Samsung Electronics Co., Ltd. (KS005930, KS005935, SMSN, SMSD) (“SEC”) on October 31, 2018 announced that itsBoardof Directors has authorized the following transaction with an affiliated company.

Investment in a Venture Fund
- Investment in the New Technology Investment Fund ofSamsungVenture Investment Corporation (SVIC 42), an affiliated company of Samsung Electronics

Major TransactionTerms

Transaction Date	-
Transaction Value	KRW 49,500 million (99% of the total fund: KRW 50,000 million)
Purpose of Transaction	To invest in promising start-ups with AI technology to develop next-generationtechnologies
Terms and Conditions	* With regards to the date of transaction, the establishment of the new venture fund isscheduled for December,2018 but is subject to change. * The total fund is comprised of KRW 49.5 billion from SECand KRW 0.5 billion from SVIC.

Other Information:
- Number of Independent Directors present at the BOD meeting: 6 (100%)
- Attendanceof Audit Committee: Y

※ This disclosure is in accordance with the Korean Fair Trade Act, which mandates that a company mustdisclosefinancial and real estate transactions in the event the value of such a transaction is greater or equal to KRW5billion and the counterparty is an affiliate of the party required to make the disclosure.