Presentato questa mattina alla presenza del Viceministro dell’Economia e delle Finanze Luigi Casero e insieme alle banche partner del servizio, Samsung Pay consente di pagare dal proprio smartphone e fare acquisti praticamente in qualsiasi esercizio commerciale che accetta le carte di credito, di debito o prepagate. Il servizio Samsung Pay supporta sia la tecnologia NFC (Near Field Communication), sia MST (Magnetic Secure Transmission) e funziona con quasi tutti i terminali di pagamento e con i circuiti di pagamento aderenti¹.

“Dopo il recente lancio di Galaxy S9 e S9+, Samsung introduce da oggi un altro servizio innovativo che contribuirà a rendere più semplice la vita degli utenti dei nostri prodotti”, ha dichiarato Carlo Barlocco, Presidente di Samsung Electronics Italia. “Siamo convinti che il lancio in Italia di Samsung Pay contribuirà alla trasformazione del rapporto degli italiani con il denaro in direzione di quella “cashless society” di cui si parla ormai da tempo e che in alcuni paesi è già una realtà capace di apportare benefici concreti al sistema paese nel suo complesso grazie anche al fatto di rendere la gestione del denaro totalmente trasparente”.

“La disponibilità di un nuovo strumento di pagamento elettronico, fornita da Samsung Pay, permetterà di semplificare e migliorare le operazioni di pagamento dei singoli consumatori e determinerà uno sviluppo della economia digitale utile al nostro paese per competere con le nazioni più sviluppate. La necessità di far crescere l’industria dei pagamenti digitali in Italia è un obiettivo che dovrebbe caratterizzare l’azione di governo”, ha commentato Luigi Casero, Vice Ministro dell’Economia e delle Finanze.

“L’adesione di BNL a Samsung Pay, fin dalla sua fase di test e anteprima a febbraio, conferma l’attenzione e l’impegno della Banca e del Gruppo all’innovazione e alla digitalizzazione, imprescindibili fattori di modernità per un sempre più efficace ed utile servizio alla clientela”, ha dichiarato Marco Tarantola, Vice Direttore Generale di BNL e Responsabile della Divisione Commercial e Private Banking. “Una strategia che prevede, fino al 2020, 3 miliardi di investimenti a livello di Gruppo e che sviluppiamo sia grazie alle competenze e alle specializzazioni presenti al nostro interno, sia attraverso partnership con importanti e qualificati player anche di altre industry, esaltando reciproche expertise e lavorando in un’ottica “sistemica” di collaborazione ed inclusione tra operatori di diversi settori. Puntiamo così a mettere a disposizione dei clienti il meglio del mercato italiano ed internazionale”.

“CheBanca! si è distinta sin dalla sua nascita per il proprio DNA innovativo e digitale, in grado di rispondere ai bisogni in continua evoluzione della clientela. Innovazione che – come nel caso dei pagamenti digitali – va ricercata non solo nel prodotto ma anche nelle modalità di interazione”, ha evidenziato Alessandro D’Agata, Direttore Generale di CheBanca! “L’adesione a Samsung Pay testimonia l’attenzione di CheBanca! verso una sempre maggiore valorizzazione dello smartphone come “luogo” principale di interazione con la banca di tutti i giorni: informazione, controllo e spese giornaliere senza tralasciare il fattore sicurezza”.

“L’obiettivo di Intesa Sanpaolo è passare nei prossimi tre anni dall’attuale 10% di attività digitalizzate a oltre il 70%. Prevediamo di investire 5,8 miliardi di euro in sviluppo tecnologico e formazione del personale”, ha dichiarato Massimo Tessitore, responsabile Direzione Multicanalità Integrata Intesa Sanpaolo. “Già oggi la nostra app consente di effettuare ogni tipo di operazione dal cellulare. Nel settore dei pagamenti in mobilità con Samsung Pay offriamo al vasto mondo Android il sistema di pagamento del futuro, di cui in Italia siamo stati pionieri con la prima piattaforma autonoma lanciata nel 2011, puntando su facilità d’uso ed elevato grado di sicurezza”.

“I pagamenti via app e la tecnologia contactless, stanno rivoluzionando le esperienze di acquisto tradizionali dei consumatori, e li guidano verso un futuro sempre più digitale e innovativo. La collaborazione di Mastercard con Samsung è un esempio concreto di come insieme possiamo ulteriormente contribuire all’inclusione digitale e alla modernizzazione dell’Italia e degli italiani”, ha commentato Michele Centemero, Country Manager Italia di Mastercard.

