852 51,972
1,751 100.0
37,616 273,915 11,737
753 100.0 650,157 2,374,317 199,742
1,306 100.0
24,288 2,194,975 20,347
539,138 100.0 914,751 2,377,730 25,411
Samsung Electronics Business Report
385 / 413
Listing
Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted
Name of Company
SEEH SENA SESK SEPOL SEAG SERC SERK SEO SGE SEEG SSA SAPL SME SDMA SEMA SAVINA SEIN TSE SEAU
Acquisition Date
Objective
2008.01 1992.03 2002.06 1996.04 2002.01 2006.01 2007.07 1997.01 1995.05 2012.07 1998.12 2006.07 2003.05 1995.03 1989.09 1995.01 1991.08 1988.01 1987.11
Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation
Acquisition Cost
4,214
Beginning Balance
Qty -
Owner ship (%)
100.0
Book Value
1,369,992
392 1,000 100.0
69,372
8,976
-
55.7 263,767
5,462
106 100.0
78,267
40
- 100.0
32,162
24,877
- 100.0 188,290
4,600
- 100.0 204,555
120
- 100.0 -10,043
827
- 100.0
32,836
23
-
0.1
39
263 2,000 100.0
32,622
793 877,133 100.0 981,483
4,796 17,100 100.0
7,644
21,876 71,400
75.0
18,741
4,378 16,247 100.0 103,402
5,839
- 100.0
28,365
7,463
46 100.0 118,909
1,390 11,020
91.8 279,163
392 53,200 100.0 111,964
Increase/Decrease
Acquisition/Disposal Qty Amount
Valuation
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Ending Balance
Current Financial Stats
Qty -
Owner ship (%)
100.0
Book Value 1,369,992
Total Asset 10,841,515
Net Income (Loss)
57,997
1,000 100.0
69,372 697,034 46,974
- 55.7 263,767 1,585,901 74,065
106 100.0
78,267 1,172,265 83,313
- 100.0
32,162 574,106 22,506
- 100.0 188,290 876,346 -48,890
- 100.0 204,555 1,149,970 -104,424
0 100.0
-10,043
1,960
-76
0 100.0
32,836 1,031,216 23,024
-
0.1
39 1,055,570 90,110
2,000 100.0
32,622 573,688 27,116
877,133 100.0 981,483 26,894,611 8,699,679
17,100 100.0
7,644 541,255 19,997
71,400 75.0
18,741
24,689
-653
16,247 100.0 103,402 278,943 27,678
- 100.0
28,365 129,160 23,545
46 100.0 118,909 883,023 81,977
11,020 91.8 279,163 3,263,473 168,524
53,200 100.0 111,964 593,991 89,655
Samsung Electronics Business Report
386 / 413
Listing
Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted Unlisted
Name of Company
SIEL SRI-B SJC SRJ SCIC SEHK SET TSEC SSEC SESC TSTC SSS SCS SSCX SESS TSLED SSCR TSST Japan STE
Acquisition Date
Objective
1995.08 2005.05 1975.12 1992.08 1996.03 1988.09 1994.11 1993.04 1995.04 2002.09 2001.03 2001.01 2012.09 2016.04 1994.12 2012.04 2006.09 2004.03 1996.01
Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation Management Participation
Acquisition Cost
Beginning Balance
Qty
Owner ship (%)
Book Value
5,414 216,787 100.0
75,263
7,358
17 100.0
31,787
273 1,560 100.0 253,108
3,120
122 100.0 117,257
23,253
- 100.0 640,452
349 274,250 100.0
79,033
456 27,270 100.0 112,949
15,064
-
48.2 103,134
32,128
-
69.1 130,551
5,471
-
73.7
34,028
10,813
-
90.0 260,092
1,200
- 100.0
19,189
111,770
- 100.0 5,275,760
1,141
- 100.0
1,141
18,875
- 100.0 504,313
119,519
- 100.0 119,519
3,405
- 100.0
9,332
1,639
30
49.0
-
4,206
2
49.0
-
Increase/Decrease
Acquisition/Disposal Qty Amount
Valuation
0
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Ending Balance
Current Financial Stats
Qty 216,787
Owner ship (%)
100.0
Book Value 75,263
Total Asset 6,772,537
Net Income (Loss)
508,510
17 100.0
31,787 351,226 70,907
1,560 100.0 253,108 1,445,517
1,698
122 100.0 117,257 157,868
3,705
- 100.0 640,452 13,830,988 257,878
274,250 100.0
79,033 1,366,841 27,953
27,270 100.0 112,949 1,364,801 39,316
- 48.2 103,134 392,205 78,285
- 69.1 130,551 668,331 27,284
- 73.7
34,028 150,161
6,470
- 90.0 260,092 643,732
6,712
- 100.0
19,189 5,067,891 318,578
- 100.0 5,275,760 17,095,000 638,385
- 100.0
1,141 906,967 44,249
- 100.0 504,313 1,494,205 101,122
- 100.0 119,519 509,355 31,809
- 100.0
9,332
76,826 11,076
30 49.0
-
159
-21
2 49.0
-
8,040
0
Samsung Electronics Business Report
387 / 413
Listing
Name of Company
Acquisition Date
Objective
Acquisition Cost
Beginning Balance
Qty
Owner ship (%)
Book Value
Increase/Decrease
Acquisition/Disposal Qty Amount
Valuation
Ending Balance
Current Financial Stats
Qty
Owner ship (%)
Book Value
Total Asset
Net Income (Loss)
Unlisted Semiconductor Portal
2002.12
Simple Investment
38
-
1.2
10
-
-
-
0
1.2
10
1,981
159
Unlisted Nanosys
2010.08
Simple Investment
4,774 2,000
0.8
2,387
-
- -1,305 2,000
0.6
1,082
-
-
Unlisted One-Blue
2011.07
Management Participation
1,766
-
16.7
1,766
-
-
-
- 16.7
1,766
19,098
599
Unlisted TidalScale
2013.08
Simple Investment
1,112 2,882
4.3
1,112
-
-
- 2,882
4.3
1,112
-
-
Unlisted Sentiance
2012.12
Simple Investment
3,422
7
7.2
3,422
-
-
-
7
7.2
3,422
14,481
-2,875
Unlisted Mantis Vision
2014.01
Simple Investment
1,594
355
2.1
1,980
-
-
-
355
2.1
1,980
19,901 -27,332
Unlisted Leman
2014.08
Simple Investment
1,019
17
3.4
1,019
-
-
-
17
3.4
1,019
3,602
-3,363
Unlisted Keyssa
2016.01
Simple Investment
3,332 1,235
1.9
3,332 -1,235 -3,332
-
-
-
-
-
-
Unlisted SensiFree
2016.01
Simple Investment
2,111
666
9.5
2,111
-
-
-
666
9.5
2,111
1,119
-1,710
Unlisted Unispectral
2016.02
Simple Investment
1,112 2,308
7.9
2,130
-
-
- 2,308
7.9
2,130
3,059
-3,170
Unlisted Quobyte
2016.04
Simple Investment
2,865
729
11.8
2,865
-
-
-
729
11.8
2,865
1,909
-831
Unlisted Afero
2016.05
Simple Investment
5,685
723
5.5
5,685
-
-
-
723
5.5
5,685
59,600
-6,289
Unlisted Graphcore
2016.06
Simple Investment
3,494 12,000
1.4
3,494
-
-
- 12,000
1.4
3,494 279,496 -148,852
Listed Soundhound
2016.12
Simple Investment
7,059
306
1.1
7,059 1,415
973 -4,212 1,703
0.9
3,820
58,330 -91,002
Unlisted Aimotive
2017.12
Simple Investment
3,302
2
3.2
3,302
-2 -10,976 7,674
-
-
-
-
-
Unlisted Fasetto
2019.01
Simple Investment
6,701
475
5.2
12,554
-
-
-
475
5.2
12,554
1,973 -10,269
Based on separate financial statements
Ownership percentage is calculated based on the number of common shares issued
The Company measures fairvalue of financial instruments (equity shares) in accordance with K-IFRS. The Company annually evaluates if there is indication of impairment that investment in subsidiaries
or affiliates may be impaired, and estimates the recoverable amount of assets with indication of impairment.
Financial stats of Sungwon Construction is as of December 31 2016, financial stats of Daewoo Songdo Development is as of December 31 2017,
financial stats of Mantis Vision is as of December 31 2019, financial stats of Sentiance, SensiFree, Unispectral, Afero, Graphcore, Soundhound, Leman Micro Devices SA, Soulbrain Holdings,
Soulbrain, Pantech, TSST Japan, Semiconductor Portal, One-Blue, Bearport Resort, Yongpyong Resort is as of December 31 2021, due to difficulties in obtaining the most recent financial data.
Samsung Electronics Business Report
388 / 413
4. R&D results (detailed)
DX Division
Research project
Details
Visual Display
QLED 8K TV February 2019June 2020
Neo QLED 8K March 2021March 2022
Flat QLED 8K TV (65/75/85") - Blends well with walls: flat design and Infinity screen; no border between screen and bezel--a world's first. - Innovative form factor: metal stand which gives a floating impression - QLED 8K enables picture quality close to real life, high resolution via AI upscaling, True Reality picture quality in any given environment - Multi-sound channel and Object Tracking Sound+ synchronize video and sound, maximizing surround sound experience - Wide range of content, multimedia experiences, and entertainment-specific functions provide convenient and colorful experiences - Ultra high-resolution, slim 8K TV based on Mini LED technology (65 75 85") - QN900 (65 75 85") / QN800 (65 75 85") / QN700 (65 75 ")
Neo QLED 4K March 2021-March 2022
QD-Display TV -March 2022 QLED 4K TV -March 2022
UHD TV -March 2022
- QLED 8K resolution offers viewing experience as if looking at real-life objects, with enhanced contrast of sophisticated Mini LED
- Added the feature of 'OTS Pro (Object Tracking Sound Pro)' Mini LED-based products come in 3 series and up to 7 sizes (43505565758598") Slim design by adopting Mini LED, premium look with bezel-less/metal design
- New LED with Quantum Nano-Layer Multi-Cell structure, enabling slim design, high luminance efficiency, luminance profile control
- Enhanced gradation by four times; expresses bright and dark areas more elaborately Quantum-Dot-based self-emitting Display Flat 4K TV (5565") QD-Display TV that provides true value of TV with full applications from Quantum-Dot-based high-definition self-emitting
Display and sleek Blade Slim Design to OTS and True Ch. ATMOS Flat QLED 4K TV (435055606570758285")
Specs and features - Flagship QLED maximizes viewing experience with unrivaled picture quality within 4K (AI/brightness/viewing angle) and sound quality (OTS) - Maximizes immersive experience with ideal brightness contrast, free viewing angle, life-like color, and optimal brightness - Optimal viewing experience by identifying user context based on voice recognition and AI technologies - Supports Google Duo when connected with a webcam
Flat UHD TV (435055586570758285") Specs and features
- UHD Smart TV with slim, bezel-less design provides colors close to real-life - UHD picture quality expresses picture quality of original content through Dynamic Crystal Color and Dual LED - Provides a multi-media screen experience, rich content, and complete smart experience via smart home experience - Enhanced Smart experiences with the addition of Game Home, IoT Hub, and Watch/Chat together functions
Samsung Electronics Business Report
389 / 413
Research project
Lifestyle TV -March 2022
Micro-LED TV -January 2022 Sound Bar -March 2022
DX Division
Details
The SERO (43") - Simple, modern vertical screen that rotates 360 degrees with flat-type speaker - Easily installed in any living space, mobile floor stand included - Significantly improved VoC compared to existing products with anti-glare/anti-reflective screen even for rotated form factor
The Frame (32435055657585")
- Design resembles a real picture frame; completes a picture frame experience - Exhibit various famous paintings and pictures; adopted lifestyle design which blends in with the interior - Additional introduction of 85" to meet the needs for ultra-large Lifestyle products - Completes the Real Frame experience with the anti-glare/anti-reflective screen that shows a paper-like image The Serif (43495565")
- I-shaped serif font design; distinct from other products; works as beautiful interior design object - Additional introduction of 65" to expand the position of large screen products - Design that resembles a piece of furniture with the anti-glare/anti-reflective screen that shows a matte image Outdoor TV (556575")
- Differentiated product tailored to a lifestyle of relaxing and enjoying entertainment outdoors The Premiere (100130")
- Ultra-short-throw laser projector with high-resolution, providing a top-notch Smart UX/OTT experience - Complements any environment with blended design, can be placed directly in front of a wall and has an easily
adjustable screen size. - Complete experience of our TV models including the differentiated picture quality and sound The Freestyle (30100") - Movable Smart Screen that enables users to enjoy content anytime, anywhere - Easy to set up in various locations and provides an optimal viewing experience regardless of angle/distance (Auto
Focus/Auto Keystone) - Added usability via the basic cradle, enabling easy placement in various locations; and the socket adapter expands
usability. The Wall 2.0 (110")
- Released completed version of Micro-LED to strengthen technology leadership and dominance of Micro-LED market - Ultra-large Home Screen that reproduces the real world on display - Micro-LED picture quality with a sense of space and depth that seems like the real thing without limitation on resolution Soundbar - Bar-shaped audio product well suited to TVs - Adopted AI solution enabling voice recognition - Adopted 3D surround system, creating enriching sounds close to first-hand experiences Sound Bar Q990B - Industry's first wireless ATMOS transmission from TV to soundbar - Provides the optimal Cinema True ATMOS just like in the cinema, utilizing all channels of TV and soundbar - Equipped with soundbar room-correction technology
Samsung Electronics Business Report
390 / 413
Research project
Monitor January 2021December 2022
Signage October 2019December 2022 Home appliances Refrigerators -February 2022
DX Division
Details
Space monitor - Application of integrated arm stand that minimizes space needed for the monitor
Neo QLED Gaming monitor (49") - Strengthened black gamut based on enhanced brightness contrast by applying Neo QLED - More immersive gaming experience with 1000R curvature--the world's highest
High-resolution QHD monitor (34") - Offers picture solution comfortable to the eye with Intelligent Eye Care solution, etc.
