HYOSUNG TNC

Mankind and nature have always coexisted. Nature has always been an integral part of human existence and humans have been a part of nature’s history. Because mankind cannot exist without nature, mankind must find a way to coexist and prosper with nature. In order to create a natural environment where sustainability is guaranteed, the ability of individuals, enterprises and the world to coexist, the value of ‘togetherness’ is now more important than ever before. Many people around the world today are working feverishly to combat climate change on multiple fronts. All these human efforts are being made for the sake of one goal: ‘the coexistence of mankind and nature’. This goal is the very definition and objective of ‘living well together by helping each other’. There is a company that practices this value of ‘togetherness’, the very meaning of coexistence. That company is Hyosung TNC! According to the UN, the fashion industry is responsible for about 8-10% of CO2 emissions, the main cause of climate change. Hyosung TNC, which manufactures textile yarns for the fashion industry, is the world’s top maker of spandex. As a responsible member of the industry, the company has been introducing many types of eco-friendly products over the years with the hope of contributing to the mitigation of the climate change crisis. The brand that symbolizes the company’s efforts in this regard is regen®, a recycled yarn brand. To produce and supply regen®, Hyosung is collaborating with a slew of fashion companies and organizations and creating the value of mutual growth. regen® is not the only example of the sustainability drive being pursued by Hyosung TNC. Hyosung TNC is ceaselessly researching new ways of reducing carbon emissions throughout the lifecycle of its products. Today, we at Hyosung TNC intend to fully disclose the details of our environmental activities. Transition to environmentally-friendly fuels Hyosung TNC’s factories were able to reduce their greenhouse gas emissions significantly after switching to low carbon energy sources. The factories receive waste heat (a renewable energy source) from nearby household waste incineration centers, after which biogas generated by the anaerobic digestion tank of the wastewater treatment plant is fed into the boilers. The company’s Gumi factory has reduced its greenhouse gas emissions by replacing B-C oil with LNG and LPG gas. Until recently, B-C oil was widely used in the manufacturing sector because it was cheap and had high energy efficiency, but it was blamed for polluting the environment because it produced diverse pollutants including soot. Therefore, the Gumi factory gradually increased the substitution of B-C oil, the source of so many pollutants, and reached a milestone in November 2019 when it stopped using it completely. Hyosung TNC is paving the way forward as a global leader that considers the value of the environment, rather than as one that thinks only about minimizing costs to boost efficiencies. 1) Reducing GHG emissions through improved processes and the construction of a smart energy platform The environmental investment plan for each factory is the one thing that Hyosung TNC never forgets to prepare every year. The company is dedicated to reducing carbon emissions through energy savings that are concretized in the yearly environment investment plans. Every year, Hyosung implements the environment investment plan thoroughly and strictly according to the schedules set forth in the plan. Manufacturing processes are improved to cut down on energy usage rates, while equipment like motors, freezers and air compressors are replaced with high efficiency ones. In addition, in 2020, Hyosung TNC’s Daegu factory participated in the ‘Seongseo Industrial Complex Smart Energy Platform Construction Project’ launched by the Korea Industrial Complex Corporation. In this project, twenty instruments were installed in facilities that consume large amounts of electricity, and a Factory Energy Management System (FEMS) was set up in the factory. The FEMS is a system that enables energy to be used effectively in a factory thanks to the application of information communication technologies and computing software. It analyzes how much energy is used by a particular facility, forecasts the level of energy demand, and calculates the appropriate energy usage rate and costs. With the deployment of the FEMS, Hyosung TNC is able to operate its facilities more efficiently because it can determine in real time where and when energy is used and then make adjustments to the amount of energy to be supplied. 2) Building a GHG inventory at global factories Depending on the nature and scope of emission rates, greenhouse gas emissions can be classified into Scope 1 (direct emissions), Scope 2 (indirect emissions), or Scope 3 (other emissions). Hyosung TNC not only monitors and manages the scope 1 greenhouse gases directly emitted by its factories, but also manages indirectly emitted scope 2 greenhouse gases. To build an inventory of greenhouse gases at its global factories, and not just its factories in South Korea, the company calculates scope 1 and scope 2 emission rates at the factories run by its subsidiaries in China (Hyosung Spandex Jiaxing Co. Ltd.), Republic of Türkiye (Hyosung Istanbul Tekstil Ltd.), and Vietnam (Hyosung Dong Nai Ltd.). In the case of its domestic factories, Hyosung TNC even calculates its scope 3 emission rates (i.e. emissions across the entire value chain) voluntarily and reports the data to the Carbon Disclosure Project (CDP). With the aim of building greenhouse gas inventories and controlling the emission rates of all its global factories, the company is planning to gradually introduce the calculation of scope 3 emission rates to its other factories. By managing indirect emission rates and emission rates at its overseas subsidiaries, Hyosung TNC is working hard to reduce greenhouse gas emissions. 