HYOSUNG TNC

NFTs (non-fungible tokens), which use block chain technology to authenticate the ownership of digital assets like images and videos, are attracting significant attention with the expansion of the metaverse industry. This is because NFTs play a crucial role in the metaverse economy by securely protecting ownership through unique identifications assigned to digital products. The NFT market is particularly appealing to Generation Z, who are emerging as a primary target audience. As they enter the job market, Generation Z possesses increasing purchasing power and are known as ’digital natives’ who are well-versed in digital culture and enthusiastic about new experiences. With these characteristics, Generation Z readily adopts NFTs, using digital photo cards in fandom culture and engaging in games that feature NFT items, thereby driving the growth of the NFT market. In January, Hyosung Group captured public attention by hosting the ‘Hyosung TANSOME x Make Your Color’ concert, featuring renowned rock bands like No Brain and Lazybone, and introducing NFTs for ticket issuance and sales. Ticket holders were able to enter the concert venue through on-site NFT authentication and received limited edition brand album kits. Hyosung is actively engaged in youth marketing, including the launch of an NFT platform, to specifically target the younger generation. Youth marketing is a corporate strategy that aims to communicate with and meet the values and expectations of the younger generation, who represent the potential of the future customer base. Effective communication forms the basis of this marketing approach, as companies need to genuinely engage with the youth. Simply showcasing technical competencies or activities may not be enough to earn the loyalty and trust of Generation Z. Companies must actively listen to the voices of the youth, incorporate their insights into marketing strategies, develop technologies that align with their environmentally friendly values, and more. As part of their youth marketing initiatives, many companies are striving to build a brand image that resonate with the youth and are involved in various activities tailored to Generation Z’s interests and tastes, such as hosting online and offline events and developing relevant content. Hyosung’s Youth Marketing Project is for, of, and by Generation Z Hyosung Group is a leading player in various industrial sectors, including textiles, heavy industries/construction and industrial equipment. With a 56-year track record of delivering exceptional products and technologies, Hyosung has established strong presence in global markets. However, there is a lack of sufficient brand awareness regarding Hyosung’s products. While older generations in South Korea are familiar with Hyosung and its history, the overall visibility of the brand among younger South Koreans remains low. This is mainly due Hyosung’s identity as a B2B company that primarily engages in business-to-business transactions, rather than direct interactions with end-consumers. As a result, younger consumers rarely come across the Hyosung brand in their daily lives. To target Generation Z as potential future customers, Hyosung has implemented youth marketing activities. Generation Z is known for their heightened environmental awareness and their commitment to creating sustainable future. They embrace lifestyles aligned with veganism and actively seek out products from environmentally conscious companies, making them “greensumers.” Additionally, Generation Z prefers two-way communication, valuing direct expression of opinions over one-sided communication. Hyosung has tailored its marketing efforts to cater these communication preferences and address areas where they can provide practical support to Generation Z. 16th ASL Academic Festival – Exploring Hyosung’s Marketing from the Perspective of College Students The 16th ASL Academic Festival is one of the many youth marketing activities organized by Hyosung, specifically targeting college students. In collaboration with the Association of Strategic Leaders (ASL), this event was designed with three main objectives in mind. Firstly, it aims to assist college students in their job search, which is their primary concern. Secondly, it provides them with an opportunity to gain insights into how companies operate. Lastly, it serves as a platform to promote Hyosung Group to college students, who form an active segment of Generation Z. At this event, held in collaboration with ASL (a forum founded by the Hanyang Strategic Thinking Association (HSTA), Ewha Consulting (ECON), SKKU Society of Strategic Consulting (SSC)), participating students were tasked with developing marketing strategies to enhance Hyosung’s value-add and raise its brand recognition. The 62 students invited to the event were divided into nine teams and worked diligently to complete various assignments. These tasks included conducting an assessment of the Hyosung brand and developing a plan to improve its value among the MZ generation, creating a strategy to differentiate Hyosung’s business and promote the regen brand in alignment with the environment-friendly agenda, and enhancing the market competitiveness of Hyosung’s Harrington Place with its repositioning efforts. By selecting theses three topics, Hyosung addressed real-time world-marketing challenges it currently faces and sought solutions encouraging college students to generate creative and constructive ideas. This collaborative approach allowed Hyosung to tap into the fresh perspective of younger generations and gather valuable insights to enhance its marketing strategies. Hyosung oversaw the strategy development process, which involved studying tasks, an orientation period, sharing and presenting data, and Q&A session. The event provided college students with an opportunity to develop business strategies and gain insights into problem-solving in the workplace. The Hyosung staff served as mentors, offering practical