“L’innovazione tecnologica è tra i tratti fondanti di Banca Mediolanum, per questo anche oggi intendiamo essere in prima linea nella trasformazione dei sistemi di pagamento, suggerendo un nuovo modo di fare banca, più consono con i cambiamenti sociali in corso”, ha commentato Massimo Doris, amministratore delegato di Banca Mediolanum. “Innovare significa riprodurre gli stessi gesti in un modo nuovo. E il progresso è tutto ciò che ci rende la vita più facile. I tempi corrono”.

“Sono oltre 150 le banche per le quali Nexi rende disponibile Samsung Pay, per un totale di 3,5 milioni di potenziali clienti”, ha commentato Roberto Catanzaro, Business Development Director di Nexi. “Riteniamo che i mobile payments siano un elemento chiave per generare familiarità quotidiana con i pagamenti digitali, grazie all’alta diffusione di smartphone in Italia, e un passaggio essenziale se vogliamo che la percentuale dei digital payments sul totale dei consumi delle famiglie nel nostro Paese passi dall’attuale 20% al 40%, che è il dato medio Europeo”.

“Samsung Pay arriva oggi in Italia anche grazie all’infrastruttura hi-tech di SIA che contribuisce ancora una volta alla diffusione dei servizi di mobile payment nel nostro Paese. Con il lancio di questa nuova iniziativa, proseguiamo nel nostro tradizionale percorso di innovazione affiancandoci alle banche nella realizzazione di soluzioni di pagamento digitali, affidabili e sicure”, ha dichiarato Nicola Cordone, Deputy CEO e Senior Vice President Global Business Solutions di SIA.

“Ci muoviamo in un mondo che è sempre più digitale, caratterizzato da una velocità di cambiamento mai vista prima e dove le persone sono alla continua ricerca di servizi personalizzati e istantanei per soddisfare i loro bisogni, sempre e ovunque”, ha sottolineato Gianni Franco Papa, Direttore Generale di UniCredit. “Questo vale anche per la sfera finanziaria: i clienti vogliono nuove modalità per dialogare con la Banca e gestire in modo semplice la loro operatività, come testimonia la crescita significativa dei dati di utilizzo dei nostri canali online e mobile in Italia, con oltre 3,1 milioni di clienti attivi online, 1,75 milioni di clienti mobile e l’aumento delle vendite remote lo scorso anno. Proprio per questo, siamo molto attenti allo sviluppo di prodotti e servizi innovativi, sia facendo leva sulla nostra piattaforma interna, investendo 2,4 miliardi di euro in Information Technology, sia collaborando con partner esterni, per ampliare la nostra offerta con le migliori soluzioni presenti sul mercato. Oggi, quindi, siamo molto orgogliosi di siglare questa partnership con Samsung, grazie alla quale i nostri clienti in Italia potranno utilizzare Samsung Pay fin dal primo giorno del suo lancio nel nostro Paese”.

“Il denaro mobile, vale a dire l’uso di telefoni cellulari, tablet o wearable per effettuare pagamenti sia nei negozi fisici che tramite applicazioni mobili, prevarrà sull’uso di denaro in un futuro non troppo lontano, e ne è una prova la fiducia delle generazioni più giovani che lo hanno già perfettamente integrato nella loro vita quotidiana”, ha commentato Davide Steffanini, general manager Italia di Visa. “I possessori di carte Visa possono ora utilizzare una soluzione innovativa e realmente integrata come Samsung Pay che si adatta ai nuovi stili di vita degli utenti e a nuove modalità di pagamento.”

Secondo i dati emersi dal nuovo studio dell’Osservatorio Mobile Payment & Commerce della School of Management del Politecnico di Milano, nel 2017 in Italia i pagamenti digitali con carta sono aumentati di oltre il 10%, raggiungendo i 220 miliardi di euro; i pagamenti tramite smartphone e tablet pc continuano a fare la parte da leone nel settore dei New Digital Payment. Inoltre, i Mobile Proximity Payment, ossia i pagamenti effettuati presso i punti vendita attraverso gli smartphone, hanno avuto una vera e propria impennata: nel 2017 si sono registrati oltre 70 milioni di transato, in netta crescita rispetto ai 10 milioni scarsi del 2016. Si stima che nel 2020 il transato potrebbe valere dai 3,2 ai 6,5 miliardi di euro.

