Coway Issues Official Response to Align Partners' Second Proposal, Reaffirms Commitment to Shareholders and Sustainable Growth

Coway Issues Official Response to Align Partners' Second Proposal, Reaffirms Commitment to Shareholders and Sustainable Growth

• Coway proves record-breaking growth through core strategies led by Chairman Junhyuk Bang
• The company is also strengthening transparency in 2026 with the introduction of an Internal Transaction Committee and Lead Independent Director system
• Coway will enhance shareholder communication via executive-led conference calls and will maintain the 40% total shareholder return rate until 2027

SEOUL, South Korea, Feb. 9, 2026 /PRNewswire/ -- Coway Co., Ltd., the "Best Life Solution Company," has issued an official response to the second shareholder proposal submitted by Align Partners Capital Management Inc. ("Align Partners") outlining its ongoing efforts to enhance corporate and shareholder value.

In its response, Coway stated that since announcing its Corporate Value-Up Plan in February 2025, it has been continuously conducting reviews on implementation progress, proactively reassessing strategic consistency and subsequently introducing supplementary measures in response to evolving market conditions. Ahead of the one-year mark of the plan's first implementation, Coway also disclosed its "Corporate Value-Up Plan Implementation Assessment", in which the company reaffirmed its commitment to the credible and effective enhancement of shareholder value.

Proven Performance Under Strategic Leadership

Addressing some shareholders' concerns regarding potential conflicts of interest, Coway emphasized that its transformation and long-term growth strategies are underpinned by tangible operational milestones. The company went on to note that its current core strategy is the execution of the IT-driven rental innovation roadmap established by Chairman Junhyuk Bang upon the company's acquisition in 2020.

Far more than just a representative of the company's largest shareholder, Inside Director Bang serves as Coway's Business Strategy Officer (BSO), spearheading the company's digital transformation, product innovation, global expansion and future engine strategies, of which one such example is the BEREX brand. Inside Director Bang's role is complemented by that of Coway CEO Jangwon Seo's, who oversees overall business operation, organizational management, and operational efficiency.

As a result of this accountability-driven management structure, Coway delivered strong quantitative growth between 2020 and 2025, achieving compound annual growth rates of 8.6% in revenue, 11.5% in operating profit and 10.8% in net income.

Advanced Governance Standards: Enhancing Board Independence and Transparency

Coway has once again reiterated its commitment to advancing its corporate governance standards through a systematic, multi-phase roadmap. Key milestones achieved and upcoming initiatives include:

• Board Composition: The proportion of independent directors has been increased from 57% to 67%, exceeding the average for major KOSPI-listed companies.
• Institutional Foundation: Coway has established a formal Corporate Governance Charter and a CEO Succession Policy to cement long-term stability and foster transparency.
• Conflict Mitigation: All concurrent executive positions between Coway and parent company Netmarble have been removed, and Coway is set to launch an Internal Transaction Committee composed entirely of independent directors in 2026.
• Board Independence: A Compensation Committee and a Nominating Committee, both consisting solely of independent directors, have been established.
• Balanced Accountability: The company plans to introduce a Lead Independent Director system to secure checks and balances of the board.
• Fiduciary Duty: In line with recent revisions to South Korea's Commercial Act, Coway will propose amendments to its Articles of Incorporation at the 2026 Annual General Meeting to formally codify directors' fiduciary duty to shareholders and elect two independent directors through a "separate process" to substantially strengthen the board's independence.

Strengthening Shareholder Returns and Communication

In 2025, Coway achieved a 40% total shareholder return rate through a balanced mix of cash dividends and treasury stock acquisitions. The company also introduced concrete initiatives to deliver tangible benefits to shareholders while maintaining the total shareholder return rate of 40% through 2027.

Coway also plans to enhance shareholder value by satisfying "High-Dividend Company" requirements, thereby qualifying its shareholders for various incentives and benefits. Starting with the shareholder returns for the 2026 fiscal year, the company is set to flexibly adjust the ratio between cash dividends and share buybacks/cancellations to meet these requirements within its 40% total shareholder return framework.

In parallel, Coway will further bolster shareholder communication through the introduction of C-level executive-led online conference calls, beginning with the 2026 first quarter financial results. This initiative has been designed to improve access to information for investors, as well as to align the company's investor relations practices with global standards.

Coway's response to Align Partners also addressed other inquiries raised by shareholders, including mid- to long- term valuation and return-on-equity (ROE) targets, clarification of the company's target capital structure and a strengthening of the linkage between executive compensation and shareholder value.

A Coway official said, "Management and the board remain steadfast in our commitment to listening to our shareholders and delivering consistent, sustainable growth. Through disciplined strategic execution and transparent governance, Coway will continue to work to maximize long-term value for all our shareholders."

For additional details about Coway's Corporate Value-Up Plan, please visit the company's Investor Relations Page.

About Coway Co., Ltd. 
Established in Korea in 1989, Coway, the "Best Life Solution Company," is a leading home environment appliances company making people's lives healthy and comfortable with innovative home appliances such as water purifiers, air purifiers, bidets, and mattresses. BEREX, the company's sleep & wellness brand, aims to improve the quality of life through cutting-edge mattresses and massage chairs. Since being founded, Coway has become a leader in the home environment appliances industry, with intensive research, engineering, development, and customer service. The company has proven dedication to innovation with award-winning products, home health expertise, unrivaled market share, customer satisfaction, and brand recognition. Coway continues to innovate by diversifying product lines and accelerating overseas business in Malaysia, the USA, Thailand, China, Indonesia, Vietnam, and Europe, based on the business success in Korea. In 2025, the company launched Coway Life Solution, a premium elder care platform offering personalized care solutions tailored to different life stages. For more information, please visit http://www.coway.com/ or http://newsroom.coway.com.

SOURCE Coway Co., Ltd.