suggestions to enhance the students’ strategies and providing them with valuable practical experience. The event was also valuable for Hyosung staff, as it allowed them to gain fresh insights. Brilliant ideas conceived by Generation Z that yielded practical benefits for Hyosung's marketing strategies The participating students at the festival expressed their appreciation for the opportunity to learn about Hyosung’s business values, technology development, ESG management and global market position. They were delighted to experience Hyosung’s dedication to the environment and its corporate efforts to make a positive impact. Furthermore, the college students showcased their original thinking abilities and generated brilliant, logical, and feasible ideas. They were adept presenters and witnessed remarkable growth in their skills during short month. On the other hand, the Hyosung staff had chance to gain insights into Generation Z’s perspective of the company. They valued this time to listen to the students’ opinions and engage in branding activities that align with Generation Z’s standards. Overall, it was a valuable and mutually beneficial experience for both the students and the Hyosung staff. Drawing from the insights gained this academic festival, Hyosung intends to establish a platform for open communication with Generation Z. This platform may encompass various initiatives, including similar academic festivals and other forms of content. By utilizing this platform, Hyosung aims to actively listen to the voices of Generation Z and reflect on the type of company they aspire to associate with a and work for. Furthermore, Hyosung will analyze internal challenges and engage in external youth marketing activities to become the ideal company admired by Generation Z. One participant shared their perspective on the festival stating, “Getting information about Hyosung was challenging as it is primarily seen as a B2B company. However, this project provided valuable insights into the various activities and initiatives undertaken by Hyosung in different domains. It helped me understand Hyosung’s focus on targeting Generation Z through youth marketing, and I will continue to show interest in Hyosung’s business.” Another participant emphasized the significance of communication in brand strategy and marketing, saying, “I strongly believe in the importance of communication, and this project reinforced that belief. The exchange of feedback and opinions highlighted the critical role of active idea sharing and feedback in perfecting business strategies in the real world.” Hyosung Group recognized the value of the feedback and opinions shared by the participants, who are Generation Z members with significant potential and influence. To honor their input, Hyosung plans to incorporate the outcomes of the 16th ASL Academic Festival into marketing strategy to enhance brand recognition. The company intends to integrate the ESG strategies and creora® marketing strategies proposed by the participants into its business operations, using them as case studies for a brand marketing campaign. These valuable contributions will serve as preliminary reference materials in the development of ideas and the creation of an environment-friendly brand narrative for Hyosung's strategies within an eco-conscious ecosystem. Additionally, the ideas generated through this festival will be thoughtfully considered and reflected upon as the company formulates its new branding strategy. Expanded digital marketing for steady communication with the future generation Moving forward, Hyosung aims to enhance its digital content marketing to engage in meaningful communication with Generation Z. Recognizing their interest in companies that prioritize environmental protection, Hyosung plans to create content highlighting its environmental technologies and initiatives. Additionally, the company will organize offline events such as environment-themed concerts and academic festivals, offering opportunities for Generation Z, to actively participate. Hyosung understands the importance of personal development, self-realization, personalized experiences, job prospects, and value-driven consumption for this generation. Therefore, the company will continue to provide platforms for Generation Z to gain practical knowledge through direct involvement and participation.

Environment, social and governance(ESG) management is now an essential part of corporate activities that many corporations take seriously as ESG has emerged as one of the major concerns among consumers. As ESG management is becoming increasingly important, some corporations have attempted to take advantage of consumers’ interests in ESG issues, instead of engaging in bona fide ESG activities, which is known as “green washing”. In reality, it is not easy for companies to think and act in a way that benefits the environment, and to link outcomes of their business activities to the environment. It is never an easy task for corporations to consistently invest in preserving the environment, conduct R&D, implement social contribution activities, and manage ethics fairly and transparently, but the consensus is that ESG is not an option. If corporations opt to race on the one-track path of simply profit seeking, it would be much easier for them. But what is the impact on our future? Although it takes more effort and costs more, we all should protect the environment and consider social contribution because we need to ensure a sustainable future for us today and for our future generations. RE:GEN, Reply to Every Generation’s Future Hyosung is working to build a sustainable future for all generations and help them live a happy life although it takes more time and effort. Hyosung does not relegate ESG to a marketing tool strategy, taking ESG more seriously than that. Hyosung does its part in preparing for the future and solving environmental challenges with its technology and commitment to the future generations. Specifically, it