LCD Smart monitor - Enjoy VOD services without using a PC via Smart TV services (Netflix, YouTube, etc.)
Smart monitor M80B (32") - Ultra-slim, flat back, lifestyle design that adopts Warm White color - Includes magnetic-mount webcam - Strengthened smart experiences (watching VOD/connecting mobile devices/PC-less function/IoT/communication/game)
Gaming monitor G85NB (32") - World's first UHD 240Hz 1ms (GTG) gaming monitor with premium gaming performance features (1000R Curved) - Odyssey Neo that offers a new level of picture quality experience (Mini LED, Quantum HDR2000)
World's first 1000R large game screen G97NB (55") - Offers top-notch immersive experience with a large screen-size without viewing-angle limitations--even near-field viewing angles--via 1000R, 16:9, 55" Big Curved Screen - Provides a new immersive experience, almost like sitting in the cockpit of a space shuttle, by allowing users to rotate the screen vertically and in any direction - Game-exclusive panel that offers a 4K 165Hz refresh rate and 1ms response time
QD-OLED gaming monitor (G85SB 34") - Exquisite expression of various colors with the combination of True RGB self-luminous display and quantum dot technology - Can play games with an extremely fast response time of 0.1ms and clear screen with 175Hz refresh rate - Implemented an all-in-one game streaming discovery platform, including cloud gaming and consoles, with the adoption of the Samsung Gaming Hub
LCD-based B2B Smart Signage (LFD, Video Wall, etc.) (495565758598") Indoor/outdoor signage using LED All-in-one Kiosk (24"), all additional equipment embedded
- Payment platform for developing Tizen payment module and ordering app, antibacterial finishing Flip-edu (7585") interactive feature for education
Chef Collection refrigerator - High-end, premium refrigerator - Premium Bespoke design and new CMF - Features water & ice solution: Auto fill pitcher, auto ice maker (dual mode: cocktail Ice, standard Ice) - FDSR energy efficiency grade 1
Cube refrigerator - Multi Cube refrigerator: customized design and storage (different temperatures for storing wine, beer, and cosmetic products) - Peltier System identifies and creates optimal temperature (between 518) - Double Glass System blocks UV and maintains the right temperature - Wi-Fi Control enables real-time monitoring and control - RM (Remote Management) Function: remote assessment and repair, provides information on expiration date of beverages in the fridge
New TMF in North/Latin America - Strengthened competitiveness and offered differentiation with large capacity (440L/480L), specialized storage compartments, and new design - Flex Zone (fridge 1 / chilled -1 / soft freezing) & Quick Chill Smart Alarm - Strengthened competitiveness with flat door & Bespoke CMF, capacity (20L more), and optimal size - Dual voltage, auto ice maker, water dispenser, Big Box, Hygienic
1-Door Premium Kitchen Fit Refrigerator (freezer/fridge/kimchi/wine) - Adopted premium Bespoke design and new CMF - Automatic door opening technology - Applied Water & Ice Solution: Auto Fill Pitcher, Dual Auto Ice Maker (cocktail ice, standard ice)
Samsung Electronics Business Report
391 / 413
Research project
Washer -January 2022
Air conditioner -April 2021
Vacuums -May 2021
DX Division
Details
Bespoke washer & dryer - Bespoke flat design that perfectly fits into your space - Korea's highest capacity all-in-one Control UX design - AI clothing care (AI tailored washing and drying) from washing to drying - Hygiene management solution from 99.9% sterilization to dehumidification of laundry room
Agitator washer - Entrance to the North American market for Agitator (occupied 50% of the Top Loader market) - Implementation of ActiveWaveTM Agitator which enables heavy washing along with the reduction of noise, vibration, and entanglement - Implementation of Active Water Jet which enables pretreating of soiled or heavily stained clothes
Eco-friendly dryer with new refrigerant for Europe - Eco-friendly refrigerant: applied environmentally friendly R290 to reduce GHG emissions - Energy label of A+++: achieved the highest energy rating in Europe - Sensor Dry: senses the degree of dryness during the drying process, capable of automatically adjusting from additional drying to ending the process - Simple UX: improved product usability (delivery of detailed information on drying and customized panel setting) Hygiene Care: eliminates over 99% of three common types of harmful bacteria (Bacillus pyocyaneus, Escherichia coli, and Staphylococcus aureus)
Grande AI 24kg washer - 24kg, Flat Design (glass type) - Features pet-care cycle (removes stains, smell, and allergens) - Applied auto door opening (door opens automatically after the washing cycle ends)
BESPOKE Grande AI 20kg dryer - Largest available and first 20kg dryer in Korean market, flat design - Features pet-care cycle (specialized in removing fur) - Applied auto door opening (door opens automatically after the drying cycle ends) - Added temperature/humidity sensor to provide dehumidification solutions that sense humidity in the laundry room
Wind-FreeTM Gallery Floor-standing (56.962.675.581.892.5 m2) - Developed next-gen wind-free platform with exceptionally high energy efficiency (56.9 m2 single duct model achieved energy efficiency grade 2) - Equipped with wind-free panel 1.5 times larger than previous model and strong booster wind - Booster purification: Filter with 99.95% dust collection efficiency, Design resembling that of furniture, fits comfortably into the surroundings
Wind-FreeTM Gallery Wide air conditioner (24.429.339.649.5 m2)
- Secured cost competitiveness by developing new integrated QMD-based platform, strengthened product competitiveness
- 12% larger fans cools air faster - Wind-free ultra-energy-efficient technology saves up to 77% on electricity - PM1.0 wind-free filtration system removing particles as small as ultra-fine dust Bespoke Window Fit air conditioner (17m2, green/blue/pink/beige/gray) - Convenient self-installation with the integrated indoor/outdoor unit - Strong rotational cooling with double wings which quickly circulate cold air - Twin inverter compressor that enables low noise and vibration level of 37dB, as quiet as a library - Up to 70% lower power consumption in silent mode
Bespoke Jet stick vacuum (up to 210W suction) - Embedded auto-empty dustbin, smart display of information via LCD Display - Wet Brush dispenses water, thinner cotton-flannel brush
Jet Bot AI Robot Vacuum - Seamless navigation with the realization of world's best object recognition capability (up to 1 cm3) by developing Active 3D sensor and applying it--a world's first - AI autonomous navigation that recognizes house structure and types of objects - Strong suction with jet cyclone and digital inverter motor - Integrated Clean Station which automatically empties dustbin when the Jet Bot starts charging - More convenient cleaning with SmartThings (AI Smart Control)
Bespoke slim stick vacuum - Up to 150W suction with a strong cyclone and digital invertor mode - Self-standing, convenient emptying of the dustbin without having to bend over (Pop & Shoot) - Easy cleaning without pressure on the wrist (ergonomic design)
Samsung Electronics Business Report
392 / 413
Research project
Cooking appliances March 2021
Water Purifier March 2021
Clothing Care Machine February 2019May 2021
Air purifier December 2020
Air-purification ventilation system September 2020 Inverter dehumidifier May 2022
Dishwasher June 2022
Mobile eXperience Galaxy Foldable -August 2022
DX Division
Details
Bespoke Qooker - Multi-cook function allows cooking multiple dishes with different heat sources, temperatures, and cooking times. - Cook more than one dish and finish at the same time with Multi-cook mode - Collaborated with eight food companies to apply Qooker-exclusive algorithm - Easy automatic cooking with just one scan using SmartThings - Oven interior material changed from enamel to STS for more heat-efficient, sophisticated design.
