2021 SamsungSecurities Report Eng

CONTENTS
intro future focus appendix

02 2021 ESG HIGHLIGHTS 28 INDUSTRY TRENDS 99 FINANCIAL DATA
& HISTORY
30 01 DIGITALIZATION 106 DOUBLE MATERIALITY
04 CEO MESSAGE ASSESSMENT
36 02 CONSUMER PROTECTION
06 MANAGEMENT BRIEFING 112 RISK MANAGEMENT
44 03 GREEN MANAGEMENT
116 STAKEHOLDER COMMUNICATION
48 04 SUSTAINABLE INVESTMENT
117 SASB
52 OUR GOAL & FUTURE
overview 120 TCFD
124 GRI STANDARDS INDEX

10 BUSINESS PERFORMANCE
HIGHLIGHTS ESG data pack 127 UN SDGs
16 INVESTMENT PORTFOLIO 128 THIRD PARTY ASSURANCE

55 ENVIRONMENTAL DATA
18 CORPORATE OVERVIEW 130 ASSOCIATION MEMBERSHIP
58 SOCIAL DATA
19 BUSINESS NETWORK 131 CORPORATE INFORMATION
81 GOVERNANCE DATA
93 SUSTAINABLE FINANCE
vision & strategy

22 NEW VISION
24 SUSTAINABLE MANAGEMENT
STRATEGY
02 intro overview vision & strategy future focus ESG data pack appendix 03
2021 ESG HIGHLIGHTS

& HISTORY
2021 ESG Highlights History
Acquired
2011~2021 2001~2010 1982~2000
ISO 14001 certification
2021 2017 2010 2004 2000
Launched the
• Launched ‘Direct IRP’, the first commission-free IRP • Built a comprehensive business partnership with • Launched UHNW brand and SNI (Samsung & • Rolled out Samsung Cash Management Account • Set up a subsidiary in Hong Kong
ESG Committee in Korea HSC Securities (Vietnam) Investment), an exclusive branch for UHNW (SMA) service • Acquired and merged with Samsung Investment
• Hit one million subscribers to our YouTube channel • Built a comprehensive business partnership with • First adopted the DJSI World Index among • Held Annual Samsung Global Investor Conference Trust & Securities
Rated A in the MSCI ESG Ratings, • Rolled out the Korea’s first brokerage-type ISA KGI Securities (Taiwan) Korean financial companies • Promulgated Samsung Securities Way
the first achievement among domestic 1999
• Issued ESG bonds for the first time in Korea 2016
securities firms 2009 2003 • Korea’s largest call center up and running
2020 • Proclaimed a new brand slogan • Declared the launch of brand management • Obtained the full membership of London Stock
ESG-certified green bonds surpassing • Became the first to provide online stock trading • Opened the 1st Samsung Securities CEO Forum (brand slogan: Create with You) Exchange 1998
KRW 100 billion service for the stock market of Singapore • Held a signing ceremony with KGI Securities (Taiwan) • Launched ʻPOP’, an advanced wealth • Launched Samsung Wrap accounts • Set up a subsidiary in New York
• Achieved KRW 200 trillion in retail client deposit • Launched Samsung Financial Center management brand
for the first time in Korea • Commenced the sales of mutual funds for the
assets 2002 first time in Korea
2015 2008
• Rolled out Nationwide How-to-Invest Campaign
Rated A in the ESG integrated • Declared Customer Protection Charter • Launched optional commission-based and
• Named as ⸢Best Investment Bank in Korea⸥ by
1996
• Launched ‘Multi Family Office’ equivalent to the level Finance Asia
evaluation of investment partner for the first time in Korea • Hit KRW 2 trillion in the sales of POP UMA customized fee service for the first time in the
• Set up a subsidiary in London
• Set up a subsidiary in Shanghai
by KCGS (Korea Corporate Governance Service) industry
• Hit 100,000 subscribers to our YouTube channel,
2014
Samsung POP 2001 1992
2007
Included in DJSI World Index • Introduced a client-oriented product
• Selected as ⸢Best Equity House⸥ by Euromoney • Incorporated into the Samsung Group
2019 recommendation system • Acquired inflation-linked government bonds
for12 consecutive years (three consecutive years) • Changed the company name to
• Ranked 1st in the 2018 Fund Sales Assessment in • Forged a business partnership with global • Selected as ʻKorea’s Best Private Bank’ by
Samsung Securities
the financial sector by Korea Financial Investors independent research institutions, Lombard Street Asiamoney
Ranked 1st in K-BPI Protection Foundation Research & BCA Research
(Korea Brand Power Index) for 24 consecutive years
1991
• Promulgated ʻOverseas Investment 2.0 Era’ to drive 2006
2013 • Changed the company name to Kookje Securities
the globalization of Korean wealth management • Designated as Korea’s Top Research Company by
• Held a value statement proclamation ceremony and beginning securities business
Maintained the No.1 place • Expanded SNI (Samsung & Investment) service to
• Opened a next-generation financial IT system
Institutional Investor Magazine (U.S.)
in KS-SQI all offices

comparable to advanced financial companies
• Ranked 1st in three client satisfaction indexes 1988
(Korean Standard Service Quality Index) for two (KS-SQI, KCSI, and NCSI) among securities
2018 • Executed IPO (initial public offering) (listed on the
consecutive years in the securities sector 2012 companies
Korean Stock Exchange)
• Introduced Korea’s first ‘Integrated Deposit’ service • Swept the nine categories of finance in the
• Declared retirement planning at all branches
for overseas stocks Asiamoney Brokers Poll 2006
Maintained the No.1 title in KCSI • Acquired stakes in Dunkirk LGN terminal in France 2011
1982
(Korean Client Satisfaction Index) for 16 consecutive • Hosted Meeting of Promoters for Hanil
• Signed an MOU with Societe Generale (SG) of France • Signed an MOU with Huaxia Wealth Management, 2005
years in the securities sector Investment & Finance
the largest Wealth Management company in China • Launched Fn Honors Club, a PB service brand
• Held the inaugural General Meeting, registering
• Proclaimed CS Innovation (Gonggam 36.5) the foundation of the company, and paid
• Obtained the international certification of BCM KRW 20 billion in capital
(Business Continuity Management)
SAMSUNG SECURITIES REPORT 2021 responsible, achievable, sustainable

CEO
Dear esteemed stakeholders, Stable business system will be established underpinned by proactive
I appreciate the unwavering trust and support you have shown to us on risk management and diversified revenue streams.
MESSAGE
behalf our employees. Risks that may have a far-reaching impact on our profit will be managed in
Amid the unfavorable business environment marked by the prolonged a preemptive manner through multifaceted efforts. To this end, we will pay
COV ID-19 pandemic, global supply chain crisis, and intensif ying constant attention to the changes in the financial market, such as global
competition with the other industries such as FinTech, we hit the record- inflation or hike in interest rates, and improve the possible vulnerable
high for four consecutive years since our inception, delivering KRW 2.24 points of our process through tightened activities for internal control.
trillion in net operating revenue and KRW 1.32 trillion in pre-tax income. Furthermore, our revenue streams will be more diversified through the
However, we are not complacent about this remarkable achievement. balanced growth and collaboration among all our business sectors, which,
With the aim to take up ourselves a notch, we are going to establish and in turn, will culminate in the unwavering, robust foundation for business .
implement organized strategies to put into action our new vision, ‘the most
esteemed financial company.’ We will embed ESG management into every corner and fulfill our social
responsibilities, thereby becoming a company that deserves respect.
We will shape the paradigm suitable for the fast-evolving investment
We will be committed to internalizing ESG management by establishing
environment, and solidify our grip on the market as a leading player,
the ESG Research Institute and ESG Committee to achieve sustainable
thereby reinforcing our profitability foundation.
growth. Furthermore, our social contribution activities will be expanded,
As for the retail business, our area of strength, the efforts will be made such as education support for adolescents or financial assistance for the
to consolidate our market influence by innovating sales channels and underprivileged. By doing so, we will be fully responsible for our society in
furnishing distinguished services. To begin with, we will create an pursuit of the shared growth with our community.
organization dedicated to new well-off classes such as startup founders,
to preoccupy the market for the super-rich class. Our focus will also be on Dear stakeholders,
the expansion of our influence over the market for companies and their Samsung Securities will make all-out efforts to position ourselves as
owners. the best financial company esteemed and beloved by each and every
The creation of the ecosystem for venture capital is one of our focuses. stakeholder, including shareholders, clients, employees, and other
To this end, we will provide solutions required to help promising members of our society.
venture companies grow as Unicorn companies while offering clients I look forward to your constant trust and support.
new investment opportunities. When it comes to IB and sales, we will
Thank you very much.
strategically take advantage of capitals, and diversify our investment
portfolio, thereby placing ourselves at the top in the industry and
generating profitability in a stable manner.
We will put spurs to innovation and digital transformation.

The first launch of innovative services has drawn attention from generation
MZ, such as brokerage-type ISA, zero commission for non-face-to-face
IRP accounts, and day trading on U.S. stocks. We continue to invent new
KRW 2.24 trillion services palatable to investors’ needs, thereby taking the initiative in
Net Operating Revenue market innovation.
In addition, our emphasis will be on the provision of a variety of digital-
based premium ser vices tailored to investors’ propensity. Digital
KRW 1.32 trillion

transformation will be accelerated at the company level to establish a
platform where customers can have easier and more convenient access to Seok Hoon Chang
Pre-tax Income investment information and make safer financial transactions. CEO of Samsung Securities

MANAGEMENT
BRIEFING
Senior Executive Vice President, Jae Hun Sa Senior Vice President, Tae Young Kim Senior Vice President, Chung Hun Lee Senior Executive Vice President, Han Yong Cho Senior Executive Vice President, Ihn Kim Senior Executive Vice President, Jong Wan Lee
Retail Division Digital Division IB2 Division S&T Division Planning Division Management Support Division
We prov ide indi v idual, corporate, and We are committed to becoming a client- and The scope of our business spans the whole life In line with the changing investment environ- Staying on top of changes in the business Samsung Securities will strain every nerve on all
institutional clients with optimized financial user-oriented digital platform that underlies cycle of real estate development ranging from ment, we will discover the best investment environment, such as digital transformation, we fronts. To achieve stable financial performance,
i n v e s t m e n t s o l u t i o n s t h a t f i t i n to t h e i r a safer financial transaction and investment the initial stage to operation to redevelopment, opportunities to be in the interests of our will become a company that is worthy of respect we will efficiently utilize capitals and create
investment propensity and purposes. Based environment. With our unique digital premium based on which we propose financing plans shareholders, clients, and employees. On the from various stakeholders including clients and synergy among business sectors while elevating
on our outstanding ser vices, ‘customized services, such as Research Talk, Gooling, Pension while offering clients investment opportunities basis of our human resources with expertise shareholders. We will make all-out efforts to shareholder value through the identification
global wealth management’ proposed by our S Talk, day trading on U.S. stocks, and digital with high levels of stability and marketability. and networks, we boast the optimal portfolio accomplish sustainable growth by establishing of new businesses to secure a future growth
professional asset managers ‘total tailored PB consulting, we will underpin customers’ On the strength of our specialized expertise, that embodies conventional investment assets, mid- to long-term business strategies, keeping engine. Risk management and internal control
solution service’ for companies, and ‘brokerage investment success. In addition, we will help we render solutions that cater to clients’ needs such as s tock s or bonds, and alternative up with the trends of overseas and domestic activities are also one of our primary focuses.
and financial product portfolio ser vice’ for clients make more rational decisions regarding throughout diverse sectors including funding assets including both domestic and overseas competitors, embedding ESG management, and As part of the endeavor to discharge our social
institutional investors, we always deliver optimal investment by providing quality investment for PF (Project Financing), property and infra properties and unlisted companies. In particular, communicating in a responsible and transparent responsibilities, we will step up our social
solutions to our clients. In addition, our strong data, diverse financial products and customized, development, consulting and advisory service, we will directly invest in alternative assets, manner. contribution activities such as employees’
platform for financial investment enables us to non-face-to-face consulting service, thereby and takeover business. Furthermore, our REITs thereby laying the foundation for venture capital donation and volunteer work.
offer one-stop financial service that suits various contributing to their better life. products enable companies to secure liquidity, investment ecosystem while scaling up ESG
needs of customers. and we boast the best-in-class network that investments with the purpose of fulfilling our
encompasses a wide range of sectors at home social responsibilities. Taking advantage of our
and abroad. We will be agile to respond to the investment capabilities, we will deliver top-notch
rapidly-changing market in order to stay with investment products that satisfy our clients.
our clients as a partner for their growth.

This chapter provides a business
overview including our business
performance, management
philosophy and core values.
Samsung Securities will make
strides towards the most esteemed
financial company. Through 10
investment, we will go hand in hand BUSINESS PERFORMANCE
HIGHLIGHTS
with our clients to further grow, 16

contributing their better life. INVESTMENT PORTFOLIO
18
CORPORATE OVERVIEW
19
BUSINESS NETWORK
BUSINESS PERFORMANCE Key Financial Indicators (on a consolidated basis)
HIGHLIGHTS KRW 65.70 trillion KRW 6.80 trillion KRW 2.24 trillion
Total Assets Equity Net Operating Income
KRW 1.32 trillion KRW 965.3 billion

Pre-tax Income Net Income
2021 Financial Snapshot Net Operating Income / Pre-tax Income (on a separate basis) ROE (annual Return on Equity) Revenue Share by Division (on a consolidated basis)
In the aftermath of the COVID-19, the financial market suffered uncertainty. (Unit: KRW 100 million)
Despite the challenge, Samsung Securities hit the record high for four
consecutive years, delivering KRW 2.17 trillion in net operating income 21,725 Net Operating Income
and KRW 1.28 trillion in pre-tax income. This remarkable achievement is Net Operating Income
KRW 2.24 trillion
attributed to business diversification and reinforced capabilities on all Pre-tax Income
16.8%
fronts.
Especially in the retail sector, we made strategic progress in the wealth
management market for the super-rich class as well as the retirement
market. The boom in the international stock transaction was a driving force
of our strengthened foundation for foreign stock trading. Our expanded
14,127 Others
influence over domestic and overseas brokerage market led to the
increment in stock brokerage commissions, which, in turn, accelerated the 12,883 11%
growth in the IB sector. 11,370 9.9%
IB Share
Risk management will come to the fore with intensifying market volatility,
13%
such as the stock market taking a turn for the worse. This situation requires 8.2%
a company to diversify its business portfolio to generate profitability in a Retail Share
stable manner. In addition, the entry of other industries, especially FinTech 61%
S&T Share
companies, into the financial business, adds fuel to the competition for 6,408
the survival in this field. Against this backdrop, Samsung Securities will
15%
4,967
constantly pursue the diversification of revenue streams based on a
variety of financial products and asset management services in order to
build a balanced business portfolio and make stable profits. In addition,
the scope of capital utilization business will be expanded to sharpen our
competitiveness. Through all these efforts, we will solidify our stature in
the market.
2019 2020 2021 2019 2020 2021

Retail Business
The retail business is seeing the rapid transformation marked by the
Key Achievements in the Retail Business 2020 2021
intensification of competition in the digital-based financial service
sector and the diversification of clients’ needs. In particular, the entry
of IT-specialized FinTechs comes with the growing demand for IT
system innovation and non-face-to-face consulting service for wealth
management. Net brokerage commission (Unit: KRW billion) Retail clients’ assets (Unit: KRW trillion) 317.1 No. of clients with assets worth above 23.8
745.0
+ 8.7%
Against this backdrop, Samsung Securities will sharpen our asset 685.3 KRW 100 million (Unit: 10 thousand)
+ 20.2% + 29.3%
594.8
management service competitiveness while putting our focus on the Domestic stock 580.9 18.4
wealth management market for the super-rich class and retirement market
263.8
that are expected to sustainedly rise. On top of that, we will launch digital
management services to preoccupy the market for the mass affluent,
and attract new digital-based clients, thereby nurturing a future growth
engine. And at the same time, fee-based assets will be expanded with the
aim to stabilize our revenue structure.
150.2
Foreign stock 104.4
Business Performance
The retail sector saw its net brokerage commission increase by 8.7% on
the strength of its reinforced customer base and the boom in trading on
Financial product sales revenue
overseas stocks. In particular, we recorded KRW 150.2 billion in overseas Domestic stock trading volume (Unit: KRW trillion)
(Unit: KRW billion)
brokerage commission, a 43.9% increase from the previous year while
hitting KRW 18.3 trillion in overseas stock deposit assets, a 67.9% increase
+ 12.2% + 20.8%
411.7
26.5
from previous year, which gave rise to the increasing share of overseas 30.3 68.9
27.0
stocks. 340.9
The focus on the super-rich wealth management and retirement markets Trust 20.7
was the driving force behind the remarkable progress in the retail sector. Funds 53.1 30.4
The clients’ assets stood at KRW 317.1 trillion, a 20.2% increase year-over-
285.9
year, and the net retail inflow hit the record high, delivering KRW 56 trillion,
Wrap account 13.8
a 77.8% increase year-over-year.
Derivative linked Security 253.4
Amid the boom in direct investment, we gained profits generated from
the sales of financial products rise. The increasing sales in overall financial 55.8
Foreign stock trading volume (Unit: KRW trillion) Net retail inflow (Unit: KRW trillion)
products, including wrap accounts, funds, and trusts, enabled us to reach
KRW 411.7 billion in sales, a 20.8% increase from the last year. Especially,
the revenue from the sales of wrap account has more than doubled
+ 93.2% + 77.8%
34.0
31.4
compared to the previous year to KRW 30.4 billion (a 120.4% increase), and
its balance hit the record high of KRW 5 trillion, a 55.1% increase compared
17.6
to KRW 3.3 trillion last year. We recorded KRW 285.9 billion in revenue
generated from derivative-linked securities mainly due to the increasing
gains from the ESL and DLS early redemption.

IB Business Sales and Trading Business

Despite the economic downturn due to interest rate spikes and real estate Amid high volatility, such as rising interest rates and inflation in the
Key Achievements in the IB Business 2020 2021 Key Achievements in the Sales & Trading Business 2020 2021
restriction policies, our IB business has seen growing opportunities for aftermath of the COVID-19 pandemic, there are both opportunities and
sales expansion along with a new paradigm shift in the industry. The scale risks in the investment market. Against this backdrop, S&T Business
of IPOs and rights offerings increased, particularly in the vitalized IPO garners all our capabilities on sustainably creating profit despite this
market, which brought about high competition for IPO subscriptions. The unfavorable environment. Based on careful risk management, we
IB performance has been raised as commission income rose while hosting Acquisition and Brokerage Fee have responded to market changes and generated stable results while Volume of Product Operation 22.7
the company listing. The M&A market also showed a stable condition (Unit: KRW billion) 252.7 continuously researching and discovering new investment areas and (Unit: KRW trillion) 20.8
at a similar level to the previous year’s transaction due to the increasing

demand for financial improvement of companies that can be supported
+ 58.5% expanding our coverage. In addition, we strive to develop and supply a
variety of new products aiming to offer attractive investment opportunities
+ 9.1%
by Samsung Securities’ network and abundant market liquidity. In 2022, a for our customers.
large-scale IPO is also scheduled, and business capabilities in the IB sector
are expected to be further reinforced in line with the optimistic anticipation Business Performance
for economic recovery. 159.4 The income from product operation and trading and interest recorded
KRW 760.8 billion, up 212.9% from the previous year, through normalization
Business Performance of operation based on risk management and improved trading and interest
As a result of pushing forward the strategy to strengthen our capabilities profitability. Our derivatives management sector, which has been sluggish
in the IB sector, the performance grew significantly, mainly driven by due to rising volatility in the global stock market in the previous year, has
structured finance and ECM. The acquisition and advisory fees increased normalized. The stock/PI sector showed high performance, recording
by 58.5% to KRW 252.7 billion year-on-year. ECM advisory revenue also KRW 130 billion thanks to full-fledged corporate investment and strong
Product Operation Income & Trading and Interest Income
recorded a strong performance at KRW 38.3 billion (up 192.9% compared performance in strategic investments.
(Unit: KRW 100 million)
to the previous year), which has trebled the previous year’s level. DCM 7,608
and M&A advisory revenues rose 39.5% and 19.5% year-on-year to KRW
9.5 billion and KRW 15.8 billion, respectively. Other revenues such as
+ 212.9%
structured finance showed solid performance, up 49.7% year-on-year to
KRW 189.1 billion. 2,432
Customer Cash Deposits

(Unit: KRW trillion) 12.4
+ 19.2%
10.4

INVESTMENT PORTFOLIO
Client Assets Dividend Payout Ratio /

Dividend Per Share
35% Dividend Payout Ratio KRW 3,800 Dividend Per Share
Funds KRW 24.6 trillion

7%
Bonds KRW 11.2 trillion
3%
Financial Performance Highlights(Separate)
RP KRW 11.7 trillion
3% Annual Performance (K-IFRS Separate/Unit: KRW billion)
Trust KRW 9.9 trillion
3%
OTC Derivatives KRW 2.6 trillion Financial Information Dec. 2021 Dec. 2020 Rate of Change
1%
Balance Sheet Summary
Retirement Pension KRW 7.4 trillion
2%
Total Assets 59,642 58,341 +2.2%
Others KRW 5.3 trillion 2% Total Liabilities 53,716 53,134 +1.1%
Cash Deposits KRW 8.9 trillion 3% Total Equity 5,926 5,207 +13.8%
Total Assets
Earnings Summary
KRW 335.9 trillion
Stock Assets KRW 254.3 trillion
76%
Net Operating Income 2,172.5 1,412.7 +53.8%
Brokerage 745.0 685.3 +8.7%
Financial Product Sales 411.7 340.9 +20.8%
Investment Banking Revenue 252.7 159.4 +58.5%
Trading and Interest Income 760.8 243.2 +212.9%
Other 59.6 37.0 +61.0%
Commission Expenses -57.3 -53.1 -
Operating Expenses 883.9 771.7 +14.5%
Operating Income 1,288.6 641.0 +101.0%
Pretax Income 1,288.3 640.8 +101.1%
Net Income 936.7 473.1 +98.0%

CORPORATE Our Mission and Core Value

BUSINESS Samsung Securities operates 43* domestic offices and 5 offices overseas,
including Hong Kong, New York, and London, providing prompt investment
OVERVIEW NETWORK
opportunities in the global market. Going forward, we will swiftly respond
to the rapidly changing global financial environment based on an organic
Brand Mission
network between headquarters and overseas offices, exploring new
We help enrich the lives of our clients opportunities and creating values in the areas such as stock brokerage
and grow together. and IB sales.
Samsung Securities is a comprehensive financial investment company that

Domestic Offices / Overseas Offices
provides a wide range of services that encompass channel sales, digital, Overseas Corporates
5 Core Value
Overseas Offices
Sales & Trading, and stockbroking and asset management through the
IB business, corporate finance, and wealth management. Going forward,
we will vault into the most esteemed financial company underpinned by
5 1
sustainable growth. Social Client
Responsibility Centricity
General Status 3
2 4
Company Profile (As of Dec. 2021) 4 2 5
Respect Innovation
1
Company Name Samsung Securities Co.,Ltd.
3
Address of Headquarters 11, Seocho-daero 74-gil, Seocho-gu, Seoul,
Expertise
Republic of Korea
Year of Foundation Oct. 19, 1982
CEO&President Seok Hoon Chang 1 Client Centricity : We put our client’s interest first.
No. of Employees 2,397 2 Innovation : We take the lead in change through challenging.
3 Expertise : We seek optimal answers as a financial expert.
Equity KRW 6.0809 trillion
4 Respect : We understand and respect difference.
Market Capitalization KRW 4 trillion
5 Social Responsibility : We fulfill social responsibilities with
Credit Rating AA+(Korea Credit Rating), AA+(Korea Ratings), upright mindset. Domestic Offices 1 Hong Kong 2 New York 3 London 4 Beijing 5 Tokyo
Baa2/P-2(Moody’s)
43 offices* in total Establishment Date Establishment Date Establishment Date Establishment Date Establishment Date
ESG Evaluation Achieved Grade A in the MSCI ESG evaluation (including 5 finance Sep. 04, 2000 Oct. 01, 1998 Jul. 01, 1996 Nov. 18, 2013 Jan. 05, 2015
and Grade A in the KCGS ESG Evaluation 7 PRINCIPLES center):
Address Address Address Address Address
Seoul (18), Gyeonggi (7), Suite 4511 1330 Avenue of 1st Floor, Rm.2101-4, 102-0071 Iidabashi
Management Ideology • We value substance over form. Busan (2) Incheon (2), Two international the Americas, 30 Gresham Street, Samsung Tower, Grand Bloom 2-10-2,
Daegu (2), Cheongju (1), Finace, Centre, 10th floor New York, London EC2V 7PG U.K Building 1, 31 Jinghui Fujimi, Chiyoda-ku,
• We make changes from small things.
Our brand mission refers to customer-oriented management, which Cheonan Asan (1), 8 Finance Street, NY 10019 Street, Chao Yang Tokyo, Japan
Business
• We ask ourselves and think about how to become better. Central, District, Beijing, China
serves as the foundation for happy management activities growing with Jeju (1), Jeonju (1), Business Equity brokerage Business
Hong Kong
all our stakeholders, including clients, employees, and shareholders. • We strive to do our job right. Suncheon (1), Ulsan (1), Equity brokerage Business Researching Japanese
Daejeon (1), Gwangju (1), Business Researching Chinese financial / Securities
It reflected our will to contribute to our client’s ‘better life’ and ‘grow • We communicate horizontally and respect each other.
Pohang (1), Gumi (1), Equity brokerage, financial / Securities markets and system,
together’ in addition to providing good products or profitability. Through • We find how we can make it instead of why we cannot. Changwon (1), Wonju (1) Fixed Income Sales & markets and system, Supporting Japanese-
our five core values and seven principles, we aim to internalize and Trading Supporting Chinese- related business and
• We do not do anything that brings shame on our family. *1 branch exlculed
related business and business contact
spread our brand value.
business contact

Samsung Securities’ new
vision & strategy is ‘Beyond the
Best – the Most Esteemed
Financial Company.’ It boils down
to growing with communities by
putting into green / responsible /
transparent management on
the basis of reinforced ESG
management. In the years to come,
we will proactively respond the
rapidly changing market and move 22
towards a better future value.

