Seoul, South Korea – February 15, 2026 – Align Partners Capital Management Inc.,a shareholder of Coway Co., Ltd.,is actively seeking important changes⁤ at the South Korean home appliance ⁢company,citing persistent undervaluation despite strong financial performance. The investment firm has submitted formal‍ shareholder proposals for Coway’s upcoming 37th Annual General Meeting (AGM) and issued a public letter to the Board of Directors outlining its concerns.

Coway’s Performance and⁢ Valuation Discrepancy

Coway, a leader in ⁢South Korea’s home appliance rental market, has demonstrated consistent growth as Netmarble became its largest shareholder in 2020. The company’s revenue and operating profit have increased at compound annual rates of 8.9% and 7.7%,respectively,reaching KRW 5.0 trillion in revenue and KRW 878.7 billion in operating profit in 2025. Despite this positive trajectory,Coway’s share price has declined by 16% as ⁣2019,substantially lagging the 155% increase in the KOSPI 200 index over ⁢the same period. This discrepancy is ⁤reflected in compressed valuation multiples, with the NTM PER falling from 16.9x to 8.2x and the MRQ PBR decreasing from 6.0x to 1.6x.

Concerns Over Capital Efficiency and ROE

Align Partners attributes this undervaluation to ⁢a structural⁣ decline in⁤ capital efficiency⁤ and Return on Equity ⁤(ROE).Coway’s ROE has decreased from 30.7% in 2019 to 17.7% as of Q3⁣ 2025, with the ROE on new equity ⁢investments as 2020 standing at only⁢ 11.1%. The firm expresses concern that Coway’s⁢ expansion into⁣ financial leasing is being funded through retained earnings‍ rather than through a more⁣ efficient capital structure utilizing lower-cost debt.

Shareholder Proposals for AGM

Align‍ Partners has⁢ urged the Coway Board to review these issues and publicly address ⁤them by March 13, 2026. Furthermore,⁣ the firm has submitted the⁢ following proposals for consideration ⁤at the 37th AGM:

• Amendment to the ‍Articles of Incorporation to mandate an Autonomous Director⁤ as Chairman of the‍ Board.

• Amendment to the AoI to ensure the ‍Audit Committee is composed ‍entirely of Independent Directors.

• amendment to the AoI regarding the⁤ election process for Audit Committee members.

• Election of two Independent Director candidates to the Audit Committee:

  • Park Yoo-kyung⁢ (Former Managing Director, APG Asset Management)

  • Sim Jae-hyung (Former CEO⁤ of Zinus, Hyundai Department Store Group)

• An advisory proposal requesting greater openness in executive⁣ and director compensation frameworks.

Looking Ahead

Align Partners believes these changes are crucial to unlock Coway’s full potential and deliver greater⁤ value to shareholders.⁢ The firm’s proposals aim to strengthen corporate governance, improve capital allocation, and enhance transparency. Investors will be closely ‍watching the outcome of the AGM and Coway’s response to these demands.

For more information, ⁢please visit www.alignpartnerscap.com.

Contact

Align Partners
Wooseok‍ Choi
[email protected]

+82-2-6956-8033