3) Gradual transition to environmentally-friendly businesses As mentioned earlier, Hyosung TNC is a global fabric producer that supplies, in close collaboration with global fashion brands, environmentally-friendly yarns made from recycled materials which are sold under the brand name regen®. Through ceaseless research and development activities, the company is also introducing an entire product lineup that will expand the functionalities of regen®-based products. For example, it supplies recycled yarn made from post-consumer waste materials (waste materials discarded by end consumers) such as PET bottles and used fishing nets, and pre-consumer waste materials (waste materials generated before a product reaches the consumer), with the latter being a by-product of the manufacturing process. Recycled yarns not only help to reduce the amount of waste buried in landfills, but also lower the use of petroleum resources during the production of normal yarns, which in turn naturally aids the environment because lower petroleum resource usage means lower carbon dioxide emissions and energy usage. Hyosung TNC is also leading the pro-environmental movement of the industry by manufacturing bio-based products, which require less water and generate less carbon than conventional yarns and are made from non-edible ingredients. 4) Spreading a pro-environment culture within the company In 2021, Hyosung TNC’s main office in Mapo-gu launched a campaign to reduce the use of disposable products that are indiscriminately used and thrown away in the office. This campaign involved the participation of all executives and employees working at the main office. Today, employees use their own personal tumblers (slightly less handy but longer lasting) rather than the disposable paper cups. By using personal tumblers as a substitute for easy-to-discard paper cups, the company anticipates that this will translate into a greenhouse gas emission rate reduction of around two tons per year, while costs can be saved for roughly 190,000 paper cups that were used in the main office each year. Another notable campaign is the ‘Internal campaign to reuse regen’ launched in 2022. For this campaign, which is now in its second year of operation, special bins have been installed in the company’s main office building in Mapo-gu to collect discarded PET bottles, which are then recycled and used as a material for making environment-friendly fashion items for distributing to employees. The PET bottles discarded in the office are also collected and recycled as Hyosung TNC’s environmentally-friendly regen® polyester yarn, which is used to make bags and t-shirts for the employees. In 2022, 8,831 PET bottles were collected - an effect equivalent to 37 pine trees absorbing carbon dioxide for thirty years. The campaign is continuously improving the brand awareness of regen®, the company’s flagship environmental brand, as well as cultivating a positive mindset among employees regarding their personal participation in the recycling of resources. Hyosung TNC also organizes an annual ideas contest with the aim of finding novel ways to reduce energy consumption and greenhouse gas emissions, in the hopes that increased awareness of the issue among employees could lead to deeper cuts in the company’s carbon dioxide emission rates. This ideas contest has produced some tangible results. For example, Hyosung TNC’s Nylon Polymerization Team at the Ulsan factory proposed the innovative idea of raising the production density of thickeners in the recovery process to reduce the use of energy. If this idea is realized, greenhouse gas emissions could be reduced by up to 8 tons in a single year, which is a big motivator for Hyosung TNC to review this idea in earnest. We live in an era of rapidly changing times and trends which inevitably lead to the production of huge amounts of disposable items, trash, and fast fashion (SPA). The resulting pollution poses a threat to the health not only of everyone now living on Earth but also to future generations of mankind. As if the pollution of land is not enough, the plastic waste that seeps into the oceans is creating huge offshore islands, and as the plastic exposed to sunlight cools, it discharges greenhouse gases. These greenhouse gases then reflect the sunlight back to the surface of the earth, making our world even hotter. After floating on the seas for a long time, waste materials eventually disintegrate into tiny pieces, which are then eaten by sea creatures who mistake them for food, with often disastrous consequences. Ultimately, these waste materials pass through the food chain and end up in the bodies of humans. This is a major problem that cannot be resolved through the efforts of one person or one organization alone. The problem requires the interest of the wider international community and commitment and efforts from all of us. This is why Hyosung TNC, as the world’s top producer of spandex, seeks to play an active role in tackling the problem with a sense of responsibility. In tune with its reputation as a global top player, Hyosung TNC will design a sustainable future for all generations based on its environment-oriented business, so that everyone can welcome a future in which they can live safely in a clean environment. At every moment, Hyosung TNC considers sustainable progress for all generations, present and future. Indeed, the choices we make as a business will always place “togetherness” in our pursuit of valuable customers like you who yearn for a brighter future.

