COWAY

The global mattress market has been undergoing rapid transformation. According to research firm Fortune Business Insights , the global mattress market was valued at USD 57.51 billion in 2025, a figure that is projected to surge to USD 108.19 billion by 2034. As consumers increasingly look to make quality sleep a priority, the industry, in turn, is undergoing a profound evolution, shifting away from static foam and springs toward premium, technology-driven mattresses including smart mattresses. Coway, the “Best Life Solution Company,” has recently been establishing itself as a disruptor in this landscape as the company reports record-breaking revenues for its sleep product division. Though not a legacy mattress manufacturer, Coway has managed to transform itself into a major industry player through its unique blend of service innovation and cutting-edge research & development (R&D). A New Paradigm: The Industry’s First Mattress Care Service   One of Coway’s Homecare Doctors, a mattress care & sales specialist, cleans a mattress In 2011, Coway fundamentally altered the way consumers were able to approach their purchases in the sleep products sector by introducing its ‘rental-and-care’ model to the South Korean market. By moving away from the conventional ‘one-off purchase’ framework, the company was able to enhance its offering to consumers with a subscription-based system that includes regular professional deep-cleaning and maintenance services. Beyond the financial differentiation this new model provided, the company also contributed to a general shift in cultural awareness around mattress hygiene, reinforcing to consumers the notion that the ideal sleep environment requires ongoing care. By replacing steep upfront costs with accessible monthly payments, Coway provided wider access to premium sleep solutions, offering a diverse lineup ranging from entry-level product models through to luxury, hotel-grade beds. The Birth of BEREX: A Milestone in Sleep Innovation   Coway’s BEREX Smart Mattress S8+ An established leader in environmental home appliances, Coway has never been one to rest on its laurels. In 2022, the company launched BEREX, its dedicated sleep and wellness brand. Since its debut, BEREX has rapidly established itself as a key growth driver for the company. In the three years following the brand’s launch, the consolidated revenue of BEREX has more than doubled, reflecting growing consumer demand for integrated sleep and wellness products. This month, Coway announced that its domestic sleep product business had reached KRW 365.4 billion in revenue, a 15.4% year-over-year increase. In just 15 years, Coway has effectively ‘flipped’ a market once dominated by conventional manufacturers, maintaining a staggering 23% of compound annual growth rate (CAGR) between 2012 and 2025. Engineering the Future: The BEREX Smart Mattress In an era where sleep quality is synonymous with wellness, the industry is now moving toward personalized, technology-integrated solutions. Coway’s competitive edge lies in its robust R&D ecosystem. One such leading technology can be found in the BEREX Smart Mattress. Instead of conventional metal springs, the BEREX Smart Mattress features Coway’s Sleep Cell technology, wherein air-powered pockets can be adjusted so that users can choose from nine levels of firmness, even offering independent customization for both the left and right sides of the bed so that sleep partners never have to compromise on comfort.   The BEREX Smart Mattress precisely configures support across 4 targeted zones Coway’s Sleep Cell technology is also able to intelligently redistribute pressure in real-time. By detecting changes in a user’s sleeping positions, the mattress will automatically adjust to relieve pressure points across four key target zones – shoulders, waist, hips and legs – for a more comfortable and restful night’s sleep. An Ever-Growing Global Reach In 2024, Coway brought the BEREX brand to Malaysia, one of its key overseas markets. Through its innovative product lineup and expert care service offering, the company aims to elevate the sleep quality of as many Malaysian households as possible.   The BEREX Smart Mattress on display at the Coway Innovation Fest in Malaysia BEREX’s growing popularity in the region was evident at the recent Coway Innovation Fest in Malaysia. One of the event’s highlights was an exclusive preview of the BEREX Smart Mattress, where visitors were able to experience firsthand how its sensor-driven technologies can create bespoke sleep experiences. Looking Ahead: Shaping the Future of Sleep Despite the success to date of Coway’s sleep technology innovation, the company is showing no signs of slowing down. By aligning its advanced R&D capabilities with global wellness trends, the company is evolving beyond its origins as a traditional appliance manufacturer to become a global leader in the sleep products sector. As Coway continues to roll out new innovations across domestic and international markets, the company is not just participating in the transformation of the mattress industry; it is actively shaping it.