Water Purifier for homes - Modularized water purifier upgradable and customizable to customer's lifestyle; includes auto-care feature - May be modularized to users' needs (ambient/cold/hot water) - Smart AI care, filter received highest number of NSF certification for tankless water purifier - Bespoke water purifier, customized to users' lifestyle and space
Bespoke Air Dresser (1824") - AI drying and washing cycle syncing - Long clothing care zone, holds 5 hangers, compared to 3 for 18" model - Real-care (inner-garment care, low noise level), real purification with ultra-fine dust filter, real odor elimination with odor decomposing filter, real-sanitization with jet steam, wrinkle care, real dehumidification dehumidifies the room even with the door closed
Shoe Dresser - Powerful odor elimination with Air Wash and UV odor decomposing filter - Low temperature, delicate drying to make your everyday shoes a pleasure to wear. - 99.9% sterilization with the application of a Xenon UVC disinfection system--a first for home appliances in Korea - Tailored care and management of various types of shoes with Jet Shoe Tree
Bespoke Cube air purifier - Premium air purifier in Bespoke lineup - Use one of the three specialized filters as needed: sterilization, deodorization, pet - Customizable to the space, interior, and lifestyle - Mountable on walls to fit the interior without compromising dust-removing function with cubic filtration feature
Air-purification ventilation system - Ventilation capacity 33 m2, Airflow 4050CMH - Ventilates and purifies air indoors by linking ventilation system with air-purification module - Individual air-purification for each separate space, circulation & wind-free purification - Sensors detecting CO2, etc. enables automatic ventilation depending on air quality change
Ultra-quiet inverter dehumidifier with first-class energy efficiency rating in Korea - Fast and strong large-capacity dehumidifier with a wide blade - Smart space care that keeps spaces from bathroom to dressing room pleasant - Dries a wide range of clothing--even delicate items--with swing blade - Simple design and compact size that fits anywhere - Low-noise mode that remains quiet throughout extended hours of use
In-house technology platform that has a competitive edge in the European/Korean markets - Fit for Tall Tubs for the European market - Secured competitiveness with top-notch energy/water/low-noise specifications - Strengthened premium experiences via differentiating features, such as an automatic dispenser (for Korean detergents) and a simple UX - Differentiated specifications of Z-wash, Smart, Flexible Basket
Galaxy Z flip (February 2020)
- Design: New style with innovative foldable display - Screen: Main 6.7" flexible ultra-thin glass (2,636 x 1080) - cover 1.1" super AMOLED (300 x 112) - Size (W x H x D): (unfolded) 73.6mm x 167.3mm x 6.97.2mm
(folded) 73.6mm x 87.4mm x 15.417.3mm - Platform (H/W, S/W): SDM855+, Android 10.0 - Ultra-thin glass technology allows foldable glass display--a first among Galaxy models--and enhances durability - Easy to carry with a new form factor allowing compact size by flip fold - Free-stop feature enables users to freely control the angle of the flip, allowing Flex Mode experience - Screen ratio 21.9:9 enhances suitability of multi active window
Samsung Electronics Business Report
393 / 413
Research project
DX Division
Details
Galaxy Z Fold 2 (September 2020) - Screen: Main display 7.6", cover display 6.2" - Size (W x H x D): (folded) 68mm x 159.2mm x 13.8 (~16.8) mm - Platform (H/W, S/W): SDM 865 Plus, Android 10, One UI 2.5 - Supports ultra-high speed 5G and 12MP camera - Infinity Flex Display supports flex mode - Dynamic AMOLED 2X display with 120Hz flexible scan rate - Samsung Ultra Thin Glass - Supports wireless Samsung DeX and UWB - Evolved multi-active window enabling simultaneous use of three apps maximum - Provides app continuity from cover display to main display
Galaxy Z Fold 3 5G (August 2021) - Screen: Main display 7.6", cover display 6.2" - Size (W x H x D): (folded) 158.2mm x 67.1mm x 14.4~16.0mm (unfolded) 158.2mm x 128.1mm x 6.4mm - Platform (H/W, S/W): 5nm 64-bit octa-core processor, Android 11, One UI 3.1.1 - Supports IPX8 rating (water resistance with a depth of up to 1.5m of freshwater for up to thirty minutes), which is a first for a foldable smartphone - Strengthened durability with the application of Armor Aluminum and tempered glass of Corning Gorilla Glass Victus - Equipped with 7.6" Infinity Flex Display and applied Under Display Camera - Display screen approximately 29% brighter with the new Eco²technology - Main/cover display all support 120Hz screen refresh rate - Applied S-pen for the first time for foldables - Supports both top and bottom half of the screen at any angle with Flex mode panel feature even for apps that are not optimized - Supports Multi Active Window, which splits the screen and allows using up to three apps at once
Galaxy Z Flip 3 5G (August 2021) - Screen: Main display 6.7", cover display 1.9" - Size (W x H x D): (folded) 72.2mm x 86.4mm x 15.9~17.1mm (unfolded) 72.2mm x 166mm x 6.9mm - Platform (H/W, S/W): 5nm 64-bit octa-core processor, Android 11, One UI 3.1.1 - Supports IPX8 rating (water resistance with a depth of up to 1.5m of freshwater for up to thirty minutes), which is a first for a foldable smartphone - Strengthened durability with the application of Armor Aluminum and tempered glass of Corning Gorilla Glass Victus - Enhanced usability of cover display: allows to scroll through up to 8 lines of notification/message and supports weather, daily step count, and Samsung Pay - Enhanced Flex mode: supports Auto Framing, which automatically adjusts the frame according to the number of people within the frame, and Dual Preview - Main display supports 120Hz screen refresh rate
Galaxy Z Fold 4 (August 2022) - Screen: Main display 7.6", cover display 6.2" - Size (W x H x D): (folded) 155.1mm x 67.1mm x 14.215.8mm (unfolded) 155.1mm x 130.1mm x 6.3mm - Platform (H/W, S/W): SM8475, Android 12.0, One UI 4.1.1 - Improved camera experience via Nightography picture/video, high-resolution (50M/8K), Space Zoom (30X) lens - Easier and faster multi-tasking with the new Taskbar feature - Easy-to-use Multi window thanks to various entry points - AI-based recommendation of related features after recognition of text from an image
Galaxy Z Flip 4 (August 2022) - Screen: Main display 6.7", cover display 1.9" - Size (W x H x D): (folded) 71.9mm x 84.9mm x 15.917.1mm (unfolded) 71.9mm x 165.2mm x 6.9mm - Platform (H/W, S/W): SM8475, Android 12.0, One UI 4.1.1 - Supports 25W charging and offers 3700mAh battery - Supports FlexCam, optimized for taking pictures/videos from various angles - Easy and quick switch to and manipulation of applications in Flex mode - Expanded the Cover screen function (simple reply, Samsung Wallet platform, increased Quick settings, etc.)
Samsung Electronics Business Report
394 / 413
Research project
Galaxy S -February 2022
DX Division
Details
Galaxy S20S20+S20 Ultra 5G (March 2020)
- Design: Best Fit in hand compact, yet large screen design - Screen: S20 6.2", S20+ 6.7", S20 U 6.9" - Size (W x H x D): S20 69.1mm x 151.7mm x 7.9mm; S20+ 73.7 x 161.9 x 7.8mm; S20 U 76.0 x 166.9 x 8.8mm - Platform (H/W, S/W): Exynos990 SDM865, Android 10.0, One UI 2.1
- Smartphone that will change the future of mobile and pictures: significantly higher resolution and 8K video recording allows taking pictures and videos in unprecedented quality and easy and swift sharing with 5G
- Pictures and videos with significantly higher resolution: S20 S20+ 64MP, S20 U 108MP
- 100x zoom, the highest space zoom yet in smartphones: S20 U 108MP - Take higher quality, clearer and brighter pictures and videos even at night with three times bigger sensor (using AI
technology) - Take videos in 8K, the highest quality yet in smartphones - Super steady feature reduces blur from shaking but captures dynamic movements - Single take allows the best pictures and videos with a single shot
Galaxy S20 FE (October 2020) - Makes S series experience available to more customers - Screen: 6.5" FHD+ sAMOLED Infinity-O (2,400 x 1,080) - Size (W x H x D): 74.5mm x 159.8mm x 8.4mm - Platform (H/W, S/W): Exynos990, SDM865, Android 10.0, One UI 2.5 - New entry-level flagship product equipped with premium features enhances market influence and provides experiences for various functions optimal to customers - Provides major S20 features: 120Hz display, same specs for camera and battery, same AP with flagship models, One UI 2.5 UX
Galaxy S21 5GS21+ 5GS21 Ultra 5G (January 2021)
- Design: Iconic and premium full metal camera housing, bezel-less design - Screen: S21 5G 6.2", S21+ 5G 6.7", S21 Ultra 5G 6.8" - Size (W x H x D): S21 5G 71.2mm x 151.7mm x 7.9mm, S21+ 5G 75.6mm x 161.5mm x 7.8 mm, S21 Ultra 5G 75.6mm
x 165.1mm x 8.9 mm - Platform (H/W, S/W): Exynos2100 | SDM888, Android 11.0, One UI 3.1 - Supports ultra-high speed 5G, Wi-Fi 6E, high-resolution camera
Camera: S21 Ultra 108MP, S21 S21+ 64MP, Multi Camera Recording function Dynamic AMOLED 2X Infinity-O display with maximum adaptive frequency of 120Hz Easy registration and finding objects synced with SmartTag Supports Digital Car Key service (S21+ 5G S21 Ultra 5G only)
- Supports S Pen (S21 Ultra 5G only) Galaxy S22S22+S22 Ultra (February 2022)
- Design: Enhanced Galaxy Design attractiveness with geometric bold design and integrity on quality - Screen: S22 6.1", S22+ 6.6", S22 Ultra 6.8" - Size (W x H x D): S22 70.6mm x 146.0mm x 7.6 mm, S22+ 75.8mm x 157.4mm x 7.6 mm,
S22 Ultra 77.9mm x 163.3mm x 8.9 mm - Platform (H/W, S/W): SM8450 | Exynos2200, Android 12.0, One UI 4.1 - Strengthened camera video filming and low-light function performance
Video: Improved HDR and OIS+AI Stabilizer performance to support rich colors and minimize shaking/jittering Enhanced low-light performance: Applies Big Pixel sensor and On-device AI algorithm - Integrated Ultra/Note by equipping with S Pen * Optimized latency : 5.6ms (S21 Ultra) 2.8ms (S22 Ultra) - Improved outdoor visibility of display * Peak brightness: 1,500nit (S21 Ultra) 1,750nit (S22 Ultra) - Battery that can be used all-day and 45W ultra-fast charging speed (S22 Ultra/S22+) - Enhanced durability: Adopts Amor AL and Victus+ Glass with a 10% improvement in durability - Improved completion of Galaxy foundation experience One UI 4.1: sophisticated, sensible interaction experience and personal experience of users Galaxy Eco: improved end-to-end completion and enhanced convenient experience
Samsung Electronics Business Report
395 / 413
Research project
Galaxy Note -August 2020
Galaxy Tab -February 2022
DX Division
Details
Galaxy Note2020 Ultra (6.76.9") (August 2020)
- Size (W x H x D): Note20 75.2mm x 161.6mm x 8.3 mm, Note20 Ultra 77.2mm x 164.8mm x 8.1 mm - Platform (H/W, S/W): Exynos 990 SDM 865 Plus, Android 10, One UI 2.5
- Supports high-speed 5G and Wi-Fi 6 - First in the Galaxy lineup to support Ultra Wide Band (Note 20 Ultra) - 108MP camera (Note 20 Ultra), 64MP camera (Note 20) - Maximum 120Hz scan rate display (Note 20 Ultra) - First to support wireless Samsung DeX - Supports S pen and Samsung Note; easy-to-use and perfectly resembling pen-writing experience; supports MS Xbox