NEW VISION
24
SUSTAINABLE MANAGEMENT
STRATEGY
NEW VISION Establishment of New Vision and Directions

Despite changes in the market landscape and unstable stock markets
Together With Our Stakeholders
As ‘Beyond the Best - the Most Esteemed Financial Company,’ Samsung
in and outside Korea, Samsung Securities has established a new vision Securities will always strive to clearly understand the demands of various
to solidify our stature as a leading company and build a platform for stakeholders, including clients, shareholders, employees, and society to
qualitative change and leap forward. Through the new vision, ‘Beyond meet their expectations. Through unparalleled solutions and proactive
Beyond the Best the Best – the Most Esteemed Financial Company,’ we will preemptively responses, balanced growth and stable profit base, and a responsible
respond to the market paradigm shifts, build consensus with our attitude as a financial company, we will continue to unlock better future
the Most Esteemed Financial Company stakeholders, and secure momentum for change. values together with various stakeholders.
As a leading securities company,

we will create a trend by continuously
Client trust convenience return on investment
challenging ourselves.
We will play the role of the financial partner, providing a

Ultimate Solution Provider convenient and systematic management service as a
trustworthy group of financial experts for trade.
• Starting from clients’ fundamental needs to
Beyond faithfully satisfy clients
the Best • Being equipped with expertise, such as
differentiated solutions or stable deals,
Shareholder dividend income capital gains
required to meet clients’ needs
We will raise the corporate value and expand the shareholder

Leading Innovator return policy through dividends. We will achieve sustainable
performance based on a clear capital policy and balanced
• Actively and promptly responding to changes growth.
in the business environment and seizing new
opportunities
Vision Direction • Propelling new businesses, changing the Employee personal growth appropriate rewards
way of running the existing businesses, and innovation and challenge communication and collaboration pride
leading digital transformation in the industry
As a company that our employees can be proud of, we will

the Most Financial jointly grow with them based on respect, communication,
Resilient Navigator
Esteemed Company and interaction. We will present proper rewards to them,
• Creating a solid profit base across all sectors supporting to make a happy workplace.
• Differentiating the business model by

expanding additional investment in the sales of
We will satisfy various We will stand out as a headquarters and linking with our strong retail Society social responsibility
stakeholders, including clients, financial company meeting business sector continued ESG-centered management
shareholders, employees, and the diverse needs of stakeholders

society and provide a better value beyond the competition with We will comply with laws and protect consumers while
for them. other securities firms. Responsible Pioneer upholding the value of ESG. Along with that, we will become a
financial company contributing to the facilitation of the capital
• Building a challenging organizational culture
market and the advancement of the financial industry.
• Faithfully fulfilling the corporate social
responsibility

SUSTAINABLE ESG Mission and Direction

With the objective of incorporating ESG into our management, we
Key ESG Index
MANAGEMENT set companywide ESG strategies in 2021. In the direction of green,

responsible, and transparent management, we will contribute to a better
Key ESG Index Unit
E
2019 2020 2021
STRATEGY
future by establishing a system to implement detailed tasks to achieve ISO 14001 Certification -
specific goals. We will create social value through green finance, fulfilling
Total GHG emissions (Scope 1, 2)* tCO2eq 1,278 1,288 1,427
our social responsibilities as a trustworthy financial company with
transparent governance in which we promote mutual growth with society. Energy usage* MWh 4,591 4,545 4,785
Water usage* m³ 20,938 19,909 19,573
Amount of ESG products and services KRW 100 million 680 688 1,699
Financed emissions 10,000tCO2eq - - 227.71
TCFD Disclosure -
MISSION CDP_Climate Change Response -

Robust ESG Management S
We invest for a better future
We contribute to creating a better future and E Customer satisfaction Points 77 78 79
growing with society through the practice of
Hours of data security education Hours 28,730 29,884 29,490
green, responsible, and transparent management. ❶ Building green infrastructure
Setting and managing reduction targets for carbon emissions No. of complaints on personal data breach Cases 10 10 14
❷ Expanding green investment Human rights impact assessment Conduct -
DIRECTION Establishing responsible investment process
Human rights education Persons 2,501 2,584 2,698
❸ Building leadership in response to environmental changes
Green Responsible Transparent Hours of education per employee Hours 179.8 121.8 128.4
Reinforcing global initiatives related to the environment
Management Management Management
Creating social values Earning trust through Systematically building S Satisfaction level of employees Points 73.5 76.1 76.2
through green finance social contribution transparent governance
Ratio of female executives Persons (%) 2(7.7) 3(11.5) 4(15.4)
❹ Strengthening customer-oriented management
Elevating customer satisfaction, preventing customer data leakage and Retention rate after parental leave % 91.5 92.1 86.5
infringement accidents, expanding inclusive finance
COMMITMENT Total amount for social contribution KRW 100 million 34.2 33.6 33.2
❺ Promoting shared growth with stakeholders
E S G Hours of volunteering per employee Hours 4.5 2.5 3.3
Creating happy workplace and healthy organizational culture, expanding
G
❶B
uild green ❹ Bolster ❻ Strengthen social contributions
infrastructures customer-centric transparency Ratio of non-executive directors % 60.0 57.1 66.7
G
❷ Increase
management and diversity in
systems governance Ratio of female directors % 0 0 0**
eco-friendly ❻ Enhancing transparency and diversity in corporate governance
investments ❺ Pursue joint growth ❼S
trengthen ethical Ratio of directors with the industry career background % 100 100 100
Establishing a transparent and diverse governance, being selected as a
❸ Lead the industry
with stakeholders management
company with excellent governance
in responding to Hours of ethics education per employee Hours 1.1 2.3 3.1
climate change ❼ Bolstering ethical management
No. of corruption or bribe cases Cases 0 0 0
Improving indicators related to anti-corruption and ethical management
violations ESG Management Internalization
Internalizing ESG Management
ESG risk management Conduct (partial)
* Reporting scope: The Headquarters and all business vehicles

** As of March 2022, the ratio of female directors has been raised to 14%. Samsung Securities will continue to enhance diversity in governance.

Our future focus will be on the
entrance into new businesses
one step ahead of others and the
provision of new products and 28
services. We will never relent in INDUSTRY TRENDS
our challenge to become a leading 30
company that shapes and drives

DIGITALIZATION
the digital trend in the financial 36

CONSUMER PROTECTION
industry. Going forward, we will be

44
committed to protecting consumers GREEN MANAGEMENT
and put ESG at our heart, thereby 48

contributing to the advanced SUSTAINABLE INVESTMENT
financial industry. 52
OUR GOAL & FUTURE
INDUSTRY TRENDS
DIGITALIZATION CONSUMER GREEN SUSTAINABLE

PROTECTION MANAGEMENT INVESTMENT
In the face of the fast-evolving environment marked by economic As the COVID-19 is accelerating the digitalization The fast-evolving financial environment has In a circumstance where climate crisis is In 2020, BlackRock, the world’s largest asset
uncertainty, global supply chain crisis and the advent of FinTech, of the securities indus tr y, non -face -to - spurred the complexity of financial products. posing a threat to human life and carbon management company, made an announcement
face investment consultations and mobile The f inal investment decision rests with neutrality has emerged as a global topic, that it would take ESG factors as one of the
we aim to maintain our No.1 position while playing a leading role
transactions are becoming common, and the f inancial consumers, but it is a f inancial global companies are also taking steps to standards based on which investment decisions
in the paradigm transformations with innovative movements.
digital-friendly MZ generation is coming to company ’s responsibilit y to explain and fulfill their responsibilities in line with the Paris will be made. And this decision makes ESG
Our innovative financial services will cover from the emerging the fore as a core customer while the policies prevent possible risks or damages stemming Agreement on Climate Change that made it investment a necessity, not an option. Actually,
wealthy to the generation MZ, spearheading the market with that promote digital innovation in the financial from investment. We are sparing no efforts mandatory to mitigate GHG emissions. The we are seeing ESG-related investment on the
the Korea’s first services such as day trading on U.S. stocks. We industry have brought about platform-based to r e d u c e c u s to m e r d a m a g e o w i n g to financial industry all around the world is not an rise globally. The Global Sustainable Investment
will put our customers first and pay close attention to the voices Big Tech’s entry into the financial investment incomplete sales, and develop the system to exception, expediting ESG related investment. Association (GSIA) forecasts that the scale of the
industry. Against this backdrop, we will move provide remedy for the violation of rights with As a financial company, we will come up with global ESG investment assets will reach $130
of clients, embedding ESG management into every corner of
forward with renewed strategies and services reinforced safety management and a higher solutions to combat climate change through trillion by 2030 from $35 trillion in 2020. Catching
our management to take the initiative in sustainable financial
which will enable us to make prompt response security level to protect personal information. the investment portfolio with all-out efforts to up with such global financial trends, we will play
industry.
to the mutating needs of customers and the Our business process will be consolidated in a realize it. a leading role in the domestic ESG investment,
market environment, thereby leaping forward direction where our clients ‘opinion is cherished fulfilling our corporate social responsibility.
as a leader in digital finance. and complaints are addressed in a proactive Looking forward, we will continue to develop
manner. direct and indirect financial products through
which investment returns are generated taking
advantage of this ESG trend.
01. DIGITALIZATION
02. CONSUMER PROTECTION
03. GREEN MANAGEMENT
04. SUSTAINABLE INVESTMENT

01-1 Sharpening Competitiveness in Asset Management
DIGITALIZATION Customized Counseling Service through Digital Channels

Samsung Securities has boosted our digital asset management capabilities
From Mass Affluent to Generation MZ:
Expanding Our Service to Meet Their Characteristics and Needs
to provide non-face-to-face counseling services through digital channels Digital Wealth Management Department in charge of non-face-to-face
where customers effortlessly find customized information. Various age- wealth management consulting service has reinforced its manpower and
specific asset management services are available on the channel, resulting reformed its divisions tailored to the characteristics and needs of our
in keen competitiveness in our asset management services. clients that range from super-rich class to the wealthy class to general
customers, thereby strengthening presence of Digital WM sector.
Non-face-to-face One Stop Consulting Service Since individual investors are growing in influence in the market, we will
Launched in 2020, the Digital Wealth Management Department has broaden our sales focus, which was on high net worth individuals, to also
provided digital preferred customers with easy and convenient one-stop cover the ‘Mass Affluent.’ Especially, we are going to actively reach out to
asset management consulting service ranging from investment counseling generation MZ through the digital asset management service.
to Q&A. We are operating the ‘One-Call, One-Stop’ service that ensures Living up to our reputation as a master of wealth management, we will
quick-connection to telephone consultation along with the provision continue to serve as an exceptional digital asset management platform,
of chat and video consultations (only available for customers with large taking initiative in digital financial service by further expanding our
amount of transaction) on top of consultation reservation services. customer base.
On the non-face-to-face channels, we help clients in making informed
decisions on investment by providing the lineup of diverse products, 2020 2021
such as domestic and foreign stocks, funds, ELS, bonds and Wrap, to give
clients an option to choose according to their investment propensity and Accumulated no. of
new non-face-to-face clients 2.53
investment purpose. And we also offer them quality data including research
no. of new clients created
reports, investment strategies, and promising stocks and product analysis. non-face-to-face accounts
Professional investment services are available as well with the timely

‘webinars’ which provides specialized information tailored to customers’
needs through non-face-to-face channels. 1.14
Keeping pace with the evolving digital financial environment, Samsung Securities revamped
itself to system-based infrastructure in constant pursuit of digital innovation. In 2021, Digital
Wealth Management Department which provides non-face-to-face wealth management (Unit: million)
consulting service has reinforced its human resources. And we have reformed each
Digital client assets
department tailored to the characteristics and needs of each class: super-rich class, the
total assets of digital clients
wealthy class and general customers. 80.6
‘Big Data Analysis Platform’ was built to enhance analysis and utilization of customer data,
while the marketing and content offering system was reorganized to provide personalized
and customized information. Previous human-driven simple tasks were replaced with an 53.9
automated process equipped with new digital technologies such as AI (artificial intelligence),
cloud, RPA (Robotic Process Automation), and Chatbots. The upgrade has brought about the
efficiency in sales and work.
Navigating through cut-throat competition, Samsung Securities, as a leader in the financial
platform industry, will provide unparalleled services, products and content for the purpose (Unit: KRW trillion)
of offering new investment experience to our customers.

01-2 Differentiated Personalization Services 01-3 Enhancing Accessible Digital Channel
Data Analysis Advancement Launch of ‘Gooling’, Customized Portfolio Service Greater Convenience with Digital Channels Such as mPOP / O2 Apps
Samsung Securities has been making efforts to build an infrastructure for Our advanced data analysis system enables the hyper-personalized digital A growing number of clients are making their first financial investment
1 2 3
big data collection and analysis since 2020. Starting from 2021, concrete Establishing Expanding AI Sharpening Data services among which we unveiled our digital portfolio service, ‘Gooling.’ as non-face to face environment has been common due to the COVID-19.
progress has been made. Data Analysis technology- based Analysis Capabilities Gooling provides the most optimized investment proposal for each Samsung Securities is expanding and reorganizing its digital channels to
Infrastructure Services of Employees
As a helpful measure to deal with the growing demand for non-face- individual, leveraging Robo Algorithm that analyzes the past transaction provide barrierless services to customers in their 20s and 30s who has
to-face consultations, we started monitoring the complete sales of patterns built on data in regard of investment goal, period, expected constituted a new major client base.
financial products utilizing virtual counselor based on AI technology. The return and amount that an investor entered. As a kind of ‘Financial Asset Following the launch of O2, the application for digital asset management
technology has also contributed to a higher level of customer convenience Curation Service’, customers can enjoy the service equivalent to PB asset service in 2021, we have continuously upgraded our existing digital
by filtering advertisements in real-time from investment-related news and management which is one-on-one customized service in consideration channels, including mPOP, HTS, and POP.com, on the basis of the user
Building a big data visualization dashboard system (in 2022)
developing customized services that recommend financial products based of investors’ propensity and environment. Given its main target, the 2040 experience principle, raising the convenience of our customers. Our
on the analysis of data on customer transaction and behaviors. To be applied in advanced technology-based consultations generation, we have added visually fun elements and designed this service YouTube channel with 1.08 million subscribers provides investment
We have established an external VOC (Voice of Customer) monitoring to provide users a sense of accomplishment in terms of investment. information and educational content in an easy and interesting way,
system to collect and analyze various voices of customers online. In the winning a good response. Going forward, we will provide customized
1 Establishing Data Analysis Infrastructure
system, text analysis reads customers’ sentiment and extracts keywords, investment data in various forms, thereby giving clients more access to
• Organizations / experts specializing in analysis.
which allows us to detect and respond to customers’ complaints in advance channels and boosting communications with them.
• Advanced big data analysis system.
and identify insight for better services and work process.
• Management system for data quality / governance.
With an aim of enhancing data analysis capabilities of employees, we
• Collecting / accumulating structured and unstructured data from diverse sources.
have furnished company-wide training on Python and big data analysis
infrastructure. In 2022, we are building a big data visualization dashboard 2 Expanding AI technology- based Services
system to facilitate in-depth analysis and internal sharing of big data while • AI – based monitoring service.
expanding areas where we take advantage of AI technology to various • Advertisement filtering service.
consulting and notification tasks. • Developing customized services that recommend financial products optimized
to client transaction and behaviors.
• Establishing an external VOC monitoring system.
3 Sharpening Data Analysis Capabilities of Employees

• Company-wide training on Python and big data analysis infrastructure.
Scan the QR code, you can experience

Today’s Investment (O2), the digital wealth
management service app.
Scan the QR code, you can experience

Samsung Securities mobile app mPOP.
You can check Gulling service on mPOP.

01-3 Enhancing Accessible Digital Channel 01-4 Expanding Digital Ecosystem
Introducing AI- based ‘Virtual Analyst’ Character Marketing for Generation MZ_ ‘Davida’ & ‘Zutopia’ Online Shareholders’ Meeting Open Collaboration:
We are producing broadcasting content by developing ‘Virtual Analyst,’ Charac ter marketing aims to get closer to the generation MZ ‘Online Shareholders’ Meeting’ enables shareholders to conveniently Discovery of Promising Startups to Promote Cooperation
taking advantage of AI. Virtual Analyst delivers investment information encompassing beginners and college students who are new to investment. exercise their voting rights online that had to be sent by mail or visit the We are actively looking for promising external FinTechs and startups to
by learning the appearance and voice of a real analyst with AI technology. ‘Davida’ is a brand character of Samsung Securities, a lifelong investment place. The COVID-19 has triggered the explosive increase in the number of work with them in the hope of expanding digital finance ecosystem.
When you enter a report published by Samsung Securities, investment partner who relates to those who just started their career through web individual investors, which, in turn, has led to the rise in investors who want Since 2020, we have jointly hosted the Open Collaboration event with
information is delivered as if a real analyst was broadcasting. drama. to actively participate in corporate decision-making. As more companies Samsung financial affiliates every year and in the 2nd event in 2021, we
The Korea’s first virtual analysts has brought intensified efficiency to ‘Zutopia,’ which features cute animal characters, is posting investment are adopting electronic voting system due to the difficulties of face-to- select startups equipped with capabilities in digital services, solution, and
the research and timely investment information delivery in a more and economics themes with daily life- related content on Instagram face contact, the ‘Online Shareholders’ Meeting’ has been emerged as a content to push the collaboration forward.
interesting way, contributing to the creation of a more friendly image of such as part-time jobs and cherry blossom viewing, thereby taking a new trend which will serve as a bridge between corporations and minority In 2022 we overhauled and ameliorated the internal system and program
Samsung Securities taking a lead in digital innovation. step closer to the generation Z composed mainly of college students. shareholders. for cooperation with startups to launch our own recruitment and discovery
We expect that ‘Davida’ and ‘Zutopia’ to transform our brand image into program, ‘Samsung Securities Startup Rallyup’. Looking forward, we will
not heavy and rigid but more youthful and lively so that we can become Digital Financial Platform, ‘monimo’ undertake various cooperative projects in 1) new business / services
closer with our clients. Amid the strengthening presence of tech-based financial platforms, we utilizing digital technology and data 2) customized investment information
launched an integrated financial app ‘monimo’ in 2022 in cooperation and marketing 3) solutions to improve convenience in investment /
with Samsung Financial affiliates. With one account, users can access to transaction. The website for mobile and PC was prepared on which we can
the main services of four companies, Samsung Securities, Samsung Card, support and communicate with startups along with diverse support (forum,
Samsung Life Insurance and SFMI on top of our unique products and 1:1 mentoring, etc.), with the aim of more interaction with startups.
services with various content. In an era when platform competitiveness Beside our own capabilities in the digital business, Samsung Securities in
constitutes financial competitiveness, we will redouble our efforts to the vanguard of digital financial business will expand our business area by
provide unparalleled services, create a synergy with Samsung financial means of the mutual growth with external financial ecosystem.
affiliates.
2nd Open Collaboration Samsung Securities’ Collaboration with Startups

Event page
of Zutopia
COMTRUE Technology
Providing AI OCR, face and object
recognition solutions
Money Station
Providing social investment platform
and AI investment analysis engine
Scan the QR code, you can experience Billionaires

Samsung POP integrated financial app of Samsung, ‘monimo’. Securities companies-linked asset
YouTube channel
‘I am Davida’ portfolio service

02-1 Protecting Financial Consumer Rights
CONSUMER Development-Sales-Follow-up Process Organization

When it comes to financial consumer rights protection, prevention comes
Development-Sales-Follow-up Process to Protect
Financial Consumer Rights
PROTECTION
first. We are operating the system to prevent consumer from sustaining
damage in the entire process of product development, product sales, and 1
• Identification of the product development checklist
follow-up management.
• Review of new products, manuals and advertisement
When designing products, we inspect products from various perspectives Development using the comprehensive consumer protection system
to check if there is any possibility of harm our consumers and monitor • Attendance meetings convened by the
satisfaction of customers once a half year to actively reflect customer Product Committee CCO
feedback from the stage of product development. Department in charge
of product design inspects major issues such as product instructions
2
through the comprehensive consumer protection system which is followed • 6 sales principles
by reviews of the Consumer Protection Center. suitability, appropriateness, duty of explanation,
prohibition of unfair practices, unlawful solicitation,
Tightened internal standards were applied to prevent incomplete sales by Sales and false or exaggerated advertisements
educating employees to comply with the sales procedure based on the six • Preemptive detection of problems through mystery
shopping
sales principles. We have enacted business regulations that employees
should abide by in sales of high-level financial products, while internal
regulations have been revised regarding investment recommendation and
3
business ethics in accordance with the Financial Consumer Protection Act. • Product monitoring
Mystery shopping has been conducted more than once a year targeting Follow-up • Inspection on complaints about products
all employees. For customers subject to the deliberation system are Management • Check for monthly sales of financial products
instructed by an employee who fully handle related tasks. • Suspension and termination of improper product sales
In response to digitalization, follow-up management has been advanced
by introducing Happy Call through which mobile survey is conducted.
If the survey results fall short of the criteria, we are sending a ‘Request 4
• Regular consultation on major issues related to financial
Form to Verify Incomplete Sales’ to the seller to confirm complete sales, consumer protection
while the proportion of Happy Call has increased in KPIs for the branches. The Consumer
• Identification of the current status of vulnerable
Protection
We have established the internal control system where the Consumer areas in protecting financial consumers and preparing
Council countermeasures
Protection Council inspects all processes followed by improvement
activities according to the inspection results, which has been reported to • Sharing the results of analysis of complaints and VOCs
Since 2019 Samsung Securities has appointed a Chief Consumer Officer (CCO) under direct
the Internal Control Committee on a regular basis. • Efforts to raise awareness of financial consumer
control of the CEO to integrate the company-wide consumer protection system and control protection among employees
the Consumer Protection Center.
In preparation for possible consumer-related issues, we are building a robust financial
consumer protection system by obliging the pre-consultation process with the
Consumer Protection Center at all stages from product development to sales to follow-
up management. We aim to eradicate incomplete sales, prevent consumer damages, and
safeguard client rights and interests by providing prompt remedies for consumer damages
with the department exclusively dealt with related tasks.
Samsung Securities will make a commitment to realize client-centered management by
clearly understanding and analyzing the voices of clients collected from various channels.

02-1 Protecting Financial Consumer Rights 02-2 Customer-oriented Business Process
Mystery Shopping for Customer Protection Consumer Protection in Response to Digitalization Turning VOC into Management Resources
Samsung Securities conducts quarterly mystery shopping while all Samsung Securities is making endeavor to promote financial consumer We are firmly determined to operate customer-oriented management,
branches of PB are evaluated through the investigation at least once a rights and interests in response to the digitalization. A checklist was put ting customer f irst at all stages of business process. We are
year of which results are being harnessed in improving client service and introduced to prevent employees from omitting product explanation and keeping an eye on issues regarding financial consumer protection in a
protecting investors. Each branch appoints a mystery shopping leader to to allow customers to check overall progress. As digitalization of financial constant manner, solidifying internal consultation to render VOC to our
prepare its own training system. Customized consulting is provided for business such as creating non-face-to-face accounts and open banking management resources.
branches and employees with poor performance, and increased rewards might cause a growing damage by financial fraud, we are committed to With our fortified commitment, the Consumer Protection Council is
are given to excellent branches and employees on quarterly and yearly the prevention of damage caused by financial fraud through continuously holding a monthly meeting which has been held once in a quarter and of
basis aiming to horn our capabilities in product consultation and sales upgrading the Fraud Detection System (FDS) and performing transaction which results are reported to the CEO, high-ranking executives and the
service. Thanks to those commitment, Samsung Securities has received monitoring while handling new financial scam with security solutions and BOD. We hope to embrace VOC in our management by expanding the
an Excellent grade in the ‘Evaluation of Mystery Shopping for Fund Sales in prevention measures. boundaries of VOC tasks which used to focus on addressing complaints
2021’ by Financial Supervisory Services. (Only 2 out of 29 companies were of individual clients to identifying needs of customers and subsequent
received Excellent grade). Achieving ‘Good’ Grade in Consumer Protection Evaluation business improvement.
In 2021, we have acquired ‘Good’ rating on consumer protection evaluated To this end, we are having VOC day when the head of each division,
by Financial Supervisory Services. executives and team leaders are gathered on top of quarterly VOC Council
Stricter criteria resulted in no institution acquiring ‘Excellent’ grade and meeting presided by the CEO. Agendas derived from the VOC analysis
only three institutions including Samsung Securities achieved ‘Good’ grade are registered as tasks to undertake and carefully managed at all stages
among 26 financial institutions. Except one ‘Fair’ grade in ‘Prevention of encompassing system and work process until the improvement is confirmed.
Civil Complaint’ area on account of computer disorders caused by the We have prepared the system on which we realize our customer protection
growing number of participants flocked to the revitalized stock market, we by increasing the proportion of customer protection in the employee
garnered ‘Good’ grade in six categories with improvement measures being performance compensation system. We are also giving more weight to
taken. consumer protection in KPIs for better assessment, refining standards of
Four Times a Year reimbursement for unhealthy sales practices and incomplete sales.
Conducting Quarterly Mystery Shopping
Commitment to Turn VOC into Management Resources
Excellent 1 Continuous Attention and Action of the Management
In ‘2021 Evaluation of Mystery Shopping for Fund Sales’ • Monthly report of the Consumer Protection Council to the CEO and the BOD.
by Financial Supervisory Services
• Quarterly VOC Council meeting presided by the CEO
2 hifting the focus of VOC tasks from answering / handling the compliant to
S
identifying customers’ needs / subsequent process improvement.
Good • Monthly VOC day when the head of each division and team leaders are gathered
to have a discussion.
2021 Consumer Protection Evaluation by
Financial Supervisory Services • Constant monitoring on improvement tasks derived from the VOC analysis.

02-2 Customer-oriented Business Process
Management of Client Proposals through Consumer Protection System Diversifying Channels to Listen to Customers’ Opinion Improved Grievance Handling System
Samsung Securities has launched a new comprehensive consumer We listen to and analyze opinions of clients through diverse channels to We conduct the monitoring of satisfaction about newly launched products Samsung Securities seeks to safeguard clients’ rights and interests by
protection system to systematically manage client voices and actively actively reflect the analysis results in our product development and service every half year and reflect the monitoring results to product development handling all grievances in proper procedures supported by comprehensive
reflect them into business activities. For efficient management, the system improvement. in the future. Those efforts have led us to rank 1st in terms of client’s consumer protection system.
was developed to integrate tasks related to client protection, such as civil Opinion Panel for Client-centric Management System intends to understand satisfaction survey conducted by 3 different external bodies, NCSI, KCSI Received complaints are analyzed, managed and classified to 65 detailed
complaints, VOC/ VOE, and prior consultation before product development the opinions of employees who meet the clients every day on the client and KS-SQI as well as in the consumer protection index KCPI. categories to draw up improvement measures beyond providing a
and sales, into one system. contact point. Since its introduction in 2019 we operated its third session We are paying close attention to even trivial inconvenience of clients remedy for violations of rights, thereby preventing recurrence of related
Comprehensive consumer protection system is playing a pivotal role and we had in-depth discussions to fully apply the Financial Consumer Law through internal and external VOC systems. Problems can be received complaints. The guidelines on illegal contracts cancellation and withdrawal
in changing over the focus of VOC tasks from grievance handling to on business sites and minimize customer inconvenience in 2021. through our website where division responsible for dealing with VOCs is of subscriptions have been reflected in the process of grievance handling
customer needs identification, tasks production and subsequent process We pursue, observe and analyze clients’ opinions through grand-scale addressing the issue in a prompt and professional manner. From the end which also have made public on our website.
improvement. The system scrutinizes all activities of the company that survey on a regular basis. We grasp client’s satisfaction and dissatisfaction of 2021, we have introduced a system to detect external complaints found We have diversified channels where clients can ask and find needed
might have impact on clients including a launch of products, advertising, by surveying all clients on the Net Promoter Score every quarter. in portals and blogs which enabled us to preemptively handle external information related to business and financial products, realizing clients’
events and marketing activities to register improvement tasks after complaints with our advanced infrastructure. right to know. In mPOP, the menu of FAQ and inquiry boards have been
reviewing and analyzing civil complaints and VOC. Work efficiency has added on top of Chatbot equipped with advanced functions in response
been increased as the system allows the department in charge of and to a variety of inquiries and different needs of clients. Our website is also
related departments to discuss, improve, and manage the assignments. being reinforced with newly added menus and contents encompassing
customer rights under the financial consumer law that came into effect in
2021, preventive measures of financial fraud such as voice phishing, and
financial guidelines for the vulnerable groups.
Diverse Channels to Listen to Clients’ Opinions

The major achievements driven by the reflection of grievances handling
1 Opinion Panel for Client-centric management
results in the management activities and systems are as follows.
• 3rd term of client-oriented management in 2021
24-hour
1 - Selection of excellent PB/RM/FM with over 3 years of work experience at the branch
- Giving shape to measures to comply with the newly introduced Financial Consumer Law By establishing a 24-hour currency exchange system, repayment is possible at all
Opinion Panel for times in case of payment error in KRW or foreign currency.
- Finding solutions to minimize expected inconvenience caused by the introduction of new
Client-centric systems, including institutional improvement.
management VOC-dedicated part
A VOC-dedicated part was created within the Financial Consumer Protection Team
2 Client satisfaction survey
to beef up expertise in responding to VOCs and prevent delays and omissions in
• Quarterly survey on the Net Promoter Score to report to the CEO and the
responses.
VOC Council.
limited or blocked
• Conducting the monitoring of satisfaction about newly launched products
2
3 every half year and reflecting the results to product development Opening of multiple accounts in a short period of time is limited or blocked to
Client satisfaction • Ranked first in terms of client satisfaction survey conducted by 3 different prevent financial fraud damage.
VOC
survey external bodies, NCSI, KCSI and KS-SQI as well as in the consumer protection non-face-to-face
index KCPI.
It is able to delete their personal information using non-face-to-face wired
3 VOC methods instead of visiting the branch, improving consumer rights and interests
on personal information protection.
• Listening to the voices of clients and solving problems through the website
• A VOC-dedicated part was created within the Financial Consumer Protection revising the UX/UI
Team to beef up expertise in responding to VOCs Client-friendly service is available such as detailed explanation on civil complaints
• Establishing external VOC monitoring system to preemptively figure out and and prevention of financial fraud by revising the UX/UI of the financial consumer
address client inconvenience. protection board on the website.