- Since announcing its Corporate Value-Up Plan in 2025, Coway has been seeing tangible progress across revenue growth, shareholder returns, financial soundness and governance - To date, the company has executed KRW 247.3 billion in shareholder returns, achieving the 40% return rate goal - Starting in FY2026, Coway will prioritize cash dividends to secure high-dividend company status and tax benefits for shareholders -  Reporting an enhanced compliance rate on key governance indicators of 74%, Coway targets 93% by 2027   Seoul, South Korea, February 6, 2026 –  Coway Co., Ltd., the “Best Life Solution Company,” today announced an assessment of the implementation status of its Corporate Value-Up Plan, outlining concrete achievements to enhance shareholder value and detailing its mid- to long-term strategic roadmap.   Last year, Coway unveiled its Corporate Value-Up Plan, which includes the following key indicators to be achieved by 2027: achieving revenue exceeding KRW 5 trillion; maintaining a 40% shareholder return rate; managing a net debt-to-EBIT ratio of up to 2.5; and enhancing its governance frameworks.   Since announcing the plan, Coway has conducted several internal reviews of its implementation progress and has proactively prepared supplementary measures to enhance execution efficacy. This disclosure aims to transparently communicate an assessment of results to date, to convey future plans to shareholders and the market, and to reaffirm the credibility and positive impact of its value-up initiatives.   Early Progress Toward Revenue Goals: Accelerating the KRW 5 Trillion Roadmap   In 2025, Coway recorded KRW 4.96 trillion in revenue, a 15.2% year-over-year increase. This performance significantly outpaces the company’s targeted compound annual growth rate (CAGR) of 6.5%, placing Coway well ahead of schedule to exceed its KRW 5 trillion goal by 2027.   Coway sustained solid growth in 2025 through strengthened competitiveness in its domestic business and the continued expansion of its overseas operations. In the domestic market, steady growth in water purifier rental accounts served to reinforce the foundation of the company’s core business, while on the global front, revenue growth was driven by continual expansion at existing overseas subsidiaries, as well as rapid growth from newer entities.   This strong performance was fueled, in particular, by BEREX, Coway’s sleep and wellness brand, first launched in 2022 as part of Chairman Junhyuk Bang’s strategic vision to secure new growth engines. In 2025, BEREX generated KRW 719.9 billion in combined domestic and overseas revenue.   Alongside the launches of BEREX products to international markets and the expansion of product lineups across a variety of categories, in line with the Chairman’s strategy for global expansion, the contribution of overseas markets to Coway’s overall revenue increased to approximately 40% in 2025, further strengthening Coway’s presence on the global stage.   Delivering a 40% Shareholder Return Rate Through Balanced Execution   Coway successfully achieved a 40% total shareholder return rate in 2025, comprising KRW 247.3 billion. This was achieved through a balanced mix of KRW 137.3 billion in cash dividends and KRW 110.0 billion in treasury stock acquisitions. Notably, the company retired approximately 1.9 million treasury shares acquired in 2017 and 2024 in order to directly boost per-share value.   While maintaining the 40% return rate through 2027, Coway will prioritize cash dividends to satisfy "High-Dividend Company" requirements that enable the shareholders to benefit from separate taxation on dividend income. The company will also maintain a dividend payout ratio of at least 25% and increase the total dividend amount by more than 10% year-over-year. The remaining 15% of the return pool will be flexibly allocated between treasury stock purchases and additional cash dividends to maximize shareholder tax benefits and total yields.   Maintaining Financial Soundness and Stable Capital Structure Management   Alongside the expansion of growth investments and shareholder returns, Coway is working to manage its target capital structure in a manner that ensures financial stability. As of 2025, the company’s net debt-to-EBIT ratio stood at 2.1, and Coway plans to manage it up to 2.5 by 2027 through continued and consistent capital structure management.   In order to secure funds for growth investments, working capital and shareholder returns, Coway actively utilizes debt financing to enhance capital efficiency, all the while rigorously maintaining its credit rating risk so as to further strengthen long-term fiscal viability.   Strengthening Compliance Rates for Key Governance Indicators   Since first announcing its Corporate Value-Up Plan, Coway has reported an increase in its compliance rate on key governance indicators to 74%, a rise driven by an increase in the proportion of outside directors to 67% as well as the establishment of a Compensation Committee composed entirely of outside directors.   Coway has also outlined a mid- to long-term roadmap for its corporate governance advancement. In 2026, the company plans to establish an Internal Transaction Committee and a Senior Independent Director system to further enhance its corporate governance, and will also undertake amendments to its articles of incorporation in line with the recent revisions to South Korea’s Commercial Act. By 2027, Coway aims to reach a compliance rate on key governance indicators of 93% through measures such as the adoption of electronic voting and cumulative voting systems.   A Coway official said, “Since announcing our Corporate Value-Up Plan, we have delivered tangible results across our growth rate, shareholder returns and governance standards. Going forward, we will continue to monitor implementation of the plan closely using key indicators, and remain dedicated to a balanced approach that reinforces both investment in future growth engines and shareholder returns, thereby ensuring the steady enhancement of corporate value over the mid to long term.”   For additional details about Coway’s Corporate Value-Up Plan, please visit the company’s  Investor Relations  Page.  