Game Galaxy Tab S7S7+ (August 2020)
- Design: Premium Tablet (display, pen, performance) - Screen: 12.4" WQXGA AMOLED (16:10, 2800x1752/120Hz), 11" WQXGA LTPS TFT (16:10, 2,560x1,600/120Hz) - Size (W x H x D): 285.0mm x 185.0mm x 5.7mm (12.4"), 253.8 x 165.3 x 6.3mm (11") - Platform (H/W, S/W): SDM865+, Android 10, One UI 2.5 - Secured premium competitiveness by developing a thin large-display metal design - The first tablet that supports 5G (mmWave) for global carriers and the four major carriers in the US - Enhanced usability of Samsung Notes with 120Hz display and optimal pen latency (9ms) - N-generation AP maximizes performance (seamless multi-tasking & gaming experience)
Galaxy Tab S7 FE (June 2021) - Screen: 12.4" WQXGA (2560x1600) - Size (W x H x D) & weight: 284.8mm x 185.0mm x 6.3mm, 608g (based on the LTE model) - Immersive display with 12.4" large-screen display and slim bezel - Long play time (10,090mAh, up to 13 hours of video play) - Rich sound with the application of Dolby Atmos - Enhanced usability of Samsung Note Simple conversion of handwriting to text Direct input with S Pen into the input box - Enhanced function of PENUP Drawing Applies layer structure and provides coloring and live drawing - Lightweight keyboard cover (330g) - Delivery of clear voice with 50% reduction of background noise through 3 Mic - Stronger device connectivity Second screen: using tablet as a supplementary monitor of PC Hands off: sending and continuing what you were doing on your phone to your tablet (Internet, Samsung Notes) Copy & paste: copy & paste of texts and images between Phone-Tablet - Auto switching: auto-buds switching between Phone-Tablet
Galaxy Tab A8 (December 2021) - Screen: 10.5" WUXGA (1920 x 1200) - Size (W x H x D) & weight: 246.8mm x 161.9mm x 6.9mm, 508 g - Platform (H/W, S/W): UniSOC T618(12nm) processor, Android 11, One UI 3 - Memory : 3GB + 32GB / 4GB + 64GB / 4GB + 128GB, microSD up to 1TB Provides new options of RAM 4GB and ROM 128GB compared to previous model - Established and applied the Company's Tablet Design ID (Samsung Logo, shape and location of camera, symmetrical sides and front & back), same colors as the Tab S8 Flagship Family (Gray, Silver, Pink Gold) - Applies the Company's standard tablet display ratio of 16:10, provides immersive multimedia experience with 10.5" large-screen display and slim bezel - Supports Dolby Atmos and features Quad Speaker, free load of apps that specialize in contents such as Samsung TV Plus (offers free Live Streaming and VOD) - Supports 2 Split Windows and Pop-up view with Multi-Active Window, enhanced multi-tasking experience with the support of Drag & Split function--applied in Fold3--for the first time for tablets - Improved usability for online classes with the support of Screen Recorder for the first time among Tab A series Wider support of One UI 3.1.1 Galaxy Experience (Copy&Paste, Auto Sync, Auto Switch)
Samsung Electronics Business Report
396 / 413
Research project
Galaxy A -September 2022
DX Division
Details
Galaxy Tab S8S8+S8 Ultra (February 2022)
- Screen: Tab S8 11" WQXGA+ (2560 x 1600) Tab S8+ 12.4" WQXGA+ (2800 x 1752) Tab S8 Ultra 14.6" WQXGA+ (2960 x 1848)
- Size (W x H x D) & weight: Tab S8 253.8mm x 165.3mm x 6.3mm, 503g Tab S8+ 285.0mm x 185.0mm x 5.7mm, 567g Tab S8 Ultra 326.4mm x 208.6mm x 5.5mm, 726g
- Platform (H/W, S/W): SM8450 processor, Android 12, One UI 4.1 - Memory : 8GB+128GB / 8GB+256GB / 12GB+256GB / 16G+512G, microSD up to 1TB - Enhanced video call experienced
[Tab S8 Ultra] Provides dual front cameras (12M 80-degrees, 12M 120-degrees) and Auto Framing function [Tab S8+ / Tab S8] Provides 12M 120-degree front camera and Auto Framing function - Enhanced AP Sustain performance by improving heat sink design (gpu 70%, cpu 25% compared to previous model), enhanced gaming performance - Improved S pen latency (5.6ms 2.65ms) and optimized prediction algorithm Provides seamless and precise writing experience when writing & drawing, just like a real pen, enhancements to lessen the parallax effect - Enhanced the audio experience of video calls by upgrading 3 MIC noise cancellation performance (3 types of noise cancellation mode) - Equipped with WiFi 6E function--a first for a tablet--and improved big data transmission time between devices - Reduced charging time of Phone Power Share by half compared to the previous model by adopting D2D 15W charging function Galaxy A52 LTE5G (March 2021)
- Offers enhanced user experience and increased competitiveness via strengthened core features - Screen: 6.5" FHD+ sAMOLED HID (2,400 x 1,080) - Size (W x H x D): 75.1mm x 159.9mm x 8.4mm - Platform (H/W, S/W): SDM750G (5G)/SDM720G (LTE), Android 11, One UI 3.1 - Supreme smooth UX/Dynamic refresh rate and Brightest (6.5" sAMOLED with 120Hz (5G)/90Hz (LTE), 800nit) - High-resolution 64MP Quad Camera (64M OIS/12M UW/5M Depth/5M Macro) - Powerful AP with High Capacity Battery (4,500mAh) Galaxy A72 (March 2021) - Offers enhanced user experience and increase competitiveness via strengthened core features - Screen: 6.7" FHD+ sAMOLED HID (2,400 x 1,080) - Size (W x H x D): 77.4mm x 165.0mm x 8.4mm - Platform (H/W, S/W): SDM720G, Android 11, One UI 3.1 - High refresh Rate Brightest Display (6.7" FHD+ sAMOLED with 90Hz, 800nit) - Advanced High-res/Multi Camera, More detail with blur-less
(64M OIS/12M UW/8M Tele/5M Macro) - Long-lasting Battery with bigger capacity (5,000mAh) Galaxy A32 LTE5G (LTE: March 2021; 5G: January 2021)
- Offer enhanced user experience and increase competitiveness by strengthening core features - Screen: LTE 6.4" FHD+ sAMOLED (2,400 x 1,080)/5G 6.5" HD+ TFT (1,600 x 720) - Size (W x H x D): LTE 73.6mm x 158.9mm x 8.4mm/5G 76.1mm x 164.2mm x 9.1mm - Platform (H/W, S/W): LTE MT6769T/5G MT6853V, Android 11, One UI 3.1 - LTE
Brightest Display: 800nit Super AMOLED High Resolution Camera: 64MP Quad (64M W/8M UW/5M Macro/5M Depth) High Capacity Battery: 5,000mAh - 5G Rich Camera Experience of 48MP Quad, Penta Mode Camera (48M W/8M UW/5M Macro/2M Depth) - High Capacity Battery: 5000mAh Galaxy Quantum2 A82 (April 2021) - Screen: 6.7" QHD+ (3,200 x 1,440) - Size (W x H x D) & weight: 161.9mm x 73.8mm x 8.1mm, 176g - Platform (H/W, S/W): SDM855+, Android 11, One UI 3.1 - Applied QRNG security chip set - Supports expansive large-screen and smooth screen transition of 120Hz Powerful camera that enables photographing on a professional level (ultra-wide 12MP, main 64MP, close-up 5MP)
Samsung Electronics Business Report
397 / 413
Research project
DX Division
Details
Galaxy A03-Core (December 2021) - Screen: 6.5" HD+(1480 x 720) TFT 60Hz - Size (W x H x D) & weight: 164.2mm x 75.9mm x 9.1mm, 211g - Platform (H/W, S/W): 28nm octa-core processor, Android 11(Android GO) Enhanced CPU performance compared to previous model A01-Core (28nm quad-core processor) - Highly price efficient product that applies large-screen/high-capacity battery to address the entry market - Enhanced display (5.3"6.5" HD+) and battery (3,0005,000mAh) compared to previous model A01-Core
Galaxy A23 (March 2022) - Screen: 6.6" FHD+ (2408 x 1080) 90Hz - Size (W x H x D) & weight: 76.9mm x 165.4mm x 8.4mm, 195g - Platform (H/W, S/W):SDM680, Android 12, One UI 4.1 - 6.6" FHD+ display, supports 90Hz screen refresh rate (previous model: A22 6.4" HD+ 90Hz) - Vivid pictures in the dark without camera shake with the adoption of high-definition 50MP OIS camera Adoption of high-capacity 5,000mAh battery and supports 25W ultra-fast charging
Galaxy A13 5G (January 2022) - Screen: 6.5" HD+ (1600 x 720) 90Hz - Size (W x H x D) & weight: 76.5mm x 164.5mm x 8.8mm, 195g - 6.5" HD+ display, supports 90Hz screen refresh rate (previous model: A12 6.5" HD+ 60Hz) - Super-low priced 5G model for LTE user migration and expansion of the 5G market - Strengthened AP (5G) AP (MT6765 MT6833v) to address entry market - Higher definition of pictures compared to the previous model (A12 16MP) with the application of 50MP camera
Galaxy A13 LTE (March 2022) - Screen: 6.6" FHD+ (2400 x 1080) 60Hz - Size (W x H x D) & weight: 76.4mm x 165.1mm x 8.8mm, 195g - Platform (H/W, S/W): 8nm octa-core processor, Android 12, One UI Core 4.1 - Provides better large screen experience compared to the previous model (A12 6.5" HD+) by adopting 6.6" FHD+ display - Higher definition of pictures compared to the previous model (A12 48MP) by adopting 50MP camera - Able to use up to two days on a single charge by applying 5,000mAh high-capacity battery and AI Power mode
Galaxy A73 5G (April 2022) - Screen: 6.7" FHD+ Super AMOLED+ (1080 x 2400) 120Hz - Size (W x H x D) & weight: 76.1mm x 163.7mm x 7.6mm, 181g - Platform (H/W, S/W): SDM778G, Android 12, One UI 4.1 - Vivid pictures in the dark without camera shake with the support of 108MP high-resolution picture quality and OIS - Soft and clear screen experience with the adoption of high refresh rate of 120Hz and sAMOLED display - Adopts 5,000mAh high-capacity battery (2-day battery life) and supports 25W ultra-fast charging speed - Offers strong durability with the adoption of Gorilla Glass 5 and IP67 rating - Provides the latest flagship experience with the support of One UI 4.1
Galaxy A53 5G (April 2022) - Screen: 6.5" FHD+ Super AMOLED (1080 x 2400) 120Hz - Size (W x H x D) & weight: 74.8mm x 159.6mm x 8.1mm, 189g - Platform (H/W, S/W): Exynos1280, Android 12, One UI 4.1 - 8.1t slim design and 5,000 mAh high-capacity battery (0.3t, 500 mAh compared to previous model) - Soft and clear screen experience provided by the combination of high refresh rate of 120Hz and fast response speed of sAMOLED - Enhanced glass durability with the adoption of Gorilla Glass 5 - Provides the latest flagship experience with the support of One UI 4.1
Galaxy A33 5G (April 2022) - Screen: 6.4" FHD+ Super AMOLED (1080 x 2400) 90Hz - Size (W x H x D) & weight: 74.0mm x 159.7mm x 8.1mm, 186g - Platform (H/W, S/W): Exynos1280, Android 12, One UI 4.1 - Delivers enhanced screen experience with the support of 6.4" FHD+ display and 90Hz (previous model: A32-5G HD+ TFT 60Hz) - High-definition pictures without camera shake with the adoption of 48MP OIS camera - Enhanced durability with the adoption of Gorilla Glass 5 and support of IP67 rating for dust and water resistance - Adopts 5,000 mAh high-capacity battery (2-day battery) and supports 25W ultra-fast charging speed
Samsung Electronics Business Report
398 / 413
Research project
Galaxy Book -December 2022
DX Division
Details
Galaxy A23 5G (September 2022) - Screen: 6.6"FHD+ TFT LCD (1080 x 2400) 120Hz
- Size (W x H x D) & weight: 76.9mm x 165.4mm x 8.4mm, 197g - Platform (H/W, S/W): SDM695, Android 12, One UI 4.1 - Upgraded AP performance compared to previous model (A22-5G MT6833V) with the application of SDM695 - High-resolution pictures without camera shake with the adoption of 50MP OIS camera (OIS is not supported in the North
America region) - Provides enhanced large-screen experience compared to previous model (A22-5G 6.6" HD+ 90Hz) by adopting 6.6"