In questo contesto, Samsung Pay è stato progettato per rendere i pagamenti tramite smartphone sicuri, semplici e convenienti.

Sicurezza
Samsung Pay garantisce la sicurezza dei dati delle proprie carte di pagamento grazie a tre livelli di sicurezza. Innanzitutto, per autorizzare ogni transazione è necessario autenticarsi con PIN, impronta digitale, o scansione dell’iride; effettua la tokenizzazione dei dati della carta di pagamento che, in questo modo, non compaiono mai nelle transazioni, né vengono memorizzati sul dispositivo; infine la protezione dei dati avviene tramite la piattaforma Samsung Knox integrata nello smartphone.

Semplicità
Grazie a Samsung Pay qualsiasi pagamento avviene in maniera semplice e immediata. Per utilizzare il servizio basta accedere all’applicazione Samsung Pay registrandosi con le credenziali del proprio account Samsung, ed aggiungere la propria carta di credito. Il pagamento avviene in pochi secondi: si seleziona la carta di credito che si vuole utilizzare, nel caso se ne abbia più di una, si utilizza la modalità di identificazione preferita (impronta digitale, iride, pin), e si avvicina il proprio smartphone al POS.

Samsung Pay è accettato praticamente in tutti gli esercizi commerciali dove si è abituati a utilizzare le proprie carte di credito o debito.
L’utilizzo di Samsung Pay non comporta alcun costo aggiuntivo per l’utente, né alcuna commissione per gli istituti bancari.

Inoltre, Samsung Pay è anche molto più di un metodo di pagamento, infatti è possibile caricare le proprie carte fedeltà per averle sempre a portata di tap al momento del pagamento e accedere a tante promozioni dedicate agli utenti Samsung Pay. Tra i partner aderenti all’iniziativa, sono inclusi: Bennet, Cisalfa Sport, DayBreakHotels.com, EF Education, Esselunga, Leroy Merlin, Moleskine, Old Wild West, Penny Market, Prenatal, Yoox.

Samsung Pay è disponibile sui seguenti modelli Samsung: Galaxy S9+, Galaxy S9, Note8, Galaxy S8+, Galaxy S8, Galaxy S7 edge, Galaxy S7, Galaxy A8, Galaxy A5 2017, Galaxy A5 2016, Gear S3 frontier, Gear S3 classic, Gear Sport.

Con Samsung Pay, Samsung aggiunge un altro elemento chiave in direzione della trasformazione dello smartphone in uno strumento pienamente mobile, capace di migliorare concretamente la vita dei propri utenti in ogni singolo aspetto, e contribuisce ad accelerare la trasformazione digitale del Paese.

Samsung Electronics
Samsung ispira il mondo e delinea il futuro attraverso idee e tecnologie rivoluzionarie, trasformando il mondo dei TV, smartphone, tecnologie indossabili, tablet, elettrodomestici, sistemi di rete e memorie, sistemi LSI e soluzioni LED. Per essere aggiornati sulle ultime novità, è possibile visitare la sezione Samsung Newsroom su www.samsung.com.

¹Fanno eccezione i terminali di pagamento i quali, per loro stessa conformazione, necessitano l’inserimento integrale di una carta fisica. Il servizio sarà utilizzabile solo con le carte abilitate dagli emittenti e i circuiti che aderiscono al programma.

In the third quarter, strong demand for high-performance memory chipsets for servers and flagship mobile devices was a contributing factor to the company’s overall robust performance. The Semiconductor Business registered significant earnings growth both YoY and QoQ, and the System LSI added to the earnings rally through increased sales of DDIs and image sensors. The display panel segment posted an earnings decline despite the expanded sales of flexible OLED panels for premium smartphones. The Mobile Business saw strong shipments thanks to the launch of Galaxy Note 8 and solid sales of the new Galaxy J series, but its earnings declined QoQ due to the higher sales proportion of mass-market smartphones.

The Memory Business achieved strong earnings results for the quarter on the back of high seasonal demand for all memory applications, the trend toward higher density chips and a continuation of favorable supply and demand conditions and prices. For NAND, the launch of flagship smartphones and the expansion of cloud infrastructure drove strong demand. For DRAM, demand for applications used in servers, mobile devices, PCs and game consoles also remained solid.

