Samsung Electronics Co., Ltd. (KS005930, KS005935, SMSN, SMSD) (“Company”) announced that the special prosecutor investigating an influence-peddling scandal involving South Korea’s president has indicted the Company’s executives on allegations of embezzlement.

1. Relevant persons: Jae-Yong Lee (Vice Chairman), Gee-Sung Choi (Vice Chairman), Choong-Ki Chang (President), Sang-Jin Park (President), Seong-Soo Hwang (Senior Vice President)

2. Amount of Embezzlement

 3. Company’s Response
- The Company will check on the progress of the investigation and the relevant process.

4. Date of occurrence: 02/28/2017

5. Date of confirmation: 03/03/2017 

6. Other information

1) Details of the allegations are as follows:
- A violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes
• The alleged amount:
KRW 15,425,350,000 joint and severally for Jae-Yong Lee (Vice Chairman), Gee-Sung Choi (Vice Chairman), and Choong-Ki Chang (President) Of the KRW 15,425,350,000, KRW 7,797,350,000 joint and severally for Sang-Jin Park (President) and Seong-Soo Hwang (Senior Vice President)

2) The alleged amount described above is the amount applicable to the Company from the embezzlement amount indicated in the indictment document.

3) The allegations and the alleged amount have not been finalized and are subject to change according to the court judgment.

4) Total equity described above is based on consolidated financial statement as of the end of 2015.

5) The Company will disclose any progress or additional details on this matter without delay.