02-3 Various Client Support Activities 02-4 Protecting Client Information
Providing Financial Information and Education Product Development Service Using Fintech Technology Personal Information Security Management System (ISMS-P) Certification Systematic Information Security Solutions
Samsung Securities develops and delivers educational contents to build a A growing number of clients starting their first financial investment is As digital-based financial services and non-face-to-face platforms grow
sound investment culture and provide diverse investment information. the hallmark of the stock market in 2021. Samsung Securities provides in importance, Samsung Securities is continuously and systematically System to prevent electronic financial accidents
responding to the trend at the company-wide level, such as obtaining
❶ Building a Sound Investment Culture
an optimized system through the ‘Today’s Investment (O2)’ app on
An investment education
which clients can choose the right product that suits their environment. integrated information protection and personal information protection • Reinforcing security level by introducing the process of a visual verification
website for novice investors, titled ‘Investment School,’ was embraced in of ID cards in case of non-face-to-face real name confirmation to prevent
O2 app has 80% reduced menu compared to mPOP, with its screen management system (ISMS-P) certification.
Samsung Securities’ trading apps (mPOP, O2) to provide content such as electronic financial accidents caused by leaked information and ID cards
composed mainly of functions most frequently used by investors, while ISMS-P is a management system that thoroughly analyzes information
common sense of economy and basic knowledge about stock investment, through voice phishing and hacking.
its aesthetically pleasing design and intuitive configuration apart from system services and personal information-related tasks. It evaluates
thereby enabling our clients to receive investment education effortlessly. • Restricting financial transactions when the photographed ID is suspected
FinTech technology, help novice investors to effortlessly utilize valuable the security level of the personal information flow, such as all applicable
In 2022, we plan to launch a metaverse investment playground, targeting of copy other than the original to prevent financial loss.
contents. In recognition of increased accessibility to financial investment, services, systems, employees, and physical locations, according to the data
generation Z, where they can learn investment knowledge with fun factors.
Samsung Securities received the Communication Main Award in 2021 lifecycle (collection, retention, use, provision, and disposal).
❷ Providing Various Investment Information We regularly deliver iF Design Awards. Harnessing FinTech technology, we will continue to In 2021, Samsung Securities renewed the certification by meeting 102 Detecting malicious apps on mobile devices
investment contents that investors need to know on YouTube channel. For develop various easy-to-use products and services that even novice certification standards that reflected 80 information protection-related
example, ‘Mr. Overseas Stocks’ contains knowledge about overseas stocks, investors can enjoy. security requirements and 22 personal information protection-related • Improving security level by introducing solutions to detect malicious
and ‘Market Chef’ reviews weekly stock market issues. We also create security requirements. We conducted inspections according to the regular apps in response to financial fraud, which steals financial information by
valuable contents for easy learning of beginners regarding investment information protection evaluation system introduced by the Financial installing malicious apps on mobile devices.
knowledge and wisdom, including ‘War-conomy’, where users find the Security Service for the purpose of a systematic check on the protection level • Registering the information related to the suspicious app on the Fraud
wisdom of investment from war history, and ‘Investment Fairytale,’ where of personal credit information of financial institutions. Samsung Securities Detection System (FDS) to devise measures to minimize client damage.
users learn investment through fairy tale stories. received ‘S,’ the highest grade in the 2021 annual personal credit information
❸ Online Program for Financial Education The economy class for the
management system evaluation.
youth, which facilitates the formation of proper economic knowledge for

young people, is a representative online educational program targeting
elementary, middle, and high school students and children in the
vulnerable group. As of 2021, a total of 16,983 youth took the course over
1,378 sessions.
Investment School
Renewal of ISMS-P
Certification
Meeting 102 certification standards that reflected
80 information protection-related security requirements
and 22 personal information protection-related security
requirements
Grade S
Receiving ‘Grade S,’ the highest grade in the 2021 regular
The economy class evaluation on management system of personal credit
for the youth information

03-1 Foundation for Green Management
GREEN Building Green Infrastructure

Samsung Securities has set the target and strategies for ‘green
Building Green Infrastructure
MANAGEMENT
management’ as one of the pillars of ESG management, building green 2030 Target
infrastructure and expanding eco-friendly investments as follows.
First, we will complete an internal green infrastructure targeting 51% of
carbon emissions reduction by 2030. A systematic ESG investment process
51%
of carbon emissions reduction
will be established to push forward continuous eco-friendly investment
expansion with the objective of 100 eco-friendly products by 2025 from 30
products as of now.
Strengthening Performance management and Evaluation

Goals and Actions for Carbon Emissions Reduction based on ISO 14001
We carry out a variety of reduction activities aiming to achieve the carbon
mitigation goal. We will decrease the number of sources of GHG emissions Establishing counter for digital business
by replacing outdated facilities in office building and gradually converting
business vehicles to zero-emission. Starting from the adoption of electric
vehicles in 2021 for the first time, we plan to switch all our corporate cars
into eco-friendly cars by 2030.
Expansion of eco-friendly investment
In pursuit of energy efficiency improvement, we will replace lighting
with LED lamps and upgrade air conditioners and elevators, purchasing 2025 Target
renewable energy with REC (Renewable Energy Certificate) to achieve
energy conversion from 2022.
With the installation of a digital business window, a paperless work
100 ESG
environment has been created where digitalized business procedures Increasing the number of Establishment of
eco-friendly products to 100 ESG investment process
enable environment protections and improve the convenience and
from the current level of 30
satisfaction of clients at the same time.
Campaigning against unnecessar y printouts, we saved expenses,
which are donated to protect forests. As such, all employees are actively
participating in environmental conservation and raising awareness of
Reviewing the suspension of transactions related to
Climate change which is coming to the fore as a significant issue affecting a sustainable carbon emissions reduction. business / company whose revenue in coal mining and coal power
future has brought about changes in the key objectives of investment, making a response to generation business takes up more than 30% of the total sales
climate change essential to sustainable investment.

Increasing eco-friendly investments in renewable energy and
We are not an exception to such a movement, determining to implement green management
ESG green bonds, etc.
by expanding eco-friendly investments and reducing carbon emissions. With a green
infrastructure that was built on the ISO 14001 environmental management system, which Introducing ‘sustainable management guidelines’ to our
strengthens environmental performance management and evaluation, we will expand eco- investment portfolio
friendly investment and establish a responsible investment process. Samsung Securities
will enhance our participation in global environmental initiatives, playing a leading role in
confronting the climate crisis to become an eco-friendly financial company.

03-2 A Variety of Eco-Friendly Products and Services 03-3 L eadership Confronting Environmental Crises
Fund to Selectively Invest in Global Companies benefited from Various Eco-Friendly Investment Products ‧ ESG Advisory Service Reinforcing ESG Management with ISO 14001 Acquisition
Carbon Neutrality Samsung Securities provides various specialized products to secure Samsung Securities has obtained ‘IS0 14001’, one of a
Samsung Securities offers a variety of products that have a positive multiple investment opportunities in line with the industrial paradigm series of environmental management standards set by
impact on the environment. For example, ‘Shinhan Global Carbon Neutral shift towards an eco-friendly society. We plan to add more online products the International Organization for Standardization (ISO)
Solution’ fund launched in 2022 by Shinhan Asset Management, selectively centered on public offering funds in response to the investment inclination to evaluate and certificate a company’s capabilities in
invests in global companies may be benefited from the movements toward of the generation MZ, who are sensitive to environmental issues. For systematic environmental management: the environmental audit (ISO
global carbon neutrality. Regarding industry at the center of carbon institutions and corporates with high demand for carbon-neutrality, we 14010 series) and environmental performance evaluation (ISO 14030 series).
neutrality as a new growth engine on the global stage, the fund is making aim to provide solutions that enable effective investment in sustainable, Recognizing the growing social interest in environmental management,
investments in five paradigms: power generation, hydrogen, circular eco-friendly industries, developing specialized products such as low- we will spare no effort to achieve sustainable growth in accordance with
economy, mobility, and food tech. Besides, we are presenting strategic carbon funds and ETFs. international standards.
products that invest in the eco-friendly paradigm.
Joining the TCFD — Commitment to Implement the Recommendation
ESG Fund Investing in Energy Transition Companies Established by the Financial Stabilit y
Newly Launched Funds in 2021 & Early 2022
In 2021, Samsung Securities launched ‘Samsung Energy Transition’ fund, Board (FSB) under the G20 in 2015, the
which invests in eco-friendly and renewable energy-related companies. Launched in 2021 Task Force on Climate-Related Financial Disclosures (TCFD) recommends
This fund of funds incorporated the energy transition fund of BNP Paribas • Samsung Energy Transition Securities Investment Trust H (Equity-Fund of Funds) that companies disclose climate-related information in the categories
Asset Management, which makes the diversified investment into 80 • NH-Amundi 100-year Enterprise Green Korea Securities Investment Trust (Equity) of corporate governance, strategy, risk management, and goals and
companies that generate renewable energy such as solar, wind, and •K
orea Investment Global Electric Vehicle & Battery Securities Investment Trust (Equity) indicators. Starting with the disclosure recommended by the TCFD,
biofuels and develop related technologies and related to energy efficiency Launched in 2022 Samsung Securities intends to establish a system to confront climate
and energy infrastructure. The fund is classified as ‘ESG fund’ in that a • Fidelity Sustainable Consumer Brand Securities Investment Trust change and clearly disclose the implementation process to stakeholders
dedicated ESG organization of BNP Paribas Asset Management reflects (Equity-Fund of Funds)
since 2021.
the ESG score in the fund portfolio. • Shinhan Global Carbon Neutral Solution Securities Investment Trust H (Equity)
• Trustone ESG Level Up Securities Investment Trust (Equity)
Environmental Campaign, ‘Learn-learn-learn Challenge’
• Samsung Global Dividend Noble ESG Securities Investment Trust H/UH (Equity)
Samsung Securities is conducting an environmental campaign called
‘Learn-learn-learn Challenge’ in which all executives and employees
participate in green management. With ‘Green Office’ campaign that
encourages various eco-friendly activities such as reducing printouts,
recycling items, and using eco-bags and tumblers, we raise awareness of
environmental protection, promoting active participation of employees in
supportive projects.
‘Green Office’
Sharing office supplies

04-1 Strengthening ESG Management with the Investment

that Incorporates Non-Financial Value
SUSTAINABLE ESG Management in Full Swing – Industry’s First MSCI A Grade Industry’s First ESG Research Institute Taking the Lead in Innovation
INVESTMENT Under the slogan of ‘We invest for a better future,’ and together with
ESG strategies of green, responsible and transparent management,
Samsung Securities established ESG Research Institute under the
Research Center, which publishes reports containing in-depth content
Samsung Securities strives to internalize ESG management. analysis and insights to take the lead in innovative ESG research.
Since 2020, we have preemptively established and operated an ESG
organization system in which the ESG committee was set under the BOD
to establish ESG management strategies as the highest decision-making
ESG Research Report
body in cooperation with one executive director and two non-executive
directors since 2021. The ‘ESG Executive Council’, an enterprise ESG
executive decision-making body, is also operated for final decision-making
regarding ESG or when prompt responses are required. The ESG research
institute publishes ESG research and analysis results, supporting ESG
consulting.
In recognition of our reinforced ESG management, we delivered stronger
performance in ESG evaluations. We moved one place up from B+ in
2020 to A in 2021 in the ESG evaluation conducted by Korea Corporate
Governance Service (KCGS), the largest voting right advisory body, while
achieving an A grade from BBB last year in the ESG evaluation of MSCI, The ESG Research Institute’s separate brand, ʻSustain-WISE’ actively
which was the first highest grade received among domestic financial responds to the growing ESG demand by means of high-quality ESG
companies as of 2021. analytics. In active collaboration with analysts by the economy (Macro),
asset class (Asset Class), and industry (Sector) of the Research Center, the
ESG Management Organization Chart institute has gained clear comprehension of market issues in a preemptive
manner and published in-depth repor ts which garnered positive
CEO responses from companies and investors.
In the first half of 2021, an ESG-related report was published, which
ESG Committee ESG Executive contains the outlook and analysis of each industry regarding the trend
under the BOD Council of ‘decarbonization’ and ‘Plastic-free,’ and ESG investment measures
We are in the era when the value of company is assessed based not only its financial
leveraging ESG bonds and Quant strategies. We discover and introduce
performance but also on integrated ESG evaluation, a non-financial value indicator. With the
unlisted companies coming to the fore in the value chains of various
value and information of ESG gaining significance, the factors such as corporate governance,
Planning Division Research Center Chief Risk Officer industries such as mobility, FinTech, PropTech (Property +Technology), and
social impact assessment, and contribution to environmental issues are playing a pivotal role in
healthcare, thereby expanding the research areas.
making investment decisions or supplying products. As such, ESG has become indispensable to
Risk Management Team In 2022, we will intensify research on the subject of environmental policies
the stock industry. ESG Secretariat
ESG Research Institute
(Strategy Planning Team) Risk Assessment Team and regulations at home and abroad in response to the high demand for
Along with our internalized ESG management, we will expand ESG advisory services for
domestic companies with significant interests in the environmental field.
institutional and corporate customers, taking advantages of the ESG research center. In 2021, • ESG system execution • Publication of ESG analysis • ESG risk management
and operation data
we have intensified the capabilities of ESG research and services in a strategic partnership with
• Internal and external • ESG consulting
MSCI, a world-class ESG evaluation agency, for the first time in the industry. We will endeavor communication
to maximize investors’ profits, making positive contribution to the economy, society, and
environment.

04-2 eightened Capabilities to a Global Level

H 04-3 G
reater Investments in ESG and Establishment 04-4 Taking Initiative in Global Investment
in a Strategic Partnership With MSCI of Responsible Investment Process
ESG Advisory Services Targeting Companies and Institutional Investors Exclusion of Investment in Coal-related Business … ESG Investment Guidelines, Reinforcing the Negative Screening Criteria The World’s First Day Trading on U.S. Stocks
The ESG Research Institute provides a one-stop solution through ESG- Issuing Green Bond Samsung Securities preemptively recognizes and evaluates our financial Samsung Securities launched the ‘Day Trading Service on U.S. Stocks’
related advisory services to companies and institutional investors, In the course of implementing ESG management strategies, a responsible activities’ environmental and social impact through the provision of ESG for the first time in the world, which has Witnessed over KRW 1 trillion of
encompassing planning to execute ESG investment or bond issuance with investment process will be set up with a strengthened eco-friendly portfolio investment guidelines that are being applied in the investment decision- trading value only after two months. The trading of U.S. stocks used to
more than 100 benefiting companies. We have witnessed the growing which will lead to the complete application of the principle of responsible making process. be available only on the regular stock market caused inconvenience to
demand to reflect ESG in their management strategies among unlisted investment in overall investment assets and the expansion of products and Our basic policy that evaluates non-financial factors beyond traditional domestic investors due to the time difference, resulting in a number of
and non-profit corporations. The institute also held a forum for eco- services that promote eco-friendly investment. financial risks serves as preliminary screening guidelines for the transactions investors being reluctant to invest abroad.
friendly and green-tech startups to spark interest in the stock market. Since 2020, when Samsung Securities has jointly declared ‘Coal Phase-Out regarding equity capital investment, acquisition of securities and assets, and Against this backdrop, we entered into an exclusive partnership with Blue
Finance’ with Samsung Group’s financial affiliates, we decided to suspend supply of financial products propelled by Samsung Securities. Ocean, an American alternative exchange, to support weekly trading for
Strategic Partnership with MSCI, additional investment in the coal mining business with the provision of ESG Leveraging the tightened negative screening criteria by 2025, we are the first time in the world, thereby alleviating difficulties for investors. Blue
a World-Class ESG Evaluation Agency investment guidelines in which investment in businesses related to coal reviewing the gradual expansion of applicable areas, which are currently Ocean is the only alternative exchange approved for night trading support
In May 2021, we have intensified the capabilities of ESG research and mining and coal-powered generation is ruled out while investment in eco- focused on coal-related business, in accordance with ESG impact. Besides, by US financial authorities, including the US Securities and Exchange
services to a global level in a strategic partnership with Morgan Stanley friendly assets such as renewable energy is contrastively expanded. we will establish the ESG comprehensive evaluation system in which the Commission.
Capital International (MSCI), a world-class ESG evaluation agency, for the With firm determination toward eco-friendly investment, we issued ‘ESG- screening process will root out inappropriate assets in investment. The extended time for US stock trading is expected to mitigate the
first time in the industry. rating Certification Bonds’ for the first time in the industry in February inconvenience of many investors. Samsung Securities will continue
Signing partnership with MSCI, we have secured data on thousands 2021. Acknowledged its purpose of investing in eco-friendly businesses and working with overseas institutions to provide global liquidity and close the
of domestic and foreign companies included in MSCI ESG Research to businesses to respond to the climate change crisis, the bond worth KRW 100 price gap.
increase the comparability of ESG data with Korean companies and global billion received ‘Green 1,’ the highest grade of green bonds by NICE Credit by 2025 Tightened Negative Screening Criteria
companies and enhance Quant (quantitative analysis) -based research Rating, which has been used in overseas renewable energy business such as Discovering Overseas Alternative Investment Assets
Review on the gradual expansion of applicable areas, which is currently focused
such as long-term time series analysis. US Midstream Business and French Solar Power Business. on coal-related business, depending on ESG impact Navigating through uncertainties at home and abroad, such as inflation
ESG-related executives and employees in domestic companies gained an and interest rate hikes, Samsung Securities attempt to implement
insight into ESG trends and major ESG issues on a global stage through a various investment strategies by paying close attention to institutional
joint seminar held by MSCI and Samsung Securities.
We will establish our own rating calculation logic that reflects the situation
‘Green 1’ grade by 2025 Establishment of ESG comprehensive evaluation system demand forecasting and risk analysis. We focus on core products that
maximize profits based on our global network with top-tier managers and
Issuing the first ‘ESG-rating Certification Bonds’ in the Establishment of the screening process to root out inappropriate assets in
of Korean companies to the ESG rating of MSCI, one of the most influential industry in February 2021 investment based on the ESG checklist institutional investors.
ESG indicators for corporations and institutional investors, thereby In collaboration with a local network in North America, we took over a
providing consultation to corporate clients. stake of KRW 120 billion in dormitories located in New York and Texas, USA.
Making the best use of MSCI data, we will publish the report which Commercial residence real estate sector has shown the highest transaction
will allow us to provide consulting services through which institutional volume in the United States driven by high investment demand for its low
investors can enhance their understanding of the methodology of global economic volatility and constant raise in rent. Given the dormitories, the
ESG research institutes. high demand for college entrances and limited supply will ensure annual
raise of rental returns reflecting the inflation rate, thereby generating the
defense effect of the inflation risks.
We will spare no effort to identify palatable alternative investment assets
in spite of market conditions such as interest rate hikes.

OUR GOAL & FUTURE

As a financial company leading the future of the financial industry, Samsung Securities will play a pivotal role in driving innovation with our
differentiated management strategies, which enable us to navigate through a rapidly changing environment. We will reinforce customer-oriented
management to enhance customer satisfaction, spearheading digital innovation and popularization. With internalized ESG management, we will
fulfill social responsibilities and participate in global initiatives, thereby pioneering sustainable finance. We aim to grow together with society by
means of intensifying our global leadership in response to the surrounding crises.
DIGITALIZATION CONSUMER PROTECTION GREEN MANAGEMENT SUSTAINABLE INVESTMENT
OUR GOAL OUR GOAL OUR GOAL OUR GOAL
2021 Performance
No. of actual online clients Client satisfaction survey Ranking 1st in satisfaction evaluation Mitigation of carbon emissions Enhancing ESG product lineup
by external organizations
2021 Performance 2024 Goal Goal Carbon emissions in 2018 2030 Goal 2021 Performance 2025 Goal
1.7 million 3 million Maintaining the No.1 position in satisfaction evaluation 1,413tCO₂eq 51% reduction 30 100
by external organizations
Online client assets Education about incomplete sales Conversion of business vehicles to zero-emission vehicles
Goal
2021 Performance 2024 Goal Embedding consumer protection into 2021 Performance 2030 Goal
KRW 80.6 trillion KRW 160 trillion 2021 Performance a corporate culture by eradicating First adoption of EVs 100% conversion
A total of 51 related training incomplete sales (5% converted)
Utilization of mobile platform (MAU: Monthly Active Users) Rating on consumer protection evaluated by
Financial Supervisory Services
2021 Performance 2024 Goal 2021 Performance Goal
2.23 million 4 million Good Excellent
(the highest grade)
OUR FUTURE OUR FUTURE OUR FUTURE OUR FUTURE
Samsung Securities is boosting our digital asset management We are operating a system to prevent damage to consumers in Samsung Securities has set the goal of 51% carbon emissions In 2021, we have intensified the capabilities of ESG research and
capabilities by providing services encompassing varied features the entire process of product development, product sales, and reductions by 2030 with practical green management strategies. services in a strategic partnership with a world-class ESG evaluation
and needs of customers from super-rich class to Generation MZ. follow-up management. Clients-oriented management has been In this regard, business vehicles will be converted to zero-emission agency for the first time in the industry. We will set a responsible
The advanced data analysis platform and automated process enhanced by expanding the areas of VOC tasks to identify the vehicles by 2030. We will continue to actively practice global investment process and expand with more diverse ESG products
equipped with new digital technologies such as artificial intelligence needs of customers and subsequent process improvement. We will initiatives in the process of implementing green management and and services, thereby reinforcing our eco-friendly portfolio.
(AI) have brought about greater business efficiency, all of which will assume the No. 1 position in customer satisfaction with our effort responding to environmental crises.
eventually contribute to the popularization of digital finance. As a to listen to the voices of clients and polished solutions and policies
pathfinder of the financial platform, we will make a ceaseless effort to promote the rights and interests of financial clients.
to provide clients with the new value of investment experiences.

55
ESG data pack ENVIRONMENTAL DATA
55 Action on Climate Change

ENVIRONMENTAL DATA
55 Action on Climate Change STRATEGY We have built green infrastructure, expanded eco-friendly investments, and strengthened our leadership to respond to
57 Resource Usage and Pollution Reduction environmental changes, all of which organize the climate change response system. In promoting environmental management
strategies encompassing carbon neutrality, the establishment of carbon-neutral PF, implementation of ESG investment principles,
and expansion of eco-friendly products and services, we are systematically managing the environmental impact of all activities
58 and services related to financial investment based on the environmental management system.
Climate risks are integrated into the corporate governance and risk management system to be reviewed and supervised by the
BOD, where the final risk management responsibility rests. We will carry out strict performance evaluations to achieve the goal of
SOCIAL DATA
carbon emission reduction and solidify the global network with international agreements and associations in the environmental
58 Labor sector, thereby fulfilling our responsibilities as a global citizen.
68 Health and Safety
70 Consumer Protection TARGET We are doing our best to reduce GHG emissions and resource usage in connection with the environmental management strategy.
70 Human Rights We have set a goal of a 51% reduction in carbon emissions by 2030 compared to that of 2018 and constantly managed the target
rate achieved with the aim of carbon neutrality.
74 Shared Growth and Social Contribution
* 2030 Target emissions: 692 tCO2eq
to Local Community
79 Data Protection and Client Management

51%
Goal for 51% carbon reduction by 2030
(base year: 2018)
81 ASSESSMENT Our office building in Seocho has obtained ISO 14001 certification, an international standard for environmental management
systems which evaluates and certifies a company’s environmental management policies and goals as well as specific
GOVERNANCE DATA
implementation processes. With the acquisition, we are promoting green management in line with global standards.
81 Governance In addition, with an aim to reinforce company-wide GHG reduction efforts, we expanded the scope of emissions to subsidiaries*
and company-wide business sites (headquarters and all branches) when measuring GHG emissions in 2021 (Scope 1&2).
89 Ethical Management and Compliance
Category Contents Scope of Reporting Unit Emissions
92 Tax Policy
2021 Greenhouse gas Total emissions Company-wide (Headquarters and tCO2eq 4,192
(GHG) (Scope 1&2) all branches), subsidiaries*
93 * Samsung Securities(America) Inc., Samsung Securities(Europe) Ltd., Samsung Securities(Asia) Ltd., Samsung Futures Ltd.
SUSTAINABLE FINANCE
93 Responsible Investment
responsible, achievable, sustainable

Action on Climate Change Resource Usage and Pollution Reduction
2021 PERFORMANCE We strive to minimize adverse environmental impacts within our business activities. With a view to decreasing GHGs, the electric STRATEGY We are proactively participating in environmental activities, saving and recycling resources in all business processes in line with
vehicle was introduced for business purposes in September 2021, recording approximately 2,771 km of driving distance. From our own environmental management policy. With the ‘Green Office’ campaign that encourages various eco-friendly activities
2022 we will gradually switch to zero-emission vehicles, resulting in reducing GHGs and energy (gasoline) consumption. such as reducing printouts and growing plants, we raise environmental protection awareness and garner consensus on green
management among employees.
01 GHGs
TARGET Samsung Securities manages data on resource usage and waste and endeavors to realize our mid- to long-term objective of a
Category Contents Scope of Reporting Unit 2019 2020 2021
10% reduction by 2025 in waste discharge and water consumption compared to that of 2016.
Greenhouse gas Total emissions (Scope 1&2) Headquarters, tCO2eq 1,278 1,288 1,427
(GHG) company vehicle
Direct GHG emissions (Scope 1)* tCO2eq 710 654 622
ASSESSMENT Samsung Securities provides reliable environmental data for its stakeholders. We maintain the consistency of environmental data
Indirect GHG emissions tCO2eq 568 634 805
(Scope 2)** by periodically notarizing and disclosing information on energy consumption and waste discharge through evaluation by the
Korea Quality Foundation and registration in the ʻAllbaro System’.
Other GHG emissions (Scope 3) Company-wide tCO2eq 491 236 208
(business travel)
Total amount of GHGs emitted tCO2eq 347 103 96
on business travels*** 2021 PERFORMANCE We have a firm commitment to the mitigation of resource usage and pollution. With the installation of a digital business window, a
GHG emissions from paper use Company-wide tCO2eq 136 126 105 paperless work environment has been created where electronic payment systems are promoted as part of green infrastructure.
GHG emissions from water use Headquarters tCO2eq 7 7 6 We aim to continuously reduce paper use by minimizing unnecessary report publication and replacing it with electronic reports
GHG emissions from card Company-wide tCO2eq 0.4 0.6 0.6 suitable for pop-touch devices that have been widely used. These efforts apply not only to paper but also to water use and waste
issuance discharge, most of which are separated as recyclable waste.
Greenhouse gas City gas (Scope 1) Headquarters tCO2eq/m2 0.02 0.04 0.04
intensity Category Contents Scope of Reporting Unit 2019 2020 2021
Electricity (Scope 2) tCO2eq/m2 0.02 0.04 0.05
Water Water supply* Headquarters m3 20,938 19,909 19,573
* 2021 Target emissions: 634 ** 2021 Target emissions: 628 *** 2021 Target emissions: 98
Recycling amount m3 0 0 0
Paper Reports Company-wide 10,000 sheets 989 835 495
02 Energy Consumption Bank slips 10,000 sheets 200 196 163
Category Contents Scope of Reporting Unit 2019 2020 2021 Photocopy paper 10,000 sheets 1,399 1,356 1,340
General energy Total consumption Headquarters, MWh 4,591 4,545 4,785 Total 10,000 sheets 2,588 2,387 1,998
(non-renewable company vehicle
General Emissions** ton 39 62 33
energy)
Electricity (headquarters) Headquarters MWh 1,159 1,360 1,728 Waste
Recycling amount*** ton 36 61 33
City gas Headquarters m3 176,473 169,912 161,382
Amount of waste landfilled ton 3 1 0
Gasoline Company vehicle L 141,354 123,993 122,297
Amount of waste Incinerated by ton 0 0 0
Diesel Company vehicle L 3,345 2,368 1,321 energy recovered
Energy intensity City gas Headquarters m3/Person 73.7 70.9 67.3 Amount of waste incinerated ton 0 0 0
without energy recovery
Electricity Headquarters MWh/ 0.48 0.57 0.72
Person Amount of waste treated by other ton 0 0 0
methods unknown
* 2021 Target Usage: 19,312 ** 2021 Target emissions: 59 *** 2021 Target recycling amount: 59

