'Align Recommendation' Coway Outside Director Candidate Voluntarily Resigns After Controversy

Lee Namwoo Faces Controversy Over Submitting False Confirmation of Concurrent Positions

Activist fund Align Partners' nominee for outside director at Coway, Lee Nam-woo, has voluntarily withdrawn. Previously, Coway opposed the appointment, citing legal disqualification due to Lee's concurrent positions.

According to the electronic disclosure system on the 25th, Coway issued a correction notice regarding the main contents of the agenda related to the outside director and audit committee member candidates proposed by Align Partners Asset Management through a shareholder proposal ahead of next month's regular general meeting of shareholders. Lee Nam-woo, who had been selected as a candidate for outside director and audit committee member, decided to voluntarily withdraw due to personal reasons.

Earlier, Coway claimed that Lee maintained concurrent positions at three companies and submitted a false confirmation of concurrent employment. A Coway official stated, "It is absurd for someone who hides or at least fails to properly verify legal disqualifications for directors to claim to improve governance as an expert," adding, "At this regular general meeting, we plan to appoint three outside directors and audit committee members to strengthen board independence and to recruit additional personnel with diverse capabilities such as financial capital and global expertise to realize governance advancement."

Align Partners plans to focus on the introduction of a cumulative voting system at Coway in the future. Align Partners said, "We decided to withdraw to prevent unnecessary controversy from distracting attention at this critical time when the wisdom of all shareholders must come together for Coway's corporate governance improvement and value-up," adding, "Even if the shareholder proposal for director appointment is not realized this time, through the introduction of the cumulative voting system proposed by us, the largest shareholder Netmarble, holding only 25% of shares, can be effectively checked from exercising excessive influence, and structural conditions can be created for the board to work for all shareholders."

They continued, "If it is judged that the purpose of corporate governance improvement and value-up through capital allocation improvement is not sufficiently achieved even after the introduction of the cumulative voting system, additional necessary measures can be taken at that time."

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