“Green marketing, ESG marketing, a good consumption that incorporates environment-friendly aspects, meaning-out consumption”. The above buzzwords are always included in conversations about marketing and consumption trends today. As consumers are more directly experiencing the detrimental effects of climate change, their awareness of and interest in environmental issues have increased. The MZ generation has risen as the main active consumer segment, pursuing an environment-friendly lifestyle and prioritizing consumption habits or activities that minimize the footprint on earth. A growing number of people, including the next generation who believe in the importance of sustainable value consumption for the planet, are bringing about change, leading companies to assume more social and ethical responsibilities. In line with the trend of pursuing value consumption, companies are pursuing ESG management for the sake of the next generation and the environment, while also making substantial investments when it comes to research and development for sustainable growth engines. Also, an increasing number of people are taking small conscious steps in their daily lives, such as drinking from tumblers, using reusable mugs instead of disposable paper cups, and being less wasteful with consumables, such as food. These individual efforts and small gestures in practice are aggregating into a social trend, with companies also implementing sustainable management. What could be another example of this trend of behaving with a more environmentally conscious mindset? Clothing is one example. We wear it every day and it is indispensable in our lives. An increasing number of consumers are checking to make sure the fabrics used in articles of clothing are environment-friendly before purchasing them. How and where can we purchase clothing made from environment-friendly fabrics so as to contribute in a small way to environmental protection? We at Hyosung TNC can teach you how it’s possible. regen Ocean Nylon, the rebirth of waste fishing nets Waste fishing nets that threaten the marine ecosystem are recycled and made into environment-friendly fiber. In 2007, Hyosung became the world’s first company to succeed in commercializing the technology for making environment-friendly fiber from fishing nets that otherwise would have added to the destruction of the marine ecosystem. Back in 2007, environmental issues were not a top priority in people's minds but Hyosung was already at the forefront of developing environment-friendly products for the future generation. This is how Hyosung successfully launched the regen Ocean Nylon in the global market. Today the fashion industry has emerged as a strong advocate of the environment, and Hyosung has become a company celebrated by the industry for its environment-friendly products. Global fashion brands have taken heed of the growing consumer interest in ‘meaning-out consumption’ and the environment, and in response, they have announced plans to use eco-materials, including recycled materials. In the future, more apparel brands will switch to environment-friendly materials, with the recycle markets and upcycle markets both forecasted to expand. The pro-environmental shift gaining traction in the fashion industry is about to go mainstream in full scale. As an all-around materials company, including textiles, that makes the yarns essential for producing environment-friendly clothing, Hyosung TNC is dedicated to creating high-value products needed in our daily lives using recycled resources. regen Ocean Nylon is a prime example of this dedication. How great is it that by just using products made with environment-friendly materials that convey Hyosung’s genuine commitment to the environment in our daily lives, we have a role to play in the global campaign to save the earth? How is regen Ocean Nylon produced? In 2007, Hyosung TNC became the first company in the world to commercialize high-quality nylon made from discarded fishing nets. The fact that it is an environment-friendly yarn is impressive enough, but the quality of regen Ocean Nylon is also outstanding. Just how do waste fishing nets become Hyosung’s recycled nylon of the highest quality? Recycled nylon is made by flattening out the collected waste fishing net, cutting them into little pieces, washing them thoroughly to remove any impurities, and then restoring them into recycled nylon pieces. To set up a stable process for recycling this resource in South Korea, Hyosung TNC entered into a business partnership with Busan City and NETSPA and is presently producing regen Ocean Nylon by recycling discarded fishing nets. Busan has collaborated with local governments to establish a system for sorting out reusable fishing nets. While NETSPA is tasked with shredding and washing the sorted fishing nets, Hyosung takes over the highly sensitive and difficult process of depolymerization to produce the regen Ocean Nylon. The process of producing regen Ocean Nylon starts with collecting discarded fishing nets and includes several different impurity-removal steps, and thus is a costly and laborious endeavor. But at the end of the day, it contributes to reducing carbon emissions and preventing ocean pollution. The manufacturing process also lowers carbon dioxide emissions since it reuses resources, produces a high-value product through virtuous recycling, and has a positive footprint on the environment. Despite the complex business process and difficult