SEOUL -- Align Partners Capital Management Inc. (“Align Partners”), a shareholder of Coway Co., Ltd. (“Coway”) since 2023 holding more than 4% of the Company’s outstanding shares through funds it manages or advises, announced that it has sent a second public shareholder letter to Coway’s Board of Directors. The letter calls for measures to address the company’s chronic undervaluation and enhance shareholder value. Align Partners has requested that Coway announce a revised corporate Value-up Plan reflecting these proposals by January 30, 2026.

In the letter, Align Partners assessed Coway’s February 2025 plan as insufficient to address Coway’s persistent undervaluation and urged the Board to incorporate seven measures: (1) clear mid-to-long-term valuation and ROE targets with execution plans; (2) clarified and strengthened target capital structure policy; (3) updated shareholder return policy reflecting both the target capital structure policy and new dividend income tax separation regime; (4) enhanced investor relations disclosures; (5) board independence reforms; (6) measures to address conflicts of interest between controlling and minority shareholders; and (7) stronger alignment between executive compensation and share price performance.

Despite Coway’s strong operating performance and leading market position, the Company’s valuation remains meaningfully below historical levels. Align Partners attributes this undervaluation primarily to an inefficient capital structure and reduced shareholder returns following Netmarble’s acquisition. Align Partners also noted that Coway has financed finance lease driven working capital growth largely through retained earnings accumulated by scaling back shareholder returns, rather than through lower-cost debt. These capital allocation decisions, according to Align Partners, reflect deeper structural governance issues, including insufficient board independence.

Changhwan Lee, CEO of Align Partners, stated that the second public shareholder letter is intended to encourage Coway to establish a structural framework that enables a return to normalized valuation levels and supports sustainable long-term growth.