#South Korea #Seoul #Corporate Governance #Coway #Align Partners

Coway Reaffirming Shareholder Commitment and Growth Strategies

In a recent official statement, Coway Co., Ltd., known as the "Best Life Solution Company," has addressed the second shareholder proposal from Align Partners Capital Management Inc. This communication underscores Coway's continuous commitment to enhancing both corporate and shareholder value, highlighting a proactive approach to strategic growth since announcing its value enhancement plan in February 2025.

Strategic Progress and Company Growth

Coway has engaged in a series of continual assessments regarding the implementation of its value-enhancement strategies, reflecting its adaptability to changing market conditions. As part of the evaluation process, the company published an "Assessment of the Implementation Plan for Value Enhancement," reinforcing its dedication to shareholder value maximization. Coway's strategic initiatives have led to promising performance metrics, including average annual growth rates of 8.6% in revenue, 11.5% in operating income, and 10.8% in net profit from 2020 to 2025. These figures showcase Coway's robust operational and financial health.

Strengthening Corporate Governance

Addressing shareholder concerns regarding potential conflicts of interest, Coway emphasized its commitment to sound governance practices. The company has made significant strides in enhancing governance standards, achieving key milestones such as increasing the percentage of independent board members from 57% to 67%, surpassing the average of major KOSPI-listed firms. Furthermore, Coway has established a Corporate Governance Charter and a CEO succession policy, promoting long-term stability and transparency.

Moreover, in a bid to mitigate conflicts of interest, Coway has eliminated concurrent executive roles between Coway and its parent company, Netmarble. It is also taking steps to set up an internal transaction committee composed solely of independent directors, thereby fostering transparency and accountability.

Enhancing Shareholder Returns and Communication

With a focus on maximizing shareholder returns, Coway achieved a total shareholder return of 40% in 2025 through a balance of cash dividends and share buybacks. The company is committed to maintaining this total return rate for its shareholders through 2027 while tailoring its dividend versus buyback ratios to align with high-dividend-paying criteria. Furthermore, Coway plans to enhance investor communication by introducing online earnings calls led by top management, commencing with the financial results for Q1 2026.

In addressing shareholders' concerns, Coway also provided clarity on its medium to long-term valuation and equity return targets while emphasizing the importance of linking executive compensation with shareholder values.

A representative from Coway stated, “Management and the board remain committed to listening to our shareholders and achieving consistent, sustainable growth. Through disciplined strategy execution and transparent governance, Coway aims to maximize long-term value for all our stakeholders.”

About Coway

Founded in 1989 in Korea, Coway has positioned itself as a leading manufacturer of household appliances designed to foster a healthier living environment. Its innovative products — including water purifiers, air purifiers, bidets, and mattresses — are testimonies to its commitment to enhancing customer quality of life. The company’s brand BEREX focuses on sleep and wellness, offering high-tech mattresses and massage chairs aimed at improving overall living standards. Coway's international expansion continues in markets such as Malaysia, the U.S., Thailand, China, Indonesia, Vietnam, and Europe, driven by its success in Korea and a commitment to innovation and customer satisfaction.

For further information about Coway's Corporate Value-Up plan, stakeholders are encouraged to visit the investor relations page.

For more details, please visit Coway's Official Website or check their newsroom.