preprocessing steps, regen Ocean Nylon was conceived owing to Hyosung’s determination and relentless efforts to bringing an environment-friendly nylon to the market. Exemplary definition of virtuous recycling: a culprit of ocean pollution is now being used to clean up the ocean. If you want to reduce ocean trash and protect the marine ecosystem, remember regen Ocean Nylon, the high-quality recycled nylon brand from Hyosung. Wearing clothes made from eco-friendly recycled nylon that substitutes traditional nylon can be your first step for reducing carbon emissions. Recycled nylon is more effective in protecting the environment because 1 kg of recycled nylon fiber can reduce 6.7 kg of CO2 which is well-known as a major greenhouse gas. However, Hyosung will not settle for just being a producer of recycled nylon. It is taking further steps by implementing and executing measures designed to protect the environment. It not only sponsors ocean cleanup activities of ocean conservation groups like ReDi and Ocean Care, but also produces lift bags, buoys, and collection nets made with Hyosung’s ocean-friendly recycled yarn (while also providing customer support). Hyosung and ReDi jointly held a plogging (a portmanteau of "plockupp" in Swedish meaning "pick up the grains" and "jogging" which blend to denote the act of picking up trash while jogging) event on the banks of the Hangang River, as part of Hyosung’s Sevit ESG Color Festival's environmental cleanup program. This is just one example of how Hyosung is venturing beyond just producing recycled nylon and actively supporting various ocean cleanup activities. As a producer of recycled environment-friendly fibers, the company is at the vanguard of the environmental movement. At the same time, Hyosung is also spreading the culture of green diving through environment conservation groups, to actively support the ocean cleanup efforts nationwide. These efforts show Hyosung’s devotion to the mission of environmental protection. Hyosung's environmental activities do not end here because the company announced that it is set to sponsor apparel made with OBP-certified recycled yarn at the International Marine Debris Conference, further showing the company's commitment to resolving marine environmental issues. This is why we are more excited about the milestones that will be set in the coming years by Hyosung in the arena of marine environmental protection. Through the process of developing and manufacturing recycled nylon, Hyosung is protecting the environment, while also exploring diverse approaches to making the oceans a lot cleaner for the next generation. Plastic and marine pollution are serious issues that are not far removed from us. Insofar as Hyosung is exerting voluntary efforts to safeguard the environment for our children’s future through continuous research and investments, shouldn’t everyone play a small role in our daily lives for the environment? To make sure the future generation will be able to live on a cleaner planet that does not get more polluted, Hyosung will relentlessly pursue its sustainable development of materials, with the aim of developing and researching materials for the next generation to create a sustainable future for them. In addition to sustainable material development, Hyosung, through its ESG brand RE:GEN, intends to earnestly fulfill its responsibilities as a company for the sake of nature, for the planet, and for the future of everyone inhabiting it. It is up to us to create a future where people, Earth, and all living organisms can coexist and all the possibilities on Earth will bear fruit only if we act together for the common good. To endow the future of the world we dream about to the next generation, we at Hyosung will stay committed to its promises and fulfill them.

In August 2022, Korea-based comprehensive fiber manufacturer Hyosung TNC commercialized bio-based spandex, an innovative product that uses a strikingly unique ingredient: corn. Renowned for its exceptional elasticity, spandex is generally produced using raw materials extracted from petroleum. Then what inspired and enabled the invention of corn-based spandex, given that corn is a crop that typically hardens after processing? The answer lies in the UN General Assembly of 2015. UN’s 17 Collective Goals for Humanity At the 2015 UN General Assembly, the world came together to adopt the Sustainable Development Goals (SDGs), a set of 17 collective goals for humanity to achieve sustainable development. Aiming to be met by 2030, SDGs cover five different domains: people, planet, prosperity, peace, and partnership. As a company long committed to enhancing humanity's well-being, Hyosung TNC has been tirelessly working towards sustainable development. It has integrated four of the SDGs into its business operations, namely SDG3 for good health and well-being, SDG8 for decent work and economic growth, SDG12 for responsible consumption and production, and SDG13 for climate action. Hyosung TNC: Leading the Future of Eco-Friendly Yarns In pursuit of the four SDGs, Hyosung TNC has dedicated itself to leveraging innovative green technologies to better serve humanity. As a global leader in fiber materials, Hyosung feels an obligation to prevent climate change by developing eco-friendly fabrics and supporting a sustainable apparel industry. Pursing this path not only contributes to economic growth but also promotes the wellness and well-being of customers. Hyosung’s relentless