#South Korea #Seoul #Coway #BEREX #Corporate Plan

Coway's Corporate Value-Up Plan: A Vision for 2027

Coway Co., Ltd., renowned as the "Best Life Solution Company", recently unveiled a detailed corporate value-up strategy with ambitious objectives aimed at enhancing shareholder wealth sustainably. This plan highlights Coway's commitment to generating a staggering 5 trillion KRW in revenue by the year 2027, and sets forth a series of strategic initiatives to solidify its market leadership.

Key Performance Indicators of Growth

During a pivotal board meeting on February 13, Coway delineated four essential indicators that will guide their efforts in boosting corporate value: continuous growth, increased profitability for shareholders, an optimized capital structure, and enhanced governance practices.

Continuous Growth Focus

Coway's growth strategy incorporates a comprehensive plan to achieve a compound annual growth rate (CAGR) of 6.5% from 2025 to 2027. This involves not only reinforcing their core business but also expanding globally into new markets, strengthening brand awareness, and launching innovative product lines. The firm aims to create localized products and services tailored to different markets, enhancing its competitive edge.

As part of this initiative, Coway plans to deepen its market presence with a renewed focus on its sleep and wellness brand, BEREX. With an increased commitment to offline channels, the company is poised to amplify customer experience and broaden its marketing strategies within South Korea.
Additionally, Coway aims to explore opportunities in elderly care services through its subsidiary, Coway Life Solutions, launching cutting-edge offerings in the first half of 2025.

Profitability Increase for Shareholders

In a bid to raise profitability, Coway has increased its total shareholder return from 20% to a remarkable 40%. This comprehensive strategy will include substantial cash dividends as well as share buybacks over the next three years. For the fiscal year 2024, Coway plans to allocate 33% of net income to cash dividends and 7% to buybacks, establishing a significant return for investors.
A Coway spokesperson stated, "The projection for the 40% return on shareholders is based on our anticipated cash inflows and outflows over the coming years. We aim for an optimal balance between operational cash flow and financial leverage."

Optimizing Capital Structure

To maintain financial stability, Coway has established financial guidelines aimed at bolstering its capital structure. The firm aims to keep its debt-to-EBIT ratio at a manageable 2.5 to ensure sufficient financial stability while controlling financial obligations.

Enhancing Governance Framework

Governance remains critical in Coway's overall strategy. The company aspires to improve its governance metrics, incrementing from 53% in 2024 to 87% by 2026, which remarkably exceeds the market average of 49.5%. Emphasizing the importance of diversity and independence on its Board of Directors, Coway is committed to enhancing transparency and accountability.

Commitment to Sustainable Growth

Coway’s strategic plan is underpinned by a strong commitment to sustainable corporate growth, which is expected to benefit not only the company but also its shareholders. As Jangwon Seo, the CEO of Coway, remarked, "Our corporate value-up plan lays a robust foundation for sustainable growth that benefits our stakeholders. We are dedicated to ensuring favorable management for our shareholders while implementing effective strategies to enhance corporate value."

For more detailed information about Coway's Corporate Value-Up plan, interested parties are encouraged to visit Coway’s investor relations page. With deep roots established in Korea since its inception in 1989, Coway continues to lead in eco-friendly household appliances. The company's innovative endeavors emphasize enhancing health and comfort through top-tier products, which have garnered considerable market recognition and customer satisfaction globally. Visit Coway's official site for more details.