Court’s Ruling on Samsung Motors Case

Summary of the Lawsuit

1. This lawsuit is related to the agreement regarding court receivership of Samsung Motors, which Chairman Lee and 28 Samsung affiliates including Samsung Electronics agreed with creditors of Samsung Motors in September 1999. (Related public disclosure: Lawsuit against Samsung Electronics and its Affiliates Regarding Samsung Motors, December 22, 2005 and Court’s Ruling on Samsung Motors, February 14, 2008)

2. Seoul High Court modified the decision made in the first ruling as follows: Defendants should pay penalties to plaintiffs, as defendants failed to repay debt by selling remaining 2,277,787 shares among 3.5 million shares in Samsung Life Insurance, which were donated to plaintiffs as collateral for the debt, until Dec 31, 2000.

The Court ordered 28 Samsung affiliates to pay a total of 600 billion won to creditors of Samsung Motors and also pay a 5% annual interest for the period between May 8, 2010 and Jan 11, 2011 and a 20% annual interest for the period after Jan 12, 2011 until the debt is paid off.

3. Amount after disposing of 2,277,787 shares and paying off principal was deposited in the Escrow account on May 7, 2010.

In accordance with the court of appeals’ ruling, 600 billion won in penalties for delayed debt repayment and 20.4 billion won in accumulated interest were paid to plaintiffs from the Escrow account.

※ Article 2 can be provisionally executed.
Additional Information on Court Decision

1. The court dismissed all claims filed by the receiver of a bankrupt plaintiff, H&A Investment Bank.

Among total court costs, the amount associated with the receiver of the bankrupt plaintiff and defendant Kun-hee Lee, the Chairman of Samsung Electronics, should be paid by the plaintiff. Court costs associated with other plaintiffs and defendants (28 Samsung affiliates) should be burdened half and half by each party.



Others

- Samsung Electronics will review the possible response measures including an appeal after consultation with its affiliates.

- Date of written judgment receiving: Jan 19, 2011


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