#South Korea #Seoul #Coway #BEREX #Align Partners

Coway's Official Response to Align Partners

On February 10, 2026, Coway Co., Ltd., known as the "Best Life Solution Company," released an official statement following the second proposal by its shareholder, Align Partners Capital Management Inc. The response highlights Coway's ongoing efforts to enhance shareholder value and the overall worth of the company.

Since announcing its business valuation plan in February 2025, Coway has consistently evaluated its progress, proactively reassessing strategic alignment, and subsequently implementing additional measures in line with evolving market conditions. As the anniversary of the plan's implementation approaches, Coway published its "Business Valuation Plan Implementation Assessment," reaffirming its commitment to a credible and effective enhancement of shareholder value.

Proven Performance Under Strategic Leadership

Addressing concerns from certain shareholders regarding potential conflicts of interest, Coway emphasized that its transformative and long-term growth strategies are supported by concrete operational steps. The company articulated that its central strategy focuses on a location-based innovation roadmap powered by information technology, established by its CEO, Junhyuk Bang, upon acquiring the company in 2020.

Junhyuk Bang, not just a representative of the principal shareholder but also an internal director, plays a pivotal role as the Business Strategy Officer (BSO). His leadership drives innovative product development, the company's digital transformation, global expansion, and future growth strategies, exemplified by the BEREX brand. Jangwon Seo complements Bang's direction by overseeing overall business operations and enhancing organizational efficiency.

Due to this management structure, Coway recorded significant quantitative growth from 2020 to 2025, achieving compound annual growth rates of 8.6% in revenue, 11.5% in operating profit, and 10.8% in net income.

Advancing Governance Standards

Coway reiterated its commitment to enhancing its corporate governance standards through a systematic, phased roadmap. Key initiatives undertaken include increasing the proportion of independent directors on the board from 57% to 67%, surpassing the average of major KOSPI-listed companies. Coway has also created a formal corporate governance charter and established a CEO succession plan to ensure long-term stability and transparency.

To mitigate conflicts, Coway has removed all dual leadership roles between itself and its parent company, Netmarble, and plans to establish an internal transaction committee composed entirely of independent directors in 2026. The company has also formed a compensation committee and a nomination committee, both consisting solely of independent directors.

As part of its commitment to balanced accountability, Coway intends to introduce a chief independent director system to enhance the power dynamics within the board. Following recent revisions to South Korean corporate law, Coway plans to propose charter amendments at the 2026 annual meeting to formally codify directors' fiduciary duties toward shareholders and to elect two independent directors through a "distinct process" aimed at significantly boosting board independence.

Enhancing Shareholder Returns and Communication

In 2025, Coway achieved a total shareholder return of 40% through a balanced mix of cash dividends and stock buybacks. The company has launched tangible initiatives aimed at providing benefits to shareholders while maintaining the total shareholder return at 40% through 2027. Additionally, Coway plans to fulfill the requirements of a “high-dividend-paying company,” allowing shareholders to enjoy various perks and incentives.

Starting in the 2026 fiscal year, Coway will adjust the ratio of cash dividends relative to share repurchases/cancellations to meet these requirements while adhering to its total shareholder return framework.

Simultaneously, Coway aims to improve its communication with shareholders by initiating online earnings calls led by executives following the Q1 2026 financial results. This initiative is designed to enhance investor access to information and align the company's investor relations practices with global standards.

Coway's response to Align Partners also addressed various shareholder inquiries regarding mid to long-term valuation targets, capital structure clarifications, and the integration of executive compensation with shareholder value.

A Coway spokesperson stated, "The management and board are firmly committed to listening to our shareholders and ensuring consistent, sustainable growth. Through disciplined strategic implementation and transparent governance, Coway will continue to work towards maximizing long-term value for all its shareholders."

For more information regarding Coway's corporate valuation plan, please visit the Investor Relations section of their website.

About Coway Co., Ltd.

Founded in South Korea in 1989, Coway is a leading entity in home appliances focused on ensuring a healthy and comfortable living environment through innovative products such as water purifiers, air purifiers, bidets, and mattresses. The company's sleep and wellness brand, BEREX, aims to elevate quality of life through state-of-the-art mattresses and massage chairs. Since inception, Coway has become a market leader through extensive research, engineering, development, and customer service initiatives. It has demonstrated its commitment to innovation with award-winning products, securing an unmatched market share and brand recognition. Coway continues to innovate by diversifying its product lines and accelerating its international operations across multiple countries including Malaysia, the USA, Thailand, China, Indonesia, Vietnam, and Europe based on the commercial success achieved in Korea. In 2025, the company launched Coway Life Solution, a high-end elderly care platform offering personalized care solutions tailored to various life stages. For more details, visit Coway's website or newsroom.coway.com.