has rolled out a plan to contribute to forming a circular economy via 5 ESG themes (recycling and upcycling, carbon neutrality, new and renewable energy and smart reduction) in all of its business areas to promote sustainable ESG management. Some of the core eco-friendly circular economy themed technologies (recycle, upcycle) at Hyosung are aimed at building an ecosystem through tangible technology, products and manufacturing process. To reduce greenhouse gas emissions, Hyosung Heavy Industries has introduced an energy storage system (ESS), a key technology of new renewable energy, which allows users to save electricity for later use, and replaced materials used in insulators of power apparatuses, such as transformers and gas insulated switchgears, with eco-friendly materials. Furthermore, Hyosung has plans to expand the use of hydrogen energy, which includes construction of liquefied hydrogen plants and hydrogen stations. With the application of TANSOME®, hydrogen-fueled vehicles can be made lightweight, accelerating the arrival of a hydrogen society. Hyosung’s eco-friendly products including polyketone, a type of eco-friendly engineering plastic, and regen, eco-friendly yarn made of recycled waste, contribute to creating a virtuous cycle of resources and achieving carbon neutrality by reducing CO2 emissions. With its technology, it envisions the coexistence of life and technology while preserving nature. RE:GEN, which means “Reply to Every Generation’s Future” embodies the corporate vision that its technology can benefit all generations of the future. Theme#1, Circular Economy(Recycle, Upcycle), Progress in Creating a Sustainable Future for the Next Generation Hyosung’s first step toward creating a sustainable future for the next generation is a circular economy in which waste is recycled into high-value added products. In 2007 when people were not as interested in environmental issues as they are now, Hyosung developed the world’s first technology to extract regen Nylon yarn from waste fishing nets which posed a serious threat to the marine ecosystem. In 2008, it developed and produced regen Polyester yarn made from recycled plastic bottles. Given that abandoned fishing nets and ropes floating in the sea are one of the major causes of the destruction of marine ecosystem, discarded fishing nets were transformed into regen Ocean Nylon with value creation, rather than being burned. It plans to expand its depolymerization facility to steadily increase the production and supply of the nylon. Plastics do pose a threat to humans and all living creatures on Earth, but when it meets Hyosung’s technology, it can be reborn as regen Polyester. Eco-friendly fiber regen Polyester made of used plastics has multiple features too. Hyosung is working with various corporations and organizations to promote upcycling of resources. ‘KANGHYUK’, a fashion brand that has recently garnered publicity produces fashion items with used airbags. Learning that KANGHYUK has difficulty obtaining used airbags, Hyosung Advanced Materials offered the brand the fabric used to make airbags, which is not suitable for sale due to size and other reasons. Airbags that otherwise would have been thrown away without being used or sold have found a new use with KANGHYUK, a trendy and upcoming fashion brand that cares about building a sustainable future, and been reborn into eco-friendly ski suit-style jackets and pants. Well-known upcycling brand ‘CUECLYP’ and ‘Preview In Seoul’ made banners with regen Polyester. Then, used banners were made into phone cases, string corner wallets and pouches, while the regen yarn was used to make umbrellas, wallets, pouches and mini bags. Hyosung TNC focused on value creation from circulating resources that would otherwise be thrown away by transforming used plastic and fishing nets into regen yarn and recycling useless airbags into highfashion accessory. . Saving limited resources of the planet and not generating waste is essential for preserving the environment. But reducing and transforming waste into new resources is equally important. Theme#2, Carbon Neutrality that Reverses Climate Change We often hear that climate change is largely attributed to carbon emissions. Carbon neutrality that is globally practiced to keep the earth’s average temperatures from rising refers to a state in which greenhouse gas emissions, a major cause of global warming, and greenhouse gas absorption are in equilibrium. Hyosung works to reduce carbon emissions through the entire production process including development of ingredients, production of materials, and transportation. Recycling waste plastic into yarn helps create a virtuous cycle of resources and reduce carbon emissions. Hyosung TNC has developed regen Polyester that is made from useful ingredients extracted from used plastic bottles and regen Nylon, recycled nylon made of yarn that is discarded in the process of producing nylon yarn. Hyosung Advanced Materials’ R&D efforts focus on developing lightweight materials and high-strength products in a bid to reduce greenhouse gas emissions and energy use from mobility including vehicles, and successfully developed TANSOME®, an ultra-lightweight, high-strength material that is four times lighter and 10 times stronger than iron, contributing to making vehicles strong and lightweight. The company also developed lyocell tirecords made of cellulose extracted from wood, which reduces harmful emissions of substances including carbon disulfide and hydrogen sulfide that are generated in the manufacturing process. Use of the new material can help reduce air and water pollution that occurs in the process of disposing these harmful materials. Power, generation and construction divisions of Hyosung Heavy Industries have been making diverse efforts in different areas to contribute to reducing carbon emissions caused by climate change. To this end, it uses ESS that allows users to store electricity when power demand is low, so that it can be used