efforts led to the successful commercialization of its bio-based spandex, the world’s first spandex using natural materials derived from corn. This breakthrough marked the debut of corn as a viable source for producing high-performance spandex, after having long been primarily used as a food source and partially for less sensitive bio products. The use of corns as raw materials is not entirely new, as we can see many examples around us. After corn-derived materials gained recognition as eco-friendly alternatives, polylactic acid (PLA), which is produced from lactic acid fermented from corn-derived glucose, has been widely used in toothbrushes, straws, baby tableware, trays, and other food containers, among others. Corn-based materials have already been used for various everyday items such as paint and wrapping paper, cosmetics containing corn-derived ingredients and liquid detergents containing corn-derived deodorants. However, technological limitations prevented its application in spandex, as highly advanced technology is required to produce such a high-performance fiber with remarkable elasticity. Hyosung TNC boasts accumulated experience and unrivaled technology for producing spandex yarn, which accounts for a third of the global spandex market. The bio-based spandex of Hyosung is the culmination of its technological prowess and more than three years of R&D efforts. Corn: The Key ingredient of Hyosung’s Bio-Based Spandex Corn-derived biomaterials are the key ingredients of Hyosung’s bio-based spandex. Through years-long research, Hyosung discovered the best combination of biomaterials and conventional spandex materials, developing a yarn that maintains the same performance and properties as conventional spandex. Compared to other yarns, spandex is a highly sensitive material. In fact, even slight changes in manufacturing conditions can greatly alter its elasticity. A piece of clothing made with spandex of an unusual elasticity level leads to lower product quality, such as sweatpants stretching out after a short period of wear. This explains why Hyosung TNC is so far the only one in the world to have succeeded in developing and commercializing bio-based spandex. Despite challenging conditions, Hyosung continued its research to utilize corn-derived materials as an eco-friendly source for spandex, placing the utmost priority on delivering world-class quality to customers. Eventually, Hyosung’s endeavor bore fruit, making it the first and only fiber manufacturer to have developed an eco-friendly spandex yarn that performs just as well as conventional spandex. The successful development of bio-based spandex is the ultimate testament to the technological prowess and know-how Hyosung has accumulated for 60 years. Ensuring Transparency and Environmental Friendliness across Manufacturing The use of bio-based materials has enabled Hyosung TNC to reduce its use of fossil fuels in proportion to its use of corn-derived materials, while lowering its dependence on petroleum, which is still essential for industrial processes. While gradually replacing more petroleum-sourced materials with corn-derived materials, Hyosung TNC will continue its research until it finally develops purely corn-based spandex. Hyosung is ensuring transparency and eco-friendliness across all manufacturing procedures, including thorough direct management of the supply of sustainable corn-derived materials. The corn used in manufacturing is not the type for human consumption, but dent corn used for industrial purposes such as fuel ethanol and cooking oil or livestock feed. Production management is also strict. Farmers who supply corn to Hyosung TNC must meet a wide variety of requirements such as reducing greenhouse gas emissions, improving nitrogen efficiency, meticulously managing soil quality in cultivation areas, and managing supply chains transparently. All this demonstrates how Hyosung TNC defines eco-friendliness: Being truly eco-friendly not only means replacing one raw material with a bio-based one but ensuring transparency and traceability from raw material procurement to the very end of the manufacturing process. Such an uncompromising approach has earned Hyosung's bio-based spandex the Eco Product Mark, an eco-friendly certification from the world’s leading certification body SGS (Société Générale de Surveillance), providing impetus to Hyosung’s green moves. Towards the Development of Biodegradable Yarns Amid increased public awareness of global warming, materials such as polybutylene adipate terephthalate (PBAT) and PLA are growing in popularity and applications for their low-carbon and biodegradable nature. Down the road, biodegradable fibers using natural materials are expected to advance from the recently emerging recycled fibers as the leading eco-friendly textiles. Indeed, biodegradable fibers decompose within a few years of being buried, causing less harm to the environment and serving as a more nature-friendly option than other fibers. As a pacesetter in biodegradable fibers, Hyosung has already embarked on R&D in biodegradable recycled PET yarns. From manufacturing to the end of product use, protecting the environment will be the utmost priority across the entire life cycle of biodegradable recycled PET yarns, which is why they are expected to contribute to the betterment of the environment. Hyosung TNC is leading the global fiber market while steadily developing eco-friendly fibers in a bid for a better life for everyone.

