Align Partners Capital Management Inc. Has escalated its campaign for change at Coway Co., Ltd., submitting formal shareholder proposals for the upcoming 37th Annual General Meeting and issuing a third public letter to the home appliance company’s board of directors, according to a press release issued February 13, 2026.
The investment firm’s move comes as Coway, South Korea’s leading home appliance rental platform, experiences steady operational growth but what Align Partners describes as persistent undervaluation in the market. Coway reported KRW 5.0 trillion in revenue and KRW 878.7 billion in operating profit for 2025, representing compound annual growth rates of 8.9% and 7.7% respectively. Despite this performance, Coway’s share price has declined 16% since 2019, while the KOSPI 200 index has increased by 155% over the same period, as of February 6, 2026.
Align Partners attributes this disparity to a decline in capital efficiency and Return on Equity (ROE). The firm notes Coway’s ROE has fallen from 30.7% in 2019 to 17.7% in the third quarter of 2025, with ROE on new equity investments since 2020 at only 11.1%. A key concern, according to the shareholder letter, is Coway’s expansion into financial leasing, which Align Partners believes has been funded through retained earnings rather than more cost-effective debt financing, thereby reducing returns to shareholders.
In its letter, Align Partners is requesting that Coway’s board conduct a comprehensive review of these issues and publicly disclose its position by March 13, 2026. The firm is also urging Coway to adhere to Korea Exchange (KRX) corporate governance guidelines by providing shareholders with at least four weeks’ notice of the AGM. Align Partners highlighted that last year’s AGM notice was issued only 16 days prior to the meeting, limiting shareholder review time.
The shareholder proposals submitted for a vote at the AGM include:
- An amendment to the Articles of Incorporation (AoI) mandating an Independent Director as Chairman of the Board.
- An amendment to the AoI ensuring the Audit Committee consists entirely of Independent Directors.
- An amendment to the AoI concerning the separate election of Audit Committee members.
- The election of two Independent Director candidates to the Audit Committee: Park Yoo-kyung, former Managing Director at APG Asset Management, and Sim Jae-hyung, former CEO of Zinus and a member of the Hyundai Department Store Group.
- An advisory proposal requesting greater transparency in executive and director compensation frameworks.
Align Partners has also been actively engaging with other Korean companies to address perceived governance inefficiencies and valuation discrepancies, often referred to as the “Korea discount.” On February 9, 2026, Align Partners submitted shareholder proposals to DB Insurance, requesting a formal response and an updated “Value-up” plan by March 6, 2026. Similarly, on February 13, 2026, the firm submitted shareholder proposals for Gabia, Inc.’s 27th Annual General Meeting, calling for strengthened governance practices. As of February 11, 2026, Dentium traded at an LTM EV/EBITDA multiple of 6.6x and a PBR of 0.77x, compared to global peer averages of 14.0x and 3.13x, respectively.
Further details, including the full shareholder letter, are available on Align Partners’ website at www.alignpartnerscap.com. Investors with questions can contact Wooseok Choi at coway_valueup@alignpartnerscap.com or +82-2-6956-8033.
