- Overview /
- Value Creation Story
Founded in 1989, Coway is a lifestyle service provider that cares about offering healthy everyday lifestyles to customers. We have developed a peerless business model designed to provide customers with rental of eco-friendly home appliances and professional follow-up services without the burden of ownership. We also offer periodic professional maintenance services to extend product value. In doing so, we have accomplished consistent growth, securing over 9.71 million domestic and overseas customers and stable cash flows.
We are committed to increasing the value of ‘Care’ our flagship program, providing various products and services, including ‘Water Care’, ‘Air Care’ and ‘Living Care’ in the Environmental Appliances segment, and ‘Sleep and Healing Care’ in the BEREX segment to ensure that our customers can enjoy a safe and clean living environment with access to clean drinking water and comfortable settings for a good night’s sleep at their homes filled with fresh air. In addition, we have developed the customer-tailored ‘IoCare (Internet of Care)’ program by incorporating IoT to sharpen our competitive edge. We also continue increasing our customer base through extension of the product line and global market. Driven by such peerless innovation, we work hard to consistently create value and increase profits for stakeholders.
We do our best to provide life solutions based on customer trust and product innovation to enable our customers enjoy a safe and healthy life anytime and anywhere. To this end, we manage the entire process from the supply of materials and parts to production, sales, disposal, and recycling from the perspective of corporate sustainability to create robust economic, environmental, and social value.
Consolidated Capital Statement
Category
Unit
2022
Financial Capital
Input
Total equity
KRW 100 million
23,119
Total assets
43,650
Output
Sales
KRW 100 million
38,561
Operating profits
6,773
Manufactured Capital
Input
Investment in production facilities
KRW 100 million
140
Procurement of products and raw materials
7,548
Output
Product output1)
Units
28,894,463
Average operation rate2)
%
79.7
Human Capital
Input
Total cost of education and training
KRW 100 million
8.7
Total number of employee education hours3)
Hours
132,229
Output
Productivity per person4)
KRW 1 million/person
591
Intellectual Capital
Input
R&D expenses
KRW 1 million
95,759
R&D personnel
Persons
429
Output
Intellectual property - patents
Cases
2,129
Intellectual property - utility models
41
Intellectual property - trademarks
3,662
Intellectual property - design
1,019
Social Capital
Input
Mutual prosperity fund for suppliers
KRW 1 million
20,000
Technology development support for suppliers
2,006
Supplier welfare
Persons
1,035
Output
Capacity building for suppliers (Training)
Persons
374
Increase of sales for suppliers5)
KRW 1 million
200
Technology development support for suppliers
Cases
561
Beneficiaries of social contribution activities for households in Malaysia
Households
1,006
Natural Capital
Input
Investment in environment6)
KRW 1 million
2,585
Total amount of materials used
Ton
14,906
Total energy consumption
GJ
140,484
Output
Greenhouse gas emissions
tCO₂eq
6,827
Waste recycled
Ton
17,740
Revenue growth for Coway continued in 2022, achieving KRW 3,856.1 billion in sales, up 5.2% from the previous year (KRW 3,664.3 billion). Operating income was KRW 677.3 billion, up 5.4% year-on-year, and net income was KRW 457.7 billion, down 1.6% from the previous year. The total number of active customer accounts in 2022 was 9.71 million (6.61 million domestic accounts and 3.1 million overseas accounts), an increase of 630,000 accounts year-on-year.
Meanwhile, despite the impact of COVID-19 and the economic downturn, sales in the domestic and overseas environmental appliances segment showed stable growth. Domestic sales of environmental appliances reached a record high of KRW 2,277 billion, up 1.4% from the previous year (2,245.3 billion), while annual sales of overseas subsidiaries reached KRW 1,401.9 billion, up 15.4% year-over-year (1,215.1 billion), due to expansion of sales through new product launches. In particular, we continue to see strong growth in our overseas subsidiaries, with sales from Malaysian subsidiaries increasing 11.4% year-over-year to KRW 1,091.6 billion, and sales from U.S. subsidiaries increasing 17.8% year-over-year to KRW 199.8 billion, the highest ever.
Coway created KRW 3,856.1 billion in economic value on a consolidated basis in 2022. Of the created value, KRW 3,155.3 billion was reasonably allocated to stakeholders considering the company's future value and investment efficiency.
Coway will continue to fulfill its social responsibility in line with the company's growth.
Coway faithfully fulfills its tax reporting and payment obligations based on its reasonable tax strategy. Coway's tax information is disclosed transparently through regular disclosure in the Financial Supervisory Service's disclosure system (http://dart.fss.or.kr/). In the financial statements and notes in the audit report, interested entities can check the criteria for calculation of income tax expenses, deferred income tax assets and liabilities, and the composition and tax rate of income tax expenses, and verify transparency and objectivity through external audits. Not only in South Korea but also overseas, we faithfully fulfill the tax obligations of corporations and contribute to the creation of a virtuous cycle, such as increase in the government's tax revenue, which enables governments to expand and improve public services.
At Coway, we take a proactive approach regarding our response to tax risks by monitoring changes in tax regulations and policies. Risk management is conducted by the Funding Department in accordance with policies approved by the Board of Directors. The Funding Department works closely with the business units of associated companies to identify, evaluate, and offset financial risks. The Board of Directors establishes documented policies on overall risk management as well as specific areas such as foreign exchange risk, interest rate risk, credit risk, use of derivative and non-derivative financial instruments, and investments in excess of liquidity. Meanwhile, we ensure compliance with the National Tax Service's policies on voluntary reporting of international transactions. In particular, we prohibit tax evasion using falsified overseas transactions and offshore tax evasion using tax havens tax havens. Coway has branches and local subsidiaries in Malaysia, USA, and China. In international transactions with overseas subsidiaries, Coway complies with applicable local tax laws and OECD transfer pricing guidelines. Coway fulfills its tax obligations based on local laws.
Category
Important business activities
Total sales 1)
Profit before tax
Income tax accrued
Income tax paid
Korea
Rental and sales of products such as water purifiers and air purifiers
2,957,089,125
542,576,361
139,535,548
200,998,695
Asia 2)
1,197,373,667
142,319,325
49,092,704
70,667,253
America 3)
199,768,459
465,668
68,282
6,512,020
Europe
4,736,953
-2,053,350
-19,610
-
Category
Unit
2019
2020
2021
2022
Net income before income tax expenses
Thousand KRW
451,418,558
540,379,082
658,552,414
683,308,004
Corporate tax burden1)
113,778,104
138,242,247
175,927,650
188,676,924
Tax credit
-182,651
-4,474
-35,122
-221
Permanent difference
6,146,218
-3,187,694
2,348,730
7,560,628
Deferred tax unrecognized among temporary differences2)
1,869,336
7,707,974
7,793,800
19,212,724
Change effect of feasibility judgment
-
-
-
-
Others
-3,027,522
838,888
7,031,261
10,062,333
Corporate tax payment3)
119,210,883
135,668,222
193,066,319
225,512,388
Nominal tax rate4)
%
25.20
25.58
26.71
27.61
Effective tax rate5)
26.41
25.11
29.32
33.00