SOCIAL DATA
Labor
STRATEGY Samsung Securities has put in place the regulations on systematic HR and recruitment management along with a talent 2021 PERFORMANCE 01 Employment
development strategy to attract and nurture talents in the rapidly changing business environment. In addition, we are developing
Samsung Securities manages human resources by dividing them into new hires, leavers, and retirees. Currently, we are
an active talent pool by predicting the demand for necessary manpower and setting an annual HR plan in connection with
conducting job search and development activities to increase the employment rate of the disabled and veterans with a view
the future business direction. Specifically, our recruitment programs include the ‘Young Creator’ program, which provides
to endorsing the value of diversity in talent recruitment and organizational structure, and to expand inclusive employment. In
special benefits for students with excellent scores at the programs and participants in career fairs at major universities. Given
addition, we have set a target of having the female workforce account for 50% of the total workforce in 2030, and formulated a
the cultivation of existing talent, we are promoting swift changeover within our human resources based on prediction results
recruitment policy for female employees.
that was driven by the experts of data analytics in the HR Team through the PA (People Analytics) statistical method, thereby
making prompt responses to the fast-evolving financial industry. Besides, internal training on capacity building of employees, Category Contents Unit 2019 2020 2021
systematic education courses are available in collaboration with specialized educational institutions such as the Master’s course Total employees* Male (ratio) Persons (%) 1,443(60.2) 1,436(59.9) 1,411(58.9)
in finance associated with Sungkyunkwan University. We are making unwavering efforts to secure next-generation leadership by Female (ratio) Persons (%) 951(39.7) 960(40.1) 986(41.1)
establishing a specific succession plan base on data analysis encompassing required competencies for each division and position, Total Persons 2,394 2,396 2,397
the number of candidates and turnover rate, and by providing customized training and education.
New hires Male (ratio) Persons (%) 163(69.4) 74(64.9) 89(55.3)
(by gender)
Female (ratio) Persons (%) 72(30.6) 40(35.1) 72(44.7)
TARGET In order to stay true to the mission of fostering a culture of learning and nurturing talents that contributes to delivering practical Total Persons 235 114 161
results, we have been operating the Overall Competency Management System since 2019, where annual target credits for each
New hires Executives (ratio) Persons (%) 2(0.9) 0(0) 1(0.6)
position and job group were given to allow employees to take attractive courses in their own initiative. Leveraging the system, we (by job title)
Middle manager (ratio) Persons (%) 2(0.9) 3(2.6) 5(3.1)
manage educational indicators by gender, age, education type, and participated courses with total training hours.
Assistant manager (ratio) Persons (%) 88(37.4) 44(38.6) 57(35.4)
Contents Unit 2020 2021 Staff (ratio) Persons (%) 143(60.9) 67(58.8) 98(60.9)
Establishment rate of annual credit completion plan* % 100 100 Total Persons 235 114 161
Achievement rate of annual compulsory credits** % 95.2 97.0 Internal Recruitment Internal Recruitment (ratio) Persons (%) 13(8.0) 4(6.1) 11(5.0)
* 2021 Target planning rate to take annual target credit: 100% ** 2021 Target attainment rate of annual required credit: 97% Voluntary retirees Male Persons (%) 71(65.1) 74(71.2) 97(70.3)
(by gender)
Female Persons (%) 38(34.9) 30(28.8) 41(29.7)
ASSESSMENT Samsung Securities operates performance-generating evaluation systems such as management by objectives (MBO), multi- Total Persons 109 109 138
faceted evaluation, and comparative evaluation for employees in the same position. In addition, we operate a long-term incentive Voluntary retirees Executives (ratio) Persons(%) 2(1.8) 4(3.8) 2(1.4)
system for executives and financial investment managers, and conduct annual employee satisfaction surveys to identify and (by position)
Middle manager (ratio) Persons(%) 2(1.8) 2(1.9) 3(2.2)
resolve problems. The evaluation results are managed by gender and position through which the areas in need of improvement Assistant manager (ratio) Persons(%) 42(38.5) 49(47.1) 63(45.6)
are drawn in organizational culture and operation. By doing so, we promote better job satisfaction and generate positive Staff (ratio) Persons(%) 64(58.7) 49(47.1) 70(50.7)
outcomes.
Total Persons 109 104 138
* 2030 Target female ratio: 50%

Labor
2021 PERFORMANCE 01 Employment 2021 PERFORMANCE 02 Workforce Diversity
Category Contents Unit 2019 2020 2021

Currently, female workers account for 40%. Samsung Securities make every effort to raise the proportion of women in managerial
and executive positions to enhance women’s rights and interests in all positions. Despite the higher ratio than the domestic
Voluntary retirement rate Male (ratio) % 2.97 3.09 4.03
(by gender) industry average, we aim to secure diversity for the heightened competitiveness of the organization. Therefore, we have set the
Female (ratio) % 1.59 1.25 1.83
mid to long-term goal of 50% of female employees and 40% of female managers, respectively, witnessing the increased ratio of
Total % 4.55 4.34 5.76
female employees and executives.
Voluntary retirement rate Executives % 0.08 0.17 0.08
(by position) Category Contents Unit 2019 2020 2021
Middle manager % 0.08 0.08 0.13
Associate manager % 1.75 2.05 2.63 Executive management Male (ratio) Persons (%) 24(92.3) 23(88.5) 22(84.6)
position
Staff % 2.67 2.05 2.92 Female (ratio) Persons (%) 2(7.7) 3(11.5) 4(15.4)
Total % 4.55 4.34 5.76 Total Persons 26 26 26
Total retirees Male (ratio) Persons (%) 76(66.7) 77(71.3) 106(72.11) Middle management Male (ratio) Persons (%) 162(89.5) 163(87.6) 173(85.6)
(by gender) position
Female (ratio) Persons (%) 38(33.3) 31(28.7) 41(27.89) Female (ratio) Persons (%) 19(10.5) 23(12.4) 29(14.4)
Total Persons 114 108 147 Total Persons 181 186 202
Total retirees Executives (ratio) Persons (%) 3(2.6) 4(3.7) 2(1.4) Junior management Male (ratio) Persons (%) 887(72.2) 926(72.2) 937(71.3)
(by job title) position
Middle manager (ratio) Persons (%) 3(2.6) 2(1.9) 3(2.0) Female (ratio) Persons (%) 341(27.8) 356(27.8) 377(28.7)
Assistant manager (ratio) Persons (%) 44(38.6) 52(48.1) 72(48.9) Total Persons 1,228 1,282 1,314
Staff (ratio) Persons (%) 64(56.1) 50(46.3) 70(47.6) Management position Male (ratio) Persons (%) 788(75.0) 779(75.6) 717(74.8)
in revenue- generating
Total Persons 114 108 147 Female (ratio) Persons (%) 262(25.0) 252(24.4) 242(25.2)
departments*
Total retirement rate Male % 3.17 3.21 4.42 Total Persons 1,050 1,031 959
(by gender) Non-management position Male (ratio) Persons (%) 370(38.6) 324(35.9) 279(22.7)
Female % 1.59 1.29 1.72
Total % 4.76 4.51 6.14 Female (ratio) Persons (%) 589(61.4) 578(64.1) 576(67.3)
Total retirement rate Executives % 0.13 0.17 0.09 Total Persons 959 902 855
(by job title) STEM(Science, technology, Male (ratio) Persons (%) 202(65.4) 238(70.8) 213(71.7)
Middle manager % 0.13 0.08 0.12
engineering, mathematics)
Assistant manager % 1.84 2.17 3.01 Female (ratio) Persons (%) 107(35.6) 98(29.2) 84(28.3)
related departments
Staff % 2.67 2.09 2.92 Total Persons 309 336 297
Total % 4.76 4.51 6.14 Minorities The disabled Persons 60 53 64
Years of service Average years of service Years 10.40 11.34 11.87 Veterans Persons 51 53 51
Average years of service Years 11.12 11.62 12.30 * Supporting departments, including HR, IT, and Legal teams and positions excluded
for male
Average years of service Years 9.77 10.72 11.32
for female
Employment type Regular Persons 2,128 2,118 2,085
Temporary Persons 266 278 312

Labor
2021 PERFORMANCE 03 Age 2021 PERFORMANCE 05 Pay
Category Contents Unit 2019 2020 2021 Category Contents Unit 2019 2020 2021
Under 30 Male Persons 134 117 76 Gender equal pay* Equal pay rate of executives Times 1.08 0.99 0.96
Female Persons 234 219 201 Equal pay rate of managers Times 0.94 0.96 0.95
30-39 Male Persons 568 536 470 Equal pay rate of non-managers Times 1.00 1.02 1.03
Female Persons 431 429 392 Compensation Total CEO compensation KRW 100 million 13.74 17.10 23.12
differential
40-49 Male Persons 490 484 497 Mean employee compensation KRW 100 million 1.08 1.31 1.68
between CEO and
Female Persons 265 282 322 employees Compensation differential rate Times 12.72 13.05 13.76
50 or over Male Persons 251 299 368 * Women’s average basic pay/Men’s average basic pay
Female Persons 21 30 71
Total Male Persons 1,443 1,436 1,411
06 Labor Union and Collective Bargaining
Female Persons 951 960 986
Labor union Ratio of unionized employees % 12 11 11

04 Nationality No. of unionized employees Persons 264 251 248
Category Contents Unit 2019 2020 2021 No. of target employees Persons 2,187 2,184 2,170
Korea Employees (% of all employees) % 99.33 99.42 99.29

Managers (% of all managers) % 99.02 99.06 98.89
07 Welfare
USA Employees (% of all employees) % 0.33 0.21 0.25
Welfare Welfare benefits* KRW 1,000 58,022,121 56,760,165 68,349,390
Canada Employees (% of all employees) % 0.04 0.17 0.25
Welfare benefits to sales** % 0.89 0.53 0.71
* Four major insurances included ** On the basis of revenues (separate)
UK Employees (% of all employees) % 0.08 0.13 0.13
China Employees (% of all employees) % 0.04 0.04 0.04
New Zealand Employees (% of all employees) % 0.04 0.04 0.04
Vietnam Employees (% of all employees) % 0.04 0.00 0.00

Labor
2021 PERFORMANCE 08 Talent Nurturing 2021 PERFORMANCE 08 Talent Nurturing

Prolonged COVID-19 has brought non-face-to-face channels to the center of education, which, in turn, has removed physical Category Contents Unit 2019 2020 2021
constraints of training. Consequently, we are seeing a growing number of employees who participate in the courses with
Education No. of participation in education per capita Cases 14.0 20.8 27.3
extended training hours compared to that of 2020. Diversified format of non-face-to-face training, such as lecture, discussion, and
Hours of participation in education per capita Hours 179.8 121.8 128.4
participatory types, increased education expenses per person along with enhanced satisfaction. We offer various educational
Gender Male Hours 256,430 171,847 218,994
programs related to jobs, trends, foreign language education, and social contribution to establish a culture of self-directed
learning where all employees learn and grow on their own, including non-regular workers and part-time jobs. A regular learning Female Hours 167,176 109,690 92,761
platform is also in operation to promote knowledge sharing so that employees can share their professional knowledge and Age Under 30 Hours 92,803 51,667 27,965
talents with each other. Above all, we strive to strengthen job training with an aim to respond nimbly to the external environment 30-50 Hours 248,939 197,125 268,233
to keep up with the changes in the financial industry. In order to sharpen the professionalism of employees, job training is divided 50 or over Hours 81,865 32,744 15,557
into SS On Air, which is an immediate special lecture on market conditions, and Expert Academy, which is conducted as an in- Education fee per capita KRW 10,000 176.6 104.2 136.7
depth job course for each subject. We provide a customized course called ‘Education Yogiyo,’ which focuses on immediate training Total number of participation in education Cases 33,047 48,103 66,334
for each department. With the aim of consolidating digital capabilities, we built a unified education system in 2021 together with
Total hours of participation in education Hours 423,606 281,537 311,755
the certification system to internalize digital competencies. Moreover, we designed the program that combines learning and
Total education fee KRW 100 million 41.6 24.1 33.2
donation, encouraging the capacity building of employees and social contribution.
Total employees Persons 2,356 2,312 2,428
❶ Programs Associated with Specialized Educational Institutions We have fostered 7 financial experts by jointly operating a
Master’s course in finance with Sungkyunkwan University, where additional applicants will be supported to join the course in
Category Programs Program details No. of Participation
the first half of 2022. We operate a system to support acquiring global financial certifications (CFA, CFP, FRM, CAIA, etc.) for all participants hours
employees, including non-regular employees, and support them in obtaining domestic and foreign certificates that relate to each Major Legal qualification Program for support the acquisition of legally required license for employees 1,941 48,112
of their jobs. Education support system in charge of financial product sales and investment management
Programs Support investor protection education, online qualification preparation
❷ Fostering Next-generation Leaders As part of efforts to foster next-generation leaders, we presented the new leadership classes, and workbooks
training course centered on self-leadership enhancement based on self-awareness and career management, understanding Advanced qualification Program for support of acquisition of first-recommended certifications such 65 13,845
of business, and performance-oriented leadership with 50 next-generation leaders completed the course. We also operate support system as for CFA, CFP, etc. Operate online qualification preparation classes and
support self-study acquisition
training courses for department heads’ candidates, resulting in 6 out of 19 participants (26.3%) being selected as new
Professional Support program for acquiring 32 certifications that are recognized for 8 1,600
department heads in 2021. qualification support financial and job-related expertise
system
❸ Retiree Support System Since the inception in 2009, Financial Career Consulting Center has lent support to retired employees
Operate some qualification preparation classes and support self- study
acquisition
and employees supposed to retire with a job change support program tailored to financial industry workers. In addition, we
Expert Academy Regular course that combines theoretical lectures and practical practice to 1,002 7,269
operate and support age-specific lifetime planning programs for employees aged 50, 55, and 58 for the first time among financial raise job professionalism
companies. In 2021, we supported education for a total of 89 people, including 57, 23 and 9 students in the course for ages of 50, SS On Air Special lecture to enhance the level of understanding and practical application 9,850 9,850
55, and 58 or older, respectively. of timely job-related issues
E-learning Various topics, such as leadership, liberal arts, and foreign languages, are 30,872 146,999
conducted online, and one course per employee is allowed per month
Lunch & Learn Special lectures on humanities and trends using lunchtime (non-contact) 10,177 10,177
Digital certificate A total of five levels of education system to promote systematic education 530 11,429
system from the basics, intensive and certification acquisition
Learn Learn Learn A challenge program that combines learning activities with donations 3,677 9,192
Challenge
Knowledge Festa Company-wide general knowledge sharing event for audiences, such as sharing 1,018 2,545
event of in-house learning outcomes and special lectures by celebrities by theme

Labor
2021 PERFORMANCE 09 Work-Life Balance 2021 PERFORMANCE 10 Performance Evaluation

To help our employees achieve a work-life balance, Samsung Securities has operated a variety of programs, including flexible Category Contents Unit 2019 2020 2021
working hours, childcare leave*, maternity leave, and part-time working system. The type of flexible working hours system we
Evaluation system Ratio of employees receiving % 91.09 95.65 93.76
have adopted is selective working hours, which allows our employees to adjust their work schedules within the 40-hour work regular performance evaluation
week system. The system came into force in July 2019, and the participation rate stood at 95.9% in 2021. Furthermore, we have
No. of employees subject to Persons 2,368 2,370 2,371
selectively allowed our employees to work from home for the sake of the prevention of the spread of COVID-19 as well as for the regular performance evaluation
protection of our employees. We examine our working system and related issues to ensure that our employees can work under No. of employees receiving Persons 2,157 2,267 2,223
the same conditions even when they work from home. regular performance evaluation
Two daycare centers are also operated within our headquarters for children aged 1 to 5 so that our employees can fully Ratio of employees subject to % 3.01 3.09 3.38
concentrate on their work without concerns. Admission to the centers is granted in order of female employees, single-parent regular incentive
employees, and male employees of dual-income families. The number of children attending the centers is on the increase, and a No. of senior managers Persons 26 26 27
(above managing director)
total of 37 children were registered in 2021. The independent place is available to female employees with infants and toddlers for
the purpose of breastfeeding and breast pump. We also put in place many other programs, including a family-friendly program, a No. of employees in charge of Persons 46 48 63
financial investment
tuition and school uniform reimbursement program, and support for medical check-ups.
Long-term incentive payment Years 4 4 4
* Children born after March 2016 may be used for up to two years.
period for employees below senior
management
Flexibility in Participation rate in flexible % - 96.1 95.9

working hours working hours
11 Employees’ Satisfaction Level
Maternity leave Those supposed to return after Persons 21 20 18
maternity leave for the year Category Contents Unit 2019 2020 2021
Childcare leave No. of employees on childcare Persons 4 2 5 Satisfaction level All* Points 73.5 76.1 76.2
leave (male)
Gender Male Points 76.4 78.1 78.2
No. of employees on childcare Persons 59 56 53
Female Points 68.8 72.6 72.5
leave (female)
Job title Executive Points 84.1 84.2 89.2
No. of employees returning to Persons 65 60 41
work after childcare leave Middle manager Points 75.2 77.8 77.1
Ratio of returning % 91.5 92.1 86.5 Staff Points 66.7 72.8 73.6
Ratio of employees working for % 88 88 90 * 2021 Target score: 80

more than 1 year after returning

Health and Safety
STRATEGY Ensuring that all employees can work in a safe working environment with sound conditions, we have established policies 2021 PERFORMANCE 01 Industrial Accident
regarding safety and health in compliance with domestic laws and international standards. With the resolution of the BOD, we set
annual plans for safety and health.
Employee Rate of absenteeism* % 0.5 0.3 0.5**
In line with the policy, we decide on priorities and implementation plans taking industrial characteristics into account to analyze
No. of employees having an industrial accident Persons 0 0 0
the annual absence rate and accident rate trend, and to identify potential risks concerning safety and health, thereby preventing
industrial accidents. Specifically, we operate employee health management programs such as company-wide health campaigns, Date of absence Days 2,952 1,743 2,702
psychological counseling and internal communication channels to prevent occupational diseases. In response to safety and Casualty Persons 0 0 0
health risks posed by COVID-19, we provide paid leave to avoid infection and support work at home while protective measures are No. of LTI Cases 0 0 0
taken, such as shortening working hours for employees in vulnerable health conditions, including pregnant women. LTIFR % 0 0 0
HR executive was appointed as the manager in charge of safety and health who regularly monitors and evaluates the level of Employee of Casualty Persons 0 0 0
safety and health. Industrial Safety and Health Committee listens to employees’ voices and carries out prevention activities to partner companies
ensure safety and health. The committee consists of 4 representatives of each side, labor, and management, to discuss the safety * During the reporting period (2019-2021), there was no absence due to occupational accidents
and health operating system and related issues on a quarterly basis. The results of the committee’s deliberation and resolution ** 2021 Target: 0.1
are documented and systematically managed.
02 Activities for Occupational Safety and Health

TARGET Under the objective of zero absenteeism rate, Lost Time Injuries Frequency Rate (LTIFR), and zero industrial accidents, we are Samsung Securities conducts health check-ups on a regular basis with the purpose of helping our employees enjoy a healthy and safe
pursuing safety and health management. Thanks to the strenuous effort, we achieved zero LTIFR in 2021. life while providing CPR education and emergency evacuation training. Industrial Safety and Health Committee listens to the voice
of employees in regard of safety and health carry out prevention activities to make sure safety in our work place more than once a
ASSESSMENT Following the occupational health and safety (OHS) policies, we establish an annual safety and health plan and report it to the quarter. We operate a follow-up management center for comprehensive health checkups and disease prevention and psychological
BOD for approval. In addition, we set up work procedures to check and improve safety and health risks for employees, followed counseling programs for mental health to ensure that all employees lead their healthy life. In close cooperation with safety service
by reporting improvement results at least once a year. In the event of an occupational injury, disease, or accident, we identify partners, we support employee training such as rescue and recovery activities, emergency evacuation training, and CPR education.
the process and root cause of the occurrence of the injury, disease, or accident in accordance with the investigation process. Category Contents Unit 2019 2020 2021
In addition, countermeasures are established aiming to prevent a recurrence. Then, the person in charge of safety and health
Safety and Health No. of participants Persons 42 16 35
management reports and implements them. education
Hours of CPR education Hours 93 32 70
Hours of and emergency evacuation training Hours 74 30 82
2021 PERFORMANCE 01 Industrial Accident Safety Emergency response plan Establishment - -
We reached zero workplace accidents during the reporting period (2019~2021), and accordingly there was no absence arising management
Safety prevention education for partner
Implementation - -
from occupational accident. Yet, we calculate the rate of absenteeism by adding up the number of sick leaves used by the target companies
employees. Sick leave is an unpaid leave system allowing employees to use it when they cannot work due to an injury or illness.
03 Response Procedures for Health and Safety Accidents

In the event of accidents in the business site, Samsung securities reports the occurrence of the accident to the department
responsible for health and security in a prompt manner and takes necessary emergency measures. The responsible department
thoroughly identifies the background of it followed by reporting it to the person in charge of safety and health. If severe damage
is expected due to the accident, we convene the Occupational Health and Safety Committee to discuss whether the business
continuity plan (BCP) should be implemented in consultation with related departments. The department in charge of health and
safety established the measures to prevent the recurrence of the accident based on the findings of fundamental causes and
problems of the accident.

Consumer Protection ASSESSMENT Identification and Screening of Human Rights Risks

With a view to respect the human rights of diverse stakeholders, we have formulated a process for human rights due diligence,
which allows us to deliver our human rights policy, figure out actual and potential human rights issues, thereby preventing human
2021 PERFORMANCE We have achieved zero case of breach in displaying and advertising regulations in 2021. Going forward, we will revise the guide rights violation.
book of investment advertisement and produce sample contents on investment advertisement to enhance education, thereby Accordingly, regular audits targeting the headquarters and all branches are conducted while the status of client management
preventing violations. and workplaces are regularly monitored. Moreover, actual and potential human rights issues are examined by analyzing internal
and external cases collected from grievances handling and looking in to domestic laws, related guidelines and press releases.
As part of efforts to curtail the risks of human rights abuse, we incorporate potential issues of branches and partner companies
Breach of displaying and No. of violations against Cases 10 11 0 into the scope of our due diligence when we newly establish partnerships through M&A and Joint Venture so as to take mitigation
advertising regulations displaying and advertising
measures in a preemptive manner.
regulations
No. of measures taken against Cases 10 11 0 Mitigation Process for Human Rights Risks
the breach of regulations on
We analyze the leverage level of salient human rights issues selected through the process of identification and due diligence, and
displaying and advertising
then produce tasks to be done to relive these risks. And the tasks, such as establishment of revision of regulations, operation of
prevention programs for human rights abuse, or the provision of human rights education, are conducted at each division level.
How tasks are implemented is reported and inspected in a constant manner. Especially for the case of human rights violation
occurred, we take a disciplinary action in accordance with the internal regulations. On top of that, plans for the reoccurrence
prevention are also established in order to recover the rights of victim as well as prevent the risks of human rights.
Conducting Human Rights Assessment
Human Rights
Systemic and periodical Review
1
STRATEGY As part of endeavors to protect and respect the human rights of stakeholders involved in our management operation,
Verifying global guidelines and analyzing global human rights issues
Identification
Samsung Securities complies with the universal principles of human rights presented by the UN Universal Declaration of Human
of human Identifying potential human rights issues by area*
Rights and the UN Guidance Principles on Business and Human Rights. We endorse the standards and principles of international rights risks Conducting regular audits on reports regarding the violation of human rights
human rights and labor which are embodied in the Ten Principles of UN Global Compact. To align with this, we have drawn up
our policy for human rights built on UN Guiding Principles on Business and Human Rights. The policy governs regulations on
2 Classifying vulnerable groups through the survey on stakeholders
various issues including ban on discrimination, forced labor, child labor and human trafficking, equal remuneration, freedom of
Carrying out human rights impact assessment
association, and the guarantee of the right to collective bargaining. And all of our stakeholders engaged with our management, Selecting key
Due diligence - Risk identification in building new business relationships human rights issues
such as our employees, local residents, consumers, suppliers and partner companies are subject to this policy. (mergers, acquisitions, etc)
Samsung Securities has set up and announced our internal regulations on sexual and workplace harassment, which are common Investigating the abuse of human rights
types of human rights abuse that can frequently occur at work, thereby creating a safe work environment where our employees’ 3
Analyzing the level of influence of salient potential human rights Coming up with tasks for
human rights are protected. As part of the efforts, we have adopted and declared zero-tolerance policy for workplace harassment Establishment
issues and producing tasks potential human rights
and discrimination. In the event of occurrence, we take measures, such as change of work place, redeployment or paid leave, of mitigation issues and formulating plans
and remediation Taking disciplinary measures against the perpetrators of human to prevent the reoccurrence
according to the opinions of victims after investigations, thereby putting the protection of victims as our top priority. plans rights violations and protecting victims of the violations
4
TARGET We aim to eliminate human rights risks with proactive preventive measures against vulnerable factors identified through human
Sharing the results of human rights assessment
rights due diligence to block negative impact on corporate image caused by legal disputes due to human rights violations. Monitoring
Putting key tasks into action and reporting the developments
and reporting
Monitoring how mitigation and remediation plans are going
* Employees, partner companies, new partnership

Human Rights
ASSESSMENT Results of Human rights Assessment 2021 PERFORMANCE 01 Prevention Programs for Human Rights Abuse
Identification of Salient Human Rights Issues and Establishment of Mitigation Plans Category Contents Unit 2019 2020 2021
Vulnerable Group Human Rights Issues Mitigation Plans Remediation Measures Taken Prevention programs for Operation of EAP program Cases 2 0 2
human rights abuse for the protection of (For all (COVID-19 (For all
Our Female Discrimination and Expanding women representation • Setting up target female ratio by job title emotional laborers and employees) issue) employees)
employees employees equal pay at work • Appointment of a female director (Mar, 2022) ratio of beneficiaries
Educating all employees on sexual • Conducting company- wide education on Human rights education Total number of education Persons 2,501 2,584 2,698
harassment prevention sexual harassment prevention participants
Preventing career disruption due to • Childcare leave Total hours of human Hours 2,501 2,584 2,698
childbirth and child care, narrowing • Maternity leave rights education
gender pay gap
• Infertility leave Education on sexual Total number of education Persons 2,501 2,584 2,698
harassment prevention participants
Labor union Freedom of Ensuring free unionization and • Providing spaces for labor union office
association, guarantee related activities • Utilizing internal bulletin board Total hours of sexual Hours 2,501 2,584 2,698
of collective bargaining harassment prevention
Third-party Client Physical/mental Making sure the human rights • Establishing and applying protection measures education
contract service Fitness protection and safety of client and standards for client service employees
worke employees service employees • Operating EAP program designed for
emotional laborer protection 02 Reporting and Redress
• Running fitness/mental health centers
• Supporting medical expenses
Reporting of human rights- No. of human rights- Cases 3 0 3
Conducting ‘Remind’ training, and • Educating employees on human rights policies related issues related grievances
CS training based on client situation and procedures reported
Clients Information Human Reinforcing the protection of clients’ • Passing the related verification of a system for No. of human rights- Cases 3 0 3
Rights personal information information protection management related grievances handled
• Training all of employees on data protection
(partner companies included)
• Implementating the regular information
protection evaluation conducted by the
Financial Security Service
Protecting financial consumers • Operating the comprehensive consumer
and guaranteeing their rights and protection system
interests through the establishment • Improved client inconvenience
of a financial consumer protection
system and communication with
clients
Accessibility to service Refining mobile service • Launching visual ARS service
Improving financial inclusion for the • Operating dedicated window and fee
vulnerable preferential service for the disabled
Local community Inclusive education Promoting financial education • Supporting financial education, career planning
for students from disadvantaged and capacity building
families

Shared Growth and Social Contribution to Local Community
STRATEGY Social Contribution System STRATEGY Social Contribution System

Samsung Securities carries out educational support projects which underpin fair and quality education as well as provide more ❶ Youth Study Rooms, ʻVision Maru’ Vision Maru aims to lend support to social welfare centers with outdated facilities for their
opportunities for life-long education with an aim of contributing to the accomplishment of UN SDGs. Under the social contribution remodeling as well as to assist adolescents with the provision of after-school learning, emotional counseling, and career research.
vision of ‘Go Together to the Future! Enabling People’, we make multi-faceted efforts to provide fair education opportunities Starting with the first branch in 2012, we have supported 48 study rooms.
❷ Dream Class
for the youth from disadvantaged families. Our representative social contribution project is titled Dream Class, the mentoring
Dream Class, in which college student mentors teach middle school students with an aim of closing the
program for teenagers concerning career paths, future competencies, and basic learning. Employees take part in every social
educational gap, has been renewed into Dream Class 2.0 in respond to the evolved educational environment after COVID-19 under
contribution activity, generating local community value together.
the integrated management of Samsung Group. Beyond the subject-oriented education, the class provides essential contents for
future competencies building in the era of the 4th industrial revolution, such as digital literacy and global capability, and support
career planning for youth where our executives and employees participated as mentors in programs for employment and economic
education.
Vision
Go Together to the Future! Enabling People ❸ Volunteer Group, ʻNanumi’ Nanumi, the volunteer group operated by voluntary participation of our employees, consists
of 164 teams nation-wide as of 2021. Each team sets up a social contribution theme tailored to their regions, and conducts a
variety of activities. In addition, our employees donate certain amount of money to Nanumi Fund on a monthly basis. This fund is
Theme matched with company expenses to be executed as CSR donation.
Education for the Future Generation
Focus Strategies
Youth Study Rooms, ʻVision Maru’ Dream Class
Supporting Education Seeking for Mutual Growth Spreading a

for Youth with Local Communities Culture of Sharing
• Youth Study Rooms, ‘Vision Maru’ • Rural Sister Village • Volunteer Group, ‘Nanumi’
• Dream Class • Year-End Financial Assistance to (executives and employees)
Neighbors in Need • Volunteer Group, ‘YAHO’
• Emergency Funds for the Recovery
from COVID-19 and Flood Damage
UN SDGs 4 UN SDGs 10 UN SDGs 4 10
Volunteer
Group, ‘YAHO’