You may have heard that the fast fashion industry is the main culprit of climate change. A fast fashion trend life cycle is often two weeks and the industry as a whole accounts for around half of the global fashion industry. With the ever-increasing influence of the fast fashion names, overall fashion trend cycles are getting shorter than every before. Given the amount of discarded clothing, consumption of industrial water for the manufacturing process, and its impact on global carbon emissions, it is no exaggeration at all to say the industry is one of the biggest contributor to climate change. What has recently been witnessed is the growing call for ‘slow fashion’ in opposition to its counterpart, especially among consumers wary of the issues of climate change. In turn, many global fashion names are turning to an eco-friendlier textile brand which could help them better respond to such demand. That is Hyosung TNC’s regen which first was introduced to the market in the 2000s. That is when the fast fashion industry was also gaining traction. Hyosung TNC had long been working on developing the eco-friendly textile even when the fashion industry was not necessarily environmentally conscious. In 2007, the company finally succeeded in developing regen nylon with a technology that recycles discarded fishing net and rope. In the following year, Hyosung TNC developed a regen Polyester fiber by recycling used PET bottles. As such, Hyosung TNC has literally been trailblazing on this issue. Let’s take a look at the company’s journey of developing full regen product line-ups of recycled fibers from polyester to spandex. 'regen' is Hyosung TNC's brand name for its eco-friendly spandex, nylon and polyester fiber. Facing the challenge to save the earth, Hyosung TNC strives to show the next generations a better world through the eco-friendly 'regen' brand. With a spirit of challenge and innovation, Hyosung TNC gives new life to plastic waste as high-quality eco-friendly fiber, while leading the circular economy of the petrochemical industry. Hyosung TNC will continue to aim to building a virtuous cycle through fiber technology, looking far into a more sustainable future. I. regen Spandex, the eco-friendly story of the world's No. 1 spandex A life without spandex fibers is almost unimaginable. Just imagine if you have to walk in a suit or leggings that do not stretch. Can spandex fabric be environmentally friendly? The answer is yes. Hyosung TNC regen spandex is made from industrial waste while maintaining regular spandex function. Producing one ton of regen spandex would in turn have the same environment-friendly impact as planting 889 pine trees that are 30 years old. Consumers wearing clothing made of regen spandex constitute a small step toward building an eco-friendly lifestyle and make a difference in the efforts to save our planet. II. regen Nylon, a revolutionary eco-friendly fiber Nylon is the world’s first synthetic fiber used for making stockings and underwear. Hyosung TNC brings added value to nylon too. The company developed a technology that recycles materials from discarded fishing nets and ropes to produce regen Nylon in 2007, for the first time in the world. The fabric is not only environmentally friendly but also considered high performance. Hyosung regen Aqua-X fabric is used for swim suits or workout outfits for its sweat-absorbing and quick-drying properties as well as cool-touch, soft and skin-friendly quality. Naturally, demand for this fabric increases in summer time. The world’s first environmentally friendly heavy-duty nylon regen Robic is known for its super resistance to tear and abrasion as well as wind and rain. It is also for its lightweight technology, suitable for outdoor gears. If you are up for workouts in summer time or outdoor adventures, this is the fabric that can offer you joy, health and a sense of fulfilment for your contribution to the environment. III. Turning marine pollutants into a valuable material, regen Ocean Nylon It may not intuitively be obvious that an eco-friendly fiber helps preservation of the marine ecosystem. Discard fishing nets are one of the main culprits of the destruction of marine ecosystem. Abandoned, lost or otherwise discarded fishing nets destroy the underwater ecosystem, taking the lives of marine organisms that become entangled. It takes up around 600 years for them to break down and in doing so they shed microplastics that are becoming some of the biggest threats to the marine ecosystem. Even if these fishing nets are collected for incineration, this process also could entail the emission of a lot of pollutants into the air. As such, Hyosung TNC has developed regen Ocean Nylon in order for these abandoned fishing nets to be reborn as a valuable eco-material. The company is expanding its facility for depolymerization to increase the production capacity of regen Ocean Nylon. IV. To catch two birds with one stone, regen Polyester Hyosung TNC regen Polyester is an environmentally friendly fiber made of discarded PET bottles. It comes with various features with high performance such as regen Askin of cool touch yarn, regen Cotna of natural cotton-touch polyester yarn, regen Aerolight of lightweight yarn, regen Aerosilver of odor-resistant yarn, regen Xanadu of strong elasticity, and regen Aerocool of sweat-absorption and quick-drying yarn. Pursuing environmental friendliness is itself commendable but producing such eco-friendly yarns with high performance is even more commendable. Hyosung TNC is committed to offering more diverse regen polyester products of