For the OLED business, an increase in shipments of flexible displays for customers’ new flagship smartphone launches drove an increase in sales. However, QoQ earnings declined due to an increase in start-up costs of the new OLED production line and increased competition within rigid OLED products. For the LCD business, third quarter earnings declined, as an imbalance in supply and demand led to a decrease in the ASP of LCD panels. Further, capacity expansion in the LCD industry continues to impact prices.

The Mobile Business saw smartphone shipments increase on the back of the global roll-out of the newly launched flagship, Galaxy Note 8, and solid performance of the new Galaxy J series. However, overall revenue and earnings decreased QoQ due to the higher sales of mid- to- low tier models.

Samsung’s TV business saw significant improvements in QoQ earnings driven by increased sales of premium products including QLED TVs. However, due to the higher cost of LCD TV panels and weakening demand of the TV market, YoY earnings were modestly lower.

Looking ahead to the fourth quarter, the company anticipates tight supply and demand conditions to continue for the Memory Business due to strong demand for servers and mobile devices. For the Display Panel segment, increased shipments of flexible OLED products and the release of new rigid OLED panels will improve earnings. However, the LCD segment will be met by weak seasonality, coupled with expanded panel supply. For the Mobile Business, the company will try to maintain solid earnings by increasing flagship sales through the global roll out of the Galaxy Note 8. Meanwhile, the Digital Appliances Business expects to continue revenue growth by ramping up sales of new products including washing machines with QuickDriveTM technology and POWERstick PRO vacuum cleaners. The TV business will focus on increasing sales of premium products including QLED and ultra-large screen TVs.

Moving on to business prospects for 2018, the company expects earnings to grow primarily from the component businesses, as conditions in the memory market are likely to remain favorable and the company expects increased sales of flexible OLED panels. For the Memory Business, demand for high-density, high-performance NAND will increase, as the need for larger data capacity in servers and mobile devices grows

The company expects positive growth in the DRAM market, due to the development of technologies in big data, artificial intelligence and machine learning, in which faster processing and analysis of data are critical. The technological advancement of mobile devices with dual camera, 3D sensors and on-device AI will spur DRAM growth. As for next year’s outlook for the System LSI and Foundry Businesses, Samsung will continue to drive favorable earnings growth by increasing the supply of 10-nano products and image sensors, and will also focus on strengthening the competitiveness in the sub 7-nano process through investment in the EUV-related infrastructure.

In the display segment, Samsung will continue seeking growth by addressing market demand for flexible OLED display panels with differentiated technology, as OLED is set to become a mainstream feature in smartphones. Although global competition in the LCD panel business is expected to intensify in 2018, Samsung will strive to ensure its profitability by solidifying partnerships with key customers and enhancing the lineup of ultra-large size, high resolution, quantum dot and frameless panels.

As for the Mobile Business, Samsung will strengthen its leadership in the high-end market with flagship smartphones and improve profitability through optimizing product lineups. Moreover, the company will strive to secure business growth opportunities through new technologies such as 5G and by strengthening the services and software competencies.

For the consumer electronics business, Samsung will continue to focus on expanding premium product sales and enhancing its B2B businesses.

Semiconductors Deliver Strong Performance

The Semiconductor businesses posted KRW 9.96 trillion in operating profits on consolidated revenue of KRW 19.91 trillion for the quarter.

The Memory Business achieved strong earnings for the quarter due to strong demand from all applications amid solid supply and demand conditions. For NAND, while overall demand remained solid due to the launch of flagship smartphones and the expansion of cloud infrastructure, Samsung actively responded to demand from value-added and high density markets such as datacenter NVMe SSD. For DRAM, the expansion of cloud services and the trend for higher density drove strong demand. The company focused on maximizing profit by satisfying demand for differentiated products such as server DRAM over 64GB and low-power mobile DRAM.

Looking at the fourth quarter prospects for NAND, tight supply conditions are expected to remain for mobile and SSD applications, due to continued strong demand for high-density mobile products and expansion of datacenters, respectively. In response, the company will pursue a more profit-focused product mix. Looking further ahead to 2018, the trend toward high-performance, high-density mobile NAND is forecast to continue while server SSD adoption is expected to accelerate as big data needs rise. In response, Samsung will focus on expanding V-NAND supply while developing and ramping-up 5th generation V-NAND.

As for the fourth quarter DRAM outlook, high seasonal demand for mobile and PC is expected while datacenter expansion continues. Against this backdrop, the company will concentrate on cost competitiveness by expanding 1xnm process migration. Looking to 2018, high demand from datacenter infrastructure expansion is forecast to continue while demand for contents growth in mobile products will rise on the wide-spread adoption of dual camera, 3D sensors and on-device AI offerings. In response, the company will focus on ramping-up 10nm-class products and expanding sales of differentiated products such as HBM, high bandwidth LPDDR4X.

