Coway's Strategic Shareholder Return Policy Set to Boost Value and Growth

Introduction
In a significant move to strengthen its relationship with investors, Coway Co., Ltd., often referred to as the 'Best Life Solution Company,' has announced a robust expansion of its shareholder return policy. This decision aligns with the company's dedication to enhancing shareholder value and securing sustainable financial growth.

Details of the Expansion
The newly announced shareholder return policy will increase the total shareholder return rate from 20% to a remarkable 40%, active from the fiscal year 2024 through to 2027. This increase is a strategic response to Coway's bolstered financial standing, following its acquisition by the Netmarble Group in 2020. The company plans to allocate 34% of this increase to cash dividends while dedicating 6% towards treasury share cancellations, a significant move aimed at enhancing investment opportunities and shareholder confidence.

In concrete terms, Coway intends to cancel approximately 1,890,486 shares, equivalent to about 2.56% of its total treasury shares by the end of 2025. Such actions are poised not only to benefit existing shareholders but also to improve the overall market sentiment surrounding the brand.

Financial Stability as a Foundation
The decision to expand shareholder returns is indicative of Coway's strengthened financial foundation, which has seen a notable turnaround post-acquisition. Previously, the company faced challenges due to a shareholder return policy that exceeded its available cash flow, thereby constricting its investment capabilities. However, following vigorous capital allocation strategies, Coway has now successfully reinvested in crucial business areas including research and development, marketing, and customer satisfaction initiatives.

These strategic reinvestments have resulted in impressive financial performance, highlighted by six consecutive quarters where revenue surpassed 1 trillion KRW. This achievement is particularly notable given the backdrop of the COVID-19 pandemic and persistent global economic challenges.

Future Growth and Investment Plans
Coway's renewed focus on shareholder returns marks a pivotal point for the company as it embarks on a journey to stabilize and grow further. The company's CEO, Jangwon Seo, emphasized the importance of balancing shareholder returns with strategic investments that foster long-term growth. Coway's plan also includes participation in South Korea's Corporate Value-Up Program in 2025, which should further buttress the company's financial profile.

Conclusion
The enhanced shareholder return policy is not just a reflection of past successes but is also a firm commitment to future growth. Coway's transparent approach to investor relations and its strategic initiatives signal a promising path ahead. The company's intention to implement shareholder-friendly policies in diverse manners aligns its goals with those of its investors, reinforcing a robust environment for sustainable success. As Coway navigates the evolving market landscape, its dedication to enhancing shareholder value positions it as a formidable player in the home appliance industry.

For more information and updates, visit Coway's website.