#South Korea #Seoul #Sustainable Growth #Coway #Align Partners

Coway's Strategic Response to Shareholder Proposals

In a definitive move to engage with its investors, Coway Co., Ltd.—hailed as the 'Best Life Solution Company'—recently issued an official response to the second proposal from Align Partners Capital Management Inc. This strategic communication underscores Coway's enduring commitment to fostering shareholder value and promoting sustainable growth in the company.

Corporate Value-Up Plan

Since the rollout of its Corporate Value-Up Plan in February 2025, Coway has actively reviewed and assessed the implementation metrics—constantly adapting its strategies to align with the dynamic market landscape. In a bid to maintain transparency with shareholders, Coway has also conducted a comprehensive assessment of its plan, illustrating an ongoing dedication to enhancing corporate value.

The company's current initiatives are not only focused on short-term metrics but also rooted in a long-term vision that seeks to cultivate both operational excellence and shareholder satisfaction. By reinforcing these efforts, Coway emphasizes its focus on credible and effective improvement strategies for shareholder returns.

Leadership and Strategic Direction

Chairman Junhyuk Bang has been pivotal in executing Coway's long-term growth strategies since his appointment. He spearheads significant operational innovations, digital transformation processes, and global outreach. Recognizing concerns from shareholders regarding potential conflicts of interest, Coway assures stakeholders that the company's strategies are firmly supported by measurable operational success.

The commitment to disciplined management is reflected in Coway’s impressive growth rates from 2020 to 2025, showcasing an annual revenue growth of 8.6%, operating profit increase of 11.5%, and net income growth of 10.8%. This performance solidifies the importance of maintaining a balance between executive leadership and shareholder representation.

Advancing Corporate Governance

In line with its mission to promote transparency and reinforce governance, Coway has taken substantial steps to elevate its corporate governance standards. The company has successfully increased the proportion of independent directors on its board from 57% to a new high of 67%, which is notably above the average for leading KOSPI-listed firms. Furthermore, Coway has established a formal Corporate Governance Charter and a clear CEO Succession Policy.

Coway is also making strides in conflict mitigation by eliminating concurrent executive roles between Coway and its parent company, Netmarble. As part of ongoing improvements, an Internal Transaction Committee, comprising solely independent directors, is set to be launched in 2026.

Other critical governance developments include the formation of a Compensation Committee and a Nominating Committee, both composed exclusively of independent directors. These structural changes aim to ensure checks and balances while reinforcing fiduciary duties towards shareholders.

Commitment to Shareholder Returns

In 2025, Coway demonstrated a total shareholder return rate of 40%—accomplished through a prudent mix of cash dividends and treasury stock acquisitions. The company has pledged to sustain this high rate through 2027 by implementing tangible shareholder benefits. This includes adapting its dividend policy to meet the 'High-Dividend Company' criteria, which will offer shareholders additional incentives.

Additionally, Coway is set to enhance shareholder communication by initiating online conference calls led by C-level executives, aimed at improving information access for investors and aligning with global investor relations practices.

The management's proactive response to Align Partners' proposal reflects Coway's commitment to addressing shareholder concerns about long-term valuation and return-on-equity targets. The board remains resolute in listening to its shareholders while navigating the challenges of market dynamics.

Conclusion

A Coway representative boldly stated, "Our management and board are unwavering in our commitment to our shareholders, focusing on delivering sustainable growth. With disciplined execution and transparent governance, we will continue maximizing long-term value for all our stakeholders."

For further insights into Coway's Corporate Value-Up Plan and strategic governance initiatives, stakeholders are encouraged to visit the company's Investor Relations page.

Established in South Korea in 1989, Coway has evolved into a leading provider of home environment appliances, dedicated to enhancing the quality of life through innovative solutions such as water purifiers and air purifiers. The brand, which also includes its sleep wellness division, BEREX, is committed to delivering unmatched customer satisfaction while expanding its international footprint.

For additional details, visit Coway's official website or newsroom.