It seems like their in-built wallet makes use of a system they call Samsung Knox [1], which secures private keys by managing application privileges [2] and ensuring the integrity of said application privileges by verifying the boot process on the hardware level [3]. So to my understanding while private keys are probably encrypted they are not stored in a secure hardware element as is the case with common hardware wallets such as the Trezor or Ledger. Samsung Knox's track record is not exactly splendid [4][5] but I guess we'll see in the next few months whether they have brought their shit together.
[1] https://www.coindesk.com/samsung-galaxy-s10-includes-private-crypto-key-storage
[2] https://developer.samsung.com/tech-insights/pay/device-side-security
[3] https://en.wikipedia.org/wiki/Samsung_Knox
[4] https://blog.securegroup.com/why-samsung-knox-hardly-has-anything-to-do-with-security
[5] https://www.tomsguide.com/us/samsung-knox-lock-hack,news-30062.html