FHD+ - Applies 5,000mAh large-capacity battery (2-day battery) and supports 25W ultra-fast charging Galaxy Book Flex 2 (December 2020) - Design: 2-in-1 PC with S Pen, QLED display - Screen: 15.6" QLED FHD (16:9, 1920 x 1080), 13.3" QLED FHD (16:9, 1920 x 1080) - Size (W x H x D): (15.6") 355.0mm x 227.2mm x 14.9mm (13.3") 302.6mm x 202.9mm x 12.9mm - Platform, OS: Intel 11th generation CPU, Windows 10 - QLED: Color Volume 100%, Super Bright Outdoor Mode Max 600nit - S Pen: Samsung Notes, Clip Studio, Gesture - SSD: Powerful performance & Latest Gen4 SSD
Galaxy Book Flex2 5G (December 2020) - Screen: 13.3" QLED FHD Up to 600nit Brightness, Color Volume 100% - Size (W x H x D): 304.9mm x 202.3mm x 13.914.9mm - Platform, OS: 11th-generation Intel CPU, Intel Iris Xe Graphics, Windows 10 - Supports ultra-fast 5G (Sub-6) Connects to state-of-the art wireless LAN 802.11 ax (Wi-Fi6) - Double Camera World-facing camera (13M AF) and front-facing camera (1M) Camera - Long battery life (20 hours battery life, based on MM14) - Comes with S-Pen, allowing quick expression of inspiration (Digitizer) - Stronger connection to Tablets, Phones Link to Windows: Smartphone apps opens seamlessly on PCs - Samsung Notes: Syncs notes between Phone-Tablet-PC
Galaxy Book Go (April 2021) - Screen: 14" FHD (1920 x 1080) - Size (W x H x D) & weight: 323.9mm x 224.8mm x 14.9mm, 1,380g - Platform: 2nd-generation Snapdragon 7C, Windows 10 - Supports LTE that enables Internet anywhere anytime - Slim design optimized for portability (14.9mm thick) - Rich sound with the application of Dolby Atmos - Long play time (up to 18 hours of battery life) - Stronger connectivity between Tablet-Phone Quick Share: easy share of files between phone and tablet Second Screen: using tablet as a supplementary monitor of PC Galaxy Book Smart Switch: simple sending of data from the previous notebook SmartThings: syncing smart devices
Samsung Electronics Business Report
399 / 413
Research project
DX Division
Details
Galaxy Book2 Pro 360 (April 2022) - Screen: 15.6" FHD Super AMOLED (16:9), up to 500nit (HDR), Color Volume 120% 13.3" FHD Super AMOLED (16:9), up to 500nit (HDR), Color Volume 120% - Size (W x H x D) & weight: 15.6" 354.85 x 227.97 x 11.9mm, 1.41kg 13.3" 302.5 x 202 x 11.5 mm, 1.04kg - Platform, OS: 12th Gen Intel CPU (EVO Verified by Intel), Windows 11 - sAMOLED: Default 370nit/HDR 500nit, Color volume 120% - S Pen & Touchscreen support - 1080p FHD Camera (87-degree wide angle, supports Auto Framing, which recognizes users and adjusts them to the center of the screen) - SSD: Gen4 SSD, Expendable SSD (M.2 2230) - Supports WiFi 6E - Battery: 15.6" 68Wh (21hrs), 13.3" 63Wh (21hrs) - Galaxy Apps: Quick Share, 2nd Screen, Multi-Control, etc. QR Sign-in: logs into Galaxy Book with a QR scan linked to the account on your phone Security: supports Secured-Core PC with enhanced security for each stage for hardware, firmware, and software
Galaxy Book2 Pro (April 2022) - Screen: 15.6" FHD AMOLED (16:9), up to 500nit (HDR), Color Volume 120% 13.3" FHD AMOLED (16:9), up to 500nit (HDR), Color Volume 120% - Size (W x H x D) & weight: 15.6" 355.4 x 225.8 x 11.7mm, 1.11kg 13.3" 304.4 x 199.8 x 11.2mm, 0.87kg - Platform, OS: 12th Gen Intel CPU (EVO Verified by Intel), Windows 11 - AMOLED: Default 400nit/HDR 500nit, Color volume 120% - 1080p FHD Camera (87-degree wide angle, supports Auto Framing, which recognizes users and adjusts them to the center of the screen) - SSD: Gen4 SSD, Expendable SSD (15.6" Only, M.2 2280) - Supports WiFi 6E, 5G Sub6 (15.6"Only) - Battery: 15.6" 68Wh (21hrs), 13.3" 63Wh (21hrs) - Galaxy Apps: Quick Share, 2nd Screen, Multi-Control, etc. QR Sign-in: logs into Galaxy Book with a QR scan linked to the account on your phone - Security: supports Secured-Core PC with enhanced security for each stage for hardware, firmware, and software
Galaxy Book2 Go 5G (December 2022) - Screen: 14" IPS (1920 x 1080) - Size (W x H x D): 323.6mm x 224.8mm x 15.5mm - Platform: WoA 7C+ Gen3, Window 11 - Developed Mass WoA product adopting 7C+ Gen3 (CPU 63%, GPU 102% compared to 7C Gen2) - Improved picture quality of display (TN IPS) - Supports WiFi 6E, 5G Sub6 - Adopted 5G model for the mass market which supports ENDC/eSIM - Supports 45W charging - Completed eight tests from the MIL-STD-810H certification Shock, high/low temperature, thermal shock, dust, vibration, low pressure, humidity
Galaxy Book2 Pro 360 (2023) (December 2022) - Screen: 13.3" FHD AMOLED (16:9), Touch Screen, Color Volume (DCI-P3) 100%, S Pen - Size (W x H x D) & weight: 13.3" 302.5 x 202.0 x 11.5mm, 1.04kg - Platform, OS: Qualcomm Snapdragon 8cx Gen3, Windows 11 Home - AMOLED: 13.3" FHD Super AMOLED (16:9), Color Volume (DCI-P3) 100%, up to 370nit, S Pen - Speakers: Stereo 2 x 4W (Smart AMP), AKG, Dolby Atmos - SSD: eUFS on board, 256GB - WiFi 6E (802.11ax) - Battery: 63Wh (Video Play 35hrs) - Galaxy ecosystem: Smart Switch, Samsung Account, Samsung Apps, Keyboard & Touch Pad Sharing between Galaxy devices - Security: fingerprint recognition, Secured Core PC (Level 3, H/W & F/W Protection) - AI: Noise Reduction, Video Call with Neural Engine
Samsung Electronics Business Report
400 / 413
Research project
Galaxy Watch -August 2022
Galaxy buds -August 2022
DX Division
Details
Galaxy Watch3 (August 2020) - Design: Premium smart watch resembling the design of a traditional watch - Display: 1.4" (45mm), 1.2" (41mm) OLED (360 x 360) - Size (W x H x D): 45.0 x 46.2 x 11.1 (45mm) 41.0 x 42.5 x 11.3 (41mm) - Platform (H/W, S/W): Exynos9110, Tizen 5.5 - Expanding portfolio to titanium models (high-end segment) - Identifying and have included differentiated health-related services - Blood pressure, ECG, fall detection features commercialized globally
Galaxy Watch4 & Galaxy Watch4 Classic (August 2021) - Display: Watch4: (44mm) 1.4" (450 x 450), (40mm) 1.2" (396 x 396); Watch4 Classic: (46mm) 1.4" (450 x 450), (42mm) 1.2" (396 x 396) - Size (W x H x D): Watch4: (44mm) 44.4 x 43.3 x 9.8mm, (40mm) 40.4 x 39.3 x 9.8mm; Watch4 Classic: (46mm) 45.5 x 45.5 x 11.0mm, (42mm) 41.5 x 41.5 x 11.2mm - Platform (H/W, S/W): AP Exynos W920 (5nm 64-bit Dual-Core), Wear OS Powered By Samsung, One UI Watch of Wear OS 3.0 - Memory: improved performance and increased storage with 1.5GB RAM + 16GB ROM - Higher resolution 330 ppi display - Pursuing differentiation by featuring body composition measurement for the first time and enhancing usability - Advanced sleep tracking, including blood oxygen level measurement and snore detection - Wider app ecosystem and enhanced sync experience based on Wear OS Provides key services of Google, including Play Store/Google Map/YT Music Supports specialized fitness apps and other various service apps
Galaxy Watch5 & Galaxy Watch5 Pro (August 2022) - Display: Watch5 Pro (46mm) : 34.6mm AMOLED (450 x 450) 330PPI Watch5 (44mm) : 34.6mm AMOLED (450 x 450) 330PPI Watch5 (40mm) : 30.4mm AMOLED (396 x 396) 330PPI - Size (W x H x D) & weight: Watch5 Pro (46mm) 45.4 x 45.4 x 10.5 mm, 46.5g Watch5 (44mm) 44.4 x 43.3 x 9.8 mm, 33.5g Watch5 (40mm) 40.4 x 39.3 x 9.8 mm, 28.7g - Platform (H/W, S/W): Exynos W920, Wear OS Powered by Samsung (Wear OS 3.5) - Signature circular design with adoption of sapphire crystal glass - Enhanced integrated health monitoring function equipped with the advanced BioActive Sensor Improved accuracy of body composition, heart rate, blood pressure, and ECG; and advanced sleep monitoring function - Equipped with One UI Watch 4.5 based on Wear OS, which enables various Google mobile services and apps - Premium titanium body; optimized for outdoor activities with enhanced GPS tracking features (Watch5 Pro) Enhanced performance and durability for better utilization in outdoor activities, such as hiking and cycling Provides Magnetic D-Buckle Sport Band, which offers better durability, convenience, and style Save and share workout journey using Route Workout and GPS Exchange Format (GPX) files Provides turn-by-turn navigation along previous routes through the Track Back feature Enables lengthy use for outdoor activities via the adoption of large-capacity battery (590mAh)
Galaxy Buds+ (January 2020) - Design: Canal-type TWS (True Wireless Stereo) - Platform (HW, SW): MCU (BCM43015), OS (RTOS), BT 5.0 - Battery: (Earbuds) 85mAh x 2, (cradle) 270mAh - Powerful mid to low keys and outstanding sound quality with application of 2-way speaker (woofer & tweeter) - 2 outer beamforming mic and 1 inner mic optimizes phone call sound - Improved errors in proximity sensor by adding grip sensor Longest play time compared to products in the same class, with upgraded battery: 22 hours for streaming (earbuds 11H & cradle 11H)
Galaxy Buds Live (August 2020) - Design: Open-type TWS with innovative design and high-quality sound - Size (W x H x D): (Earbuds)16.5mm x 27.3mm x 14.9mm, (Cradle) 50.0mm x 50.2mm x 27.8mm - Platform (H/W, S/W): BCM43015, RTOS - Ergonomic design that fits ears perfectly, provides all-day comfort sitting softly inside the ear. - Open type Active Noise Cancellation reduces background noises but let you hear what you want to hear. - Large-size 12mm speakers and Bass Duct deliver rich, spacious live sound - Three built-in mics and a Voice Pickup Unit enables the best call quality
Samsung Electronics Business Report
401 / 413
Research project
DX Division
Details
Galaxy Buds Pro (January 2021) - Design: Premium TWS, in-ear type with Intelligent ANC feature - Size (W x H x D): (earbuds) 20.5 x 19.5 x 20.8mm, (cradle) 50 x 50.2 x 27.8mm - Platform (H/W, S/W): BCM43015, RTOS - 2Way (woofer + tweeter) 11mm speaker offers enhanced sound quality High-quality phone call sound with 3 mics and accelerometer (voice pickup sensor) In-ear type, Intelligent ANC and voice detect function instantly switches from ANC to Ambient sound when it hears your voice 3D Audio provides a truly immersive experience resembling that of a movie theater - IPx7-level water resistant
Galaxy Buds 2 (August 2021) - Enhanced competitiveness of the Buds mass-market model by enhancing basic functions and adding ANC - Size (W x H x D): (earbuds) 17.0 x 20.9 x 21.1 mm, (cradle) 50.0 x 50.2 x 27.8 mm - BES2500 ZP-83 (BT + Codec + Flash) new low-power management solution* Provides ANC Play time of up to 29 hours (based on streaming, with ANC off) - Optimized RF frequency performance by applying integrated Touch + BT Antenna FPCB - Enhanced audio performance of canal-type wireless earbuds Applied algorithm that maximizes noise cancelling performance by utilizing DNN (DNN + 3-Mic +VPU) * DNN: Deep Neural Network , VPU: Voice Pickup Unit Improved latency of switching to Ambient Sound Mode (3.2ms0.65ms) Better low frequency sounds by applying new materials to the woofer cone Better noise cancelling of the microphone with the adoption of flawless microphone Enhanced ANC and sound quality by changing the density of the ventilation duct and improving the pipe conduit of feedback mic Reduced wind noise by maximizing and optimizing the location of the chamber space of the microphone