later when necessary, and high early strength concrete to reduce water use. In addition, it employs eco-friendly construction techniques that help decrease emissions of air pollutants in winter. Hyosung Chemical developed polyketone, the world’s first eco-friendly engineering plastic, based on its self-initiated technology using carbon monoxide, a major air pollutant as its main ingredient, and has a relatively lower global warming potential than other types of engineering plastic. Polyketone is used to create various eco-friendly products and technology, thereby reducing negative impacts of its production activities on the environment. Through all these efforts, Hyosung is committed in earnest to fulfilling its corporate social responsibility with positive actions. Theme#3, Nature-Derived Energy Makes Our Life Clean. How can we produce energy we need and still preserve nature? We can do so by making new renewable energy with energy sources that are naturally available to us. Hyosung’s attention has turned to hydrogen, the first element that was created in the universe. We can use hydrogen to create energy as it can be easily converted into water. Using energy made from natural sources for materials, technology, transportation and supply systems is how Hyosung preserves the Earth and cares about future generations. Hyosung contributes to building a sustainable and clean future with its technology and endeavors to tap into hydrogen, solar energy and wind energy bestowed in nature. Theme# 4, Smart reduction: use energy smartly Paper is eco-friendly and biodegradable, doing nature no harm. However, we have to cut down trees and destroy the forest to make paper. Is this really eco-friendly? Although paper itself is biodegradable, reckless use of paper can cause serious damage to the environment and eventually make the planet sick. Hyosung is actively involved in reducing the use of paper at work to protect forests. Hyosung is working to create a paperless office and work environment with minimum waste. Furthermore, Hyosung has presented digital desk technology that allows users to get their job done in a contactless way and without using paper in the financial sector, thereby accelerating office digitalization. Using less paper translates into preserving forests and nature. Just like we cannot preserve nature when we cut down trees to make paper which is a pseudo eco-friendly resource, there are some drawbacks to using nature-derived energy sources including hydrogen, solar and wind energy. Although we produce energy from these sources, wasting energy is detrimental to the environment. So we need technology that can help us use energy more efficiently without keeping the networks waiting longer, which we use every day like the air we breathe. In this sense, Hyosung implements STATCOM and ESS technology to raise energy efficiency by ensuring that hydrogen, solar and wind energy are not wasted when the networks are not in use. Our future will be better than the present with Hyosung’s technology to reduce paper use and standby energy, designs to ensure smart use of energy, and smart technology to implement the designs. We can make the planet healthier by thinking ahead into the future rather than focusing on our needs today to preserve nature and save resources by making recycling part of our daily life and taking actions to protect the environment. We can make the planet more beautiful, and slow the pace of climate change if we reduce waste and recycle resources, create and implement designs that can conserve energy for efficient use, use energy that Mother Nature endows, and work together to reduce carbon emissions. Hyosung hopes everyone living today and all future generations dream of a sustainable future and enjoy their life on a healthy and clean planet, which we will help regain its gleaming luster by engaging in many ESG management activities. The healthy planet for future generations should be conceived by us today. A promise to all future generations! The ESG brand of Hyosung Group RE:GEN will turn our promise into reality.

The global spandex market leader Hyosung TNC has rolled out a variety of textile materials that are “world’s first feats” and “innovative”. Endowed with superior technology, quality and services, the company is leading the global textile market and continues to grow by constantly developing new products and exploring new markets, without resting on its laurels. Notably, the company strives to raise customer confidence and realize customer value by offering customer-centric and differentiated services based on quality and customer-centric management. It is also hard at work creating a virtuous cycle of sustainable renewable textile manufacturing by researching and developing eco-friendly textile materials, propelled by a sense of mission to ensure customer satisfaction and preserve the environment for future generations. As a result, Hyosung TNC has created the world’s first eco-friendly nylon yarn recycled from waste fishing nets, and commercialized the world’s first bio spandex. As a global spandex market leader, it is also the world’s first developer of eco-friendly catalysts necessary for manufacturing polyester textile and Korea’s first to develop nylon material for the inner-liner of fuel tanks used in hydrogen-fueled vehicles. Hyosung TNC has the most number of titles such as “world’s leading or first”. How has the company succeeded in being a global textile market leader? Here are the seven reasons. ① Integrated Textile Company A global textile maker with a wide spectrum of products including high-performance and eco-friendly yards Hyosung TNC is an integrated textile company that consists of three types of chemical fiber yarns, spandex, nylon, and polyester. To meet fast-changing customer needs, it constantly develops and ensures a stable supply of a broad portfolio of products including nylon, polyester and spandex, thereby maximizing customer confidence and satisfaction. As