Coway Co., Ltd. (Korean: 코웨이 주식회사)is an international manufacturer of household appliances, water purifiers, air purifiers, bidets, water softeners, and mattresses from South Korea.[2][3][4] Founded and headquartered in Seoul, Coway is the largest water purifier company in the country and owns subsidiaries in Malaysia, the United States, Thailand, Indonesia, Vietnam, Europe, Japan, and China. The company is listed on the Korea Exchange and is a subsidiary of Netmarble since 2019. Recently, Coway is also focusing on the bedding products, such as mattresses.
History
Woongjin Group founded the company under the name Woongjin Coway in 1989.[5][3][4]
Beginning with water purifiers designed for the Korean market, Coway gained recognition with its product, the "Coway Water Purifier," launched in 1991.[3] The company's commitment to innovation led to the introduction of the "COMPAC Water Purifier (CP-6025)" in 1992, followed by a foray into air purification in 1995. With strategic partnerships and research, Coway ascended to the number one spot in South Korea's air purifier and water filter markets by 1999.
Amid financial concerns, Woongjin Group sold its majority shares in Coway to the private equity fund MBK Partners in 2013, which remained the holding company of Coway until 2018.
Woongjin briefly reacquired its shares from MBK in late 2018 for 1.68 trillion won (1.4 billion dollars), renaming the company back to Woongjin Coway in the process.[6] However, their shares in Coway were put in auction less than a year later.[7] Initially, companies such as Carlyle Group, Haier Group and SK Networks placed bids, but all eventually withdrew. The bid was later sold to mobile game developer Netmarble for 1.74 trillion won, despite Woongjin initially attempting to sell its shares for more than 2 trillion.[8] Netmarble remains the largest holding company of Coway to the present day.
Over time, the company has pursued global expansion, establishing its presence in various countries including Malaysia, the USA, Thailand, China, Indonesia, Vietnam, Japan, and Europe.[3]
Coway Malaysia
Coway Malaysia is a subsidiary company of Coway mainly responsible for distributing Coway products in Malaysia. The subsidiary was founded in May 2006, with an initial investment of 5.8 million Malaysian ringgit.[9] Coway Malaysia is the largest subsidiary of the parent company, making up over 70% of its overseas revenue, amounting to over 1,091.6 billion won (837 million dollars) in 2022.[10]
Products
Water Care: This includes water purifiers available in various configurations such as countertop, standing, and under-sink models.[11]
Air Care: This division primarily focuses on air purifiers.[11]
Body Care: This category includes bidets, massage chairs, and water softeners.[11]
In addition to these core products, Coway provides services encompassing sterilization, cleaning, and self-management.[12] The company also offers support services, especially for filter maintenance and troubleshooting.[11]
Design
The company has been recognized with several awards, including the Red Dot Design Award for 17 consecutive years.[13][14]
As of recent data, Coway's stock price stands at $31.18, with a revenue of $2.96B (TTM) and a net income of $342M.[5] Its growth rate has been recorded at 0.80%.[5] In Q4 of 2022, the company reported a revenue of KRW 980.2B, marking a 3.6% increase YoY. For the same year, its overseas revenue for Q4 was KRW 360.6B, a significant 19.6% growth YoY.[3] In Q2 of 2023, Coway reported financial growth with a revenue of KRW 1,006.2B, marking a 2.9% increase YoY.[17]
R&D and technology
Coway's R&D center has been recognized as a CSA Qualified Witness Laboratory,[18] a designated TÜV SÜD testing laboratory, a TSP (Technical Service Provider) by WQA (Water Quality Association), an international testing laboratory with accreditation from KOLAS (Korea Laboratory Accreditation Scheme), and a drinking water quality inspection agency by South Korea’s Ministry of the Environment.[19]
Key Milestones:
2022: Launch of the first BEREX smart mattress.[20]
2021: Announced the acquisition plan for IoBED.
2017: Entered into a partnership based on Amazon AI.[12]
Controversies
In 2016, three of Coway's ice cube maker models were discovered to leak trace amounts of nickel into its water. Allegedly, the company attempted to hide the defect from customers for a year.[21] Coway was forced to recall models from an estimated 87 thousand customers in 2016, and several clients moved to file lawsuits against the company.[22] Coway's CEO at the time, Kim Dong-hyun, was brought to resign from his position following the controversy as well.[23]
