#South Korea #Seoul #Coway #BEREX #Corporate Value-Up Plan

Coway's Corporate Value-Up Plan Implementation Review

Coway Co., Ltd., the renowned "Best Life Solution Company", recently unveiled its assessment on the implementation of its Corporate Value-Up Plan that was introduced in 2025. This report highlights the substantial achievements in enhancing shareholder value as well as detailing the company’s strategic roadmap for the medium to long term.

Accomplishments Under the Plan

Upon announcing the Corporate Value-Up Plan, Coway set out ambitious goals which included reaching revenues exceeding 5 trillion KRW by 2027, maintaining a shareholder return of 40%, keeping net debt to EBIT ratio at a maximum of 2.5, and improving governance frameworks. As of now, the company has reported notable progress and is already on track to meet some of these targets ahead of schedule.

In 2025, Coway reported a revenue of 4.96 trillion KRW, marking a significant yearly increase of 15.2%. This figure not only surpasses the company’s aimed annual growth rate of 6.5% but also puts them within striking distance of their 5 trillion KRW goal well before the original timeline. The domestic market showed sustained growth, particularly through water filter rental services, while international ventures continue to gain momentum, further supporting revenue expansion.

The outstanding performance is largely attributed to the launch of BEREX, Coway’s sleep and wellness brand, introduced in 2022 as part of Chairman Junhyuk Bang's strategic vision. In 2025 alone, BEREX generated 719.9 billion KRW in sales domestically and abroad, significantly contributing to overall revenue.

Achieving A Shareholder Return of 40%

In line with their commitment to returning value to shareholders, Coway achieved an impressive total shareholder return of 40%, equating to 247.3 billion KRW. This was accomplished through a balanced mix of cash dividends amounting to 137.3 billion KRW and stock buybacks worth 110.0 billion KRW. Notably, the company also retired around 1.9 million shares acquired between 2017 and 2024, enhancing the per-share value for its investors.

Looking ahead, Coway plans to continue prioritizing cash dividends to maintain its status as a high dividend-paying company, aiming to ensure that shareholders can benefit from favorable taxation on dividend income. The organization intends to apply a minimum payout ratio of 25%, increasing overall dividends by over 10% year-on-year while remaining flexible in the remaining payout division between additional cash dividends and stock buybacks.

Maintaining Financial Stability

Beyond satisfying shareholder returns, Coway remains committed to reinforcing financial stability through prudent capital structure management. As of 2025, the company achieved a net debt to EBIT ratio of 2.1, with plans to manage this down to 2.5 by 2027 through targeted capital structure adjustments.

To support growth investments and shareholder returns, Coway actively pursues external financing to increase capital efficiency while maintaining strict oversight on credit risk management.

Governance Improvements

Moreover, Coway has seen a notable increase in its compliance rate concerning key governance indicators, now reported at 74%. This improvement is attributed to elevating the proportion of external directors to 67% and establishing a compensation committee comprised solely of external directors.

The company has outlined a medium- to long-term strategy for advancing its governance practices. In 2026, Coway plans to establish an internal transaction committee alongside a system of independent senior directors to further enhance governance functionalities. The company also aims for a compliance rate of 93% in terms of key governance indicators by 2027, including the introduction of electronic voting and cumulative voting systems.

A spokesperson from Coway mentioned, "Since the announcement of our Corporate Value-Up Plan, we have achieved tangible results concerning our growth rate, shareholder returns, and governance standards. Moving forward, we will closely monitor the implementation of the plan using our defined key indicators and continue to pursue a balanced approach that strengthens both investment in future growth engines and returns for our shareholders, thereby ensuring a steady increase in corporate value over the medium to long term."

For further details on Coway's Corporate Value-Up Plan, interested parties are encouraged to visit the company's Investor Relations webpage.

About Coway Co., Ltd.

Founded in 1989, Coway is a leading home appliance company dedicated to creating health-promoting environments, known for innovative products such as water purifiers, air purifiers, bidets, and mattresses. The introduction of BEREX aims to enhance the quality of life through state-of-the-art mattresses and massage chairs. With intensive focus on research, development, engineering, and customer satisfaction, Coway stands out as an industry leader committed to continuous innovation, supported by high customer loyalty and brand recognition. Coway consistently diversifies product lines and expands its international business hub in countries like Malaysia, the USA, Thailand, China, Indonesia, Vietnam, and Europe, based on successful domestic markets. In 2025, Coway launched the Coway Life Solution, a premium platform for elderly care that offers personalized care solutions for various life stages. For more information, please visit Coway's official website or their newsroom.