Coway announces expansion of shareholder return policy via Investing.com

• In total (EPA:) Increasing the rate of return to shareholders: Doubling from 20% to 40% by 2027 to increase shareholder value.
• Dividend increase and share cancellation: For FY 2024, cash dividends will more than double compared to the previous year, and 2.56% of all treasury shares will be canceled.
• Participation in the Corporate Value-Up program: Intended participation in South Korea Program for increasing the value of the company in 2025.

SEOUL, South Korea, January 7, 2025 /PRNewswire/ — Coway Co., Ltd., “The Best Life Solutions Company,” announced the expansion of its shareholder return policy, reinforcing its commitment to increasing shareholder value and long-term, sustainable financial growth.

Key highlights of the extended policy

Beginning in FY 2024, Coway will increase its total shareholder return rate from 20% to 40%, a commitment that will extend through FY 2027. Of this increased total shareholder return rate, 34% will be allocated to cash dividends, while 6% will be earmarked for treasury stock cancellations.

As part of this latest commitment, Coway plans to cancel a total of 1,890,486 shares, representing 2.56% of its treasury shares, by the end of 2025. The increased rate of total shareholder return should remain in place until FY 2027.

Furthermore, Coway will participate in South Korea Corporate Value-Up Program in 2025 to increase corporate value, with more detailed information to be provided by public announcement in the first quarter of 2025.

Strengthened financial foundations

The decision to increase shareholder returns reflects Coway’s strengthened financial stability and business competitiveness that the company has achieved since the acquisition by Netmarble Group in 2020

Prior to the acquisition, Coway faced challenges stemming from a shareholder return policy that exceeded its free cash flow. This situation limited the company’s financial flexibility and limited investment in core operations and growth initiatives, thereby weakening the competitiveness of its core businesses.

Since the acquisition, Coway implements a capital allocation strategy with the aim of re-establishing financial stability while stimulating growth. By reducing the total shareholder return to approximately 20%, the company was able to reinvest in key business areas including research and development, marketing and customer satisfaction, as well as increasing competitiveness in the global market and increasing BEREX brand awareness, all in the pursuit of for sustainable growth.

These efforts have been successful in stimulating growth for Cowayresulting in an impressive six consecutive quarters of performance 1 trillion KRW in revenue, despite the challenges posed by the COVID-19 pandemic and ongoing global economic uncertainty.

Coway’s Commitment to sustainable growth

Beginning in FY 2024, as the company’s growth fundamentals stabilize, Coway has decided to increase its total shareholder return resources from the current 20% of consolidated net profit to 40% by FY 2027.

“Coway plans to allocate resources according to shareholder returns, strategic investments for sustainable growth and maintaining financial stability within the range of distributable profits, taking into account internal and external business conditions,” he said Jangwon Seocompany director Coway. “We will continue to implement shareholder-friendly policies in a variety of ways going forward.”

About Coway Co., Ltd.

Founded in Korea in 1989, Coway“Best Life Solution Company”, is a leading eco-friendly home appliance company that makes people’s lives healthy and comfortable with innovative home appliances such as water purifiers, air purifiers, bidets and mattresses. The company’s latest venture, the BEREX brand, aims to improve sleep and well-being through premium mattresses and massage chairs. Since its establishment, Coway has become a leader in the industry of ecological household appliances, with intensive research, engineering, development and customer service. The company has demonstrated a commitment 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 operations in Malaysia, USA, Thailand, China, Indonesia, Vietnam, Japan and Europe, based on business success in Korea. For more information, visit http://www.coway.com/ or http://newsroom.coway.com.