Galaxy Buds 2 (August 2021) - Enhanced competitiveness of the Buds mass-market model by enhancing basic functions and adding ANC - Size (W x H x D): (earbuds) 17.0 x 20.9 x 21.1 mm, (cradle) 50.0 x 50.2 x 27.8 mm - BES2500 ZP-83 (BT + Codec + Flash) new low-power management solution Provides ANC Play time of up to 29 hours (based on streaming, with ANC off) - Optimized RF frequency performance by applying integrated Touch + BT Antenna FPCB - Enhanced audio performance of canal-type wireless earbuds Applied algorithm that maximizes noise cancelling performance by utilizing DNN (DNN + 3-Mic +VPU) * DNN: Deep Neural Network , VPU: Voice Pickup Unit Improved latency of switching to Ambient Sound Mode (3.2ms0.65ms) Better low frequency sounds by applying new materials to the woofer cone Better noise cancelling of the microphone with the adoption of flawless microphone Enhanced ANC and sound quality by changing the density of the ventilation duct and improving the pipe conduit of feedback mic Reduced wind noise by maximizing and optimizing the location of the chamber space of the microphone
Galaxy Buds 2 Pro (August 2022) - Kernel-type premium TWS that offers high-quality 24bit Hi-Fi audio and comfortable fit - Size (W x H x D): Earbuds 21.6mm x 19.9mm x 18.7mm Cradle 50.2mm x 50.1mm x 27.7mm - Platform (H/W, S/W): BES2700YP 1Chip solution, RTOS First Samsung Buds to apply 24bit/48kHz Hi-Fi technologies to offer a high-quality audio experience by minimizing loss of sound quality of the original recording; Intelligence ANC which adopts All High-SNR MIC, noise cancelling solution, and voice detect technology Strengthened listening experience of the immersive 360 Audio feature via multi-channel audio and enhanced technology that tracks head movements Provides clear and upgraded call quality through improved VPU and personalized beamforming technology - Offers comfortable and stable fit thanks to the ergonomic design Improved fit through smaller size--15% size reduction compared to previous model--and enhanced structure of vent holes - Strengthened user experience via easy connection between Galaxy Devices Expanded the Auto Switch feature from smartphones, tablets, and watches to TVs, and the transition between devices is made easier and faster
Samsung Electronics Business Report
402 / 413
Research project
Network RAN S/W Package April 2019June 2021
Core S/W Package March 2020
Base stations September 2019November 2022
Details
DX Division
SVR18.3 5G S/W package (April 2019) - S/W Package to commercialize domestic 5G NR for the first time in the world Commercialized 5G NSA by using LTE network links in the Seoul and the capital area Supports 5G base station (3.5GHz, 28GHz, 39GHz 5G Massive MIMO)
SVR21B NR vDU SW package (June 2021) - TDD-based C-Band vDU Flexible base station upgrade without H/W change and resource allocation
* vDU (virtual DU): realizing the function of 5G base station by developing commercial server-based S/W
SVR19B 5G core S/W package (March 2020) - Developed containerized-based 5G Core Network Function Efficient and quick service distribution and maintenance cost reduction possible by flexibly containerizing host OS resource
Developed NR DU (September 2019) - New dual CPU based main card and first 5G SoC modem using channel card - Single HW can accommodate a combination of LTE, NR above and NR below products, offering different channels at the same time - Supports high capacity, low power consumption (including power saving) and virtualization/non virtualization S/W structure
Developed 26GHz NR RFIC Chip (February 2020) - 2nd generation RFIC Chip, following SEC's 1st generation products (28GHz/39GHz) 2nd generation has improved evm function, power efficiency, and mass production
Developed FSU10 (May 2020) - FSU (fronthaul switch unit) to support vRAN business - Makes spectrum sharing between LTE and NR (below 6GHz) possible One RU fits both LTE DU and NR vRAN via spectrum sharing
Developed NR Indoor AU (August 2020) - Our first 5G In-building Solution AU product - Small form-factor enables low-power consumption, indoor installation on walls, pillars, and ceilings
Developed NR C-Band MMU (3.7G 64T64R 200W MMU) (December 2020) - First ever TDD-based MMU (Massive MIMO Unit) that operates in C-BAND in North America - Supports broadband IBW 280M, thus any carrier with C-Band across the country may use the product
Developed MMU Beam Forming SoC (February 2021) - SoC performs functions that Beam Forming FPGA, within MMU board, performs - 30% more power efficient than previous model (Maximum power consumption: less than 40W)
Developed 5 types of ORAN* RU for the US (September 2021) - Defined DU-RU standard interface, which allows to connect any vendor DU to any vendor RU - AWS/PCS, two types of 700/850 4T4R 40W, two types of 320W, C-Band 8T8R 320W
AWS/PCS Dual Band 16T16R FDD MMU for North America (October 2021) - The Company's first commercialized 16T16R FDD dual band MMU product that applies our in-house-developed chip
Domestic 3.5GHz NR 32T32R TDD MMU (February 2022) - Applied Mechanical PSA (phase shift antenna) for the first time * Automatically controls the antenna angle (tilt 0-12°) inside the MMU with a motor
Developed high-performance RFIC + DFE integrated chip (April 2022) * RFIC (Radio Frequency Integrated Circuit): high-frequency integrated circuit suitable for wireless communication * DFE (Digital Front End): last stage of digital signal processing for communication Two types of FDD RU for Dish (Dual Band/Tri Band RU) (September 2022)
- Developed 5G FDD RU product that complies with the O-RAN standard and supports multiple frequency bands at the same time
* frequency supported by RU: n71(600MHz), n29(700MHz), n66(AWS: 1.7GHz/2.1GHz), n70(AWS: 1.7GHz/1.9GHz) Gen.3 Dual Band NR 2T2R AU (October 2022)
- Developed the world's first Dual Band (28GHz+39GHz) AU - Upgraded product performance by increasing output and capacity twofold with the same size compared to the existing
2nd generation AU Domestic 3.5GHz NR 64T64R MMU (November 2022)
- Developed 64T64R Massive MIMO MMU, which was commercialized in the domestic market for the first time - Increased antenna elements twofold and output by 2.7 times compared to the existing 32T32R MMU (old model) for the
domestic market
Samsung Electronics Business Report
403 / 413
Research project
Memory DRAM for mobile July 2019October 2022
DRAM for server August 2019December 2022
Details
DS Division
Mass production of 2nd generation 10nm class (1y) 12Gb LPDDR5 DRAM for mobile, with top-level speed and capacity - Next-generation mobile solution with better speed, capacity, and power efficiency - Contributed to introducing 5G smartphones with 1.3 times the speed (5,500Mbps), and 30% lower power consumption - 12Gb LPDDR5-based line up (6GB, 12GB) provided for the first time
World's first mass production of 16GB LPDDR5 mobile DRAM: top-level speed and capacity - Performance improved by 30%, capacity by 2 times, and 20% less power consumption vs 8GB LPDDR4X - Gaming performance (picture quality, haptic feedback) same or better than PCs possible with smartphones
Development of LPDDR5X DRAM - Improved speed by over 30% and power efficiency by approximately 20% compared to previous model - Based on 14nm; expansion of application areas that use high performance, low power consumption memory from mobile to server and automotives, with expansion to up to 64GB per memory package - Verified the industry-leading operating speed (8.5Gbps) by mounting the 8GB LPDDR5X DRAM package on Qualcomm's Snapdragon mobile platform
Mass Production of 1st generation 10nm-class (1x) 256GB 3DS DDR4 DRAM for servers, highest capacity in the world - World's first mass production of 256GB DRAM with ultra-high performance and capacity - 2 times the capacity and 30% increase in power efficiency compared to 128GB
Development of 3rd generation 10nm-class (1z) 8Gb DDR4 DRAM - Secured ultra-fast, ultra-power-efficient solutions for mass production of DDR5 LPDDR5
- Efficiency up by more than 20% compared to 2nd generation (1y-nano) DRAM - Expand portion of 1z-nano DRAM lineup in the next-generation products by mass production beginning in September
in Pyeongtaek Development of high-capacity DDR5 memory applying HKMG process--an industry first
- Realization of 512GB DDR5 module with the application of High-K Metal Gate and 8-stack TSV - Reduced power consumption by around 13% and more than double performance compared to the existing process - Planning to apply it in the next-generation computing, super computers, and high capacity data centers Development of the highly advanced 12nm-class DRAM - Developed industry's first 12nm-class 16Gb DDR5 DRAM; offers high-performance and low-power, which are
optimized for the next-generation computing services - Reduced power consumption by approximately 23% and enhanced productivity by approximately 20% compared to
the existing model - Upon mass production in 2023, it is expected to provide memory solutions optimized for our customers' next-
generation systems and to expand application areas in datacenters, AI, next-generation computing, etc.
Samsung Electronics Business Report
404 / 413
Research project
Graphic DRAM July 2022November 2022
HBM DRAM October 2019October 2022
NAND November 2022
DS Division
Details
Development of GDDR6 DRAM, industry's one of the fastest graphic DRAMs - First in the industry to deliver speeds up to 24Gbps by applying 3rd generation 10nm-class (1z) process - Met customer needs by enhancing performance by more than 30% compared to the previous product, leading to processing speeds of up to 1.1TB per second; supporting operation voltage of 1.1V; and improving power efficiency by 20% - Secured compatibility by being fully compliant with specifications of JEDEC, an international semiconductor standardization body - Expanded applications, including next-generation graphics cards, AI, and HPC
Development of GDDR6W, graphics memory that applies advanced packaging technology - GDDR6W is manufactured by introducing Fan-Out Wafer-Level Packaging (FOWLP) technology--a construction and stacking technology--without developing a new memory die - Increased performance (bandwidth) and capacity by twofold while maintaining the same packaging size of GDDR6
Development of 12-stack 3DS TSV PKG, with world's highest HBM DRAM capacity - Development of unrivaled performance and capacity 12GB HBM DRAM for supercomputers--industry's first - 1.5 times the capacity and convenience of system design improved with 8GB package - Strengthened leadership in next-generation HPC DRAM by breakthrough in package technology - Plan to mass produce 24GB HBM, the industry's highest, to meet customer needs
Rollout of ultra-fast DRAM for AI and next-generation super computer for the first time in the world (16GB HBM2E `Flashbolt') - Stacked 8 10nm (1y) 16Gb DRAM, enabling 16GB, the largest capacity - Able to send 82 Full HD movies (410GB) at 3.2Gb/sec - Continue to lead market expansion by supplying 2nd generation HBM2 and 3rd generation HBM2E at the same time
Developed world's first AI HBM-PIM with an AI engine - More than two times the performance compared to previous HBM2, system energy reduced by approximately 70%. - Unveiled academic paper in Feb 2021 at conference held by ISSCC, a highly reputable organization in the semiconductor industry - Enables application without changing the system by using existing memory interface - Cooperate with data center and AI customers on standardization of PIM and establishing eco system.