such, the company produces functionally optimized yarns including functional yarn that quickly absorbs and dries sweat and also protects the skin from UV exposure, in addition to sweat odor-reducing yarn, cooling yarn, 99.9% UV-blocking yarn and anti-bacterial yarn. Through these products, various eco-friendly, functional yarns create high added value to the customer as a global integrated textile maker. ② Strong Brand Awareness From global fashion brands to high-performance automobiles Lifestyle yarn “CREORA” is the leading global spandex yarn brand with the largest market share, and the unrivaled integrated yarn brand in South Korea that combines nylon and polyester. The global market-leading spandex that is used in the production of one-third of all stretchy garments worldwide has globally strong brand awareness. The eco-friendly brand “regen” offers sustainable yarns including polyester, nylon and spandex made of recycled waste, along with regen Bio-Based Spandex. regen is closely aligned with multiple global fashion and automobile brands that pursue the value of sustainability and is used in a wide variety of fields, elevating its profile as a global eco-friendly brand. ③ Value Chain Partnership Creating new values through shared growth with various partners and corporate clients Hyosung TNC does more than supply yarns to fashion brands, while it creates new values by building a value chain across the entire fashion industry. It not only works with major global brands to raise market awareness of eco-friendly materials for sustainable growth, but also helps small and medium-sized corporate clients grow their business by penetrating overseas markets and capitalizing on its global network to achieve shared growth. It has organized various programs including online trend expos and seminars to help small and medium-sized corporate clients find overseas buyers as they face headwinds from overseas expos being canceled due to the pandemic. Also, it is working with small fabric and sewing companies to help them expand their business globally. Moreover, Hyosung TNC recommends trends that can best fit each client, and makes customized proposals on development of new fabrics. It then introduces fabrics developed by its partners to major global brands, while constantly seeking to innovate in a bid to grow with its business partners and clients. ④ Fashion Design Center Hyosung TNC presents innovative ideas based on customers’ needs and trends. Hyosung TNC opened its “Fashion Design Center (FDC)”, an in-house R&D center to develop and roll out new products and innovative ideas, based on customer needs of materials and fast-changing fashion industry trends. The company also proposes trends in new materials with a focus on functional and eco-friendly innovative yarns, and promotes these trends on and offline to support the growth of other brands to secure market leadership in both the textile and fashion industries. ⑤ Continuous Innovation Innovation, the core value of Hyosung TNC that drives the company to establish multiple first-ever feats in the industry Owing to developing and producing countless innovative products, Hyosung TNC continues to be committed to R&D investments to continue creating new opportunities and satisfying the needs of consumers and the industry because innovation is never achieved overnight. It requires constant research and dedication over a long period of time. Hyosung TNC is fully aware that all these efforts add up to innovation. The R&D center is at the core of Hyosung’s portfolio that boasts so many “first-ever feats” in the industry, and it is the driving force behind building an innovative future for itself and consumers. ⑥ Brand/Retailer Collaboration Hyosung TNC is involved in active cooperation and creation of synergy effects to practice the value of “togetherness” Hyosung TNC is working closely with multiple brands, retailers and local governments. Particularly, it has been striving to enhance its corporate profile by pursuing active cooperation with global fashion brands, based on a variety of functional yarns. Recently, the company has successfully carried out a recycling project in which used plastic bottles were collected in Seoul and Jeju City and recycled into fabrics named “regen Seoul” and “regen Jeju”, respectively. Hyosung TNC is implementing cooperation projects with different brands based on eco-friendly yarns. As a result, many more global brands, local governments, corporations and non-profit organizations have offered proposals to work with the company. It is striving to relay the value of “togetherness” to consumers as a leader of eco-friendly fashion trends to create new values by working with other brands. ⑦ Global Network Leader Making strides to deliver ‘world’s first achievements’ and a leading global textile brand to reinvent itself as a “lifestyle facilitator” Hyosung TNC continues to secure its growth momentum in the global market by making investments in expanding its production capacity, and marketing and service areas worldwide. It is operating production centers, subsidiaries and branches in various global locations including the U.S., Germany, Spain, Italy, Brazil, Mexico, Japan, China, Taiwan and Vietnam. We have identified the seven key factors for Hyosung TNC to emerge as the industry leader in the highly competitive global textile market. Hyosung will not rest on its laurels with milestones of being the world’s first and leading brand in its market segments. Instead, it strives to bring greater satisfaction to customers and create more added values for them. Beyond building a global textile brand, Hyosung is determined to make innovations for the planet, and become a lifestyle facilitator that can benefit both humans and nature. For future generations and a healthy planet where people and nature can coexist, Hyosung TNC will continue to advance its track record of developing better technologies and responding to the demand and needs of future generations.