eco-friendly nature to help better protect our planet. V. regen Ocean polyester, contributing to healthy ocean ecosystems It is not only discarded fishing nets that destroy the marine ecosystem. Across the world, around a million sea birds and 100,000 marine mammals die[1] each year from plastic waste. In order to protect the ocean wildlife and humanity from plastic debris in the ocean that account for 47% of the ocean waste[2], Hyosung TNC collects PET bottle waste from the ocean and turn them into regen Ocean Polyester fiber. It obtained the Ocean Bound Plastic (OBP) certification for its contribution and has been extensively used in various apparel brand names for their production. You might be surprised to find how easily you will bump into this name on the tag of your clothes. Isn’t it just cool to wear clothes that could have contributed to saving a whale or two in the ocean? The tale of two cities, regen Jeju and regen Seoul project initiative designed to recycle waste in the two cities If you want to know more about Hyosung TNC’s eco-friendly fiber products? Look no further than Seoul and Jeju. Firstly, Jeju is an island of three UNESCO heritage sites and known for breathtaking beauty. Hyosung TNC has launched a joint project titled ‘regen Jeju, Restoration to be Reborn’ alongside Jeju local government and the Ministry of Environment in 2020. Under this initiative, discarded PET bottles in Jeju Island are collected to be reborn as regen Jeju polyester fiber, which then has been used by the global outdoor brand North Face for its products. Building on its success story in Jeju, Hyosung TNC embarked on ‘regen Seoul’ project in 2021 by joining hands with Seoul Metropolitan Government to create an eco-friendly regen Seoul yarn. Going forward, this initiative is to be expanded under ‘regen Korea’ project to use plastic waste in Korea for another eco-friendly fiber. Whether it is on land or in ocean, collecting waste and turning them into eco-friendly yarns is not an easy feat. It requires unwavering efforts in research and development as well as investment and energy to produce a high quality performance yarn that is eco-friendly. That said, it is worth doing it if it means we can contribute to the value of sustainability and environmental friendliness that will be critical for the life of our future generations. Since as early as 2007 when not many paid attention to the environmental issue, Hyosung TNC has put strenuous efforts to research and develop technologies to protect our environment. The company is to continue on its endeavor to produce eco-friendly fibers for the sake of our future generations. Hyosung TNC’s regen brands as well as RE:GEN(Reply to Every Generation's Future) that is Hyosung Group’s ESG initiative are all about responding to the call of our time for the sake of our future generations. If we put extra attention to things taken for granted for a long time, our future should be filled with hope. Hyosung TNC is ready to put more emphasis on environment and our future generations than we do for immediate profits and management outcome. In doing so, we at Hyosung believe we can bring in a future where humanity as a whole can live happier and longer on our planet Earth. To this end, Hyosung is to continue to pursue collaborations and joint projects for the sake of sustainability and environment. [1] Source: UNEP [2] Source: Ocean Conservancy, a US based NGO committed to a healthy ocean and the wildlife

“Every morning, I wake up to make a cup of coffee and a piece of toast for myself. With a functional T-shirt on, I would drive to work. After work, I get home to drink a cup of water from the water purifier and get a quick dinner from a retort pouch. Then I search my phone to get my nephew a toy while TV is on. Over the weekend, I would go for a bike ride with my helmet on and get a hot shower afterwards to release the stress and tension.” This may be similar to your everyday life. But do you notice the one thing that underlies and connects every movement here? Chips. Not the potato chips we munch on but plastic chips that are used as materials for manufacturing daily products. Excessive use of them could threaten our environment but in fact they are essential to our daily life. Plastic chips are extensively applied in our everyday products thanks to materials such as Polypropylene (PP) and Engineering Plastic (ENPLA) that are highly functional without emitting environmental hormone. Let’s take a look at a bigger and more convenient world built on plastic chips led by the global chemical name Hyosung. Hyosung, global innovator and leader in the future chemical industry, has developed and produced a variety of materials such as PP, and nylon and polyketone ENPLA. Engineering Plastic, the plastic beyond plastic Engineering Plastic or ENPLA is a type of high-performance plastic that can even serve as an alternative to metal and ceramic. They are known for excellent yield strength, resilience and heat resistance of up to over 100 degrees. Unlike conventional plastics, ENPLA is custom manufactured to cater to the various needs of global customers across different industries. It has excellent mechanical strength, chemical resistance, weather resistance, thermal resistance, fire retardant, and insulation resistance and has been applied to industrial products such as automobiles, electronic parts and goods, and architecture. Thanks to the superb properties and machinability, the ENPLA market has been growing around the world. It reached $66.2billion in 2016, and is continuing to grow, estimated