Expanded memory product lines that integrate an AI engine (performance evaluation of HBM-PIM and development of AXDIMM/LPDDR5-PIM) - Unveiled the case in which the HBM-PIM developed last February was incorporated in the system (integration with the Xilinx Alveo AI accelerator system boosts overall system performance by 2.5 times while reducing energy consumption by more than 60%) - AXDIMM, a DRAM module with an AI engine, offers twice the performance and a 40% decrease in energy usage - Unveiled LPDDR5-PIM that integrated mobile DRAM and PIM technology
Developed AI-accelerator equipped with HBM-PIM and GPU - Materialized HBM-PIM Cluster by installing HBM-PIM memory in AMD's GPU accelerator - Compared to existing GPU accelerators, on average, the addition of HBM-PIM improved performance by more than double and reduced energy consumption by more than 50% - In preparation to provide software that supports accelerators equipped with HBM-PIM, so consumers are expected to be able to use PIM memory solutions in an integrated software environment
Mass production of 8th generation V-NAND - Mass production of 1Tb 8th generation V-NAND, which is amowhich is ng the highest capacities in the world - Significantly enhanced bit productivity per wafer and secured one of the industry's highest bit density - Enhanced performance by 1.2 times compared to existing model, featuring an input and output (I/O) speed of up to 2.4Gbps with the adoption of a next-generation interface - Expected to lead the trend of expanding storage capacity in next-generation enterprise servers and extend use into the automotive market, in which reliability is critical
Samsung Electronics Business Report
405 / 413
Research project
eStorage February 2019May 2022
SSD for server August 2019July 2022
DS Division
Details
Mass production of next-generation smartphone memory, eUFS 3.0--a world's first - Embedded 5th generation (9x-layers) cell stacked 512Gb 3 bit V-NAND for the first time in the industry - Reading and writing 2 times faster compared to eUFS 2.0 - Securing early foothold and high growth in next-generation ultra-high-resolution mobile market
Industry's only mass production of 1TB eUFS 2.1, with a writing speed of 1200MB/s - 3 times the performance compared to 512GB eUFS 3.0 (continued writing speed of 410MB/s) - Smartphone memory storage (1200MB/s) is 2 times faster than PC (SSD 540MB/s)
Development of highly advanced UFS 4.0 - Improved reading/writing speed by approximately twofold compared to UFS 3.1 product - Enhanced power efficiency by approximately 46% for processing the same amount of data, which allows longer hours of use - Improved a function that reads and saves customer's important data by adopting the latest security technologies - Expected to expand into consumer devices, such as smartphones, automotives, and VR/AR
Mass production of 5th generation (9x-layer) V-NAND-based 30.72TB NVMe SSD for servers-- highest speed and capacity in the world - Secured next-generation SSD solution with improved speed, capacity, and efficiency - Introduced 8GB/s PCIe Gen4 SSD with 2.2 times the speed - Exclusively offers top 3 SW (Never Die SSD, FIP, ML) solution
Mass production of high-performance OCP SSD specialized for data centers - Mass production of OCP SSD, the first in the industry for 6th-generation V-NAND - Satisfies performance, power efficiency, reliability, and security demanded by the data center industry - Contributes to cost reduction and carbon emission reduction with industry's most power efficient feature
Mass production of industry's highest performing SAS 24Gbps SSD for server - Supports speed that is around two times faster than the previous generation SSD - Provides high capacity from 800GB to 30.72TB based on 6th generation V-NAND - Expected to reduce server operation cost and carbon emission via a 40% improvement in power efficiency
Industry's first mass production of next-generation ZNS SSD for company server - Applies ZNS technology, which categorizes and saves data by zone depending on characteristics - Lifespan and maximum utilization of SSD capacity increased compared to existing SSDs - Contributes to enhancing the efficiency of next-generation servers--in areas such as AI, big data, and IoT--as well as storage systems, while expanding the foundation for ZNS SSD through various open source projects
Development of PCIe 5.0-based high-performance SSD PM1743 - Improved reading/writing speed by approximately twofold and power efficiency by approximately 30% compared to PCIe 4.0-based SSD - Stability of server operation guaranteed with the support of dual-port and application of latest security technologies
Development of '2nd generation smart SSD' with upgraded processing functionality - Enhances processing functionality by twofold and cuts processing time by over 50%, energy consumption by up to 70%, and CPU utilization by up to 97% - Processes data directly, thereby improving system performance and energy efficiency at the same time - Actively address various market needs, including database and video transcoding - Lead standardization of computational storage and increase development of next-generation storage products
Samsung Electronics Business Report
406 / 413
Research project
Brand SSD January 2020August 2022
EUV March 2020-October 2021
CXL May 2021-October 2022
DS Division
Details
Launched `T7 Touch', premium portable SSD--highest performance in the industry - 5th generation 512Gb V-NAND with world's highest performance and NVMe controller with ultra-fast embedded interface - Supports reading and writing speed of 1,050MB/s and 1,000MB/s, respectively, up to 9.5 times faster than external HDD (110MB/s) and about 2 times faster than the previous model (SEC's portable SSD T5)
Global launch of high-capacity 4-bit SSD `870 QVO' - Introduced 4 SATA SSD models including 1/2/4TB and 8TB model, the highest in the industry - Provides optimal solution to customers with need for high-performance/high-capacity computing environment, with quick data-process speed close to the maximum speed of SATA interface - Boasts high speed/capacity, reasonable price, launched in 40 countries in several phases
Global launch of PCIe-Gen4-applied SSD `980 PRO', boasting highest performance in the industry - Provides ultra-high resolution via consumer SSD with the highest-speed in the industry - Continue to lead market for professional PC and workstation used for editing of 8K, 4K videos and games requiring high-specs - 5-year warranty (longest in the industry)
Global launch of SATA SSD 870 EVO for consumers - Latest V-NAND and controller included, intelligent turbolight technology - Highest durability in the industry, run time enhanced by more than 30% - Five models in 250GB to 4TB range, introduced in steps in Korea, US, Germany, and China
Launched NVMe SSD 980, which boasts high performance and is economical. - 6th-generation V-NAND, maximum 6 times the speed compared to SATA SSD - DRAM-less design to save cost, applied optimization technology for controllers and firmware - Heat-control feature, applied to high-end products - Power efficiency enhanced by 56%, compared to 970 EVO, allowing "good consumption" for consumers
Released portable SSD 'T7 Shield' for experts that offers both performance and durability - Built with dust and water resistance and drop resistance up to 3m - Transmits data stably without performance degradation, including when recording and editing high-resolution videos
Unveiled high-performance SSD '990 PRO' optimized for gaming - Offers unparalleled performance by featuring the latest V-NAND technology and a new proprietary controller - Enhanced speed by up to 55% and power efficiency by up to 50% compared to previous model - Offers optimal performance for an environment in which ultra-high speed data processing is required, such as highperformance graphic games and 4K/8K high-resolution videos
Supplied 1 million 1st generation 10nm-class (D1x) DRAM modules - Mass production of EUV DRAM--the only company in the industry with EUV DRAM mass production system - Secured 10nm-class advanced process and mass production, enabling next-generation DRAM in a timely manner. - EUV process applied to all 4th generation 10nm-class DRAM, and is now expanding to 5th generation and 6th generation products
Mass production of 14nm EUV DDR5 DRAM - Enhanced productivity by approximately 20% with multilayer EUV implementation and realization of industry's highest DRAM bit density - Enhanced speed by twofold compared to DDR4 and improved power consumption by approximately 20% compared to previous process
Development of industry's first CXL-based DRAM memory - Next-generation memory solution to meet the needs of high capacity data centers; overcomes physical limitations of DRAM modules, revolutionary expansion of capacity bandwidth becomes possible - Supports interface converting, error management, etc. through CXL controller - Development of controller and software technology optimized for CXL DRAM memory by collaborating with data centers and server and chipset companies
Development of industry's first open-source software solution for CXL memory - Enables expansion of system memory's performance/capacity by enabling the main memory and the CXL memory to work seamlessly
Development of industry's first high-capacity 512GB CXL DRAM - Enhanced capacity of CXL DRAM by four times, which allows expansion of over tens of terabytes per server - Equipped with CXL-exclusive controller, reducing data latency by 1/5
Development of CXL-based PNM solution for high-capacity AI models - PNM's (Processing-near-Memory) computational functions are performed closer to the memory to reduce the bottleneck between the CPU and memory data transference and to improve system performance - Enhanced performance by approximately twofold in applications, such as recommendation systems or in-memory databases, that require high memory bandwidth
Samsung Electronics Business Report
407 / 413
Research project
Multi-chip June 2021 Brand Card September 2021-May 2022
Automotives December 2021
DS Division
Details
Mass production of industry's best performing uMCP5 (LPDDR5 + UFS3.1) multi-chip package - Speed upgrade by 1.5 times compared to the existing LPDDR4X, 2 times compared to UFS2.2 - Spearhead popularization of 5G by installing them into low- to mid-priced 5G smartphones
Released a new micro SD card product with enhanced performance and stability - 'PRO Plus' provides 1.6 times faster read speed and 1.3 times faster write speed than the previous generation - 'EVO Plus' provides 1.3 times faster read speed than the previous generation - With improved performance and a design that offers better protection against external shocks, not only general consumers, but also creators who make high-quality contents such as 4K UHD videos, are looking forward to it
Released memory card 'PRO Endurance' with enhanced performance and durability - Adopts high-quality server-level NAND durability that allows up to 16 years of continuous recording time - Optimized for high-resolution (4K, Full HD) video recording equipment, such as surveillance video and black box - Keeps stable recording performance even in tough conditions, applies 6-proof protection - Supports speed of Class 10, UHS Class U3, and video speed of Class V30; can continuously record Full HD 4K high-resolution videos
Mass production of memory total solutions for automotives - 256GB SSD and 2GB DDR4/GDDR6 for IVI; 2GB GDDR6 and 128GB UFS for AD - Supplies high performance SSDs and graphics DRAM delivering server-level performance and capacity; and secures high stability that is required in the automotive semiconductor market (operation is guaranteed in the -40-105 range)
Samsung Electronics Business Report
408 / 413
Research project
System LSI Image Sensor January 2019June 2022
Details
DS Division
ISOCELL Slim sensor with ultra-small pixel size (3T2, 0.8um/20Mp) - Highest resolution (20Mp) among 1/3.4" sensors, offers high-resolution optimized for bezel-less displays - Tetracell technology for front camera, allowing high performance under low lighting, high magnification for back camera reduces module size, improving picture quality
Ultra-high resolution ISOCELL Bright sensor (GW1, 0.8um/64Mp) - DCG structure enhances dynamic range - Super PD technology maximizes auto-focus function and enables 480-frames-per-second, full-HD slow motion function - Rich colors by supporting real-time HDR
High resolution ISOCELL Bright sensor (GM2, 0.8um/48Mp) - Super PD technology maximizes auto-focus function and enables 240-frames-per-second, full-HD slow motion function
World's first 108Mp ISOCELL Bright sensor (HMX, 0.8um/108Mp) - AI-ISO-applied S/W controls the amount of light, enhancing color reproduction - Can shoot 30 frames per second in 6k - Improved sensitivity with ISOCELL plus and Tetracell technology
ISOCELL Slim sensor with world's smallest pixel size (GH1, 0.7um/43.7Mp) - Enables easier application of full-screen display set thanks to smaller and thinner module - Supports high-resolution videos and minimizes loss of viewing angle - Improved sensitivity with ISOCELL plus and Tetracell technology
Industry's first next-generation 108Mp ISOCELL Bright sensor with 2-times the sensitivity enabled by Nonacell technology - Enables preview function without compromising picture quality in 3x magnification, thanks to enhanced zoom feature - Features state-of-the-art technologies: smart ISO, real-time HDR, digital correction of shaking images
Dual-pixel and Tetracell-technology-based sensors (GN1, 1.2um/50Mp) - Offers images in 100Mp with dual-pixel technology (2 photodiodes in a pixel) - Takes bright, sophisticated images with Tetracell technology (enables 4 times the sensitivity in the dark)
Established industry's first lineup of 0.7um-pixel-based image sensors (HM2, GW3, GM5, JD1) - Leadership in ultra-small, high-resolution image sensor technology with state-of-the-art `ISOCELL 2.0' technology and more - (HM2) first to offer 108Mp with 0.7um pixel - (GW3) takes 60-frames-per-second 4K 64Mp images - (GM5) takes 48 Mp images supporting ultra-wide angle and folded zoom - (JD1) ultra-small 32Mp product, optimal for bezel-less design
Introduced ISOCELL HM3, 108MP premium image sensor (HM3, 0.8um/108Mp) - Concentrated 108 million 0.8 -size pixels in 1/1.33 inch
- Minimizes afterimage with Smart ISO Pro, enabling bright, vivid images - Lens optimal for autofocus with Super PD Plus, enhanced phase detection ability by 50% - Optimal design saves approximately 6% of power under preview mode, compared to previous model Introduced image sensor ISOCELL GN2, operating similar to human eyes (GN2, 1.4um/50Mp) - Dual Pixel Pro splits pixels diagonally--a world's first - 1.4um pixel delivers brighter and more vivid images - Staggered HDR saves power by approximately 24% compared to previous model Introduced ISOCELL JN1 with the industry's first 0.64um pixel (JN1, 0.64um/50Mp) - Mass production of ultra-small pixel size, applies high-resolution mobile camera slim design - Applies the most advanced image sensor technology that enhances sensitivity in the dark - Cooperation with camera lens module manufacturers, establishes the ecosystem that is compatible with 1/2.8"
