#South Korea #Seoul #Coway #Align Partners #Shareholder Proposal

Coway's Response to Align Partners' Shareholder Proposal

On January 7, 2025, Align Partners Capital Management Incorporated submitted a shareholder proposal to Coway Co., Ltd. through Hannuri Law LLC, a law firm based in Seoul. This proposal triggered significant discussions, particularly regarding the proposed dividend policy that suggests a payout rate of 90% of the company’s consolidated net income. Coway, known as the “Best Life Solution Company,” released its official reply to this proposal on January 24, 2025, providing clarity on its position regarding shareholders' returns.

Details of the Proposal

In its initial communication, Align Partners laid out a demand for a substantial dividend payment, which far outstrips Coway’s existing strategy of a 40% shareholder return. This figure is aimed at ensuring the company’s financial stability while promoting long-term growth. The suggestion made by Align Partners represents a considerable increase, reflecting a desire among certain investors for a more aggressive reward for their ownership stakes.

Following the proposal, Coway’s management promptly informed its board of directors about the shareholder proposition. They underscored their commitment to maintaining due process, indicating that the proposal will be introduced during the upcoming general shareholders' meeting.

Coway’s Stance

In response, Coway has asserted its intent to independently evaluate its own shareholder return agenda. The establishment mentioned that a thorough review of the final financial statements, ongoing external audits, and their previously declared target shareholder return would determine their final stance. Jangwon Seo, the CEO of Coway, emphasized the company's commitment to maximizing shareholder value while ensuring sustained growth.

“We will strive to maximize value for our shareholders through continuous return generation,” Seo remarked, appealing to investors for their trust and support in Coway's ongoing journey.

About Coway

Founded in Korea in 1989, Coway has distinguished itself as a leader in the environmental appliances sector. Their innovative products—ranging from water and air purifiers to advanced mattresses—aim to enhance the well-being and comfort of their customers. Additionally, Coway has expanded its product lines under the new brand BEREX, designed to improve sleep quality and wellness.

With a strong commitment to research, development, and customer satisfaction, Coway has secured its position as an industry frontrunner. The company enjoys a reputation for innovation, evidenced by numerous awards and significant market share. Moreover, Coway's expansion into international markets, including Malaysia, the United States, and various countries across Europe and Asia, demonstrates its sustained growth trajectory and dedication to improving lives globally.

For further details on Coway’s offerings and corporate updates, please visit their official website or the investor relations section.

Information Source: Coway Co., Ltd.