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

Align Partners, a leading activist investor, has recently highlighted the persistent undervaluation of Coway, a global leader in the home appliance industry. Despite Coway’s steady growth on a global scale, Align Partners has pointed out a concerning decline in the company’s structural return on equity (ROE). As a result, Align Partners is urging Coway’s Board to address the company’s inefficient capital structure and strengthen its shareholder return discipline.

In a letter addressed to Coway’s Board of Directors, Align Partners has requested a formal response by March 13, 2026. The letter highlights the need for immediate action to address the company’s declining ROE and suggests several proposals for improvement.

One of the key proposals put forth by Align Partners is the need for stronger Board independence. The letter notes that currently, the majority of Coway’s Board consists of executive members, which can lead to conflicts of interest and hinder effective decision-making. Align Partners suggests that the Board should have a larger representation of independent directors to bring in fresh perspectives and improve corporate governance.

In addition, Align Partners has called for enhanced oversight by the Audit Committee. The letter emphasizes the importance of a robust and independent audit function in ensuring transparency and accountability. Align Partners believes that by strengthening the Audit Committee’s role, Coway can improve its financial reporting and regain investor confidence.

Another proposal by Align Partners is for improved compensation transparency. The letter notes that Coway’s executive compensation structure is not clearly disclosed, which can lead to doubts about the alignment of interests between management and shareholders. Align Partners urges the company to provide a detailed breakdown of executive compensation and align it with the company’s performance to improve transparency and accountability.

Align Partners also highlights the need for Coway to address its inefficient capital structure. The letter notes that Coway’s current capital structure is not optimized for shareholder value and can lead to a decline in returns. Align Partners suggests that the company should consider a more balanced approach to capital allocation, including potential share buybacks or dividends.

In response to these proposals, Coway’s Board has stated that they will carefully review and consider the suggestions put forth by Align Partners. The Board has also assured shareholders that they are committed to driving long-term value and will continue to work towards improving the company’s performance.

As a leading activist investor, Align Partners has a proven track record of successfully advocating for shareholder rights and driving positive change in companies. Their suggestions for Coway are rooted in the best interest of shareholders and are aimed at improving the company’s long-term financial performance.

In conclusion, Align Partners’ call for action at Coway is a positive step towards unlocking the company’s true potential. By addressing the issues of declining ROE, inefficient capital structure, and lack of transparency, Coway can strengthen its position as a global leader in the home appliance industry and deliver long-term value to its shareholders. As the March 13, 2026 deadline approaches, we look forward to seeing the Board’s response to Align Partners’ proposals and their commitment to driving positive change at Coway.