#South Korea #Seoul #Coway #BEREX #Corporate Value

Coway's Corporate Value Improvement Plan

Coway Co., Ltd., renowned as the "Best Life Solution Company," has made waves in the corporate world with its newly unveiled plan aimed at significantly enhancing its market value. The company has set an ambitious target to generate over 5 trillion KRW in revenue by 2027, which reflects a robust growth strategy focused on sustainable practices and shareholder value.

Key Growth Indicators

In a recent board meeting held on February 13, Coway identified four key performance indicators (KPIs) designed to ensure the sustainability of its value offerings to shareholders. These indicators include continuous growth, improving shareholder returns, maintaining financial stability, and advancing governance structures. By adhering to these principles, Coway plans to bolster its corporate image and increase its market presence.

Continuous Growth Strategy

To achieve its revenue goal, Coway aims for an unprecedented Compound Annual Growth Rate (CAGR) of 6.5% between 2025 and 2027. The company will concentrate on expanding its core businesses, launching new brands, and introducing innovative initiatives across various markets. Through targeted globalization strategies and marketers that engage local audiences, Coway is poised to establish a solid foothold in new markets.

Additionally, Coway's strategy will include expanding its product lines and enhancing client experiences through specialized brands like BEREX, which focuses on sleep and wellness solutions. With plans to introduce a wider array of products and create more offline channels in South Korea, the company anticipates raising brand awareness dramatically.

New Market Ventures

A groundbreaking move for Coway includes entering the senior care sector in South Korea. The company has launched a new subsidiary, Coway Life Solutions, dedicated to providing next-generation care services for the elderly, set to debut in the first half of 2025. Alongside this effort, Coway intends to actively pursue technology partnerships and collaborations to capitalize on emerging business avenues.

Enhancing Shareholder Returns

Coway promises to strike a balance between sustainable shareholder returns, business growth, and financial health. The company is raising its total shareholder return from 20% to an impressive 40% of consolidated net profit, which encompasses cash dividends and share buybacks. In 2024, Coway will allocate 33% to cash dividends and 7% for stock buybacks, intending to continue this trend of maintaining a 40% return from 2025 through 2027.

A company spokesperson emphasized the meticulous planning that determines the 40% return rate, crafted with an eye on expected cash inflows and outflows through to 2027. This balance aims to reflect prudent capital management while positioning Coway for future growth.

Financial Stability

In addition to its ambitious revenue targets, Coway is committed to maintaining an optimal capital structure with a net debt-to-EBIT ratio targeted at 2.5. This strategy will ensure long-term financial stability and manageable financial obligations.

Strengthening governance practices is another critical area for Coway. The company is striving to improve its governance indicators from 53% in 2024 to 87% by 2026, well above the current market average of 49.5%. This includes enhancing the independence and diversity of its board of directors and actively seeking qualified external directors with diverse expertise.

Conclusion

Jangwon Seo, CEO of Coway, stated, “The Corporate Value Improvement Plan serves as a strong foundation for sustainable growth benefiting both the company and its shareholders. We are dedicated to advancing shareholder-friendly management while implementing strategies to grow our corporate value.”

For further insights into Coway’s Corporate Value Improvement Plan, interested parties can visit the Investor Relations section on their website. Coway remains committed to pushing the boundaries of innovation, continuously focusing on consumer needs with an unwavering ethos towards health and comfort in everyday products.