Coway Reports Progress on Its Corporate Value-Up Plan Initiatives

On February 9, 2026, Coway Co., Ltd., a leader in household appliances, announced an evaluation of its Corporate Value-Up Plan, originally launched in 2025. This evaluation highlights the company's substantial advancements in revenue growth, shareholder returns, financial stability, and governance. In just one year, Coway has achieved a remarkable 40% total shareholder return, amounting to KRW 247.3 billion, positioned to maintain this trajectory through proactive strategies and investment in future growth.

Coway's ambitious roadmap outlines specific targets for 2027, which includes achieving over KRW 5 trillion in revenue, a net debt-to-EBIT ratio of no more than 2.5, and improved governance practices, with an expected compliance rate of 93%. The company aims to transition to a high-dividend status while ensuring alignment with shareholder interests and tax benefits.

Solid Growth Amidst Global Expansion

In 2025, Coway generated a remarkable revenue of KRW 4.96 trillion, reflecting a 15.2% year-on-year growth. This performance greatly exceeds the expected annual growth rate of 6.5%, indicating strong potential to surpass the KRW 5 trillion target by 2027. The company has successfully bolstered its competitive edge in domestic operations and is expanding its international footprint, primarily driven by steady growth in water purifier rentals in its home market.

A notable contributor to this success is Coway's wellness brand, BEREX, launched in 2022. In 2025, BEREX achieved a combined domestic and international revenue of KRW 719.9 billion, significantly boosting the company's overall sales performance. The international market's share of Coway's total revenue surged to approximately 40% in 2025, demonstrating Coway's strengthened global presence.

Enhancing Shareholder Value with Balanced Approaches

Coway's approach towards shareholder returns has been multifaceted, resulting in a total shareholder return of 40% in 2025. This figure comprises KRW 137.3 billion in cash dividends and KRW 110.0 billion from stock repurchase initiatives. Notably, the company has retired about 1.9 million shares since 2017 to enhance per-share value.

Moving forward, Coway plans to prioritize cash dividends to secure its status as a high-dividend company, impending benefits for shareholders through favorable tax treatments. The company also aims to maintain a dividend payout ratio of at least 25%, with an annual increase of over 10% in total dividends. The balance of the potential 15% return will be flexibly used for stock buybacks and further cash dividends, maximizing tax advantages and overall shareholder returns.

Financial Stability and Capital Structure Management

As Coway pursues growth investments and shareholder rewards, the company simultaneously aims to ensure financial stability. In 2025, Coway maintained a net debt-to-EBIT ratio of 2.1 and plans to keep this manageable ratio under 2.5 by 2027, reflecting disciplined capital structure management.

Moreover, Coway embraces debt financing to optimize capital efficiency, securing resources needed for growth investments and shareholder distributions while carefully managing credit risks to strengthen long-term financial sustainability.

Raising Governance Standards for Continued Improvement

Since the inception of the Corporate Value-Up Plan, Coway has enhanced its compliance rates on key governance indicators to 74%. This improvement is attributed to increasing board independence, with independent directors now comprising 67% of the board, and establishing a remuneration committee consisting entirely of independent directors.

Looking ahead, Coway is set to establish an internal transaction committee and a senior independent director system in 2026, in alignment with evolving governance standards. The company aims to amend its statutes in accordance with recent updates to South Korean trade laws and targets a compliance rate of 93% for key governance indicators by 2027.

A Coway spokesperson stated, "Since the announcement of our Corporate Value-Up Plan, we've demonstrated significant results in growth, shareholder returns, and governance standards. Moving forward, we will closely monitor our plan's execution through established metrics and maintain a balanced approach that fortifies both investment in future growth drivers and shareholder returns, ensuring consistent enhancement of corporate value over the medium to long term."

For further insights on Coway's Corporate Value-Up Plan, visit the company's Investor Relations page.

About Coway Co.

Founded in 1989, Coway is a leading manufacturer of household appliances committed to enhancing the lives of individuals through innovative solutions such as water purifiers, air purifiers, bidets, and mattresses. Through its wellness brand BEREX, Coway focuses on improving quality of life with advanced products like mattresses and massage chairs. The company's dedication to sustainability and excellence has positioned it as a leader in environmentally friendly home appliances globally. Coway continues to innovate and diversify its product lines, accelerating overseas operations across various markets, including the USA, Malaysia, and Europe. Their latest initiative, the Coway Life Solution platform, aims to provide tailored care solutions for different life stages.