"Within the company, we utilize tumblers instead of paper cups. Employing tumblers is one of the most effortless methods to enact a zero-waste lifestyle." At Hyosung TNC, paper cups are nowhere to be found. This is due to their ongoing 'Eliminate Disposable Cups in the Workplace' campaign, aimed at reducing single-use items in daily life. In order to encourage participation in this campaign, employees have been provided with funds to purchase personal tumblers, and disposable items such as paper cups in break rooms have been eliminated. Initiated in May 2021, the campaign continues to this day. Approximately 190,000 paper cups were used in Hyosung TNC offices during 2020, which equates to an annual emission of roughly 2 tons of carbon dioxide. The collective efforts of individuals willing to endure minor inconveniences can result in a staggering reduction of 2 tons of carbon dioxide emissions – is that not truly remarkable? We gathered firsthand impressions from three employees actively participating in eco-friendly campaigns at a company that vigorously promotes environmentally conscious workplace culture. Q. What were your initial thoughts upon hearing about the 'Eliminate Disposable Cups in the Workplace' campaign? Employee A(): I was intrigued by the prospect of directly participating in 'ESG activities', which have been a rising issue. Although ESG activities are a global direction, I thought they had little direct relevance to my everyday life. However, through the in-house campaign, I found it fascinating that I could naturally contribute to ESG activities in my daily life and closely experience ESG endeavors. Employee B(): I knew that ESG activities were beneficial for the environment, but I didn't think there would be any direct benefits for me. Protecting the environment inevitably entails some inconvenience for people. But by using a tumbler instead of paper cups, I was able to gain financial benefits. The company could reduce the cost of purchasing disposable cups, and I could receive discounts at cafes by using a tumbler. I thought it was a good campaign since it reduced disposable cup expenses while directly contributing to environmental protection. Q. Were there any concerns among employees when they first heard about the campaign? Employee A(): When I first learned of the company's plans for the campaign, several concerns came to mind. The main reason we had failed to reduce the use of disposable items was the need to accept personal inconveniences. To carry out the campaign, we had to allocate sometime during work to wash cups and prepare mugs for client visits. Although seemingly trivial, changing our daily routines required us to develop a sense of purpose and adjust our mindset for participating in the campaign. Considering the negative impact of disposable items and the environmental benefits of using tumblers and mugs, I eventually decided to practice it. Q. What is the most significant change you've noticed since implementing the 'Eliminate Disposable Cups in the Workplace' campaign? Employee C(): Naturally, the amount of waste from disposable items has decreased considerably. In the past, I used 2-3 paper cups daily, but since the campaign, I've consciously avoided not only paper cups but also other disposable items. I initially thought of it as a small habit-changing campaign, but it seems to have gradually altered my environmental awareness. Q. If your environmental consciousness has changed, do you also practice this outside of work? Employee B(): I use a tumbler when I go to the gym for exercise, and I actively try to use a tumbler when visiting cafes outside of work. Some cafes even offer discounts when using a tumbler. In such cases, I feel proud to contribute to environmental protection while enjoying the added benefit of a coffee discount. Employee C(): Since becoming more aware of disposable items, I realized I use many of them when ordering delivery food. So, when I order food at home, I indicate 'no need for disposable items' in the request section. Washing dishes after eating may be a bit bothersome, but considering the impact these habits have on the environment, I'm happy to practice them willingly. Q. Your participation in the in-house campaign has contributed to reducing annual greenhouse gas emissions by 2 tons. You must be very proud. How do you feel about this achievement? Employee A(): Although it may seem like a small practice, it was even more meaningful that we could easily contribute to preventing environmental destruction just by participating. Before the campaign, I was well aware of the seriousness of environmental destruction through articles and documentaries addressing issues like the Amazon rainforest deforestation and the risk of polar bear extinction. However, I didn't actually practice environmental protection for reasons like lack of awareness or inconvenience. But with the company's active encouragement to use tumblers, a simple action, I was very proud to contribute to reducing greenhouse gas emissions. I also found it rewarding that small practices from my colleagues came together to achieve such significant results. Employee B(): The activity I started for participating in the campaign has now become my habit. I used to find washing tumblers bothersome, and carrying them around inconvenient, sometimes forgetting them, but now I always carry one when I go out. In addition to tumblers, I started using reusable items like hand towels instead of disposable ones. Practicing these habits, I feel like I have become more diligent than before. I am very proud to have recognized the necessity of environmental protection through the in-house campaign and to practice it even outside the company. Q. What other eco-friendly campaigns can be carried out in the workplace? Employee C(): I think implementing a 'Reuse One-sided Paper Campaign' would be beneficial. There is a lot of paper used only once and then discarded in office life, which feels wasteful. Actively encouraging the use of the blank side of printed pages could help protect the environment. Additionally, starting with small actions like unplugging unused power cords or using stairs for short-distance travel within the building could lead everyone to practice them, just like the 'Eliminate Disposable Cups in the Workplace' campaign. In addition to these efforts, Hyosung TNC has expanded the 'regen® Upcycling Campaign' to its business locations nationwide this year. The 'regen® Upcycling Campaign' is a PET bottle collection campaign where employees bring PET bottles, which are then exchanged for goods and bags made from Hyosung TNC's recycled polyester fiber, regen Polyester. Last year, about 9,000 PET bottles were collected, and this year's goal is to collect 15,000. The carbon reduction effect of this campaign is similar to the amount of carbon dioxide absorbed by approximately 70 pine trees in a year. There is a theory called the 'butterfly effect,' which states that a small flap of a butterfly's wings can cause a typhoon on the other side of the earth. Although it is currently a campaign limited to Hyosung TNC employees, their small efforts, when combined, can someday instill a belief in eco-friendliness among all members of every company. As this culture becomes established, wouldn't it lead to all people around the world actively practicing environmental protection? Today, as they dream of an eco-friendly future, Hyosung TNC employees continue to participate in eco-friendly campaigns.

