#South Korea #Seoul #Shareholder Value #Coway #Corporate Value

Coway Implementing Corporate Value-Up Plan to Hit 5 Trillion KRW by 2027

Coway Co., Ltd., known as the 'Best Life Solution Company,' has officially announced its ambitious Corporate Value-Up Plan targeting a staggering revenue of over 5 trillion KRW by the year 2027. This strategic initiative is aimed at bolstering sustainable shareholder value through consistent growth and enhanced corporate governance. The plan, unveiled on February 19, 2025, outlines four key performance indicators (KPIs) that Coway aims to achieve over the next several years.

Key Performance Indicators

Coway's plan emphasizes four main KPIs to elevate shareholder value:
1. Continuous Growth
2. Improvement in Shareholder Returns
3. Fiscal Stability
4. Enhanced Corporate Governance

By focusing on these areas, Coway expects to maintain a balanced approach between generating shareholder returns and reinvesting in future growth opportunities. The company has committed to increasing its total return to shareholders from 20% to 40%, facilitated through cash dividends and stock buybacks, ensuring a robust return on investment for its shareholders.

Aiming for Growth

From 2025 to 2027, Coway anticipates an average annual growth rate (CAGR) of 6.5%. Achieving this target will require the company to expand its core business while also venturing into new markets and creating fresh initiatives. Coway plans to establish local subsidiaries globally, implementing marketing strategies tailored to each region to elevate brand recognition and market penetration.

Additionally, the company is set to broaden its product offerings and enhance marketing efforts, particularly through its sleep and wellness brand, BEREX. By expanding its offline distribution channels, Coway seeks to enhance customer experience while increasing brand visibility in South Korea.

The company is also venturing into the senior care sector, aiming to introduce next-generation elderly care services through its new subsidiary, Coway Life Solutions. This move is expected to open new avenues for sustainable growth.

Shareholder Returns Focus

Coway is dedicated to aligning sustainable shareholder returns with corporate growth and financial stability. The aim is to keep a balanced distribution between investor returns and future growth reinvestments. With the upgraded return strategy, Coway plans to allocate 33% of its consolidated net profit for cash dividends and 7% for stock buybacks in the fiscal year 2024. From 2025 to 2027, the company intends to maintain this 40% overall return commitment while adjusting the specific proportions of cash dividends and share buybacks as necessary.

Financial Stability

To ensure financial stability, Coway has set new financial policies, including a strategic limit on net debt to EBIT ratio at 2.5, reflecting a commitment to maintaining manageable financial burdens.

Coway's focus on optimizing its capital structure is designed to amplify shareholder returns while ensuring sound financial performance. This strategy includes a careful assessment of the company's operational performance and a commitment to responsible financial leverage.

Enhanced Governance Structure

In addition to improving financial metrics, Coway is also committed to refining its governance practices by increasing board independence and diversity. The company plans to elevate its governance rating from 53% in 2024 to 87% by 2026, considerably outstripping market averages.

Coway has been implementing policies to boost board independence and has expressed intentions to further diversify its boardroom representation, thereby fostering enhanced accountability and transparency.

Conclusion

According to Jangwon Seo, CEO of Coway, the Corporate Value-Up Plan solidifies the foundation for sustainable growth that benefits both the company and its shareholders. By executing this multifaceted strategy, Coway is poised to augment its corporate value substantially while ensuring shareholder satisfaction.

Details regarding the Corporate Value-Up Plan can be found on Coway’s Investor Relations website. Coway continues its legacy as a leader in health-promoting home appliances, driving innovations that prioritize consumer health and comfort.