to reach the market size of $132.8billion by 2026. Hyosung’s ENPLA products are polyketone, the world’s first and only material developed by Hyosung Chemical, and nylon chips. Three key plastic chips offered by Hyosung ENPLA besides, Hyosung offers various plastic products that are widely used through our daily life. To name a few, there are three types of plastic chips Hyosung offers. ENPLA Polyketone, the world’s first and only commercial plastic chip of its kind, nylon chips that boast the world’s best quality and technology, and polypropylene chips that are extensively applied in our daily life. 1) Hyosung’s Polypropylene (PP) Hyosung Chemical’s polypropylene (PP) is the output of the company’s high-molecule polymerization technology and various catalyst application skills. It is applied not only in everyday goods such as helmets, car seats and furniture but also in various applications including different packaging materials (i.e. automobile manufacturing and food), textiles for clothing and diapers, and medical devices (i.e. syringe and fluid packages). Manufactured through the combined process of HYPOL method and UNIPOL method, the polyprolylene comes in various forms such as Homo-polymer, Block co-polymer, and Random co-polymer. It is applied to numerous sectors for general use while some are specially designed for high temperature and thermal resistance, high stiffness, high impact resistance and transparency to meet the different needs of global customers. Especially, the R200P is a global leading polypropylene brand specially developed for hot and cold water supply pipes and fittings as well as radiator connecting pipes. This material is also well known for the high quality when it comes to retort films and protective films. Other products incorporating the PP have received excellent reviews from customers for their excellent machining characteristics and properties. To secure a stable supply of the main material for polypropylene production, Hyosung Chemical obtains high-purity propylene from the propane dehydrogenation (DH) process where it has adapted cutting-edge manufacturing technology. With this Hyosung Chemical has successfully established vertical integration of its supply chain from raw materials to the finished products. 2) POKETONE™ POKETONE™ is Hyosung’ Chemical’s brand name for the world's first commercialized polyketone, a non-toxic and biocompatible polymer that is FDA (Food and Drugs Administration) and NSF (National Science Foundation) approved. It exhibits outstanding chemical resistance, toughness and abrasion resistance. It is made of CO2, one of the key air pollutants and olefins which is a raw material for petroleum. It emits less CO2 during the manufacturing process, thus cutting down on carbon footprint. Its application includes automobile parts, water meters, water purifier parts, conveyers, toys, medical parts and pipes. Thanks to Hyosung’s continued efforts in R&D, its application has been expanding to high-tech industries such as films and airplane parts. This eco-friendly and safe polymer material has been increasingly adopted in the toy industry for its safety and flexible properties. Thanks to its non-toxic characteristics, it also has been applied in products that are related to water and food such as water purifiers. 3) Nylon chips Nylon chips are widely used for general industrial use as well as for nylon yarns for clothing. Hyosung TNC is a global leader in nylon yarn manufacturing with over 50 years of track records in supplying the top quality and high performance nylon yarns to various customers around the world. Hyosung’s nylon chips are extensively used in various areas such as automobile parts, electric and electronic devices, cable ties, various films and fishing nets. More recently, it has been adopted in hydrogen storage and transport container liners that require high resistance to pressure. Hyosung TNC has been actively engaging with customers at home and abroad to develop hydrogen tank liners built with its nylon chips. With plastics increasingly being held responsible for environmental degradation, Hyosung TNC has put a lot of efforts into developing products and techniques to recycle waste. Hyosung’s world-first fishing net recycled nylon yarn, the regen® Ocean Nylon, is not only eco-friendly but also offers the same quality to that of conventional nylon yarn. Hyosung TNC has conducted a life cycle assessment on nylon chips as part of its efforts to protect the environment. To offer various high-performance chips to help humanity Hyosung is the only Korean name that develops and sells both high-quality PP and nylon chips. By engaging in theR&D and sales of both products, it has created unparalleled synergy effects in the two materials. On top of it, Hyosung has also developed the world’s first polyketone material, emerging as the world’s largest supplier of varying plastic materials, offering more options to customers. Hyosung Chemical and Hyosung TNC have participated in the world’s largest plastic exhibition, ‘K-Fair 2022’ held in Düsseldorf Germany in October ’22 to showcase their PP, nylon chips and polyketone. Hyosung has been striving to work together with other players by offering multiple options and catered solutions to global customers. Hyosung is committed to growing into a global plastic chip leader that offers high-quality customized chips to meet various needs of customers, by continuing its R&D efforts and maintaining agility in the ever-changing global market. Hyosung will continue to strive to usher in a new era of plastic materials.