October 25, 2016

Embezzlement and breach of fiduciary duty by employee

Samsung Electronics Co., Ltd. (KS005930, KS005935, SMSN, SMSD) (“SEC”) announced
that a former executive was charged with embezzlement and breach of fiduciary duty by the
Suwon District Public Prosecutors Office.

1. Amount of Embezzlement
- Amount of Suspicion : KRW 78,103,990
- Total Equity of the Company : KRW 179,059,805,354,410
- Ratio to Total Equity : 0.00004 %

2. Company’s Countermeasure
- The Company will take appropriate measures according to the due process of law in dealing with this case

3. Date of occurrence: 10/18/2016

4. Date of confirmation: 10/24/2016

5. Other information
1) Details of the allegations are as follows:
- A violation of the Act On Prevention Of Divulgence and Protection of Industrial Technology and breach of fiduciary duty

• Damage: to be determined
- Breach of fiduciary duty (expense reimbursement fraud)

• Damage: KRW 78,103,990
2) The allegations and the alleged amount have not been finalized and are subject to change according to the court judgment.

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

4) The Company will disclose any progress or confirmation on this matter without delay.

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