Regarding Recent Allegations that HTNS Shenzhen Hired an Underage Worker in China

Ninety percent of Samsung's parts are supplied in-house by our own manufacturing facilities and Samsung offers world-class working conditions throughout its global network of such in-house manufacturing facilities, complying with international labor standards in all regions in which we operate.

With regard to the small share of parts that are supplied by external suppliers, we are moving as fast as possible to address the problems that have been identified from our own investigation.

Samsung holds itself and its supplier companies to the highest standards and maintains a zero tolerance policy on child labor. We have confirmed that there are no underage workers employed at our supplier, HTNS Shenzhen Co., Ltd.

Our investigation into this matter included a meeting on December 14, 2012 with the alleged underage employee currently working at this supplier. A representative from China Labor Watch was present at this meeting in which she was confirmed as being of legal age. During this meeting she stated, "I do not understand why we are having this discussion. I am over 18 years of age."

We have also confirmed that two other alleged underage employees. who are no longer with this supplier were of legal age when hired. During the hiring process, their ages and identities were verified through an electronic device that detects fake ID cards.

As part of our pledge against underage employment, we began auditing all sites in China in September, and are implementing new hiring policies to strengthen identity verification measures. These include in-person interviews of all candidates, the introduction of electronic devices to detect fake IDs, and enhanced training and guidelines for managers and HR personnel.

We will continuously monitor suppliers in China from 2013 onwards through an independent third-party auditor, the Validated Audit Process of the Electronic Industry Citizenship Coalition. Contracts with suppliers who employ underage workers will be terminated.

* Previous Announcements

Samsung to Investigate Working Conditions at HEG Electronics (August 9^th, 2012)

Regarding Samsung’s Action Plans to Review Working Conditions at Chinese Factories (September 3^rd, 2012)

[Update] Regarding Samsung’s Action Plans to Review Working Conditions at Chinese Factories (September 7^th, 2012)

Corrective Measures of Working Conditions at Supplier Factories in China (November 26^th, 2012)