Recently, the phenomenon of "eco-wakening" has been spreading, especially on social media. This trend signifies the increasing awareness and concern of people towards the destruction of nature. According to the World Wildlife Fund (WWF), environmental awareness and a sense of urgency have rapidly spread, with keywords such as "climate crisis," "biodiversity," "marine litter," and "environmentally friendly consumption" posted in YouTube comments. The public, now highly aware of environmental issues, seeks to consume products from "ethical companies" that go beyond being eco-friendly to becoming eco-necessary. In response to this demand, many companies are practicing ESG management. There are often companies that make not only genuine efforts to develop eco-friendly products but also lead ESG-compliant businesses to exert a positive influence, such as Hyosung. Hyosung goes beyond value-driven ESG management for social impact and creates eco-necessary products based on exceptional technology. Hyosung's technology is being utilized to achieve symbiotic purposes, specifically, to ensure that the future generations live in a more comfortable environment. Based on this technology, Hyosung aspires to reply to the needs of every generation’s future under Hyosung Group's ESG brand, RE:GEN. Hyosung achieving sustainable growth under the RE:GEN brand, with the purpose to ‘Reply to Every Generation’s Future For the sake of the future, it is crucial to confront reality first. In order to solve the global problems facing our generation today, innovative technologies are necessary. At the same time to enjoy current prosperity and wish for the well-being of future generations, these technologies must consider their environmental impact. What we need is an "ESG technology for every generation's future." Therefore, Hyosung is pursuing a realistic ESG strategy that combines Hyosung's technology to solve practical problems that will impact all generations' future. As the first step of this strategy, Hyosung Group has announced the RE:GEN branding, an ESG brand for the group. RE:GEN, which means "Reply to Every Generation's Future," is the direction that Hyosung intends to take in the future. In order to respond to a sustainable future for all generations. Hyosung is not simply engaging in ESG activities that are distinct from business, but continuing efforts in constant innovation and technological development based on its technological DNA. Hyosung aims to become a company that proposes innovative solutions for a better future for all generations. Hyosung's dedication to pursuing sustainability for every generation’s future Hyosung is pursuing sustainability through resource conservation and recycling, in the form of a circular economy. A circular economy cannot be created solely by Hyosung, but it rather requires collaboration among all stakeholders, from the supply chain to raw materials and end-users in establishing a perfect cycle. Hyosung is leading the way in this circular economy by building an eco-system with the goal of zero waste in this cycle. Carbon neutrality aims to increase the absorption rate of emitted carbon dioxide, ultimately reducing the actual amount of carbon dioxide emissions to zero. This carbon neutrality is achieved through various efforts ranging from resource conservation to energy efficiency throughout the entire production and consumption process. Hyosung is researching, developing, and innovating to minimize carbon emissions in its production processes and manufactured products, for the purpose of carbon neutrality. The scarce resources of the Earth we live in are rapidly depleting, and conventional fossil fuels and nuclear power are destroying the environment. New energy, which can replace them, such as renewable energy, is an essential field that must be developed for the future of the next generation. Sustainable new energy technologies cannot be achieved in a single moment. However, Hyosung’s DNA is essentially based on its efforts to achieve results through consistent efforts until hydrogen and renewable energy can replace fossil fuels and nuclear power. Hyosung aims to establish a value chain that covers materials, components, operational technologies, and distribution systems to commercialize and increase the efficiency of hydrogen and renewable energy. In addition, Hyosung strives to develop innovative technologies that minimize energy, resource usage, and harmful elements in all cycles of production and operation to reduce hazardous elements and conserve resources. Hyosung’s excellent technology in ESG management Hyosung TNC has pioneered environmentally friendly products, resulting in development of the wide range of eco-friendly polyester, nylon and spandex products domestically. Through the eco-friendly fiber brand regen, Hyosung TNC aims to create a virtuous eco-cycle for a more sustainable future. Hyosung TNC’s eco-friendly polyester yarn, 'regen Polyester,' utilizes useful components from discarded PET bottles, while 'regen Nylon' is produced by recycling discarded nylon or collecting discarded fishing nets to regenerate into environmentally friendly yarn. In addition, Hyosung TNC has developed 'regen Spandex' made from recycled spandex and regen Bio-Based Spandex' made from natural raw materials. Hyosung's environmentally conscious 'regen project' promotes a resource circulation system by recycling PET bottles collected