Shared Growth and Social Contribution to Local Community
TARGET Social Contribution Program KPIs on Business Side KPIs on Social and Environmental Side 2021 PERFORMANCE 01 Social Contribution Activity
One Company-One School • Raised awareness of Samsung Securities among • Increase rate in financial literacy Since the end of 2021, the Samsung Group has restructured the social contribution program, which had been conducted at
Financial Education participants in financial education and economic understanding index of
each company level, into a joint operation of the group’s representative contribution projects. We plan to proactively engage in
Securing future clients participants: 4.28%
- Target: students in elementary, middle and high school - Pre-test: 63.72 salient social contribution activities selected through company-wide reorganization. We will continue the existing youth support
- Contents: allowance management, savings and investment, - Post-test: 66.45 programs within a new framework, promoting effective implementation in connection with the group’s activities.
economy and finance, 4th industrial revolution and economic life
- No. of participants: 2,983 students in 118 classes of 29 schools Category Contents Unit 2019 2020 2021
Employees’ volunteer • Increase rate of employee satisfaction (self-esteem) • Increase in beneficiaries rate of employee Social contribution Total amount of social contributions (cash) KRW 100 million 34.2(25.1) 33.6(33.1) 33.2(28.6)
works and donations through social contribution activities volunteer works expenditure
Education (cash) KRW 100 million 19.8(10.8) 16.9(16.5) 19.7(17.0)
Forming a consensus on social contribution vision among employees • Growth rate of donation by employees
Welfare (cash) KRW 100 million 10.2(10.1) 10.0(9.9) 7.6(5.7)
• Investments in local communities
Securing potential clients through expanded exchange with local Others (charitable groups, NGOs, KRW 100 million 4.2(4.2) 6.7(6.7) 5.9(5.9)
community Having more partnerships with businesses in local educational/research institutes, etc.)(cash)
community
Matching grant expenses (executives and KRW 100 million 2.9 2.7 2.7
College Student Mentors of • Increase rate of our awareness of the future talent pool • Increase in the number of trainings employees/Nanumi Fund)
Dream Class (youth in their 20s) regarding career planning and capacity
Securing a talents pool who share our values and vision of social building for youth from vulnerable group In-kind donations KRW 100 million 1.0 0.5 0.2
contribution Political Contributions* KRW 100 million 0.0 0.0 0.0
Major association membership dues and KRW 100 million 3.8 3.8 3.9
donations
ASSESSMENT Due Diligence of Donations
Korea Center for International Finance KRW 100 million 0.5 0.5 0.5
For the sake of enhanced transparency of our donation policy, we conduct external audits of welfare centers benefitting from
Korea Capital Market Institute KRW 100 million 2.85 2.85 3.10
our donation programs. And we visit in person all of the sites where we operate the programs to assess the detailed program
Korea Securities Association KRW 100 million 0.3 0.3 0.3
operation.
Global Finance Networks (GFIN) KRW 100 million 0.1 0.1 0.0
Monitoring Procedure Operating expenses of social contribution KRW 100 million 1.4 0.6 1.7
programs
Employee social No. of employees participating in social Persons 4,890 3,378 4,134
1 2 3 contribution contributions
Establishing an Conducting Evaluating activities
Hours of participation Hours 10,692 6,095 8,393
annual monitoring monitoring and reflecting
plan at least once the results Social contribution Cumulative no. of students participating in Persons 223,716 236,935 254,902
programs Youth Economics Security Academy
Cumulative no. of classes participating in Classes 7,278 7,462 7,546
Youth Economics Security Academy
No. of university students belonging to Persons 252 252 252
YAHO Volunteer Group
*W
e impose a ban on the support or donation for political campaigns and election campaign funds, and lobbying organizations in accordance with our
management principles as well as relevant laws.
All donations are subject to the review and deliberation to check their compliance in line with ‘external sponsorship review regulations’.

Shared Growth and Social Contribution to Local Community Data Protection and Client Management
2021 PERFORMANCE 02 Inclusive Financial Products STRATEGY We put Data Protection Team and IT Security Team under the umbrella of Chief Information Security Officer (CISO), and these
teams assume the roles of formulating and operating data protection policy, conducting IT audits and inspection on company
Samsung Securities strives to make it easy to use services for vulnerable social groups and the disabled having difficulties due
commissioned the personal credit information handling. The process of a visual verification of ID cards was introduced in case
to poor accessibility to financial institutions and services. As part of the efforts, we have prepared physical devices to help users
of online transaction such as non-face-to-face account creation to ensure safe financial transaction. We always endeavor to
use basic services, such as installing an entrance ramp for wheelchair users and an ATM braille button for the visually impaired.
counteract accidents in a swift manner with a strategic response process for accidents while upgrading our manual for response
We have maintained the service grade of clients with disability registration cards to ‘preferential’ so that they can be exempt
to security accidents on a regular basis. By doing so, we try to minimize the damage to our client in the event of accidents related
from fees for financial services, including money withdrawal, transfer and the issuance of certificates, even when they use the
to information protection and personal data protection. In case of Hacking or DDoS attacks, we can quickly respond to intrusion
services with the help of the employee. Furthermore, we apply online trade commission, half of offline trading fee, to those
incidents according to the response procedures set by Security Incident Response Council.
clients in their offline orders through ARS service or phone calls with PB. On top of that, various efforts have been made to help
handicapped clients access digital financial services without inconvenience. A chatting service and ‘Visual ARS’ available for the
hearing-impaired while notifications on order execution are provided through pop-up messages to make it more convenient to TARGET With the aim of growing into a leading player in information protection, Samsung Securities carries out a variety of activities for
confirm the execution. Security card having a Braille feature is also adopted to make it easier for the visually-impaired do financial raised awareness of information protection and enhancement of vulnerable points on this matter.
transaction. We have also refined our process and regulations to allow the disabled to submit their complaints about the violation
of rights through voice recording, thereby contributing to improved rights of handicapped financial consumers. The details of our We renewed the certification of Personal Information Security Management System (ISMS-P) in 2021, maintaining externally
ASSESSMENT
support services for the disabled are available in the section of ‘Financial Guidelines for Client with Disability’ at our website. And approved information security system. Security breach response training (trainings on response to server hacking, DDoS and APT
our window dedicated to client with disability gives priority to handicapped people when they visit in person. attacks, and cyber shelter conversion) in accordance with Article 37, Items 4 of Electronic Financial Transaction Act. Employees are
also participating in monthly malware simulation training. Since 2021, we are conducting inspections according to the information
Inclusive financial • Provision of microfinance to small businesses / socially vulnerable groups
protection regular evaluation system introduced by the Financial Security Service to systematically check the level of personal
products • Providing finance or know-how to companies supported by microfinance
credit information protection of financial institutions. We awarded ‘S’, the highest grade of the regular evaluation in 2021, based
• Financial services for low-income household
on the results of inspection on the management system for personal credit information protection.
• Financial services for the disabled
(ex) loan schemes, deposit accounts, braille checks, voice support with ATM)
• Financial education for the low-income class
• Enhancing access of the vulnerable to financial services through mobile banking
• Financial products for the financially vulnerable groups (or regions)

Data Protection and Client Management GOVERNANCE DATA

2021 PERFORMANCE 01 Data Protection Education
Samsung Securities shares our data protection policies and related internal regulations with all of our employees through an
internal electronic book to ensure their compliance with them. Online education harnessing diverse educational contents is also
provided twice a year for our all employees and partner companies in order to raise the awareness of the gravity of information
protection. In addition, we conduct regular security breach response training (training on response to server hacking, DDoS Governance
and APT attacks, and cyber shelter conversion) in accordance with Article 37, Items 4 of Electronic Financial Transaction Act,
thereby preparing ourselves for any attack. And tests are also conducted for the prevention of intrusion from outside and control
performance with the Financial Security Service and Samsung Integrated Security Center on an ongoing basis. STRATEGY Governance Principles and Roles of the BOD
Samsung Securities operates the board of directors (BOD) under the principles of transparent and responsible management
to enhance sustainability. As the highest standing decision-approving body, the BOD serves as a check and balance on the
Data Protection No. of employees completing data protection Persons 2,417 2,422 2,484
executive, assisting and supervising its decision-making. To this end, we deliberate and decide on appointment and dismissal of
Education education
directors, matters entrusted by the general meeting of shareholders, and basic corporate management policies in compliance
Hours of data protection education Hours 28,730 29,884 29,490
with the laws and articles of incorporation. In order to establish a sound governance structure, we are also striving to secure
independence, transparency, expertise, and diversity.
02 Client Data Protection Transparency in Governance
Samsung Securities has obtained Information Security Management System (ISMS-P) for the sake of reinforced data protection We publish the ‘Annual Governance and Remuneration Report’ on Korea Exchange and our website to improve transparency in
and personal data protection. For the acquisition, we meet a total of 102 standards required for the certification, including 80 board activities and compensation. Also, we share the results of internal and external evaluations on governance. We safeguard
criteria for data protection and 22 for personal data protection. the rights and interests of shareholders, the board of directors, and stakeholders by means of clearly stipulating their rights and
responsibilities through the corporate governance charter. Anyone can access to the Charter on our website.
Client data No. of complaints regarding infringe on client Cases 10 10 14

management personal data ASSESSMENT We conduct self-evaluation through which each member evaluates the operation of the BOD and directors by checking 12 items
Client Satisfaction Rate of satisfied clients* % 77 78 79 on the list related to the composition, roles and responsibilities, and the overall operation of the BOD. In 2021, the assessment
Certification Whether to go through ISMS-P certification Certification results indicated ‘Very Good’ along with B+ grade in the governance sector evaluation awarded by the KCGS.
* 2021 Target rate: 80

Governance
2021 PERFORMANCE 01 Composition of the BOD 2021 PERFORMANCE ❶ Director Appointment Process Samsung Securities operates the Director Nomination Committee to appoint non-executive
directors with expertise and independence and auditors who are in charge of auditing internal control and financial activities. The
For the purpose of securing independence, we are maintaining a majority of non-executive directors among which the
Director Nomination Committee reviews expertise, job fairness, ethics and diversity of director candidates, then recommends
chairman of the BOD is appointed. We aim to appoint directors with diverse backgrounds and expertise to have diverse point
suitable candidates, followed by appointing directors with approval of the general shareholders’ meeting. Agenda for
of view, makings sure that the BOD, the highest decision-making body, will not be lean too much towards specific occupation or
appointment is individually set for each nominee. Appointed directors have a three-year term of office and can be re-appointed.
backdrops.
(As of Mar. 2022) However, re-appointment exceeding six years is prohibited.
Category Name Position / Career Expertise Date of Appointment Shares Held
Executive Seok Hoon Chang Current) CEO of Samsung Securities Finance, Mar. 21, 2018 6,196
Director Former) Head of the Human Resources Unit in Management Selection of Appointment
Recommendation Announcement
Samsung Securities Candidates of Directors
Former) Head of the Business Administration Unit in
Samsung Securities
Former) CFO of Samsung Securities
Director Nomination Committee review General Shareholders’
Jae Hun Sa Current) Head of Channel Sales Division in Finance, Mar. 24, 2017 4,000 independence, diversity, and expertise Meeting
Samsung Securities Management
Former) Head of the Institutional Business Unit in • Operation of the Nomination Committee to ensure fair and transparent appointment of non-executive directors
Samsung Securities • Preliminary screening to recommend suitable candidates having expertise, fairness, and ethics
Former) Head of the Wholesale Division in • Final appointment through approval at the shareholders’ meeting
Samsung Securities
Jong Wan Lee Current) Head of the Business Administration Unit in Finance, Mar. 18, 2022 2,341
Samsung Securities Management ❷ Expertise and Independence of the BOD The BOD of Samsung Securities is responsible for checking and balancing the
Former) Head of Audit Unit in Samsung Securities management. As of March 2022, the BOD consists of 3 executive directors and 4 non-executive directors. The ratio of non-
Former) Business Management officer in executive directors is 57.14%, while the average tenure is 1.5 years. The chair of the BOD is elected among the non-executive
Samsung Securities
directors to secure independence from the management.
Non- Dong Hyun Ahn Current) Professor of the Department of Economics, Finance, Mar. 29, 2019 -
Seoul National University We operate a director election process to ensure the independence, professionalism and diversity of the BOD, through which
executive Management,
Director Former) Director of Korea Capital Market Institute Accounting, we appoint candidates with experience and knowledge in various fields such as finance, accounting, economy, management,
Former) Member of the Public Fund Oversight Economics and law. By considering gender, race, ethnicity, and place of origin, we are securing diversity of the BOD and reflecting diverse
Committee
opinions in decision-making. Starting with the appointment of a female non-executive director in 2022, we will continue our
Beom Shik Chang Current) President of Soongsil University Finance, Mar. 20, 2022 - efforts to enhance gender diversity in the BOD.
Former) Member of KOSDAQ Listed Companies Management,
Association Accounting, Category Contents Unit 2019 2020 2021
Former) President of Seoul Ivy Forum Economics
Independence All directors Persons 5 7 6
Former) Non-executive director of Hyundai Investment
Executive directors Persons 2 3 2
Trust Securities/ Kiwoom Securities/
Dongbu Securities Non-executive directors (ratio)* Persons (%) 3(60.0) 4(57.1) 4(66.7)
Jong Ryong Lim Current) Advisor of Yulchon LCC Management, Mar. 19, 2021 - Whether non-executive directors serve
Former) 5th chairman of Financial Services Commission Finance, as a chairman
Former) CEO of Nonghyup Financial Group Accounting
Diversity Male Persons 5 7 6
Hye Ree Choi Current) Attorney of Law Firm Sanji Law, Human Mar. 18, 2022 - Female (ratio)** Persons (%) 0(0) 0(0) 0(0)
Former) Standing member of the National Human Rights
Expertise No. of financial experts* Persons(%) 2(40.0) 2(28.6) 2(33.3)
Rights Commission of Korea
Former) Judge of Seoul Family Court No. of ESG experts* Persons(%) 0(0) 0(0) 0(0)
* 2025 Target ratio of non-executive directors: 67% ** Ratio of female directors as of March 2022: 14%

Governance
2021 PERFORMANCE 02 Operation of the BOD 2021 PERFORMANCE 03 Liability of the BOD
❶ Activity and Efficiency of the BOD The BOD actively heeds the opinions of stakeholders including shareholders and reflects The BOD sets standards for the establishment and operation of an internal control system in accordance with internal control
them in management activities. In 2021, regular and ad hoc board meetings were held to resolve issues, such as quarterly standards. The authorities and responsibilities of the BOD and the scope of its major activities are clearly defined in the inside
business performance, company-wide ESG strategy direction, enactment of financial consumer protection standards and regulations of governance and the articles of incorporation by which executives inspect the compliance of the internal control
management plan for 2022. The schedule of the BOD meetings was noticed in early March for raising the attendance rate of the system within the remit of the duties, prepare measures to prevent accidents and take subsequent actions in case of accidents.
BOD and efficient management. The temporary BOD is convened by the chairman or the representative director with basic policy
stipulating the notices for the meeting should be given two weeks in advance. Concurrent duties of non-executive directors are
Limiting the liability Buying liability insurance Subscription
limited to one in order so that they can concentrate on work. In 2021, a total of 15 board meetings were held with 71 agenda items
proposed. While minimum attendance rate for the BOD members was not stipulated, 85% of attendance rate is being considered Leadership-related issues Cases 0 0 0
as an internal standard for BOD evaluation, with 100% of the BOD attendance rate for the past three years. Every year, we conduct
education programs about compliance and financial consumer protection for the non-executive directors to enhance their Compliance Requirements for non-executive directors and Training on anti-money laundering
internal control
understanding of the company and the basic principles that financial company executives should adhere to.
Date of education Mar. 19, 2021 Date of education Nov. 26, 2021
Education organizer BOD Secretariat Education Organizer BOD Secretariat
Efficiency Restricted No. of other mandates for Numbers 2 2 1 Attended non-executive Yeong Seop Lee, Dong Hyun Ahn, Attended non-executive Yeong Seop Lee, Dong Hyun Ahn,
non-executive directors directors Beom Shik Chang, Jong Ryong Lim directors Beom Shik Chang, Jong Ryong Lim
Average term Years 1.3 1.9 2.1
Attendance rate % 100 100 100
04 Board Committee Activities
Average attendance rate of non-executive % 100 100 100
directors ❶ Board Committee Samsung Securities has established seven committees under the BOD to promote prompt and
professional decision-making process as well as to efficiently operate the BOD. Each committee is independently operated,
❷ Operation of the BOD We notify the convocation at least two weeks in advance and the annual schedule for the meetings is consisting of more than half of non-executive or executive directors depending on its role. The BOD decides on establishment
set up when a new BOD is formed in March, which makes members adjust the schedule in preparation for attending the meeting. and operation of committees, and appointment and dismissal of committee members, while each subcommittee makes decisions
Agendas include issues related to a general meeting of shareholders, quarterly performances, business plans for the next year as on matters delegated by the board. Audit Committee and Risk Management Committee oversees financial operation and risk
well as ESG related issues to secure the sustainability of Samsung Securities and are informed at least 7 days in advance so as to management in compliance with the ʻInternal Control Standards’, shares and reviews the result of the monitoring before a BOD
allow members to sufficiently review them before the meeting. sufficiently review them before the meeting. meeting. And, if necessary, it explains the agenda in advance.
Audit Committee consists of three non-executive directors with proven independence and expertise in sectors of economics
/ management, finance / accounting, and law, leveraging assistance from external experts on demand. ESG Committee, established
BOD operation No. of meetings convened Times 12 13 15 in 2021 to strengthen ESG management, is reinforcing management and supervision of sustainability management-related tasks
Reporting and resolved agenda items Cases 48 57 71 which can have a significant impact on corporate values, such as review and control of climate risks and approval of health and
safety plans.

Governance
2021 PERFORMANCE 04 Board Committee Activities 2021 PERFORMANCE 05 Evaluation and Remuneration
❶ Board Committee ❶ BOD Evaluation Criteria Every year, Samsung Securities conducts a self-evaluation of the annual activities of the BOD and
Category Contents Unit 2019 2020 2021 directors in February. The evaluation is divided into three categories, composition of the BOD, role and responsibility of the
Management • Role: Make decisions on overall business practices delegated by the board except for board resolutions BOD, and operation of the BOD, and each category is evaluated by the director himself / herself and the BOD Secretariat using
Committee • Members*: Seok Hoon Chang, Jae Hun Sa, Jong Wan Lee four indicators. The results of these evaluation surveys are available on our website. Each year, we participate in ESG evaluation
conducted by the Korea Corporate Governance Service (KCGS) and in 2021, we received a B+ grade in the governance sector. For
Ratio of non-executive directors** Persons(%) 0(0) 0(0) 0(0)
the purpose of achieving a better performance in the evaluation, an external evaluation by a third party is planned to be carried
No. of meetings Times 10 9 8
out as soon as an evaluation agency is selected.
Nomination • Role: Recommend candidates for directors, who will be finally appointed at the general shareholders’ meeting
Committee or the BOD in compliance with related laws ❷ Compensation The remuneration of the CEO and directors is decided in a transparent and fair way through a resolution at
• Members*: Seok Hoon Chang, Jae Hun Sa, Jong Wan Lee the general meeting of shareholders. The performance of the BOD is measured with comprehensive financial indicators such
Ratio of non-executive directors** Persons(%) 2(66.7) 2(66.7) 2(66.7) as ROE, sales, pretax profit, and earnings per share, and non-financial indicators such as consumer protection and compliance.
No. of meetings Times회 4 3 2 Among the amount calculated based on the result of the performance evaluation, 40% is paid in cash, while the remaining 60%
Attendance rate % 100 100 100 is deferred for more than three years in the form of variable compensation and stock-linked cash. When the performance-based
Audit Committee • Role: Conduct audits on overall business and accounting as well as on the job performance of directors compensation is set, the number of shares for the deferred payment is determined. The amount of payment varies depending on
• Members*: Jong Ryong Lim, Dong Hyun Ahn, Hye Ree Choi the stock price at the time of the deferred payment. In the event of a violation of company regulations, business interruption, or
damage to the company, the variable compensation can be reduced or canceled.
No. of financial experts* Persons 1 2 2 Category No. of members* Total pay (KRW million)** Avg. amount per person
(KRW million)***
Remuneration for Registered directors 2 4,401 1,467
Risk Management • Role: Establish and oversee risk management policies for overall practices in an efficient manner
Directors
Committee Non-executive directors 1 93 93
• Members*: Jae Hun Sa, Beom Shik Chang, Dong Hyun Ahn
(excluding Audit
Ratio of non-executive directors** Persons(%) 2(66.7) 2(66.7) 2(66.7) Committee members)
No. of financial accounting experts* Persons 2 2 1 Audit Committee 3 284 71
Category Guidelines on variable Ratio of CEO’s deferral Actual ratio of amount paid
Compensation • Role: Evaluate and review the employee compensation system
compensation of CEO bonus and period (% (years)) to limit on remuneration (%)
Committee • Members*: Jong Wan Lee, Dong Hyun Ahn, Beom Shik Chang
Compensation for CEO and the management 60(4) 49
Ratio of non-executive directors** Persons(%) 2(66.7) 2(66.7) 2(66.7)
No. of meetings Times 6 9 7 * No. of members as of Dec. 31, 2021 ** Accumulated remuneration of all directors and auditors appointed from Jan. 1 to Dec. 31, 2021
*** Total amount of pay divided by the number of directors and auditors appointed from Jan 1 to Dec. 31, 2021
Internal Trading • Role: Ensure transparency and objectivity in internal trading between affiliates
Committee • Members*: Dong Hyun Ahn, Beom Shik Chang, Jong Ryong Lim, Hye Ree Choi
ESG Committee • Role: Decision-making and management / supervision of all activities related to sustainability management
• Members*: Beom Shik Chang, Jong Ryong Lim, Seok Hoon Chang
Ratio of non-executive directors** Persons(%) - - 2(66.7)
No. of meetings Times - - 1
* As of Mar. 2022 ** As of Mar. next year

Governance Ethical Management and Compliance
2021 PERFORMANCE 05 Evaluation and Remuneration STRATEGY Samsung Securities puts in place three teams (Compliance Team, Compliance Operation Team, Legal Affairs Team) dedicated to
❸ Stock Ownership Samsung Securities applies the one-share-one-vote principle to all issued shares, so that all shareholders
ethical management and compliance. With these teams, we establish internal control standards, the company’s regulations and
guidelines for ethical management and compliance with constant revision. By means of regular monitoring and legal review, we
have equal voting rights. Systems and infrastructure have been developed to facilitate the exercise of shareholder rights, such as
inspect the compliance with the regulations and guidelines and educate employees to fully understand the related details. Our
introducing an electronic voting system from the 39th regular general meeting of shareholders in 2021. Currently, Samsung Life
code of ethics stipulates our responsibilities for shareholders and clients. In details, we define unethical management behaviors
Insurance is the largest shareholder, owning 29.6%.
in Articles 1 (the principles of fair trade with consumers), Article 2 (money laundering, corruption, tax evasion, insider trading),
Category Unit 2019 2020 2021
Article 3 (antitrust), Article 6 (conflicts of interest) and Article 7 (protection of client information) and encourage our employees to
Shares held Shares held by directors Shares 13,420 13,420 10,196 promptly report to the company when they are forced to do against the Code of Ethics or detect illegal conducts. We protect the
by major and CEO
whistleblower by stipulating the confidentiality and prohibition of disadvantages in the guidelines.
shareholders
Shareholding ratio among % 60 60 60
The CEO and executives in charge of internal control deliberate and decide on major issues on the Internal Control Committee,
incentives of CEO
which is convened twice a year and the inspection results on the internal control system are reported to the BOD. In the
Shares held by directors Shares 3,612 3,612 1,525
event of a reward-related complaint or VOC occurred, the Financial Consumer Protection Team conducts a self-investigation
and CEO
and decides who should take responsibility taking into consideration the opinions of the Legal Affairs Team, and then goes
Shareholding ratio of the % (shares) 12.0(10,732,146) 13.4(11,987,834) 11.3(10,077,913)
government through a reimbursement process with the consent of civil petitioners when we have to bear the liability for compensation.
The advancement of the integrated compliance management system will enable the development of integrated education
Shareholding ratio of % 29.7 29.6 29.6
dominant stockholders management screen which will lead to the establishment of systematic education management foundation base on Plan-Do-
No. of shares of shareholders Shares 10,723,146 11,987,834 10,077,913 See point of view. The legal information system will be renewed in a direction where the convenient legal review and legal advice
having 5% or more shares is available. In addition, employees will be provided with more effective trainings on compliance and ethics tailored to their
except for the largest job characteristics. As the monitoring standards of the Exchange Market Monitoring Committee are expected to experience
shareholder and special
interest parties significant modification, that of Samsung Securities will be revised as well to upgrade the anti-money laundering system in
cooperation with external consulting.
Combined shareholding ratio % (shares) 29.7(26,562,373) 29.6(26,399,239) 29.4(26,242,112)
of all affiliates
TARGET With an aim of preventing violations of code of conduct for employees (embezzlement, corruption and bribery, sexual harassments,
No. of Shares Held by Major Shareholders (As of Dec. 2021) recovery of profits on a short-term trade by employee, violation of regulations on safety, health and environment, verbal abuse,
1 29.6% 2 0.22% 3 26.0% 4 11.3% 5 32.2% swearing, and assault), we conduct company-wide ethics training every year, setting the goal of zero employees in violation of code
of conduct.
1 amsung Life Insurance

S 26,390,984 4 National Pension Service 10,077,913
(including special accounts)
2 Samsung Culture Foundation 195,992 5 Other institutions and individuals 28,689,115
3 Foreign investor 24,084,672

Ethical Management and Compliance
ASSESSMENT Beside the annual evaluation, the audits team has a close examination on the operation of internal control system with the anti- 2021 PERFORMANCE 01 Ethical Management Programs
fraudulent and corruption perspective during regular audits of each sector. Compliance officers receive monthly report from Category Contents Unit 2019 2020 2021
Compliance Team, Compliance Operation Team, Legal Affairs Team on the results of monitoring and internal control activities
Anti-corruption Ratio of business sites receiving the evaluation of % 100 100 100
which includes insider trading, provision of profits, and conflict of interests. The Internal Control Committee reports to the BOD Risk corruption risks
the overall contents of internal control on a semi-annual basis. Meanwhile, the Internal Control Council, which consists of the Assessment
No. of business sites receiving the evaluation of Numbers 69 69 56
internal control management department and related departments for each case, is in charge of prior consultation on new corruption risks
business processes, deliberation on changes and disposal of previous business processes, and review of important modification Total number of business sites Numbers 69 69 56
in business systems.
02 Fair Trade
2021 PERFORMANCE 01 Ethical Management Programs
With an eye to ensuring effective internal control, the work process has been concreted together with new business manual
Client fair trade No. of opinions and grievances received from clients Cases 92 235 342
system that was developed to reduce the probability of accidents. We have also refined the Anti-Money Laundering System to practice
No. of clients’ opinions and grievances handled Cases 92 235 342
not only raise work efficiency but also detect suspicious transaction regarding money laundering. As part of efforts to help our
employees build their capabilities required for money laundering prevention, we provided online education for all employees
including the BOD and the management. Along with the renewed system, we reinforced the human resources for further 03 Reports and Violations
strengthen and enhanced internal control operation. In 2021 ethical education was conducted for all employees on top of online
courses regarding compliance and ethical management and anti-money laundering which covers the part-time job. We are
Violation of Embezzlement Cases 0 0 0
providing business guidelines and educational materials on code of ethics to our partner companies, thereby cultivating ethical Code of Conduct
Corruption and bribery Cases 0 0 0
culture every corner of our business activities.
Recovery of profits on a short-term trade by employee Cases 0 0 0
The training system for compliance was bolstered to eliminate the blind spot so that no one left behind. In order to improve
effectiveness of training, educational contents were delivered in various forms including messages from all management, Verbal abuse, swearing, and assault Cases 0 0 0
contents that employees are interacted with and infographic. We are evaluating anti-corruption risks during regular audits by Measuers Dismissal Cases 0 0 0
taken in case of
sector and confirmed that there were no unusual findings in 2021. Suspension Cases 0 0 0
violation
Category Contents Unit 2019 2020 2021 Pay cut Cases 0 0 0
Ethical Education Hours of ethical education per capita Hours 1.1 2.3 3.1 Reprimand Cases 0 0 0
Total training hours on anti-corruption* Hours 4,595 6,755 19,192 Warning Cases 0 0 0
Total number of education participants Persons 4,216 2,936 6,248 Caution Cases 0 0 0
Providing staff in partner companies with Audit Regular ethics audit

