Coway Responds to Shareholder Proposal from Align Partners with Official Statement

Coway Issues Official Statement on Align Partners' Shareholder Proposal

On January 7, 2025, Align Partners Capital Management Inc. presented a shareholder proposal to Coway Co., Ltd. through their legal representation, Hannuri Law LLC, located in Seoul. The proposal requested that Coway allocate 90% of its consolidated net income to dividends, a figure that significantly exceeds Coway's existing shareholder return policy. Coway responded officially on January 21, 2025, stating their own ambitions for a 40% return to shareholders, in line with their established financial policy.

Align's proposal garnered attention for its ambitious demands, suggesting that Coway significantly increase the dividend payout in light of expected financial performance. This proposition was officially made public to shareholders on January 16, 2025, prompting Coway to engage fully with its board and consider the implications of such a significant increase.

In a detailed response, Coway confirmed that they would present Align’s request during the upcoming shareholder meeting, following the necessary protocols. However, Coway emphasized that their own performance targets should be assessed on financial statements’ close, the status of external audits, and other relevant factors as the company strives for balanced financial health and long-term sustainable growth.

Coway's CEO, Jangwon Seo, expressed commitment to enhancing shareholder value through continuous performance improvements. He reaffirmed the company's dedication to maintaining a sustainable business model, stating, "We will do our utmost to enhance shareholder value by generating ongoing results and ask for your continued trust and support for the company's sustainable growth."

Founded in South Korea in 1989, Coway is recognized as the