Align Partners Issues Third Public Shareholder Letter and Submits Formal Shareholder Proposals to Coway

Align Partners Capital Management Inc. (“Align Partners”), a shareholder of Coway Co., Ltd. (“Coway” or the “Company”), has submitted formal shareholder proposals for the Company’s upcoming 37th Annual General Meeting (“AGM”) and issued its third public shareholder letter to Coway’s Board of Directors.

Coway is South Korea’s leading home appliance rental platform, supported by a strong global brand and sales network. Since Netmarble became the largest shareholder in 2020, Coway has delivered steady operating growth, with revenue and operating profit increasing 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. However, Coway’s share price remains materially undervalued, declining 16% from 2019 levels as of February 6, 2026, despite a 155% increase in the KOSPI 200 index over the same period. Over this period, valuation multiples have also compressed significantly, with NTM PER declining from 16.9x to 8.2x and MRQ PBR falling from 6.0x to 1.6x.

Align Partners believes this valuation gap is driven by a structural decline in capital efficiency and Return on Equity (“ROE”). Coway’s ROE has fallen from 30.7% in 2019 to 17.7% as of Q3 2025, while the ROE on incremental equity deployed since 2020 has been only 11.1%. Align Partners expressed concern that Coway’s expansion into financial leasing has been funded through retained equity capital and reduced shareholder returns, rather than through an optimized capital structure utilizing lower-cost debt.

In its public letter, Align Partners urged Coway’s Board and management to conduct a thorough review of these issues and publicly state their position by March 13, 2026. Align Partners also called on Coway to comply with Korea Exchange (KRX) corporate governance guidelines by issuing the AGM convocation notice at least four weeks in advance.

Separately, Align Partners submitted the following shareholder proposals for vote at the 37th AGM:

• Amendment to the Articles of Incorporation to require that an Independent Director serve 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 number of Audit Committee members to be elected separately
• Election of two Independent Director candidates (Audit Committee members):
  • Park Yoo-kyung (Former Managing Director, APG Asset Management)
  • Sim Jae-hyung (Former CEO of Zinus, Hyundai Department Store Group)
• Advisory proposal requesting enhanced disclosure of executive and director compensation frameworks

For additional details, including the full public shareholder letter, please visit www.alignpartnerscap.com.

About

Align Partners Capital Management Inc. is an investment company focused on Korea. Led by CEO Changhwan Lee, Align Partners engages with portfolio companies to address governance inefficiencies and the “Korea discount.”

https://www.alignpartnerscap.com/en/

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