Turning to the System LSI Business, solid earnings were achieved through increased sales of mobile processors for mid- to low-end smartphones and image sensors for smartphones, while flagship phone launches lifted sales of OLED DDIs. Looking ahead, weak seasonality for processors and image sensors is expected to dampen growth in the fourth quarter. For 2018, the company will focus on sustaining growth of mobile processor and OLED DDI sales and increasing sales of image sensors amid greater adoption of dual camera features on smartphones. Further, Samsung will aim to expand its offerings to IoT, VR and automotive applications.

As for the Foundry Business, favorable results were achieved thanks to increased sales of 10-nano mobile products benefiting from stabilized yields and strong seasonality. Increased demand for differentiated products such as 32-nano mobile DDIs and 65-nano image sensors also contributed to earnings. Looking to the fourth quarter, although growth is likely to be limited, the company expects to diversify the 10-nano node from mobile to cryptocurrency mining applications, while diversifying the customer base for new 8-nano offerings. For 2018, Samsung will increase supply of 10-nano products and image sensors through mass production in line S3 and transformation of memory line 11 to foundry, respectively, and strengthening sub 7-nano process competitiveness by investing in EUV-related infrastructures.

Display to Improve on Flexible OLEDs

The Display Panel segment posted a KRW 8.28 trillion in consolidated revenue and KRW 0.97 trillion in operating profit for the third quarter. Revenues increased due to strong sales of flexible panels. However, total earnings declined driven by increased costs for starting-up new OLED production and decreased ASP for LCD panels.

For the OLED business, an increase in shipments of flexible displays for customers’ new flagship launches drove an increase in sales QoQ. However, QoQ earnings declined due to increased competition within rigid OLED products and startup costs of the new OLED production line.

For the LCD business, third quarter earnings declined, due to a decrease in the ASP of LCD panels. Further, capacity expansion in the LCD industry continues to impact prices.
Looking ahead to the fourth quarter, Samsung expects sales in the OLED business to grow based on increased shipments of flexible and rigid products. However, in the LCD business, Samsung continues to expect some supply-demand imbalance due to increased industry capacity as well as decreased seasonal demand. In response, Samsung will seek to ensure profitability through cost reduction and yield improvement, in addition to expanding the portion of high-end, value-add products such as ultra-large size, high resolution and quantum dot panels.

For 2018, Samsung expects OLED products to become mainstream in the smartphone industry, especially as flexible panels increase within high-end devices. The company plans to focus on achieving continuous growth through customers’ demand for flexible displays and through differentiated high-end products. In the LCD business, intensified competition among panel makers as well as capacity expansion within the industry is expected to be balanced with a growing market for premium TV panels, such as UHD and ultra-large sized. In light of these market conditions, Samsung will continue to improve profitability through reinforcing strategic partnerships with major customers, as well as expanding the value-added product lineup.

Mobile Maintains Solid Smartphone Performance
The IT & Mobile Communications Division posted KRW 27.69 trillion in consolidated revenue and KRW 3.29 trillion in operating profit for the quarter.

Samsung’s smartphone shipment increased on the back of the global roll-out of the newly launched flagship Galaxy Note 8 and solid performance of the new Galaxy J 2017. However, overall revenue and earnings decreased QoQ due to the higher sales portion of mid-to-low tier models.
Looking ahead to the fourth quarter, both smartphone and tablet demands are forecast to increase during the year-end peak season.
Although competition is expected to intensify in the premium segment, the company plans to focus on maintaining solid sales and profit QoQ through increased shipment of flagship models thereby enhancing the product mix.

As for the outlook for 2018, smartphone market growth is expected to recover; however, the difficult business environment is likely to continue due to intensifying competition and higher materials costs.
The company will strive to enhance leadership in the premium segment and to improve profitability through optimizing product lineups. Moreover, the company will aim to secure business growth opportunities through new technologies such as 5G and by strengthening services and software competencies.

Meanwhile, the Networks Business saw decreased sales and profit in Q3 QoQ due to a decline in LTE-related investment from global clients. Looking into the fourth quarter and beyond, the company expects to expand the supply of next generation 5G network solutions in the major advanced markets.