from local governments such as Seoul and Jeju into recycled fibers and has gained recognition from consumers for the company's positive impact on the environment. Hyosung Advanced Materials has developed automotive carpets using recycled BCF (Bulked Continuous Filament) to reduce industrial waste and industrial Bio PET made from plant-based Bio EG and Bio TPA. Additionally, Hyosung Advanced Materials has developed an eco-friendly 'Dip' that does not use resorcinol or formalin, which not only reduces harmful substances within the production process but also extends the tire’s lifespan. The lyocell tirecord made from cellulose extracted from wood, reduces harmful waste generation, thereby preventing air and water pollution. Furthermore, the domestically developed ultra-lightweight high-strength carbon fiber 'TANSOME®' and steel cord contributes well to reducing carbon emissions by improving vehicle fuel efficiency. Hyosung Heavy Industries, a leader in domestic energy storage systems (ESS), supplies ESS for various purposes such as renewable energy integration, frequency regulation, peak reduction, and independent microgrids. The utilization of high-voltage direct current transmission (HVDC), which converts the high-voltage AC power from power plants into high-efficiency DC power, have opened up the possibilities for expanding the supply of renewable energy and increased the cross-border power interconnections. Hyosung Heavy Industries, which operates and constructs 700-bar hydrogen vehicle charging systems for next-generation eco-friendly hydrogen vehicles, has increased the convenience of hydrogen vehicle operation by supplying them to various places such as Hyundai Motor's Namyang Research Institute, Ulsan & Korea Expressway Corporation, and Hyundai Mobis. Additionally, Hyosung Heavy Industries has developed a smart grid technology, called the static compensator (STATCOM), which compensates for the relatively unstable power generation and supply of renewable energy. Hyosung Heavy Industries is the only company in Korea to possess the commercialization technology of STATCOM. The reason why Hyosung Chemical's polyketone brand, POKETONE™, is attracting more attention is because of its eco-friendliness. It captures carbon monoxide, the main culprit of air pollution, to create new resources. In addition, every time one ton of polyketone is produced, it reduces approximately 0.5 tons of carbon monoxide. Through the development of durable and eco-friendly technologies, Hyosung Chemical is contributing to reducing environmental pollution. Hyosung’s dynamic ESG activities Hyosung Group strives for sustainable growth from a long-term perspective, which is the ultimate goal of ESG management, making efforts to have a significant impact on social and environmental benefits. Hyosung aims to systematize and commercialize its technology to create a cycle structure that leads to environmentally friendly actions from raw materials to end-users. Moreover, Hyosung Group does not stop here. With its ESG brand RE:GEN, Hyosung seeks to show meticulous interest in many things we take for granted and execute meaningful projects for the future of the next generation. Furthermore, the future we dream of cannot be achieved solely by individual efforts. Hyosung seeks to discover RE:GEN Alliance brands that share its vision, and contribute practically to the world for better values and a better future together. Hyosung will support the growth and coexistence of the companies that have formed an alliance as a guaranteed brand of Hyosung RE:GEN Alliance. By thinking and executing for the future of the earth through an alliance, then a greener and more sustainable future will come. If the ocean becomes polluted, the fish and creatures within it disappear, causing the collapse of the marine food chain. Hyosung Group aims to take the first step towards a journey that benefits all generations and species beyond borders. To do so, Hyosung will become a RE:GEN GUARDIAN for biodiversity conservation and kick off the Seagrass Forest project. Under Marine Ecosystem Law, seagrass has been designated as a marine protected species and is recognized as a prominent source of blue carbon that plays a crucial role in absorbing carbon within the marine ecosystem. In order to conserve the habitat of these seagrasses, Hyosung has contributed to the Coastal Village Mutual Cooperation Fund. The fund that Hyosung contributed to will be used for various marine activities, such as "monitoring the distribution and habitat of seagrasses," "transplanting seagrass to locations for them to prosper," and "collecting abandoned fishing nets in the ocean." Furthermore, Hyosung is continuing its efforts to preserve the marine ecosystem by developing recycled fibers from discarded fishing nets. Hyosung's ESG activities are carried out in a practical and concrete way. Rather than simply offering abstract words such as symbiosis and sustainable future, Hyosung plans to contribute to creating a future where everyone can live together by developing tangible technologies that can be implemented directly. Hyosung will strive not only to provide convenient technologies for the current generation but also to create an environment where future generations can live with nature. With RE:GEN, which conveys Hyosung's unique philosophy and vision, together with technology, we will respond to the future of all generations.