Implementation - - Implementation
training on ethics (monitoring for reporting and disciplinary action)
Training on prevention of sexual and Compliance No. of legal actions on unfair transactions including Cases 0 0 0
Implementation violation anticompetitive practices and monopoly/oligopoly
workplace harassment
Amount of fines and settlement payments incurred by KRW 0 0 0
* Training on anti-money laundering added in 2021
anti-trust and anti-competitive practices
Ratio of fines and settlement payments incurred by % 0 0 0
anti- trust and anti-competitive practices (compared to sales)
Number of monetary sanctions due to breaches of Cases 5 1 0
regulations
Number of lawsuits due to breaches of regulations Cases 0 0 0

Tax Policy SUSTAINABLE FINANCE

STRATEGY Samsung Securities is well cognizant that the assessment and management of diverse tax-related risks becomes an integral part
of sustainable management along with the fulfillment of our obligations to faithfully file our taxes and make payments. We are
strict about the compliance with the tax laws at home and abroad and the submission of related data, thereby discharging our
tax duties. Samsung Securities makes sure that we do not take advantage of the differences in tax laws among countries and the
loopholes of the international tax policy for income transfer among countries or tax avoidance. We ensure that taxable income is Responsible Investment
legally distributed according to the value created in each country where we do our business. Our employees in charge strain every
nerve to maintain a constructive and transparent relationship with tax authorities, fulfilling our tax obligations in accordance with
relevant laws and regulations. The tax-related information is reported to all of our stakeholders abiding by reporting standards.
STRATEGY In accordance with ESG investment guidelines, we integrate ESG into the investment process, recognizing and evaluating the
impact of Samsung Securities’ financial activities on the environment and society which are reflected in product supply and
ASSESSMENT In the management and assessment of tax risks, If necessary, tax-related decisions are made considering the advice of external investment decisions. Our basic policy that evaluates non-financial factors beyond traditional financial risks serves as preliminary
tax experts and the authoritative interpretation of tax authorities. The tax amount is reported after the close review of external screening guidelines for the transactions regarding equity capital investment, acquisition of securities and assets and supply of
experts to ensure the appropriate application of laws and regulations. financial products propelled by Samsung Securities.
According to exclusion criteria for investment reflecting environmental and social impacts, we rule businesses related to coal
mining and coal-powered generation out of investment. In the case of related businesses, division and department carry out
2021 PERFORMANCE 01 Tax Reporting
initial self-screening and ask ESG Research Institute for opinion to be considered. The ESG Research Institute reviews the impact
Category Contents Unit 2019 2020 2021 and potential risks related to ESG of which results are considered in a process where the department in charge takes a close look
Tax reporting Earnings before Tax KRW 496,724,253,883 640,775,292,810 1,288,282,363,827 into the transaction and submit the results to the company-wide Deliberation Committee (Investment Acquisition Committee,
Reported taxes (Income tax) KRW 126,510,873,111 167,630,775,911 351,540,989,782 Risk Management Executive Committee, and Product Committee).
Cash taxes paid (Income tax KRW 58,871,524,196 145,455,213,408 347,813,086,057 We endorse the ESG policies of international organizations such as PRI (Principles for Responsible Investment) and UENP FI (United
expenses) Nations Environmental Programme Financial Initiative), reinforcing responsible investment by incorporating ESG factors into our
Effective tax rate % 25.5 26.2 27.3 product supply and all stages of services with more diverse line-up of related products.
Cash tax rate % 11.9 22.7 27.0
TARGET We have set the targets of reducing carbon emissions from investment assets with the measuring method of financed emissions
by the Partnership for Carbon Accounting Financials (PCAF) and based on the criteria of the Science-Based Targets initiative (SBTi).
02 Reporting by country
Efforts to achieve carbon neutrality are carried out together with the measures to advance ESG investment principles and to
Contents Unit Hong Kong USA Europe (UK) expand ESG products and services. Under the concreted goal to expand the ESG products line-up which are currently comprised
All corporates located within Samsung Securities Samsung Securities Samsung Securities of 30 to 100 funds including bonds and trusts, and to provide practical ESG advisory services to institutional and corporate
the jurisdiction (Asia) Ltd. (America) Ltd. (Europe) Ltd. clients, we are reviewing the gradual expansion of applicable areas for negative screening depending on ESG impact, all of which
Main activities Brokerage Brokerage Brokerage will eventually result in the fulfillment of responsible investment.
No. of employees Persons 8 6 6
Expansion of ESG products and services
Operating revenue KRW million 3,582,595,931 2,696,035,861 2,392,737,006
Business profits KRW million 707,948,410 443,796,515 411,578,689
100 products (focus on fund → moved to bonds, trusts, etc.)
(Target year: 2025)
Unpaid corporate tax KRW million 0 0 40,521,730
Corporate tax expenses KRW million 0 -125,877,676 81,986,127
Regional tax and public dues % 0 0 19.92

Responsible Investment
ASSESSMENT We measured financed emissions by classifying assets in accordance with the standards of the Partnership for Carbon 2021 PERFORMANCE 01 Portfolio (Sustainable investment products and services)
Accounting Financials (PACF). We plan to establish and implement reduction targets for each industry under the SBTi̕ s Sectoral
Category Product Unit Balance scale
Decarbonization Approach (SDA) based on the financed emissions measured by asset, aiming to meet the 1.5˚C scenario
ESG-related E Samsung Global Water Fund 1 (Equity-Fund of Funds) KRW 100 million 23.50
reduction path.
products and
Samsung Global Water Fund 2 (Equity-Fund of Funds) KRW 100 million 0.71
The ESG Executive Council has been established and operated to ensure efficient monitoring on ESG-related issues, in services
the process of promoting carbon neutrality and expanding ESG investment. In the event of a major issue related to ESG, Samsung Classic Global Water Pension Holder Fund H KRW 100 million 0.73
(Equity-Fund of Funds)
departments in charge of transaction and risk management immediately inform the ESG Secretariat of the issue, which
Samsung Retirement Pension Global Water 40 Securities 1 (Bond-Mixed) KRW 100 million 0.08
convenes the ESG Executive Council to analyze the impact and prepare countermeasures. When the issue is related to market
risk, credit risk, and liquidity risk which requires urgent measures, the risk management emergency plan is applied with Samsung Global Clean Energy Fund 1 (Equity-Fund of Funds) KRW 100 million 59.56
necessary modification. Samsung Global Clean Energy Fund 2 (Equity-Fund of Funds) KRW 100 million 1.05
Samsung Classic Global Clean Energy Pension Holder Fund H KRW 100 million 18.53
2021 PERFORMANCE 01 Portfolio (Sustainable investment products and services)
Samsung Retirement Pension Global Clean Energy 40 Securities Holder 1 KRW 100 million 12.34
Samsung Securities is actively reflecting ESG factors in the financial product supply and direct investment activities to create a (Bond-Mixed)
sustainable society and a growing market ecosystem. In 2021, we launched three ESG investment strategy funds*, and we are Korea Private Carbon Special Asset 1st Investment Company KRW 100 million 0.03
expanding our lineup in 2022. (Monetary Rights)
The sales amount of the 26 funds in 2021 was 152.6 billion won, a nearly 16-fold increase from 9.5 billion won in 2020, and the SH Beautiful SRI Green New Deal Security 2 (Equity) KRW 100 million 30.70
balance also increased significantly from 68.8 billion won in 2020 to 169.9 billion won. This increase was mainly attributable to the Samsung F&T Global Megatrend Holder Fund H (Equity-Fund of Funds) KRW 100 million 35.90
sales of electric vehicles and batteries newly launched in 2021, and fund products related to global sustainability. Samsung F&T Global Megatrend Holder Fund UH (Equity-Fund of Funds) KRW 100 million 13.82
Samsung Securities invests in small and medium-sized enterprises (SMEs) with outstanding technology and promising venture Samsung Energy Transition Securities Investment Trust H KRW 100 million 124.17
companies to conduct technology finance that contributes to the growth of those companies and the formation of future industry
ecosystems. Centering on industries, companies, and technologies related to the 4th industrial revolution issue, we conduct NH-Amundi 100-year Enterprise Green Korea Securities Investment Trust KRW 100 million 27.80
(Equity)
technology finance through which we invest in small and medium-sized enterprises (SMEs) and promising ventures equipped
Korea Investment Global Electric Vehicle & Battery Securities Investment KRW 100 million 403.81
with outstanding technologies in the hope of contributing to the growth of those companies and the formation of future industry
Trust (Equity)
ecosystems. We expect that benefited companies growing in the future will give us the opportunity to expand areas of new
S Woori G Business Value Improvement Long-term Fund (Equity) KRW 100 million 21.71
businesses such as listing on the KOSDAQ, M&A, and block deals. We discover companies with excellent and sound governance
Samsung ESG Good Responsible Investment Fund 1 (Equity) KRW 100 million 249.11
and invest in undervalued companies, while providing a number of responsible investment funds. Going forward, we will continue
to expand areas and targets for socially responsible investment to fulfill the social responsibilities required to financial institutions VI Social Responsible Investment Fund (Equity) KRW 100 million 33.22
with stable profitability. Midas Responsible Investment Fund (Equity) KRW 100 million 177.64
* Samsung Energy Transition Securities Investment Trust H, NH-Amundi 100-year Enterprise Green Korea Securities Investment Trust, Korea Investment Global Woori G Artisan Global Opportunity Fund H (Equity-Fund of Funds) KRW 100 million 17.04
Electric Vehicle & Battery Securities Investment Trust
Woori G Artisan Global Opportunity Fund UH (Equity-Fund of Funds) KRW 100 million 37.47
Category Contents Unit 2019 2020 2021 G Samsung Governance Plus Specialized Private Fund 1 (Equity) KRW 100 million 11.74
Scale Amount of ESG (investment) product KRW 100 million 680 688 1,699 ESG Woori G Korea ESG Fund (Equity) KRW 100 million 27.70
Ratio of ESG (investment) product % 0.48 0.46 0.70 Woori High Plus Short-term High Graded ESG Bond Fund 1 (Bond) KRW 100 million 6.48
Samsung Europe ESG Fund H (Equity) KRW 100 million 139.22
Samsung Europe ESG Fund UH (Equity) KRW 100 million 0.97
Schroder Global Sustainable Growth Fund (Equity-Fund of Funds) KRW 100 million 196.40
Trustone ESG Zhuge Liang Securities Investment Trust (Equity) KRW 100 million 27.96

Responsible Investment
2021 PERFORMANCE 01 Portfolio (Sustainable investment products and services) 2021 PERFORMANCE 03 Capacity Building
Category Contents Unit 2021 Samsung Securities established ESG Research Institute under the Research Center to actively responds to the growing ESG
Classification by Project financing No. of projects / Cases 70 demand by means of high-quality ESG analytics for the first time in the industry in 2020. The ESG Research Institute’s separate
business transactions reviewed ESG brand, ʻSustain-WISE’ presents a differentiated, independent, and professional ESG research identity. In active collaboration with
Review rate among total projects % 100 analysts in the economy (Macro), asset class (Asset Class), and industry (Sector), and heightened expertise by hiring external
No. of signed projects / Cases 34 experts with experience in ESG evaluation and voting rights advisory, the institute has published reports containing in-depth
transactions analysis. We are making a strenuous effort to disseminate ESG culture throughout the domestic investment sector, convening
No. of rejected projects / Cases 36 seminars and conferences with renowned experts in presence.
transactions
WM / Private Banking Coverage of liability investment % 100
02 Financed Emissions
Category Contents Unit 2021
Absolute financed Scope 3 financed emissions 10,000tCO2eq 227.71

emissions*
Portfolio coverage** % 100
Scope 3 financed emissions intensity 10,000tCO2eq/KRW trillion 11.88
(Total financed emissions / calculated size of assets)
Emissions by asset*** Listed stocks and corporate bonds 10,000tCO2eq 213.25
Corporate loans and unlisted 10,000tCO2eq 0.25
stocks
Project finance (PF) 10,000tCO2eq 13.92
Commercial real estate 10,000tCO2eq 0.29
Mortgage 10,000tCO2eq -
Car loan 10,000tCO2eq -
Emission intensity by Listed stocks and corporate bonds 10,000tCO2eq/KRW trillion 12.46
asset****
Corporate loans and unlisted 10,000tCO2eq/KRW trillion 0.44
stocks
Project finance (PF) 10,000tCO2eq/KRW trillion 9.63
Commercial real estate 10,000tCO2eq/KRW trillion 5.85
Mortgage 10,000tCO2eq/KRW trillion -
Car loan 10,000tCO2eq/KRW trillion -
* including subsidiaries ** Targeting only the measurable assets

*** based on the classification standard of PCAF **** Total financed emissions / calculated size of assets

appendix FINANCIAL DATA
Consolidated A. Consolidated Financial Position (Unit: KRW)
Financial
Statements Samsung Securities Co., Ltd and its Subsidiaries 40th 39th
Items 2021.12 2020.12
I. Cash and cash equivalents 3,244,055,619,631 2,870,503,086,190
II. Financial assets measured at fair value through 39,714,812,147,371 35,502,944,479,778
99 124
profit or loss
III. Financial assets measured at fair value through 4,341,707,382,753 5,135,812,097,472

other comprehensive income
FINANCIAL DATA GRI STANDARDS INDEX
IV. Financial assets measured at amortized cost 18,017,813,289,401 20,034,465,896,585
V. Investment in associates 137,177,447,046 95,796,362,342
106 127 VI. Fixed assets 104,577,301,672 118,395,141,916
VII. Intangible assets 85,982,914,243 79,869,764,591

DOUBLE MATERIALITY ASSESSMENT UN SDGs
VIII. Prepaid tax 7,490,856,276 7,909,247,344
IX. Deferred income tax assets 1,216,138,892 986,473,639

112 128 X. Other assets 52,653,902,313 23,039,543,998
Total asset 65,707,486,999,598 63,869,722,093,855

RISK MANAGEMENT THIRD PARTY ASSURANCE
I. Financial liabilities measured at fair value through 10,014,952,183,128 10,157,321,552,338
profit or loss
116 130 II. Deposits 17,468,032,469,707 15,073,907,421,955
III. Borrowings 24,806,048,760,561 24,091,698,537,684

STAKEHOLDER COMMUNICATION ASSOCIATION MEMBERSHIP IV. Debenture issued 3,035,446,779,989 1,842,917,063,736
V. Defined benefit liabilities 15,520,202,553 24,067,421,273
117 131 VI. Reserve for contingent liabilities 13,039,578,498 14,092,307,992
VII. Accrued income taxes 237,330,915,892 63,661,343,221

SASB CORPORATE INFORMATION
VIII. Deferred income tax liabilities 130,102,565,816 128,414,828,572
IX. Other liabilities 3,906,084,755,160 7,156,567,948,720
120 Total liabilities 59,626,558,211,304 58,552,648,425,491
TCFD

Consolidated A. Consolidated Financial Position (Unit: KRW) B. Consolidated Comprehensive Income (Unit: KRW)
Financial
Statements Samsung Securities Co., Ltd and its Subsidiaries 40th 39th Samsung Securities Co., Ltd and its Subsidiaries 40th 39th
Items 2021.12 2020.12 Items 2021.12 2020.12
Equity attributable to owners of parent 6,080,928,788,294 5,317,073,668,364 I. Net commission fees 1,114,154,972,883 910,858,659,089
I. Share capital 458,478,080,000 458,478,080,000 1. Commissions received 1,306,543,520,596 1,073,560,759,002
II. Capital surplus 1,743,464,342,352 1,743,464,342,352 2. Commissions expense 192,388,547,713 162,702,099,913
III. Capital adjustment (58,577,164,985) (58,577,164,985) II. Net Interest Income 711,417,876,921 645,956,853,311
IV. Accumulated other comprehensive income (loss) 188,228,990,725 193,275,538,157 1. Interest in cash and cash equivalents 7,143,091,854 22,123,747,398
V. Retained earnings 3,749,334,540,202 2,980,432,872,840 2. Interest on loans and receivables 515,302,237,503 409,056,630,162
(Reserves for credit losses 3. Interest on financial assets available for sale 57,703,253,879 59,558,021,440
- Dec. 31, 2021: KRW 98,764,361,041
- Dec. 31, 2020: KRW 60,206,237,696 4. Interest on trading securities 370,359,010,103 391,963,699,954
Expected reserves for credit losses 5. Interest expenses 239,089,716,418 236,745,245,643
- Dec. 31, 2021: 8,479,818,240
- Dec. 31, 2020: 38,558,123,345) III. Net trading income (loss) at fair value through profit 327,920,204,590 (326,235,344,310)
or loss
Non-controlling interests - -
1. Trading income from trading instruments 609,487,050,314 439,717,990,672
Total equity 6,080,928,788,294 5,317,073,668,364
2. Trading income form debt instruments 518,271,941,620 636,633,368,732
Total liabilities and equity 65,707,486,999,598 63,869,722,093,855
3. Trading income from derivatives 4,726,987,010,262 5,329,514,514,867
4. Gain on derivative-combined security designated at FV 501,800,117,330 722,843,542,648
5. Foreign exchange gain 252,662,186,752 380,242,407,664
6. Trading loss from trading instrument 392,522,654,985 464,476,297,654
7. Trading loss from debt instruments 601,481,064,858 310,441,646,713
8. Trading loss from derivatives 4,465,539,992,536 5,962,053,817,809
9. Loss on derivative-combined security designated at FV 740,592,424,433 759,225,750,586
10. Foreign exchange loss 81,151,964,876 338,989,656,131
IV. Other operating profit and loss 88,283,181,984 262,052,476,143
1. G
ain (loss) in related to equity instruments at fair 6,427,749,459 24,860,526,733
value through other comprehensive income
2. Reversal of credit losses on financial assets 5,424,427,105 7,649,255,474
3. Other operating revenue 931,407,144,443 1,504,670,968,470
4. E
xpenses related to financial assets at fair value 316,803,900 15,369,818,404
through other comprehensive income
5. Credit losses on financial assets 5,242,982,662 5,143,069,960
6. Other operating expenses 849,416,352,461 1,254,615,386,170
V. Net operating revenue (I+II+III+IV) 2,241,776,236,378 1,492,632,644,233
VI. Personnel expenses 539,093,162,862 489,765,195,199
VII. General and administrative expenses 393,999,781,102 324,906,121,020

Consolidated B. Consolidated Comprehensive Income (Unit: KRW) Separate A. Separate Financial Position (Unit: KRW)
Financial Financial
Statements Samsung Securities Co., Ltd and its Subsidiaries 40th 39th Statements Samsung Securities Co., Ltd and its Subsidiaries 40th 39th
Items 2021.12 2020.12 Items 2021.12 2020.12
VIII. Operating profit 1,308,683,292,414 677,961,328,014 I. Cash and cash equivalents 3,165,475,615,888 2,824,473,599,747
IX. Non-operating income 22,416,857,364 15,763,656,086 II. Financial assets measured at fair value through profit 39,512,710,289,034 35,515,739,847,469
or loss
X. Non-operating expenses 3,929,272,438 7,958,532,132
III. Financial assets measured at fair value through 4,323,503,806,527 5,119,405,236,606
XI. N
et income (loss) before income tax from continuing 1,327,170,877,340 685,766,451,968 other comprehensive income
operations
IV. Financial assets measured at amortized cost 12,058,918,610,592 14,288,057,824,673
XII. Income tax expenses 361,832,668,803 177,979,088,428
V. Investment in associates 349,696,380,253 381,111,340,077
XIII. Net income (loss) from continuing operations 965,338,208,537 507,787,363,540
VI. Fixed assets 98,917,082,724 109,647,139,205
1. N
et income (loss) attributable to owners of parent 965,338,208,537 507,787,363,540 VII. Intangible assets 82,510,842,307 75,954,288,584
(Net income after reserves for credit losses
VIII. Prepaid tax - -
- Dec. 31. 2021: KRW 956,858,390,297
- Dec. 31. 2020: KRW 469,229,240,195) IX. Other assets 50,000,579,640 26,117,092,621
2. Non-controlling interests - - Total asset 59,641,733,206,965 58,340,506,368,982
XIV. Other comprehensive income (5,023,088,607) 11,817,779,400 I. Financial liabilities measured at fair value through 10,014,952,183,128 10,157,321,552,338
profit or loss
Items not subsequently reclassified to profit or loss
II. Deposits 14,981,434,716,410 12,792,308,540,764
1. Remeasurement of the defined benefit liabilities (642,792,222) (1,145,461,456)
III. Borrowings 21,469,832,416,612 21,030,494,670,089
2. Gain (loss) in related to equity instruments at fair 10,879,888,086 12,697,855,060
IV. Debenture issued 3,035,446,779,989 1,842,917,063,736
V. Defined benefit liabilities 15,959,506,271 24,097,138,314
3. Change in value of financial liabilities measured and (2,183,528,591) 5,871,714,183
designated at fair value through profit or loss VI. Reserve for contingent liabilities 12,909,489,164 13,806,904,539
Items subsequently reclassified to profit or loss VII. Accrued income taxes 231,403,549,950 57,837,897,285
VIII. Deferred income tax liabilities 123,995,917,999 126,612,380,587
1. G
ain (loss) in related to liability products measured (28,420,468,285) 5,249,848,124
at fair value through other comprehensive income IX. Other liabilities 3,830,264,713,652 7,088,252,387,799
2. Cumulative translation adjustment for overseas 14,531,843,983 (11,775,054,942) Total liabilities 53,716,199,273,175 53,133,648,535,451
subsidiaries and branches
I. Share capital 458,478,080,000 458,478,080,000
3. Gains/losses on valuation of investment stock using 811,968,422 918,878,431 II. Capital surplus 1,743,470,991,091 1,743,470,991,091
the equity method
III. Capital adjustment (36,410,301,212) (36,410,301,212)
XV. Total comprehensive income 960,315,119,930 519,605,142,940
IV. Accumulated other comprehensive income (loss) 167,788,492,604 189,417,225,215
1. C
omprehensive income attributable to owners of 960,315,119,930 519,605,142,940
parent V. Retained earnings 3,592,206,671,307 2,851,901,838,437
(Reserves for credit losses
2. Non-controlling interests - - - Dec. 31, 2021: KRW 98,764,361,041
XVI. Earnings per share attributable to owners of parent - Dec. 31, 2020: KRW 60,206,237,696
Expected reserves for credit losses
Basic and diluted earnings per share 10,810 5,686 - Dec. 31, 2021: KRW 8,479,818,240
- Dec. 31, 2020: KRW 38,558,123,345)
Total equity 5,925,533,933,790 5,206,857,833,531
Total liabilities and equity 59,641,733,206,965 58,340,506,368,982

Separate B. Separate Comprehensive Income (Unit: KRW) B. Separate Comprehensive Income (Unit: KRW)
Financial
Statements Samsung Securities Co., Ltd and its Subsidiaries 40th 39th Samsung Securities Co., Ltd and its Subsidiaries 40th 39th
Items 2021.12 2020.12 Items 2021.12 2020.12
I. Net commission fees 1,119,501,504,054 911,027,899,942 VII. General and administrative expenses 366,658,458,754 303,745,586,142
1. Commissions received 1,299,485,880,340 1,045,462,380,679 VIII. Operating profit 1,288,559,477,610 641,032,350,116
2. Commissions expense 179,984,376,286 134,434,480,737 IX. Non-operating income 3,738,917,245 7,135,515,813
II. Net Interest Income 637,897,331,159 552,255,963,321 X. Non-operating expenses 4,016,031,028 7,392,573,119
1. Interest in cash and cash equivalents 6,368,211,894 7,091,744,518 XI. N

et income (loss) before income tax from continuing 1,288,282,363,827 640,775,292,810
operations
2. Interest on loans and receivables 386,055,998,234 277,119,621,753
XII. Income tax expenses 351,540,989,782 167,630,775,911
3. Interest on financial assets available for sale 57,703,253,879 59,558,021,440
XIII. Net income (loss) from continuing operations 936,741,374,045 473,144,516,899
4. Interest on trading securities 368,127,994,628 388,483,744,649
(Net income after reserves for credit losses
5. Interest expenses 180,358,127,476 179,997,169,039 - Dec. 31. 2021: KRW 928,261,555,805
- Dec. 31. 2020: KRW 434,586,393,554)
III. Net trading income (loss) at fair value through 326,647,650,441 (316,353,922,340)
profit or loss XIV. Other comprehensive income (21,605,273,786) 20,553,127,736
1. Trading income from trading instruments 608,298,955,263 438,063,145,796 Items not subsequently reclassified to profit or loss
2. Trading income form debt instruments 516,701,935,861 646,741,778,660 1. Remeasurement of the defined benefit liabilities (539,018,622) (1,004,303,961)
3. Trading income from derivatives 4,726,327,247,083 5,314,569,642,065 2. Gain (loss) in related to equity instruments at fair 9,537,741,712 10,435,869,390
4. Gain on derivative-combined security designated at FV 501,800,117,330 722,843,542,648
3. Change in value of financial liabilities measured and (2,183,528,591) 5,871,714,183
5. Foreign exchange gain 252,662,186,752 380,242,407,664
designated at fair value through profit or loss
6. Trading loss from trading instruments 391,056,780,715 463,505,364,540
Items subsequently reclassified to profit or loss
7. Trading loss from debt instruments 601,291,699,399 309,865,365,226
1. G
ain (loss) on related to liability products at fair (28,420,468,285) 5,249,848,124
8. Trading loss from derivatives 4,465,049,922,425 5,947,228,302,690 value through other comprehensive income
9. Loss on derivative-combined security designated at FV 740,592,424,433 759,225,750,586 XV. Total comprehensive income 915,136,100,259 493,697,644,635
10. Foreign exchange loss 81,151,964,876 338,989,656,131 XVI. Earnings per share
IV. Other operating profit and loss 88,415,315,268 265,755,900,352 Basic and diluted earnings per share 10,490 5,298
1. G
ain (loss) in related to equity instruments at fair 6,427,749,459 24,860,526,733
2. Reversal of credit losses on financial assets 3,864,961,425 6,071,663,694
3. Other operating revenue 931,348,698,544 1,505,520,570,781
4. E
xpenses related to financial assets at fair value 316,803,900 15,369,818,404
through other comprehensive income
5. Credit losses on financial assets 3,753,505,239 3,384,489,336
6. Other operating expenses 849,155,785,021 1,251,942,553,116
V. Net operating revenue (I+II+III+IV) 2,172,461,800,922 1,412,685,841,275
VI. Personnel expenses 517,243,864,558 467,907,905,017

DOUBLE MATERIALITY ASSESSMENT
Samsung Securities conducts an annual Materiality Assessment to clearly understand the needs of stakeholders on sustainability and incorporate them into Double Materiality Assessment Result
our strategies and goals and eventually our business as a whole, of which results are transparently disclosed in an integrated report. In 2022, we applied the
The result of the double materiality assessment showed us that digitalization, financial consumer protection, and climate action are selected as the top three
revised Global Reporting Initiative (GRI) guideline, which embraced Double Materiality to determine the contents of the integrated report and select the main
most important issues. Considering the social impact generated by our management and products, as much as the impact of salient issues on corporate
topics in the future. Double Materiality considers the external impact caused by the company’s management activities beyond the traditional approach to
value and financial performance, we transparently disclose significant activities and achievements related to material issues.
social and environmental issues impacting the company’s financial value. When it comes to sustainability, Double Materiality contains great significance on
either side of companies and society, making us analyze both aspects to identify the main topics.
Double Materiality Assessment Process Rank Topic
Influence on Economy&Environment& Society