- In Q4 of 2025, Coway’s revenue reached KRW 1,275.4 billion (+13.3% YoY) with an operating profit of KRW 181.6 billion (-1.0% YoY) - The company’s FY2025 annual revenue totaled KRW 4,963.6 billion (+15.2% YoY) with an operating profit of KRW 878.7 billion (+10.5% YoY) - Behind Coway’s record growth in 2025 is the company’s sleep and wellness brand BEREX, a new core revenue engine, as well as strong ice water purifier product sales   SEOUL, South Korea, February 6, 2026  – Coway Co., Ltd., the “Best Life Solution Company,” has today announced its financial results for the fourth quarter and fiscal year 2025.   “In the face of persistent global economic uncertainties, Coway was able to realize both top-line growth and profitability in 2025 by focusing on our fundamentals, strengthening our R&D capabilities and diversifying our product portfolio,” stated Jangwon Seo, CEO of Coway. “Going forward, we will continue to maintain this stable momentum through product innovation across both our domestic and global markets.”   Coway’s reported earnings are as follows:   -          Fourth-quarter revenue: KRW 1,275.4 billion (+13.3% YoY) -          Fourth-quarter operating profit: KRW 181.6 billion (-1.0% YoY) -          Annual revenue: KRW 4,963.6 billion (+15.2% YoY) -          Annual operating profit: KRW 878.7 billion (+10.5% YoY) *The reported figures are taken from the consolidated K-IFRS (International Financial Reporting Standards) statement.   The company’s strong results across both domestic and global markets in 2025 were driven in no small part by the visionary mid- to long-term strategy previously introduced by Junhyuk Bang, Chairman of Netmarble and Coway, which includes launching innovative products, expanding into new business areas and strengthening the company’s global footprint.   Coway’s domestic business reported an annual revenue of KRW 2,865.6 billion in 2025, marking an 11.0% year-over-year increase. This performance was bolstered, in particular, by strong sales in the ice water purifier category, as well as from the BEREX lineup of beds and massage chairs. Annual rental gross adds also saw impressive growth, increasing 7.7% year-over-year to a total of 1.85 million by the end of 2025.   BEREX, the company’s sleep and wellness brand, first launched as a key strategic initiative of Chairman Bang in December 2022, recorded a consolidated revenue of KRW 719.9 billion, thus firmly establishing itself as a key new revenue model for Coway. The brand’s commercial success in 2025 was notably driven by the domestic bed business, which reached KRW 365.4 billion in revenue, up 15.4% compared to the previous year.   Marking a 22.3% year-over-year increase, Coway’s overseas subsidiaries contributed KRW 1,889.9 billion in annual revenue in 2025. The company’s Malaysian subsidiary maintained its market leadership with a revenue of KRW 1,409.5 billion (+21.7% YoY), while the United States subsidiary saw a 10.5% year-over-year increase in its annual revenue, reaching KRW 236.7 billion. Furthermore, Coway’s Thailand and Indonesia subsidiaries also achieved rapid growth, with impressive year-over-year increases of 38.8% and 67.5% and annual revenue totals of KRW 174.4 billion and 50.6 billion, respectively.   For additional details about Coway's financial performance, please visit the company's  Investor Relations  page.