Coway (021240.KS) is aiming to surpass 5 trillion won in annual sales for the first time since its founding, as Suh Jang-won enters his fourth year as sole CEO. Analysts say the company has entered a full-fledged growth trajectory, driven by a recovery in water purifier market competitiveness, expansion of overseas subsidiaries, and new business development.
According to financial information provider FnGuide on Wednesday, Coway's estimated annual sales for this year are projected at 5.5711 trillion won on a consolidated basis. Operating profit is also estimated at 998.7 billion won, raising expectations of reaching 1 trillion won on an annual basis.
Coway posted consolidated sales of 1.3297 trillion won and operating profit of 250.9 billion won in the first quarter of this year, moving closer to market expectations. Internally, the company has set its annual sales target at a minimum of 5.277 trillion won and a maximum of 5.448 trillion won. The goal is to lift its sales scale by another 1 trillion won within two years of crossing the 4 trillion won mark in 2024.
The growth pace has accelerated since Suh became sole CEO. Coway's sales rose 53.3% from 3.2374 trillion won in 2020, when Suh joined the company, to 4.9636 trillion won last year. Operating profit also climbed 44.9% from 606.4 billion won to 878.7 billion won during the same period. The compound annual growth rate (CAGR) of sales was around 9% from 2020 to 2022, but rose to about 12% during the 2023-2025 period under the sole CEO structure.
Suh joined Coway as chief financial officer (CFO) at the end of 2019, when Netmarble acquired the company. He served as co-CEO from January 2021 before being named sole CEO in January 2023. A U.S.-licensed attorney, he handled legal affairs, policy, investment strategy, and public relations during his time at Netmarble and is known to have played a leading role in the acquisition of Coway.
Behind Coway's renewed growth momentum is a recovery in core business competitiveness. Before Suh took office, there were significant concerns about Coway's weakening market dominance in the water purifier segment, due to intensifying competition and a delayed response to shifting consumer demand. Since then, the company has diversified rental price options and expanded the launch of innovative products, recovering its water purifier market share to the 40% range as of 2024. The rental cancellation rate also fell from 0.98% in 2020 to 0.36% in 2025, marking an all-time low. Total domestic and overseas accounts grew from 8.27 million to 11.88 million during the same period.
Global business expansion is also cited as a factor that has strengthened the company's fundamentals. Coway's overseas subsidiary sales grew 110.9% over five years, from 896.1 billion won in 2020 to 1.8899 trillion won in 2025. The share of overseas business in total sales also rose from 27.7% in 2020 to around 40% last year. After putting Malaysia back on a growth track, the company is accelerating efforts to gain a foothold in Southeast Asian markets such as Thailand and Indonesia.
Coway is also stepping up its new business expansion. In May last year, the company officially launched "Coway Life Solution," a silver care specialist firm. In line with the aging society trend, the strategy is to offer integrated solutions that cover overall life needs including funerals, weddings, and travel, and to combine these with existing rental services as a new growth engine. "Coway Life 599" and "Coway Life 499," products unveiled by Coway Life Solution, offer discounts during the rental period and are designed to be convertible into funeral, travel, nursing, and care services upon maturity.
The company is also active in enhancing shareholder value. At the regular shareholders' meeting in March this year, Coway approved a cash dividend of 1,957 won per share. The company also announced plans to implement quarterly dividends starting this year and to operate a shareholder return policy that meets the requirements for high-dividend companies within a 40% shareholder return ratio. Suh has also continued his responsible management efforts, recently purchasing 2,800 common shares on the open market. "We will prove sustainable growth based on solid performance and transparent management," Suh said.
