#South Korea #Seoul #Shareholder Value #Coway #Align Partners

Coway Reaffirms Commitment to Shareholder Value and Sustainable Growth

Seoul, South Korea, February 10, 2026 - Coway Co., Ltd., known as the "Best Life Solution Company," has issued an official response to the second shareholder proposal presented by Align Partners Capital Management Inc. Coway reiterated its dedication to enhancing shareholder value, demonstrating a commitment to sustainable growth through strategic initiatives.

Since the announcement of its Corporate Valuation Plan in February 2025, the company has been consistently reviewing implementation progress, reevaluating its strategic coherence, and adapting its measures to align with market developments. Just before the first anniversary of this plan, Coway disclosed its "Corporate Valuation Plan Implementation Assessment,” signifying a strong commitment to credible and effective shareholder value enhancement.

Proven Performance Under Strategic Leadership

In addressing shareholders' concerns regarding potential conflicts of interest, Coway emphasized that its long-term growth and transformation strategies are backed by tangible operational milestones. The company highlighted its current main strategy focused on implementing a digitization-based innovation roadmap in its rental services, set forth by President Junhyuk Bang after acquiring the company in 2020.

Bang, serving as the internal director, is not merely a representative of the largest shareholder but also the Business Strategy Officer (BSO) at Coway. He has been steering the company's digital transformation, product innovation, and global expansion, exemplified by the BEREX brand. Complementing his role is CEO Jangwon Seo, who oversees overall business operations, organizational management, and operational efficiency.

This governance structure has led to impressive quantitative growth for Coway from 2020 to 2025, achieving compound annual growth rates of 8.6% in revenue, 11.5% in operating profit, and 10.8% in net profit.

Advancing Governance Standards and Transparency

Coway reiterated its commitment to enhancing corporate governance standards through a systematic and multi-phase roadmap. Key achievements and future initiatives include:

• - Board Composition: Increased the ratio of independent directors from 57% to 67%, exceeding the average of top firms listed on KOSPI.
• - Institutional Foundation: Established a formal corporate governance charter and a CEO succession policy to consolidate long-term stability and foster transparency.
• - Conflict Mitigation: Eliminated all concurrent executive positions between Coway and its parent company, Netmarble. A fully independent Internal Transactions Committee is planned for 2026.
• - Board Independence: Established a Compensation Committee and a Nominating Committee, solely composed of independent directors.
• - Balanced Accountability: Plans to implement a system of lead independent directors to ensure proper checks and balances within the board.
• - Fiduciary Duty: Following recent revisions to Korean Commercial Law, Coway will propose amendments to its bylaws at the 2026 Annual General Meeting to formally codify the fiduciary duty of directors towards shareholders and appoint two independent directors through an independent process.

Enhancing Profitability and Communication with Shareholders

In 2025, Coway achieved a total return for shareholders of 40%, balancing cash dividends and stock buybacks. The company plans to sustain this total return rate for shareholders until 2027 by implementing concrete initiatives for tangible benefits. Coway also aims to enhance shareholder value by meeting the "high dividend company" requirements, allowing access to various incentives and benefits.

As a part of its approach towards shareholder communication, Coway intends to launch online earnings calls led by top executives, starting with the announcement of its Q1 2026 financial results. This initiative aims to improve investor access to information and align the company’s investor relations practices with global standards.

Coway’s response to Align Partners also touched on other inquiries by shareholders concerning medium- and long-term valuation goals, return on equity (ROE) clarity, target capital structure, and the strengthening of links between executive remuneration and shareholder value.

A Coway representative stated, "The management and board of directors are committed to listening to shareholder feedback while ensuring consistent and sustainable growth. Through disciplined strategic execution and transparent governance, Coway will continue to maximize long-term value for all our shareholders."

For more information about Coway's Corporate Valuation Plan, visit the company's Investor Relations page.

About Coway Co., Ltd.

Established in South Korea in 1989, Coway, the "Best Life Solution Company," is a leading environmental appliance manufacturer that enhances people's lives with innovative products such as water purifiers, air purifiers, bidets, and mattresses. BEREX, the company's sleep and wellness brand, aims to elevate quality of life with state-of-the-art mattresses and massage chairs. Since its inception, Coway has become a leader in eco-friendly home appliances through extensive research, engineering, development, and customer service. The company has demonstrated its innovation commitment through award-winning products, unmatched market share, customer satisfaction, and brand recognition. Coway continues to innovate by diversifying product lines and accelerating overseas business growth in Malaysia, the United States, Thailand, China, Indonesia, Vietnam, and Europe, building on its successful business model in Korea. In 2025, the company launched Coway Life Solution, a premium platform dedicated to elderly care that offers personalized solutions tailored to various life stages. For more information, please visit coway.com or newsroom.coway.com.