1 Digitalization
Step 1. Selection of ESG topic Step 3. Impact Assessment
2 Financial Consumer Protection
• Analysis on sustainable management / ESG standards and evaluation
Climate Action
① Direct and measurable financial impacts and risks
3
(DJSI, MSCI, SASB, KCGS, etc.) Financial 1
• Analysis on management environment, investor groups, business strategy and Importance ② Topic-related regulations or government policies 2 4 Integrated Risk Management
performance, the media, and peer group benchmarking (Outside-In) ③ Impact on financial performance caused by high 5 Compliance
Analysis expectations on sustainability management and its
3 6 Governance
achievement
6
④ Impact on financial performance owing to perception of 7 7 Ethics and Integrity
stakeholders and social trends
8 Human Rights Management
Step 2. Analysis on the current status of the topic ➄ Impact on financial performance due to innovation
4
opportunities generated by new competitive advantage 5 9 ESG Management Reinforcement
• Regulations and guidelines at home and abroad * Impact assessment on a five-point scale
8 10 Responsible Investment
• Violations cases of laws and controversies in the industry 11
• Review on the awareness level of risks and opportunities in investment groups Influential ① Probability of occurrence 10 11 Management and Labor Relationship
② Severity of impact
9
• Identification of time, possibility and severity of impact importance 12 Training and Education
(Inside-Out) - Scale: magnitude of impact (significance)
12
13 Stakeholder Engagement
Analysis - Scope: scope of impact 14
(Value-Chain, environment, community, etc.) 14 Occupational Health and Safety
- Resilience: probability of recovery from impact (separate
calculation is needed by area: company, environment and
Step 4. Prioritization society)
13
* Impact assessment on a five-point scale
• Sorting out priorities
• Compiling opinions of major stakeholders
• Conducting online survey of major departments in charge of sustainable
• Third-party verification
management and expert groups to assess the importance of 14 salient topics
• Reflecting ESG management strategy - Survey period: Mar. 4, 2022 – Mar. 11, 2022
Business Impact on Samsung Securities

Material Issue Management
Category Digitalization Financial Consumer Protection Climate Action Integrated risk management Compliance Governance Ethics and Integrity
Background of Material Issues T he advancement of digit al science Incomplete sales caused so-called private Climate change having a direct impact Companies need to manage risks in both Awareness of compliance is a ba sic The establishment of a transparent Ethics and integrity are coming to the fore
technology such as AI and Bid Data on equity crisis in 2020 in which securities on f ina ncia l inve s t ment a nd produc t f ina ncial a nd non-f ina ncial a rea s for consciousness t hat employees a nd corporate governance structure is the as we are facing with the growing demand
top of solidified non-face-to-face culture companies compensated investors with composition has made it very urgent to s us t a in a b le m a n a ge m e nt a n d p r of i t management must have as the ground foundation of management activities. for the fulfillment of social responsibility
in the aftermath of COVID-19 has made approximately KRW 600 billion. The proactively manage business risks and stabilization. Integrated risk management for coexistence and mutual grow t h Therefore, the sound governance where as a corporate citizen. we are urging entire
digitalization an unavoidable trend in the financial consumers protection in the create opportunities. Since responsible system is gaining signif icance for it s with society. It is needed to break the diversity is respected is a requirement employees and companies in our value
financial industry. Big Tech and FinTech retail business of securities companies is investment of financial companies can excellence in minimizing negative effects performance-based mindset focusing to promote balanced management in chain to have a sense of ethics and integrity.
companies equipped with IT technology gaining its significance with the proportion generate enormous impact on climate of various risks. The crises can be turned only on net profit. Global companies are the interests of all stakeholders. The We will maintain the high-level management
have made inroads into the financial market, of individual investors increasing in the change, we should incorporate climate into opportunities only when we identify striving to continue more responsible leadership should fulfill its original role in system to root out unethical behaviors that
igniting fierce competition. Against this market. change issues into our business policies and p ot ent ia l r isk s b e f o reh a n d a n d t a ke management, not only by tightening the responsible management under the negatively affect the trust capital of the
backdrop, we are witnessing fast-evolving investment strategies after close review. preemptive responses to them. internal monitoring but also external upright governance. company.
digitalization throughout sales channels and monitoring.
services, which makes it very important to
possess the capability to provide digital-
based products and services.
Ways of Managing Material Issues Samsung Securities has reorganized the Aiming to reinforce customer-oriented Samsung Securities is taking proactive Samsung Securities discovers possible We make strenuous ef for ts for In accordance with laws and the Articles of We established the Code of Ethics for our
digital asset management HQ, reinforcing management, we operate the Consumer measures including green infrastructure risks in each business beforehand on top compliance management led by the top Incorporation, we organized the BOD and employees and detailed rules to strictly
work force to increase profit s in the Protection Center supervised by the CCO building and greater investment in eco-friendly of integrated management of financial management through regulations that committees to support the management’s comply with. Annual ethics education is
digital business. We are responding to the under the direct control of the CEO. With areas to mitigate climate crisis. We measure a n d n o n-f in a n c ia l r isk s . We a n a l y ze clarify responsibility for internal control sensible decision-making, while playing provided for our employees while renewing
growing customer demand for non-face- the operation of the center, we establish the financed emissions of investment assets risks accompanied by the fast-evolving management and supervision toward the role of checks and balances. The our commitment by signing a pledge of
to-face service by stepping up customized a company-wide process of financial in 2021 to concrete the roadmap for carbon environment ranging from digital innovation executives. Apart from Compliance Team governance will be reinforced to the practice. We receive reports regarding
wealth management services equipped consumer s protec t ion by which we neutrality and to enact the principle of Coal- to integration of international financial under the Internal Control Committee global level and BOD-related information embezzlement, bribery, and violations of
with new digital technologies such as AI, prevent unsound and incomplete sales free investment which are embraced in our market, and incorporate countermeasures under the direct control of the CEO, an including ESG-related activities will be the Code of Ethics through the internal fraud
cloud, and chatbots. and listen to the clients’ voices. financial activities. Recognizing the impact into the management system, thereby internal control manager is appointed to disclosed to stakeholders and investors, reporting channel.
of our financial activities on the environment establishing the risk management system train each department. thereby ensuring transparency.
and society, we introduced electric vehicles that enables preemptive response to risks.
for business purpose as part of our green
management and strive to reduce energy and
resource consumption in addition to fulfilling
social responsibilities.
Performance Evaluation 2.53 million ‘Good’ rating Measuring financed emissions 6 times 100% 66.7% 3.1 hours
Accumulated no. of new clients Becoming the only securities company of investment assets in 2021 Risk Management Committee meetings Ratio of business sites receiving anti- Ratio of non-executive directors Education hours on ethics per capita
through non-face-to-face means to acquire a ‘Good’ rating on consumer held corruption risk assessment
Installing digital business window 15 times ZERO
protection evaluated by Financial
KRW 80.6 trillion to reduce paper usage 64 times 100% No. of board meetings held corruption and bribery against Code of
Supervisory Services
Digitally managed client assets Risk Management Executive Committee Participation rate of online education Ethics
100%
Zero meetings convened on anti-money laundering
BOD Attendance rate
violations against displaying and
Twice a year
advertising regulations
Risk-related training conducted
Achieving No.1 position
in the KCSI securities sector

Material Issue Management
Category Human Rights Management ESG Management Reinforcement Responsible Investment Management and Labor Relationship Training and Education Stakeholder Engagement Occupational Health and Safety
Background of Material Issues A company, which undermines human As the growing number of stakeholders Not only for fulfilling social responsibility The key in creating a sustainable future for The desire for achievement through self- We are living in the era when the companies Safet y is a basic need and right , thus
values and rights in the course of its adopt ESG as a standard for investment but also for sustainable finance, responsible a company is securing human resources. development is quite high among human are required to engage all stakeholders companies have an obligation to protect
management, cannot be considered as a and evaluation, ESG management has investment has become an irreversible Besides, it is necessar y to establish a needs. If employees are continuously including shareholders in corporate employees f rom r isk s, disea ses, a nd
good company. The way of management become a survival strategy for companies trend in which companies need to establish fair and transparent recruiting process, a provided with educational opportunities ac tivities. Companies implementing accidents caused in the process of working.
in which the human rights of not only rather than selec t able alternatives. a socially responsible investment processes corporate culture going hand in hand, and that help them grow, the loyalty to the management tilted to one-side cannot T h e s co p e of su ch o blig at io n cover s
our inter nal employees but a lso a ll Consequently, ESG is positioned as a key with more eco-friendly investment products a labor-management relationship based company will also rise. A desirable culture lead to a sustainable future. With specific business partners including subcontractors,
s t a keholder s including our p a r t ner management strategy with increasing and services. on mutual respect, aiming for securing for companies and individuals is to grow definition of stakeholders and various contractors, and visitors apart from internal
companies and consumers are taken into demand for related products and bonds, potential talents and preventing the outflow together. communication channels, we should reflect employees. Companies need to make
consideration has risen to prominence. leading to the bigger size of the market of internal human resources. their expectations in our management. ceaseless efforts to ensure safe and healthy
Therefore, it is necessary to check the centered on ESG. work environment.
level of impact on human rights and take
necessary measures to put it right.
Ways of Managing Material Issues For the purpose of eliminating human In direc t ions of g reen, responsible, We declared coal-free finance based on In recruiting new and experienced F o r s y s t e m a t i c a n d s e l f- i n i t i a t e d We classified our stakeholders into 6 Samsung Securities has established health
rights violations including sexual and transparent management, we socially responsible investment followed employees, we are pur suing fairness talent nur turing, we developed a groups: client, shareholder, government and safety (OHS) policies, complies with
harassment and abuse of power, we are organizing ESG management. ESG by the establishment of the coal-free against discrimination and prejudice. portal for comprehensive competency and related agency partner (supplier), relevant laws, aiming to create a safe and
annually implement related educational Secretariat, ESG Research Institute, investment principle to clarify the targets We also practice 7 principles to create a management along with the platform local community and NGO, employee, healthy workplace. Annual plans for safety
programs. We also assist in the relief and the department in charge of of investment exclusion. We are also pleasant corporate culture based on active for mobile education programs. Job and future generation. Based upon the and health are reported to the BOD, while
of human rights violation cases risk management are conducting issuing green bonds and developing eco- communication, putting no limitation in training system is also reinforced to raise definition, we operate communication the Industrial Safety and Health Committee
which are repor ted through internal management and supervision regarding friendly products with an aim of solidifying joining labor union for win-win and co- work competencies while employees channels tailored to each group by which which includes members on labor side, is
reporting channels where the identity of ESG at the company level by leveraging responsible investment. existing management-labor relationship. are encouraged to acquire professional we can identify interested issues and being operated to continuously improve the
whistleblower remains confidential. exper tise and competencies and by certificates such as CFP and CFA. manage them to increase the satisfaction safety and health management system.
operating the ESG Committee and ESG of stakeholders.
Executive Council within the BOD.
Performance Evaluation 100% A grade in MSCI ESG evaluation GREEN 1 161 KRW 1.37 million Communication Channels ZERO
Rate of human rights-related A grade for the first time for a Issuing KRW 100 billion of Green 1 No. of newly hired employees Education cost per capita Reflecting stakeholders’ opinions in absence due to occupational accidents
grievances handled domestic securities company grade ESG bonds management activities
11% 128 hours 152 hours in total
2,698 hours Enlisted in the DJSI World Index Establishment Labor union membership rate Training hours per capita Safety and health education hours
Total training hours on human rights for 12 consecutive years of the coal-free investment principle
Longest years to be enlisted in
the index as a domestic securities
company

RISK MANAGEMENT
As risk is inevitable in business operations, we are required to manage and

Risk Management by Risk Type Risk Management System Risk Cost System
adequately cope with them, thereby continuing sustainable management. As part of RAPM, Samsung Securities implemented a specialized risk cost
At Samsung Securities, the BOD, the highest decision-making body,
Recognizing the importance of risk management, the management Financial Risk system where risk costs are calculated for each division and reflected in
oversees risk management and operates a body for each decision-making
leadership and all employees have made an unwavering effort to ensure the performance bonus of executives and divisions (Retail, IB, Sales &
Market Risk • Risk factors causing market price volatility
process with the Chief Risk Officer directly under the CEO. This is an
a stable business operation by adopting a preemptive risk management Trading, Channel Sales, etc.), while incorporating risk management into
• Management of VaR and maximum loss
optimal way to respond to risks in a timely and preemptive manner. For
system. Breaking Risks down into the financial and non-financial areas, financial performance.
• Sensitivity analysis of price fluctuation promoting efficient operation, the sub-committee reports the approved
we manage risks by type and analyze possible risks by business area at a *R
APM (Risk Adjusted Performance Measurement): an indicator for assessing revenue
Credit Risk • Risk incurred when a counterpart fails to uphold their items to the higher-level committee, and when approval is needed beyond creation against risk taken
company-level. The risk management system, which manages, evaluates,
obligations the authority granted to the sub-committee, the upper committee
and controls risks at an adequate level, is extremely critical in management
• Credit rating and credit line management approves it. The Risk Management Executive Committee under the Risk Risk Indicator
activities. Therefore, we have established an efficient management system
• OTC derivatives risk management Management Committee makes decisions in regard to risk management
maximizing profits while managing risks at a certain level. VaR (Unit: KRW 1 billion)
Liquidity Risk • Risk posed by liquidity and maturity for each business division. Enabling the most objective risk determination
Category FY 2021 FV 2020
• Liquidity ratio management and independent work, the Chief Risk Officer is directly under the CEO. In
other words, the head of the transaction department and the executive
Daily Avg. Min. Max. Year End Year End
• Liquidity stress testing
in charge cannot concurrently serve as the head of the risk management Total VaR 12.77 9.23 20.29 16.43 14.1
Non-financial Risk department and the executive in charge. Stock 6.04 3.74 10.88 9.70 3.6
Client • Risk of client data leakage Interest Rate 9.93 9.43 14.66 8.49 11.9
Information • Compliance with client data-related laws FX 0.23 0.07 2.12 0.55 0.2
Risk Management Organization Chart
Protection
• Implementation of personal information protection policy Diversification -3.4 -4.0 -7.4 -2.3 -1.6
• Monitoring of mandatory security regarding client Board of Directors Effect
information
Net Capital Ratio (Unit: %, %p, KRW 1 billion)
Financial • Incomplete sales and consumer rights violation risk
Consumer Risk Management Committee CEO Category FY 2021 FY 2020 YoY
• Appointment of CCO directly under CEO and operation of
Protection consumer protection center Risk Management Executive Committee Chief Risk Officer Net Operating 4,458 4,324 134
• Obligation to consult work related to consumers in advance Capital
Risk Amount 2,888 2,353 535
ESG • All social and environmental risk incurred by our financial Investment Risk Management Risk Assessment
Product
activities Acquisition Team Team Required 130 130 -
Committee
Committee Equity
• Compliance with ESG investment guidelines
• ESG risk analysis
Commitment Transaction Net Capital 1,208% 1,516% -308%p
Committee Review Council Ratio

RISK MANAGEMENT Potential Risk
Risk Definition / Description Potential Impact on Business Countermeasures
Digital transformation risk The development of digital science technology such as the Internet of Things •A
ppointing Chief Information Security Officer
due to information technology (IoT), artificial intelligence (AI), big data, and blockchains is rapidly pushing (CISO)
development the financial industry into digital systems. The digital transformation •E
stablishing dedicated organizations under
of the financial industry brings about significant changes in human the CISO: Information Security Team and IT
resources, information, technology, and facility assets, thereby accelerating security team
Reinforced Risk Management Assessment digitalization throughout business processes, sales channels, and services.
•B
uilding the process to handle information
By harnessing digital transformation technology, we can effectively extract protection and to respond personal
Background of Enhanced Risk Assessment and utilize large-scale information. On the other hand, security vulnerabilities information-related incident
Risk management and screening system increase in the process with operational problems such as digital system
The domestic financial market is expanding its scope to alternative •C
onducting anti-intrusion accident drill
failure. Without proper preparation for risks such as data leakage and
- server hacking, DDoS and APT attack response
investment assets, such as domestic and overseas corporate loans, real malicious software on the trading system, we might face sanctions due to
Request for review by the department in charge training, cyber shelter conversion training
estate finance, and infrastructure assets, beyond the existing investment violations of the Information Protection Act and unexpected losses.
• Monthly malicious code simulation training for
trend focusing on domestic stocks and bonds. Coping with such changes, employees
Risk assessment and analysis we beef up our assessment capabilities by securing more professional • Regular IT audits
review personnel. Based on their respective fields of expertise, the • Renewing personal information protection
management system (ISMS-P) certification
assessment personnel are responsible for assessing the risk and return of
Review by the relevant department review and approval
head and council by executive council
target assets for the company’s investment and product supply. Reputational and regulatory risk Scale of ESG investment has been expanded led by growing investor •S
uspending coal terminal investment and
from urging response to climate demand. In particular, investment only from a financial point of view with declaring zero-coal finance
Effects of Strengthening the Assessment Capacity change such as investment and no consideration the environment increases risks due to the stricter •N
ewly establishing a department for ESG
wealth management considering environmental regulations by country. For instance, risks such as cost including ESG research center and hiring
Investment execution (product launch)
• Better response to new asset investment by increasing professionals for environmental impacts such as increase and cancellation of the implementation process can occur. professionals
each asset such as real estate and infrastructure greenhouse gases and energy In addition, when the National Pension Service selects an investment
• Implementing ESG impact through
institution, ESG reporting level is evaluated through company reports. If
• Advanced expertise in assessing each asset and refined assessment prescreening review of investment and
Follow-up management the company failed to be selected as the level is unmet, it can become a
methodology products
reputational and financial risk. The ESG standards presented to securities
• Improved risk assessment capability through cross-review by specialized area companies by financial authorities in and outside Korea are being all the
more stringent, and regulatory risks are expected to rise as the effectiveness
Role and Responsibility of Risk Management Department of ESG investments will be monitored through sophisticated data analysis in
the future by effectiveness of pre-screening on investments and products.
Risk • Allocating risk limits companywide and monitoring them
Expansion of investment in As we have seen the obvious limitations in the growth of traditional • Strengthening of pre-assessment based on
Management • H olding risk management meetings overseas and alternative assets investment assets and the emergence of new growing industry such as investment regulations
Team the 4th industrial industry, there was a growing need to expand investment
• External reporting (net operating capital ratio, etc.) •E
stablishing post-monitoring and exit
in overseas assets and alternative assets. However, the expansion of measures
Risk • Assessing corporate, real estate, alternative assets investment portfolio directly leads to the greater exposure of risks, because
•S
ecuring assessment personnel
Assessment • M anaging credit grade and limits of transaction counterparts new risk factors that have not been managed in the existing investment
Team assets can be added. As a result, there is a possibility that there may be issues
• Post-management of holdings
concerning increasing losses or worsening ratio of financial soundness.
Consolidating financial consumer As the ʻFinancial Consumer Protection Act’ comes into force in 2021 in Korea, •F
orming a Consumer Protection Center under
protection following the private securities firms have tightened their obligations to comply with the six sales CCO directly controlled by CEO
equity fund crisis and enforcement principles when selling all financial products, and to establish and manage •A
dvancing incident response system and
of the Financial Consumer internal control standards for safeguarding financial consumers. Besides, development, sales, post-handling process
Protection Act the level of sanctions has been strengthened, such as granting consumers applying Financial Consumer Protection Act
the right to cancel illegal contracts and imposing punitive penalties for
•R
einforcing preemptive prevention activities
violations of the law. Against this backdrop, failure to adequately respond to
through conducting financial consumer
incomplete sales and financial fraud is expected to bring about compliance
protection education and mystery shopping
risks and a damaged corporate reliability and profitability.

STAKEHOLDER COMMUNICATION SASB
Samsung Securities operates communication channels that consider the characteristics of each stakeholder, and defines clients, shareholders, government The Sustainability Accounting Standard Board (SASB) is a non-profit organization that sets non-financial reporting standards. Founded in 2011, it has
and related business partners (suppliers), local communities and NGOs, employees and future generations as our key stakeholders, checking the interests of developed and disseminated sustainability accounting standards. SASB presents sustainability risk topics that are highly relevant to each industry and
each stakeholder group. We strive to continue our sustainable management by building a profound trust with each other through constant communication recommends companies to continuously report on the topics to communicate with investors and stakeholders. Samsung Securities discloses related
with stakeholders, and at the same time by reflecting the opinions and needs of stakeholders in our business activities. information in line with the investment banking & brokerage industry topic index according to the SASB classification.
Code Description Unit Our Response
Employee Diversity & Inclusion

Client Shareholder
FN-IB-330a.1 Percentage of gender and racial/ethnic group % We disclose diversity index including gender and nationality in Social Data_labor_2021
representation for (1) executive management, Performance.
(2) non-executive management, (3)
professionals, and (4) all other employees
Incorporation of ESG Factors in Investment Banking & Brokerage Activities

Government,
Future Samsung Related Agency FN-IB-410a.2 (1) Number and (2) total value of investments (1) number, We disclose related information in Sustainable Finance_Responsible Investment
Generation Securities Partner and loans incorporating integration of (2) KRW section.
(Supplier) environmental, social, and governance (ESG)
factors, by industry
FN-IB-410a.3 Description of approach to incorporation of N/A Samsung Securities newly established the ESG Committee within the BOD in 2021 to
environmental, social, and governance (ESG) step up ESG management. We manage ESG based on the competency and expertise
Local factors in investment banking and brokerage by operating the ESG Secretariat and ESG Research Center, and risks are reviewed
Employees Community, activities by the department responsible for risks. On top of that, we have established ESG
NGO
investment guidelines to preemptively consider the impact of our financial activities
on the environment and society. It is used as a basic policy in the decision-making
process, and we go through pre-screening before all transactions to review impacts.
Stakeholder Major Communication Interests and Expectation Stakeholder Major Communication Interests and Expectation More details are disclosed in the Sustainable Investment section.
Group Channels Group Channels Incorporation of ESG Factors in Investment Banking & Brokerage Activities
Client • VOC • Protecting personal information Local • Social Volunteer Group • Vitalizing local communities
FN-IB-510a.1 Total amount of monetary losses as a result of KRW There was no monetary sanctions for violations of laws for regulations in 2021.
• Client satisfaction survey • Safeguarding financial consumers Community, • Nanumi Fund • Reinforcing social responsibility legal proceedings associated with fraud, insider
• Annual seminar • Creating a proper investment culture NGO • Diversifying local contribution programs trading, anti-trust, anti-competitive behavior,
• Homepage • Improving client-centric services market manipulation, malpractice, or other
Employees • VOE • Raising corporate value
• YouTube • Ethical and compliance management related financial industry laws or regulations
• Company broadcasting, • Sustainable economic performance
Shareholder •G
eneral shareholders’ • Raising shareholders’ value company messenger • Fair performance evaluation and rewards FN-IB-510a.2 Description of whistleblower policies and N/A We are making ourselves a clean and honest company through the internal reporting
meeting • Enhancing risk management • Meeting for sharing • Supporting work and life balance procedures system. We classified reports into 10 types, and we are receiving reports from external
• IR activity • Establishing upright governance management status • Self-development and welfare benefits stakeholders on unjust acts taking advantage or fraudulent acts causing losses to the
• Making sustainable economic • Multifaceted evaluation
company. Reports can be made through all possible methods including the website,
performance Future telephone, fax, and mail, and we reply with results of the processing as quickly as
• University Volunteer Group, • Climate finance and eco-friendly
Government, • Public hearing • Creating value in win-win cooperation Generation ‘YAHO’ investment possible. In terms of the response system, relevant department responds on its own
Related Agency • Seminar and meeting • Financial Education for Youth • Providing adequate financial education or convenes a crisis management committee, and the CEO is responsible for overall
• Ethical and compliance management
Partner •Y
outh Study Rooms, • Facilitating local communities response depending on the severity of the issue. On top of that, we thoroughly protect
(Supplier) ‘Vision Maru’ the informant and ensure that there is no disadvantage posed to identity.

SASB
Code Description Unit Our Response Code Description Unit Our Response
Professional Integrity Systemic Risk Management
FN-IB-510b.2 Number of mediation and Case We were not engaged in mediation and arbitration for violations of the Code of Conduct in 2021. FN-IB-550a.1 Global Systemically Important Basis points (bps) N/A
arbitration cases associated with Bank (G-SIB) score, by category
professional integrity, including
FN-IB-550a.2 Description of approach to N/A We carry out a risk situation analysis at a company-wide level assumed over the market, credit
duty of care, by party
incorporation of results of and liquidity risks more than once every six months. The results of risk situation analysis are
FN-IB-510b.3 Total amount of monetary losses KRW As disclosed in Governance Data_Ethical Management and Compliance part, the number of mandatory and voluntary stress reported to the management through the Risk Management Committee or other organizations
as a result of legal proceedings lawsuits was 0. tests into capital adequacy so that the results are taken into account in the important decision-making process. The
associated with professional planning, long-term corporate comprehensive market crisis scenario for risk situation analysis assumes the changes in market
integrity, including duty of care strategy, and other business variables such as stock prices, volatility, correlation coefficients, exchange rates, and credit
activities spreads, and estimates losses due to changes in fair valuation. The liquidity risk scenario assumes
FN-IB-510b.4 Description of approach to N/A We have standards for value judgment and code of conduct for fair and transparent corporate
a crisis situation caused by market and internal factors, and calculates the size of liquid asset
ensuring professional integrity, management while internalizing them throughout the company. Our management principle is
holdings under the assumptions of funding restrictions, a certain level of RP, the redemption of
including duty of care composed of five core principles and detailed contents.
OTC derivatives, and liquidity outflow due to contingent liabilities such as debt guarantees. Along
In particular, the code of ethics and detailed principles have been separately established to with that, we operate a response plan (contingency plan) for each stage of crisis by reflecting the
stipulate ethical and social responsibilities and obligations. Based on this, we provide ethical results of crisis situation analysis and market conditions. Based on the worst volatility during
education for our employees to actively practice them. If the code of ethics is violated, we the past financial crisis, we classify crisis situations into three stages using stock prices, interest
conduct a thorough and fair investigation, followed by measures and training for the prevention rates, and credit spreads as common indicators, and reflect the characteristics of each sector.
of recurrence. On top of common indicators, separate criteria such as liquidity and counterparty’s credit risk are
applied to establish risk assessment criteria, With an aim to recognize crisis stage and implement
countermeasures for each sector, a step-by-step response plan are being prepared.
Employee Incentives and Risk Taking
FN-IB-550b.1 Percentage of total remuneration % Incentive is paid according to the remuneration system, and there is no incentive based on the
that is variable for Material Risk classification of MRTs. However, we pay the deferred portion (60%) in a fixed amount without
Takers (MRTs) linking the company stock price to executives responsible for risks, unlike other executives.
FN-IB-550b.2 Percentage of variable % Although there is no specific ratio, if reduction or redemption is necessary, the remuneration
remuneration of Material Risk committee decides on the matter.
Takers (MRTs) to which malus or
clawback provisions were applied
Activity Metrics
FN-IB-000.A (1) Number and (2) value of Case, KRW Classification Unit Amount
(a) underwriting, (b) advisory, and
Acquisition (brokerage)* KRW 1 million 30,533,363
(c) securitization transactions
Advisory** 3,606,650
* Based on acquisition and arrangement transactions (including Asset Backed Securities, not
including loans)
** B ased on completed M&A transactions

