Coway Reports Significant Progress on Corporate Value-Up Plan Implementation for 2025
In early 2026, Coway Co., Ltd. announced a comprehensive assessment of its Corporate Value-Up Plan, which was introduced in 2025. The initiative focuses on enhancing shareholder value through strategic growth and governance improvements. A key highlight of this plan is the impressive achievement of a 40% return on shareholder investment, translating to 247.3 billion KRW. Coway has committed to prioritizing cash dividends, aiming to maintain high shareholder returns and fiscal benefits.
The company reported revenues of 4.96 trillion KRW for 2025, marking a year-on-year increase of 15.2%. This growth significantly outpaced the expected compound annual growth rate (CAGR) of 6.5%. Coway's business performance was bolstered by a strengthened domestic market, particularly due to increased rental accounts for water purifiers, as well as successful overseas expansion initiatives.
Notably, Coway's BEREX brand, which focuses on sleep and wellness products, made a substantial contribution to the company's income, generating approximately 719.9 billion KRW in combined national and international sales. The ongoing global expansion of existing subsidiaries and the launch of new products tailored to international markets have enhanced Coway's revenue streams significantly, with foreign contributions increasing by around 40% in 2025.
To ensure sustainable shareholder returns and tax benefits, Coway plans to uphold a special dividend policy, maintaining at least a 25% payout ratio. The company intends to increase the total dividends by over 10% annually, with any remaining returns flexibly allocated towards additional stock buybacks or further cash dividends. This balanced approach aims to maximize overall shareholder value while ensuring a robust financial foundation.
As part of its governance enhancements, Coway has improved its key governance indicator compliance rate to 74%, driven by an increase in external board representation to 67% and the establishment of a specialized Compensation Committee composed entirely of outside directors. Looking ahead, Coway has set an ambitious target of reaching a 93% compliance rate by 2027 through further governance reforms, including the implementation of an Internal Transaction Committee and the introduction of senior Independent Directors.
A spokesperson from Coway remarked, 'Our Corporate Value-Up Plan has already yielded tangible results. As we move forward, we are committed to closely monitoring our implementation efforts through key performance indicators while ensuring that we strike a balance between investing in future growth and delivering shareholder returns.' Coway continues to solidify its presence as a leader in the environmentally friendly appliance sector, with a strong focus on innovation and customer satisfaction.
To explore more about Coway's Corporate Value-Up Plan and their future strategies, you can visit their Investor Relations page or the company newsroom.