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Coway Rebuffs Activist Align Partners' 90 Percent Payout Demand, Backs 40 Percent Return Policy


SEOUL, South Korea, January 23, 2025 --

Coway issued an official response to a shareholder proposal from activist fund Align Partners Capital Management, which had demanded dividends equal to about 90 percent of Coway's consolidated net income. Align submitted the proposal on January 7 through a Seoul law firm and published a public letter to shareholders on January 16.

Coway said the demand far exceeds the 40 percent total shareholder return target in the policy it announced on January 6, which the company said balances financial stability and long-term growth. The new policy doubled Coway's prior 20 percent return rate.

The company said it reported the proposal to its board and will put it before the general meeting of shareholders as required, while submitting its own shareholder return agenda separately after its financial statements and external audit are finalized. Align's campaign also targeted governance at Coway, whose largest shareholder is game developer Netmarble.

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