TCFD
Task Force on Climate-related Financial Disclosures (TCFD) is an initiative, created by the Financial Stability Board in 2015 following a request from the G20
Finance Ministers and Central Bank Governors, with an aim of encouraging companies to voluntarily disclose their climate change-related data in a consistent
manner. Global stakeholders and investors are using the data disclosed in accordance with the TCFD recommendations.
Recommendations Samsung Securities Response Relationship Recommendations Samsung Securities Response Relationship
to the CDP to the CDP
Governance Strategy
a) Describe the board’s With the purpose of reinforcing the roles and responsibilities of the board of directors (BOD) and defining the matters C1.1b a) Describe the climate- Technology risk | Since Samsung Securities is a financial company, so the development of technologies such as energy C2.1a, C2.3,
oversight of climate- in regard of the roles of organization in charge and its operation in ESG management, Samsung Securities launched related risks and efficiency one, doesn’t have a direct impact on us. However, these technologies may have to do with our sales through C2.3a, C2.4,
related risks and the ESG Committee under the BOD in 2021. The ESG Committee, the top decision making body, is comprised of one opportunities the the overwriting of securities or assets. Accordingly, we take into account the environmental activities of companies when C2.4a
opportunities. executive director and two non-executive directors. The committee assumes the roles of formulating and discussing organization has identified we screen and monitor the risks of companies to make investment decisions.
ESG management strategies and policies. And ESG pending issues and regarding tasks are reported to the committee over the short, medium, Market risk | The financial business is liable to the changes in the market, and therefore we manage changing consumer
on a regular basis. The ESG Committee is semiyearly convened. If there is a need to make decisions on agenda items and long term. behaviors and market uncertainty as climate change-related market risks. We run not only in Korea but also five overseas
submitted, the committee is held to discuss climate change and environmental issues on a regular basis. countries including New York, Hong Kong, and London while working with global financial institutions and overseas
b) D
escribe the impact of C2.3a, C2.4a
b) D
escribe management’s Samsung Securities’ management has refined our climate change response process so that we can swiftly cope with the C1.2 climate-related risks pension funds to try various forms of alternative investment. Hence, we always keep an eye on the changes in the market
role in assessing and opportunities and risks posed by climate change. The ESG Secretariat and Risk Management Team report investment and opportunities on the and emerging climate change-related issues at home and abroad, and manage them as risks.
managing climate-related plans, performance, and expenses concerning climate change-related issues to the management, which is followed by organization’s businesses, Reputation risk | The financial industry relatively has a less possibility of causing a large-scale environmental issue.
risks and opportunities. the selection of agenda items by the management to bring up at BOD meetings. strategy, and financial However, companies or projects that financial companies invest in can have an impact on the reputation of the
planning. companies. In 2019, an Australian environmental organization made a request to withdraw our investment in taking
Strategy
over a loan regarding a coal terminal project, and we promised not to additionally fund the project. This experience
a) Describe the climate- The opportunities and risks that climate change entails have an impact on corporate finance in various ways. Physical C2.1a, C2.3, raised our awareness of the need to step up our ESG management that takes into account not only financial but also
related risks and climate risks, such as frequent natural disasters, can lead to loss of tangible assets. And these risks can also damage the C2.3a, C2.4, non-financial elements when making decisions on product provision and investment. As of now we have established
opportunities the business of branches in terms of service provision or operation, which, in turn, can have a negative impact on sales. C2.4a our Sustainable Finance Guidelines, which enables us to consider influential qualitative information (governance,
organization has identified Accordingly, Samsung Securities defines opportunities and risks posed by climate change and estimates the financial environment impact assessment, social impact assessment) and elements having an impact on the global community
over the short, medium, impact from them. The followings are the climate change-related risks we define. and environment (clean energy, water resources, mining, transportation, petroleum and gas, materials, etc.) when
and long term. we make decisions on investment in all forms of asset, and providing products. In addition, we constantly evaluate
❶ Transition Risks
corporate investment assets and products in the aspect of ESG for risk management while estimating the ratio of
b) D
escribe the impact of Current Policy and Legal Risks | Samsung Securities assesses the impact that current climate change-related regulations C2.3a, C2.4a
sales generated from the coal mining and coal development business to utilize the data as prior screening guidelines
climate-related risks may have on our business, and associates them with our business strategies. The Korean government introduced
when we take over assets or providing financial products.
and opportunities on the the Emissions Trading Scheme in 2015. We are not subject to the scheme, but given the fact that the government has
organization’s businesses, tightened the regulations on GHG emissions, we are considering that there is a possibility to expand the coverage of the ❷ Physical Risks
strategy, and financial scheme, and the possible impact it will have on the companies we invest in. Acute Risk | The increased frequency of climate phenomena, such as hurricanes, typhoons, or floods, can have an impact
planning. New Policy and Legal Risks | In recent years, we are seeing more stringent regulations concerning climate change and the on our branches, investment projects and assets. In response, we monitor weather forecasts at each branch and inspect
environment across the globe, such as the adoption of carbon tax or stricter mandatory use of renewable energy. Against drainage facilities, buildings and electrical equipment of branches in areas of heavy precipitation to prevent damage in a
this backdrop, we survey global regulations and measure the possible impact they will have on our business and invested proactive manner.
companies. Europe has already started tightening environmental regulations, releasing a plan to phase out the free Chronic Risk | Sea level rise or abnormal high temperatures may continue owing to long-term changes in climate patterns
carbon quota allocation by 2035. Samsung Securities considers the possibility of adopting more stringent regulations on resulting in the economic stagnation and asset value declines of investment target companies. It may cause financial
carbon emissions that limit global warming 1.5 and 2.0℃ compared to pre-industrial levels. losses to the portfolio. We included long-term physical environmental changes in the climate change risks, identifying
future impacts through scenario analysis, and many more.

TCFD
Recommendations Samsung Securities Response Relationship Recommendations Samsung Securities Response Relationship
to the CDP to the CDP
Strategy Risk Management
a) Describe the climate- ❸ Climate-related Opportunities C2.1a, C2.3, c) D

escribe how processes We consider climate change and environmental issues as the risks that make a significant financial impact, thereby C2.1, C2.2
related risks and Products and Services | The amount of ESG fund sales of Samsung Securities in 2021 was KRW 152.6 billion in 2021, up C2.3a, C2.4, for identifying, assessing, managing them in an integrated manner with financial risks. The identified risks are reviewed and analyzed by the risk
opportunities the about 16 times from the previous year at KR 9.5 billion. The balance rose considerably to KRW 169.9 billion from 68.8 C2.4a and managing climate- assessment team, followed by reporting to the council of relevant department heads and executives meetings. The risk
organization has identified billion in 2020. We think of the growing consumers’ demand for ESG funds as our opportunities, reflecting ESG factors in related risks are integrated management team is in charge of risk monitoring. To respond to risks, we conduct various response activities, such as
over the short, medium, our financial products aiming to create a market ecosystem growing together and sustainable society. We plan to expand into the organization’s ESG impact analysis through pre-screening of investments and products. The ESG investment guidelines are our basic
and long term. the number of eco-friendly investment product lineups to 100 from the current 26 products centering around funds. overall risk management framework for evaluating investment products and projects provided by Samsung Securities. The guidelines stipulate the
exclusion of investment in coal power plants and mining among target products and projects. We also conduct company-
b) D
escribe the impact of R&D | Samsung Securities established the ESG Research Center under the Research Center in 2020, which is the first one C2.3a, C2.4a
wide campaigns to raise the awareness of climate change risks to the same level as market and credit risks.
climate-related risks in the industry. Aiming to publish a report containing in-depth insights concerning ESG and to provide ESG analysis, we
and opportunities on the have launched and operated a separate brand, ‘Sustain-WISE.’ Metrics and Targets
organization’s businesses,
a) Disclose the metrics used For managing risk and opportunity factors in relation to climate change, we selected indicators, such as GHG emissions, C4.2, C4.2a,
strategy, and financial
by the organization to energy consumption, and ESG product scale to measure and monitor them. We disclose the ESG-related targets and C4.2b
planning.
assess climate-related status through an annual integrated report.
c) D
escribe the resilience With an aim to understand the business impact derived from climate change, we analyze scenarios that forecast the C3.1, C3.2, risks and opportunities in
of the organization’s physical risks by situations when GHG reduction policies are substantially realized (RCP1.9) and when GHG is emitted at C3.2a, C3.2b, line with its strategy and
strategy, taking into the same level as the current trend (RCP8.5). In addition, we calculated financial emissions to achieve carbon neutrality in C3.3, C3.4 risk management process
consideration different our portfolio. We classified PCAF assets while measuring financial emissions from ETFs, public offering funds, and fund
b) D
isclose Scope 1, Scope 2 The GHG emissions in 2021 was 622 in Scope 1, 805 in Scope 2, and 208 in Scope 3. C6.1, C6.3,
climate-related scenarios, of funds based on MSCI data. Through this, we strive to achieve our GHG mitigation goals by carrying out voluntary and
and, if appropriate, C6.5
including a 2°C-or-lower diverse reduction activities and converting the GHG reduction effect into economic value.
Scope 3 greenhouse gas
scenario.
(GHG) emissions, and the
Risk Management related risks
a) Describe the organization’s We reinforced our ESG organizations to preemptively respond to transition risks to a low-carbon economy and physical C2.1, C2.2, c) D
escribe the targets used We promote company-wide activities aiming at reducing 51% of carbon emissions by 2030. We prepared a digital window C4.1, C4.1a,
processes for identifying risks caused by natural disasters. We capitalize on the ESG Committee, newly established within the BOD, as well as C2.2a by the organization to system to establish a paperless work environment while digitalizing the entire branch tasks. Furthermore, we plan to C4.2, C4.2a,
and assessing climate- ESG Secretariat, ESG Research Center, and risk organizations identify and evaluate climate risks. The ESG Secretariat is manage climate-related replace old facilities company-wide and convert corporate cars to eco-friendly ones. In addition, we will start a full- C4.2b
related risks in charge of internal and external communication to facilitate stakeholder engagement, while the ESG Research Center risks and opportunities fledged purchase of renewable energy based on REC usage and the efficient use of energy by switching lighting to LED
analyzes ESG issues, including climate change, and reflects them on the risk assessment process. and performance against and efficiently using air conditioners and elevators.
targets
b) Describe the organization’s The BOD assumes the final responsibility for risk management. It checks the results of the materiality assessment of C2.1, C2.2
processes for managing risks identified by the ESG Committee within the BOD and takes them as agenda items. The materiality assessment * Unit: tCO₂eq
climate-related risks measures the scores of identified risk factors through evaluating financial and non-financial impact, management
strategies, and stakeholders.

GRI STANDARDS INDEX
Universal Standards Topic Specific Standards Management approach Topic Specific Standards Environmental Performance
Topic Title Page Topic Title Page Topic Title Page Topic Title Page
Organizational Profile Governance Economic Performance Raw Materials

102-1 Name of the organization 18 102-28 Evaluating the highest governance body’s 87~88 103-01 Explanation of the material topic and its 108~111 301-1 Weight or size of used raw materials 57
102-2 Activities, brands, products, and services 131 performance boundary Energy
102-3 Location of headquarters 18 102-30 Effectiveness of risk management 112~115 103-02 The management approach and its 108~111 302-1 Energy consumption within organization 55~56
processes components
102-4 Location of operations 19 302-2 Energy consumption outside organization 56
102-31 Review of economic, environmental, and 106~107 103-03 Evaluation of the management approach 108~111
102-5 Ownership and legal form 18, 88 302-3 Energy intensity 56
social topics
102-6 Markets served 12~15 Water
102-34 Nature and total number of material issues 106~107
102-7 Scale of the organization 10~18 303-5 Water consumption 57
102-35 Remuneration policies 87
102-8 Information on employees and other 58~62 Topic Specific Standards Economic Performance Emissions
102-36 Process for determining remuneration 87
workers 305-1 Total direct GHG emissions Scope 1 56
Stakeholder Engagement
102-9 Supply chain 51 Topic Title Page 305-2 Total direct GHG emissions Scope 2 56
102-40 List of stakeholder groups 116
102-10 Significant changes to the organization N/A Economic Performance 305-3 Total other indirect GHG emissions Scope 3 56
and its supply chain 102-42 Identifying and selecting stakeholders 106~107, 116
201-1 Creation and distribution of direct 28~53 305-4 GHG emission intensity 56
102-11 Precautionary principle and approach 89~91 102-43 Approach to stakeholder engagement 106~107, 116 economic value
305-5 GHG mitigation 45, 53
102-12 External initiatives 117~123, 127 102-44 Key topics and concerns raised 106~107, 116 201-2 Financial impacts of climate change 120~123
Waste
102-13 Membership of associations 130 Reporting Practice and risks and opportunities of business
activities 306-3 Waste generation 57
Strategy 102-46 Process of defining reporting contents 106~107
Indirect Economic Impact 306-4 Waste recycled 57
102-14 Statement from senior decision-maker 04~05 102-47 Aspects of materiality identified in the 106~107
report content definition process 203-2 Significant indirect economic effects and 28~53 Environmental Compliance
102-15 Key impacts, risks, and opportunities 106~111
impacts 307-1 Amount of fine imposed and number N/A
102-49 Change in reporting N/A
Ethics and Integrity of sanctions caused by violation of
Anti-corruption
102-50 Period of reporting subject 132 environmental laws
102-16 Values, principles, standards, and code of 22~24, 89~91
205-1 Corruption risk assessment on business 91
conduct 102-51 Recent Year of the latest published report 132
sites
Governance 102-52 Reporting cycle 132
205-2 Notice and training on anti-corruption 90~91
102-18 Governance structure 81~88 102-53 Contact point for inquiries regarding the cover policy and process and training
report
102-21 Consultation with stakeholders on 106~107 205-3 Confirmed corruption case and following 91
economic, environmental, and social 102-54 Options applied to GRI Standards 132 measures
issues 102-55 GRI Index 124~126 Act against Competition
102-22 Composition of the highest governance 82 102-56 Third-party assurance 128~129 206-1 Legal actions on unfair trade including act 91
body and its committees
against competition and monopoly
102-23 Chair of the highest governance body 82
Tax
102-24 Nominating and selecting the highest 83
207-1 Tax approach 92
governance body
102-26 Role of highest governance body in setting 81
purpose, values, and strategy

GRI STANDARDS INDEX UN SDGs
At the 70th UN General Assembly in 2015, 169 targets were resolved along with 17 Sustainable Development Goals (SDGs), which the international community
Topic Specific Standards Social Performance Financial Service Sector Supplement
will strive to achieve by 2030. Samsung Securities has reflected the principles of the UN SDGs throughout its business model, endeavoring to fulfill the goals.
Topic Title Page Topic Title Page As a leading securities company that takes the initiative in the domestic financial industry, we will expand our contribution in accomplishing more goals.
Employment Detailed Disclosure of Management Orientation in the Financial Service Sector

401-1 Recruiting new employee and Changing 59~60 FS1 Specific environmental and social factors 28~53 UN SDGs Targets Our Activities Page
jobs applied to the overall business
Quality Education 4.1 4.2 Supporting youth education with Dream Class and Vision Maru, youth study rooms 64~65,
401-3 Return rate after parental leave by gender 60 FS2 Process to evaluate and detect 112~115 4.4 74~76
and ratio of continuous service environmental and social risks in an Implementing One company - One school financial education program
Occupational Health and Safety overall society
Increasing participation of employees in education and expanding opportunities for capacity
403-6 Enhancing employee’s health 69 FS5 Interaction with customers, investees, 106~107, 116 building
business partners in relation to
403-9 Work-related injury 68 environmental and social risks and Decent Work and 8.2 8.3 Retaining new employment amid COVID-19 situation 30~35, 59
Training and Education opportunities Economic Growth 8.5 8.10
Adding professionals in retail(digital), IB, management, and ESG field
404-1 Average hour of training received per 65 Specific Performance Index
employee Assisting SMEs through technology finance
FS7 Monetary value of products and services 94~95
404-2 Job training and life-long education 65 designed for realizing specific social Widening assess to digital-based financial services
programs benefits
Industry, 9.3 9.4 Expanding social responsibility investment 93~97
404-3 Regular performance 67 FS8 Monetary value of products and 94~95 Innovation and
Diversity and Equal Opportunity services designed for realizing specific Infrastructure Promoting sustainable industrialization and innovation by expanding ESG products
environmental benefits
405-1 Governance organization and Employee 61~62, 82
composition Social Responsibility Performance Index Reduced 10.1 10.2 Pursuing win-win growth with local communities through employee volunteering and 74~77
Human Rights FS14 Plan for improving accessibility of 78 Inequalities donations
financial services for the economically
412-1 Business site subject to human rights 71~72
disadvantaged
impact assessment
Disclosure of Product Liability Activity Responsible 12.5 12.6 Reducing disposable items and paper use through eco-friendly campaigns for employees 56, 132
412-2 Education on human rights policy and 73
FS15 Fair design and sales policy for financial 36~38 Consumption &
process related to business for employees
products and services Production Publishing reports integrating sustainability information
Public Policy
Index on Product Liability Activity
415-1 Political donation 78 Climate Action 13.3 Declaring zero-carbon finance and suspending coal investments 50, 96
FS16 Plan for improving financial knowledge of 42
Customer Information Protection
beneficiaries by type Establishing Principles of Coal-Free Investment
418-1 Number of violations of customer personal 80
information protection and grievances Establishing plans to measure and reduce financial emissions
regarding customer information loss Adding environment-related products in the lineup
proved to be true
Social and Economic Compliance Peace, Justice and 16.5 16.6 Complying with ethics management principles and responsible management 89~91
Strong Institutions 16.7
419-1 Violation of laws and regulations in the 91 Operating anti-money-laundering system
social and economic area
Establishing sound and transparent governance
Building communication channels for reflection expectations of stakeholders in our management

THIRD PARTY ASSURANCE
Independent Assurance Statement

To readers of SAMSUNG SECURITIES INTEGRATED REPORT 2021
Limitations and KMR’s assurance engagement is based on the assumption that the data and information provided by Samsung Securities to us as part of our
Introduction Korea Management Registrar (KMR) was commissioned by Samsung Securities to conduct an independent assurance of its INTEGRATED
Recommendations review are provided in good faith. Limited depth of evidence gathering including inquiry and analytical procedures and limited sampling at lower
REPORT 2021 (the “Report”). The data and its presentation in the Report is the sole responsibility of the management of Samsung Securities.
KMR’s responsibility is to perform an assurance engagement as agreed upon in our agreement with Samsung Securities and issue an assurance levels in the organization were applied. To address this, we referred to independent external sources such as DART and National Greenhouse Gas
statement. Management System (NGMS) and public databases to challenge the quality and reliability of the information provided.
Conclusion and Based on the document reviews and interviews, we had several discussions with Samsung Securities on the revision of the Report. We reviewed
Scope and Standards Samsung Securities described its sustainability performance and activities in the Report. Our Assurance Team carried out an assurance Opinion the Report’s final version in order to make sure that our recommendations for improvement and revision have been reflected. Based on the work
engagement in accordance with the AA1000AS v3 and KMR’s assurance standard SRV1000. We are providing a Type 2, moderate level
performed, it is our opinion that the Report applied the Core Option of the GRI Standards. Nothing comes to our attention to suggest that the
assurance. We evaluated the adherence to the AA1000AP (2018) principles of inclusivity, materiality, responsiveness and impact, and the
Report was not prepared in accordance with the AA1000AP (2018) principles.
reliability of the information and data provided using the Global Reporting Initiative (GRI) Index provided below. The opinion expressed in the
Assurance Statement has been formed at the materiality of the professional judgment of our Assurance Team. • Inclusivity Samsung Securities has developed and maintained different stakeholder communication channels at all levels to announce and
fulfill its responsibilities to the stakeholders. Nothing comes to our attention to suggest that there is a key stakeholder group left out in the
Confirmation that the Report was prepared in accordance with the Core Options of the GRI standards was included in the scope of the assurance.
process. The organization makes efforts to properly reflect opinions and expectations into its strategies.
We have reviewed the topic-specific disclosures of standards which were identified in the materiality assessment process.
• Materiality Samsung Securities has a unique materiality assessment process to decide the impact of issues identified on its sustainability
• GRI Sustainability Reporting Standards
performance. We have not found any material topics left out in the process.
• Universal standards • Responsiveness Samsung Securities prioritized material issues to provide a comprehensive, balanced report of performance, responses,
• Topic specific standards and future plans regarding them. We did not find anything to suggest that data and information disclosed in the Report do not give a fair
- Management approach of Topic Specific Standards - GRI 307: Environmental Compliance representation of Samsung Securities’ actions.
- GRI 201: Economic Performance - GRI 401: Employment • Impact Samsung Securities identifies and monitors the direct and indirect impacts of material topics found through the materiality
- GRI 203: Indirect Economic Impacts - GRI 403: Occupational Health and Safety assessment, and quantifies such impacts as much as possible.
- GRI 205: Anti-Corruption - GRI 404: Training and Education
Reliability of Specific In addition to the adherence to AA1000AP (2018) principles, we have assessed the reliability of economic, environmental, and social performance
- GRI 206: Anti-Competitive Behavior - GRI 405: Diversity and Equal Opportunity
Sustainability data related to sustainability performance. We interviewed the in-charge persons and reviewed information on a sampling basis and supporting
- GRI 302: Energy - GRI 419: Socioeconomic Compliance Performance documents as well as external sources and public databases to confirm that the disclosed data is reliable. Any intentional error or misstatement
As for the reporting boundary, the engagement excludes the data and information of Samsung Securities’ partners, suppliers and any third Information is not noted from the data and information disclosed in the Report.
parties.
Competence and KMR maintains a comprehensive system of quality control including documented policies and procedures in accordance with ISO/IEC 17021·2015
Independence - Requirements for bodies providing audit and certification of management systems. This engagement was carried out by an independent team
KMR’s Approach To perform an assurance engagement within an agreed scope of assessment using the standards outlined above, our Assurance Team undertook
the following activities as part of the engagement: of sustainability assurance professionals. KMR has no other contract with Samsung Securities and did not provide any services to Samsung
Securities that could compromise the independence of our work.
• reviewed the overall Report;
• reviewed materiality assessment methodology and the assessment report;
• evaluated sustainability strategies, performance data management system, and processes;
• interviewed people in charge of preparing the Report;
July 2022 Seoul, Korea
• reviewed the reliability of the Report’s performance data and conducted data sampling;
• assessed the reliability of information using independent external sources such as Financial Supervisory Service’s DART and public databases.
CEO

ASSOCIATION MEMBERSHIP CORPORATE INFORMATION
Association Our Flagship Service Brand
Korea Enterprises Federation Retirement Pension Development Council
Global Financial Networks (GFIN) Korea Association for Chief Financial Officer Representative Wealth Management Brand Representative VIP Wealth Management Brand
POP is an acronym of ‘Platform of Private Referring to ‘Success & Investment’, it is a
Korea Fair Competition Federation Korea IR Service
Banking Service’. It is Samsung Securities’ comprehensive wealth management service
representative wealth management brand brand for super rich owning more than
Korea Center for International Finance Korea Management Association
standing for ‘wealth management for everyone’ KRW 3 billion
Financial Security Institute Korea Developer Association
Financial Information Security Council Korea Listed Companies Association
Committee on Financial Informationization Promotion Korea Service Forum

System Brand
The Korea Chamber of Commerce & Industry Korean Pension Association
Seoul Financial Forum (SFF) Korea Securities Law Association Samsung Securities’ representative MTS platform Samsung Securities’ representative HTS platform
Baby Bond Members Council Korea Securities Association
New Industry Organization for Investment Korea Fintech Industry Association
FX Market Operation Council KOREA FOREX CLUB
Korea Capital Market Institute PD Council Product Brand
Association of Compliance Officers Seoul IB Forum

1:1 client-tailored discretionary Samsung Securities ETN Brand
Capital Market Council wealth management service
※ 2021 dues payment criteria
Client Service Brand
Individual VIP Service Corporate VIP Service

132 intro overview vision & strategy future focus ESG data pack appendix
ABOUT THIS REPORT
Report Overview
Samsung Securities annually publishes our sustainability report to provide a clear account of our
future vision, strategy, and performance for a wide range of stakeholders including shareholders,
clients, and employees. Through this report, we disclose our management philosophy and corporate
data to communicate with them, thereby taking one step closer to sustainable growth. This report
aligns with <IR> Framework of the IIRC (International Integrated Reporting Council).
Reporting Period
This report details our business operations from January 1, 2021 through December 31, 2021. It also
contains some of quantitative data from the past three years from 2019 to 2021 to allow you to track
the history. Some of the qualitative data covers early 2022.
Reporting Scope and Boundaries

This report covers all our business sites including the Headquarters, domestic branches and overseas
subsidiaries. However, some social and environmental indicators concerning foreign business sites,
which are difficult to collect due to physical constraints, are excluded in this report.
Reporting Principles
This report aligns with the Core Option of GRI (Global Reporting Initiative) Standards and the GRI
FSSS (FSSS, Financial Services Sector Supplement). In addition, we comply with the disclosure
recommendations of TCFD (Task Force on Climate-Related Financial Disclosure) and SASB (Sustainability
Accounting Standards Board) Standards in this 2021 report.
Data Assurance We help enrich the lives of our clients

To ensure data accuracy and objectivity in this report, the financial and non-financial data has been and grow together
subject to third-party verification.
This report is made of FSC TM-certified paper and printed with soy-based ink.
SAMSUNG SECURITIES REPORT 2021

Headquarters
Address Samsung Electronic Bldg., 11, Seocho-daero 74-gil,

Seocho-gu, Seoul, 06620, Republic of Korea
Tel 02-2020-8000
Homepage www.samsungsecurities.co.kr
Sustainability Management Representative
Tel +82-02-2020-7384
Fax +82-02-2020-8586
E-mail sustain_fn@samsung.com

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CONTENTS

intro future focus appendix

124 GRI STANDARDS INDEX

16 INVESTMENT PORTFOLIO 128 THIRD PARTY ASSURANCE

vision & strategy

2021 ESG HIGHLIGHTS

2021 ESG Highlights History

in KS-SQI all offices

SAMSUNG SECURITIES REPORT 2021 responsible, achievable, sustainable

We will put spurs to innovation and digital transformation.

KRW 1.32 trillion

SAMSUNG SECURITIES REPORT 2021 responsible, achievable, sustainable

SAMSUNG SECURITIES REPORT 2021 responsible, achievable, sustainable

with our clients to further grow, 16

BUSINESS PERFORMANCE Key Financial Indicators (on a consolidated basis)

KRW 1.32 trillion KRW 965.3 billion

SAMSUNG SECURITIES REPORT 2021 responsible, achievable, sustainable

SAMSUNG SECURITIES REPORT 2021 responsible, achievable, sustainable

IB Business Sales and Trading Business

at a similar level to the previous year’s transaction due to the increasing

Customer Cash Deposits

SAMSUNG SECURITIES REPORT 2021 responsible, achievable, sustainable

Client Assets Dividend Payout Ratio /

Funds KRW 24.6 trillion

Brokerage 745.0 685.3 +8.7%

Financial Product Sales 411.7 340.9 +20.8%

Investment Banking Revenue 252.7 159.4 +58.5%

Trading and Interest Income 760.8 243.2 +212.9%

Other 59.6 37.0 +61.0%

Commission Expenses -57.3 -53.1 -

Operating Expenses 883.9 771.7 +14.5%

Operating Income 1,288.6 641.0 +101.0%

Pretax Income 1,288.3 640.8 +101.1%

Net Income 936.7 473.1 +98.0%

SAMSUNG SECURITIES REPORT 2021 responsible, achievable, sustainable

CORPORATE Our Mission and Core Value

and grow together. and IB sales.

Samsung Securities is a comprehensive financial investment company that

Year of Foundation Oct. 19, 1982

SAMSUNG SECURITIES REPORT 2021 responsible, achievable, sustainable

towards a better future value.

NEW VISION Establishment of New Vision and Directions

As a leading securities company,

We will play the role of the financial partner, providing a

We will raise the corporate value and expand the shareholder

As a company that our employees can be proud of, we will

• Differentiating the business model by

shareholders, employees, and the diverse needs of stakeholders

SAMSUNG SECURITIES REPORT 2021 responsible, achievable, sustainable

SUSTAINABLE ESG Mission and Direction

MANAGEMENT set companywide ESG strategies in 2021. In the direction of green,

Water usage* m³ 20,938 19,909 19,573

Financed emissions 10,000tCO2eq - - 227.71

MISSION CDP_Climate Change Response -

* Reporting scope: The Headquarters and all business vehicles

SAMSUNG SECURITIES REPORT 2021 responsible, achievable, sustainable

our challenge to become a leading 30

company that shapes and drives

the digital trend in the financial 36

industry. Going forward, we will be

• Differentiating the business model by

01-1 Sharpening Competitiveness in Asset Management

01-2 Differentiated Personalization Services 01-3 Enhancing Accessible Digital Channel

01-3 Enhancing Accessible Digital Channel 01-4 Expanding Digital Ecosystem

02-1 Protecting Financial Consumer Rights

02-1 Protecting Financial Consumer Rights 02-2 Customer-oriented Business Process

Excellent 1 Continuous Attention and Action of the Management

02-2 Customer-oriented Business Process

02-3 Various Client Support Activities 02-4 Protecting Client Information

03-1 Foundation for Green Management

04-1 Strengthening ESG Management with the Investment

04-2 eightened Capabilities to a Global Level