products Released automotive image sensor ISOCELL Auto 4AC (4AC, 3.0um/1.2Mp)
- Designed for surround view monitors or rear-view cameras - A safety solution that supports drivers even in tough conditions and minimizes blind spots Unveiled a new super-gap mobile image sensor technology (HP1, 0.64um/200Mp and GN5, 1.0um/50Mp) - Industry's first "200 million pixels" ISOCELL HP1 - Industry's smallest-sized dual pixel image cell ISOCELL GN5 Unveiled 200 million pixel image sensor, industry's smallest pixel size (HP3, 0.56um/200Mp) - Reduced camera module area by up to 20% with 12% smaller pixels compared to the previous HP1(0.64um) - With the Super Quad Phase Detection (QPD) technology, enables auto-focusing feature for all 200 megapixels - Utilizes Tetra2pixel technology, which offers vivid picture quality even in low-light environments
Samsung Electronics Business Report
409 / 413
Research project
Exynos January 2019March 2022
DS Division
Details
World's first modem solution for 5G smartphones (Exynos modem 5100, Exynos RF 5500, Exynos SM 5800) - Data transmission 1.7 times faster compared to LTE - New RF SM, improved power efficiency for transmission
Best-in-class 7nm 5G modem (Exynos 5123) - Maximum 2 times faster compared to previous model in sub-6GHz 5G network - Achieved maximum speed of 3.0Gbps in 4G network - Supports global Sub-6GHz/mmWave
SoC for automobile infotainment (Exynos auto V9) - Octa-core CPU simultaneously controls 6 displays and 12 cameras - 3 GPU respectively supports dashboard CID HUD - NPU enables digital recognition of voice face movement
- Enhanced stability by securely supporting ASIL-B function SoC exclusively for short-distance IoT with low power consumption and enhanced security (Exynos i T100)
- Processor memory communications function in a package
One-chip integrating 5G modem supporting sub-6GHz and AP (Exynos 980) - Supports latest communications feature including EN-DC, Wi-Fi 6 - Enhanced NPU function compared to previous generation and premium products
Enhanced functions with 5th-generation CPU and premium GPU (Exynos 990) - AI processing higher than 10 TOPS enhanced image analyzing and face recognition function - Supports latest LPDDR5 DRAM and high-resolution camera of 50MP
Launched Exynos 2100, 5G-integrated premium mobile AP - Applied state-of-the-art 5nm EUV process and the latest CPU/GPU, enhancing performance significantly - Optimal design improves performance compared to previous model: more than 30% for CPU, more than 40% for GPU - Enhanced on-device AI function, performs 26 trillion operations per second - Saves power consumption by maximum 20%, features its own power management solution AMIGO - Supports ultrahigh-frequency 5G network, operates maximum 6 image sensors
Released Exynos W920 built on EUV process for wearable devices - Improved performance and power-efficiency by applying advanced 5nm EUV process and design technology - Comes in the smallest package currently available for wearables by applying the most advanced packaging technologies - Boasts 20% more efficient CPU performance and 10 times better graphics performance than its predecessor (Exynos 9110) with the application of the newest ARM cores - Improved power consumption of the processor by 97% under AOD (Always On Display) mode by applying low-power cores for display
Released Exynos Auto T5123, communications chip for automotives that provide 5G communications service - Supports download speed of 5.1Gb/sec, enables seamless access high-capacity, high-definition content even while driving - Equipped with the latest 5G-based multi-mode communication chip that supports both 5G single net and LTE combined net
Released Exynos Auto V7, processor for automotive infotainment - Applies the latest automotive technologies, including Neural Processing Unit (NPU), technology that corrects bad pixel and lens distortion of camera sensors, and image compression technology - GPU supports four independent displays, including digital dashboard, Center Information Display (CID), and Head Up Display (HUD), and up to 12 camera sensors - Equipped with security processor which offers technology that safely stores and prevents physical replication of key information of the car
Released premium mobile AP 'Exynos 2200' - Adopted the next-generation GPU Xclipse jointly developed with AMD, maximized gaming performance and power efficiency - Enabled Ray Tracing technology based on hardware on mobile devices--a first in the industry - Strengthened performance and security by adopting the core based on the latest ARM CPU architecture 'Armv9' - Enhanced NPU performance by more than twofold compared to the previous model, significantly enhanced machine learning performance
Samsung Electronics Business Report
410 / 413
Research project
LSI January 2019March 2022
Foundry 3D IC packaging technology `X-Cube' August 2020 2.5D packaging technology 'I-Cube4' May 2021 8nm RF process June 2021
DS Division
Details
PDIC for TA supporting USB-PD 3.0 standard and high-speed charge protocol (MM101) - Moisture detection, voltage protection function
World's first one-chip integrating PDIC and SE (SE8A) - Blocks unauthorized products by supporting type-C authorization - Supports advanced security features such as saving security key authorization certificate, supporting encryption decryption
Industry's first integrated power-managing chip for wireless earphones (MUA01, MUB01) - Integrates multiple chips, optimized for small-size batteries - Provides optimal solution for rapidly-growing wireless earphone market
DDI enables optimized ultra-high resolution for 8K TVs and enhanced transmission efficiency (S6CT93P) - Enhanced signal quality and development efficiency by utilizing equalizer S/W
Best integrated security solution for mobile (S3K250AF) - Independently developed S/W in H/W security chip, which received EAL 5+ in Common Criteria - Mobile security solution lays the foundation for new mobile services
Received EAL 6+, the highest rank for mobile device, solution with independently-developed S/W (S3FV9RR) - Useable for various smart devices, as the solution operates independently for various processors - Various functions including H/W secure boot, device authentication offer stronger security
Power management IC for DDR5 DRAM modules (S2FPD01, S2FPD02, S2FPC01) - Essential for the next-generation device performance improvement and power saving, three types of power management IC - Applies our own technology of reducing power consumption and overheating, improves operational efficiency up to 91% - Continued expansion of the lineup for power management IC for memory and strengthen technology leadership
Power management IC for processor for automotive infotainment (S2VPS01) - Certified with ASIL-B, a safety standard for automotive systems, and strengthened functional safety - Strengthened stability of the system, including heat prevention and auto-diagnostic functions
Released all-in-one fingerprint security IC for biometric payment cards (S3B512C) - Combines hardware security chip (SE, Secure Element), fingerprint sensor, and Secure Processor in one IC - Received globally accredited certifications in security, EAL6+ from Common Criteria (CC) and global online card payment technical standard (EMVCo) and proved security in line with Mastercard's Biometric Evaluation Plan Summary.
Developed 3D IC packaging technology `X-Cube' and the infrastructure for the design - Uses TSV technology to stack different chips individually made from different wafers to make them into one chip Allows greater flexibility in design by reducing the chip size and using high-capacity memory solution Significant leaps in data-processing speed and power efficiency of system semiconductors - Design method and tools to apply `X-Cube' on 5nm and 7nm processes have been verified. Produced industry's first test chip that stacks SRAM on top of EUV 7nm logic die
Realized logic chip and four HBM chips into one package to operate it like one semiconductor chip Supplied electricity stably and realized ultra-thin electrical wires applying silicon interposer
- Applied semiconductor process/manufacturing knowhow that prevents the deformation of thin interposers 100µm thick
Reduced production time and enhanced yield with our distinctive structure that has excellent thermal release performance
Radio Frequency (RF) process for 5G communication that supports sub-6GHz and millimeter frequency - Provides small, low-power, high quality communication with one-chip solution that supports multi-channel and multiantenna
Improved performance of RF with the application of RF-exclusive semiconductor device 'RFeFET (RF extremeFET)' that we developed in house - Maximized electrons' movement characteristics by physically stimulating the neighboring areas of channels, which are electrons' moving path
Power efficiency increased by 35%, analogue circuit area decreased by 35% compared to the previous generation 14nm RF process - Total number of transistors of chips decreased with the drastic improvement of RFeFET performance
Samsung Electronics Business Report
411 / 413
Research project
2.5D packaging technology 'H-Cube' November 2021
World's first 3nm process that adopts GAA technology June 2022
DS Division
Details
2.5D solution 'Hybrid Cube', which applies silicon interposer technology and hybrid-substrate structure - Logic chips and high-bandwidth memory (HBM) are placed on top of a silicon interposer, integrating up to 6HBMs - The hybrid substrate is a dual structure in which the high-end main substrate at the top connects logic/memory chips, and the subsidiary substrate at the bottom that is easy to implement in large-area connects the system board - Minimized the size of the substrate by decreasing the pitch of solder ball, which electrically connects two substrates - Applied chip analysis technology to stably supply power while minimizing signal distortion and loss - Specialized for semiconductors for data center, AI, and network products that require high-performance and largearea packaging technology
World's first mass production of 3nm process that adopts Gate-All-Around (GAA) transistor technology - Maximized power efficiency and performance by implementing `MBCFET', our in-house GAA technology that utilizes nanosheets - 1st-generation 3nm process reduced power consumption by 45%, improved performance by 23%, and reduced surface area by 16% compared to 5nm
GAA technology overcomes the performance limitations of FinFET, allowing to continue to make smaller chips - The gate surrounds all four faces of the channel, which enables finer control of current flow and reduces operating voltage and power consumption - The structure in which the channels are piled up vertically boosts performance as it increases channel width per unit area and allows greater amount of current to flow - The width of channels can be adjusted, giving better design flexibility
Providing verified 3nm design infrastructure and services with ecosystem partners Planning to expand adoption into high-performance, low-power system semiconductors for HPC, mobile SoCs, etc.
Research project
Display panel Hole in Display OLED for Galaxy S10 March 2019
15.6" UHD OLED for NPC May 2019
4K high-resolution OLED for smartphones June 2019 Curved LCD for gaming monitors June2019
Foldable OLED for Galaxy Fold September 2019
Foldable OLED for Galaxy Z Flip February 2020
WQ+ high-speed OLED for Galaxy S20 March 2020 Foldable OLED for Galaxy Z Fold2 September 2020
SDC
Details
Maximized screen size via world's first commercialization of Flexible Hole in Display - One S10 6.1" 3K QHD+(3,040×1,440) Hole, Two S10+ 6.4" Holes
Offers a comfortable display by significantly decreasing blue light - Decreased blue light emission 42% from S9 (TUV Rheinland Eye Comfort Certification)
Developed world's first 4K OLED display for NPC - 15.6" UHD (3,840 x 2,160), 16:9 - Blue light reduction, shorter response time, wide field of view allow vivid images
Developed world's first 4K mobile OLED display - 6.5" UHD (1,644×3,840), 643ppi,16M Color - Offers original cinematic movie ratio of 21:9
Developed world's first 240Hz Curved LCD display - 27" FHD (1920×1080), 16:9 - High refresh rate of 240Hz, supports G-sync, allowing uninterrupted gaming environment - Curvature of 1500R, wide viewing angle allow highly-immersive gaming experience
Display innovation by developing the world's first foldable display - In-foldable AMOLED (radius: 1.5R) - 7.3" QXGA+ (1,536×2,152), 4:3 - Decreased display thickness by approximately 50% (vs existing panels) by developing polymer composite material
Mass production of world's first glass type window foldable display - 6.7" Full HD+(1,080x 2,640) - Improved durability and applied camera hole (first in foldable phones) by using UTG (ultra-thin glass)
Maximized touch feature with world's first WQ+ resolution, 120Hz, high speed - S20 6.23"/6.67"/6.87" QHD+(3,200×1,440) - Harmful blue light less than 6.5%, Eye Care Display certified (SGS, international certification institution)
World's first mass production of foldable display with a 1.4R curvature - 7.6" (2,208 ×1,768) in foldable - Achieved 1.4R curvature radius via structural design that minimizes folding stress - Improved power efficiency with adaptive frequency (adjusts scan rate from 10-120Hz to screen)
Samsung Electronics Business Report
412 / 413
Research project
Power-efficient OLED for Galaxy S21 January 2021
Foldable OLED for Galaxy Z Fold3 August 2021
55/65" QD-Display January 2022
34" QD-Display March 2022
Foldable OLED for Galaxy Z Fold 4 August 2022
SDC
Details
Mass production of innovative power-efficient, high-luminance OLED displays - S21: 6.24"/6.67"/6.81" QHD+(3,200×1,440) - New organic material improves luminance efficiency: improved power efficiency by 16% compared to previous model - Enhanced luminance and contrast offers good visibility outdoors (Max/HBM 420/800 500/1100nit, Peak 1,785nit) Sunlight Visibility certification by UL (global safety solutions company)
Application of various new technologies to foldables for the first time - 7.6" QXGA+7.55" (2,208×1,768) - Removed screen blind spots with the Under Panel Camera technology - Reduced battery consumption compared to its predecessor with the Eco²technology
World's first QD-Display for TV (55" UHD, 65" UHD) - Exceptional wide color gamut of BT2020 90% - Expresses outstanding brightness and color at any angle with QD display which emits light evenly across all directions - Excellent HDR performance, deep and detailed black expression
World's first QD-Display for monitor (34" QHD) - Provides superb gaming experience by supporting 175Hz, 0.1ms, 1800r, HDR True Black, and G-Sync - Outstanding color, viewing angle, and contrast ratio and minimized exposure to blue light
Promoting additional improvements compared to previous model - Significantly improved display quality in the location of the Under Panel Camera while maintaining camera performance and emphasized large-screen experience - Enhanced energy efficiency with Eco2 OLED Plus with improved transmittance efficiency - Reduced costs and weight via integrated FRP-Digitizer panel
Samsung Electronics Business Report
413 / 413
Microsoft Word 2016 Microsoft Word 2016