Consumer Electronics to Focus on Premium Products
The Consumer Electronics Division, including the Visual Display and Digital Appliances businesses, posted KRW 11.13 trillion in consolidated revenue and KRW 0.44 trillion in operating profit for the third quarter.

Despite lower demands from advanced markets, significant improvements in QoQ earnings for Samsung’s Visual Display Business were led by increased sales of premium QLED TVs. However, due to higher cost of LCD TV panels and weakening demand of the TV market, YoY earnings were modestly lower.

In the fourth quarter, Samsung will focus on profitability, by increasing the dominance in the premium QLED and ultra-large TV lineups, as well as reinforcing B2B growth including digital signage and Cinema LED businesses.
Looking ahead to 2018, major sports events, including the World Cup and Winter Olympics, are expected to drive demand for UHD and ultra-large screen TVs. Samsung will reinforce its market leadership in the premium market and further improve profitability by increasing the QLED and ultra-large TV lineups.

In Digital Appliances, investment costs in B2B business resulted in a decrease of YoY earnings, despite a modest increase in overall market demand and strong sales of air conditioners and washing machines in Korea.
New products like washing machines with QuickDriveTM technology and POWERstick vacuum cleaners are expected to drive revenue growth in the fourth quarter.
In 2018, Digital Appliances business looks to improve earnings by increasing shipments of premium products as well as expanding the B2B businesses and increasing online channel sales.

About Samsung Electronics Co., Ltd.
Samsung inspires the world and shapes the future with transformative ideas and technologies. The company is redefining the worlds of TVs, smartphones, wearable devices, tablets, digital appliances, network systems, and memory, system LSI, foundry and LED solutions. For the latest news, please visit the Samsung Newsroom at http://news.samsung.com.

* Notice: Details about Samsung Electronics’ capital expenditure and shareholder returns will be made available when disclosures have been filed with the nation’s financial regulator before the 3Q earnings conference call.

Samsung Electronics Announces New Leadership

Kinam Kim to head the Device Solutions (DS) Division, Hyunsuk Kim the Consumer Electronics (CE) Division, and Dongjin Koh the IT & Mobile Communications (IM) Division

Seoul, KOREA – October 31, 2017 – Samsung Electronics today announced its new leadership for the next phase of its growth. Presidents Kinam Kim, Hyunsuk (HS) Kim, and Dongjin (DJ) Koh will succeed Vice Chairman Oh-Hyun Kwon, Presidents Boo-Keun Yoon and Jong-Kyun Shin, respectively, as heads of the DS, CE, and IM Divisions. The Company will maintain the current three co-CEO management structure. All new appointments will be effective immediately.

Mr. Kwon stated, “The next generation of leaders are well suited to accelerate the pace of innovation and address the demands of the connected world. They have proven track records with extensive experience and outstanding expertise in their fields.”

•  Kinam Kim joined the Company in 1981 and is an IEEE fellow and renowned authority in semiconductors, having served as the head of Samsung Advanced Institute of Technology; CEO of Samsung Display; head of the Memory, System LSI Businesses and until now was responsible for the overall semiconductor business.
•  HS Kim is a leading expert in display products, having played a major role in the Company achieving the top position in global TV sales for the 11th consecutive year with numerous display technology breakthroughs.
•  DJ Koh has recently delivered solid results in the mobile business, having overseen the development of its flagship Galaxy smartphones with differentiated products and services, based on his vast experience as the previous head of mobile R&D.

In a joint statement, Mr. Yoon and Mr. Shin said that they have made the decision to follow Mr. Kwon’s earlier announcement to resign, making way for new leaders. “It is an honor and a privilege to have been part of the historic rise of Samsung Electronics. We are confident that our successors will keep the Company on its growth path.”

Separately, President Sang-Hoon (SH) Lee will leave his position as CFO, effective immediately. Mr. Lee has been recommended by outside Board members to be Chairman of the Board and succeed Mr. Kwon next March. This would mark the first time that the Company will separate the Chairman of the Board and the CEO roles.

“In this time of transition, I look forward to SH’s insight as CFO to help guide the Board and its new executive members,” said Byung-Ki Lee, an independent director and Chairman of the Governance Committee of the Board. “In addition to overseeing the Company’s finances, SH was also in charge of running its global operations and these experiences will be a tremendous asset to the Board.”

At the next AGM in March 2018, the three new Division heads as well as Mr. Lee will join the Board of Directors. Messrs. Kwon, Yoon and Shin will remain as members of the Board until then.