HYOSUNG TNC

Industrialization has led to the emergence of many high profile companies and entrepreneurs, shifting the focus from agriculture to industry. This has brought about significant changes in society, economy, and culture owing to the birth of capitalism. In capitalism, companies prioritize profit maximization, gauging their success on financial gains. Such single-minded pursuits of profits have brought convenience and abundance to society at first, but as time went on, it has also led to unintended consequences such as environmental and social issues, as well as concerns about corporate ethics. As a result, consumers and governments have started to view corporations from a different perspective. Today, governments and consumers go beyond the bottom line when evaluating corporations. They carefully examine and regulate various aspects, including corporation’s proactive stance on environmental initiatives, social contributions, and corporate ethical responsibility, before making purchase decisions. This represents a shift towards embracing new corporate values in the modern era, marking the essence of sustainable management. Hyosung has always prioritized sustainable management practices, and discussed directions towards the future. As the world continues to evolve, the company has instituted a specialized ESG management team to integrate ESG principles into all areas of operations. With a strong commitment to eco-friendly management, Hyosung is committed to creating a sustainable cycle at every step of the production process, utilizing tangible technologies and focusing on everything from raw material development to product disposal. Hyosung’s employees actively engage in various eco-friendly activities, such as organizing the "Eco-friendly Idea Contest" where everyone shares their ideas, promoting the use of tumblers, and conducting campaigns for collecting plastic bottles. Additionally, the company is dedicated to preserving endangered wildlife and marine ecosystems through initiatives like the "Seagrass Forest Project" and biodiversity conservation efforts. The company’s employees continue their efforts without limitations, working towards a better and greener future. Today, we introduce the ESG Team that leads Hyosung's sustainable management values. Introducing the ESG Team Leading Hyosung's Environmental Values! In April 2021, the governing body known as the 'Transparent Management Committee' within the Hyosung Board of Directors was restructured and renamed to the 'ESG Management Committee.' Since then, the ESG Management Committee has been actively engaged in various tasks related to Hyosung's sustainable management. They address various important matters for the new era, including global policies on climate change, setting goals, risk management, investment planning, and amendments to the Green Management Vision 2030 Policy. They also set reduction targets, implement internal carbon pricing, and report emissions under the emission trading system. Despite these various responsibilities, Hyosung remains dedicated to evolving sustainable management relentlessly. The company has consolidated the EHS (Environment, Health, Safety) Committee and the CSR Committee, expanding their focus as the 'ESG Management Promotion Committee' presided by the CEO. This committee now handles not only environmental and safety health sectors but also social structures and corporate governance. This reorganization is driven by the high expectations on the increasing value of ESG management in the future. The 'R&D Committee' plays a pivotal role in Hyosung’s sustainable management. With the CEO and management team’s participation, they meet biannually to formulate research and development strategies. This includes gathering input from departments like sales, marketing, and research, focusing on global climate change. By doing so, the R&D Committee shares the responsibility of advancing Hyosung's sustainable management. Moreover, each subsidiary of Hyosung has its own dedicated 'ESG Management Team' directly reporting to the CEO, serving as Hyosung's ESG-focused organization. Furthermore, the strategic headquarters boasts a 'Green Management Team.' The presence of these teams and individuals working together underscores Hyosung’s unwavering and genuine dedication to growing the value of sustainable management. What efforts are members of the Hyosung family making? Although operating under the Hyosung banner, each business unit has its distinct roles and requires different approaches to sustainable management depending on the circumstances. In the second half of 2021, Hyosung TNC, Hyosung Heavy Industries, and Hyosung Chemical restructured their decision-making bodies, the EHS Committee and the CSR Committee, to form the ‘ESG Management Promotion Committee’ presided by the CEO. Hyosung TNC and Hyosung Heavy Industries convene the committee every six months, while Hyosung Chemical does so on a quarterly basis. Hyosung TNC calculates and monitors its ‘product carbon footprint’ to measure greenhouse gas emissions from production and consumption. The company offers consulting services to help partners improve their the energy greenhouse gas management capabilities. Hyosung TNC leads the eco-friendly fiber market in S. Korea, offering environmental-friendly products such as polyester, nylon, and spandex. It was the first to develop ‘regen Polyester’, a recycled fiber made from discarded waste PET in 2008. In July 2022, it partnered with the Korea Trade Association for the 'Open Innovation Project' to support startups focused on textiles and sustainable management. Hyosung TNC’s efforts are expanding and leading the eco-friendly fiber market. Hyosung Heavy Industries has implemented internal carbon pricing and reports greenhouse gas emissions as either a surplus or deficit. It has been constructing and operating a 700bar ‘hydrogen vehicle charging system’ for next-generation eco-friendly hydrogen vehicles since 2008, even when hydrogen vehicles were not as popular. In 2010, the company has supported the intelligent power grid 'STATCOM' to address power production instability, which is a challenge for renewable energy, while solely commercializing this technology in S. Korea. In 2014, it achieved a breakthrough by developing HVDC technology, enabling the transmission of high-voltage AC power from power plants as DC power, which significantly contributes to renewable energy adoption. Hyosung Chemical deals with various agendas, such as responding to the CDP, managing risks of greenhouse gas emissions, and participating in energy companion projects. In 2013, it achieved a major milestone by developing the world’s first industrial plastic called 'polyketone', which serves as a sustainable alternative to metals and helps reduce air pollution caused by carbon monoxide. In 2016, the polyketone-based brand 'Poketon' was launched, and in 2022, the company engaged in biodiversity conservation activities through initiatives such as ‘animal behavioral enrichment.' Hyosung Advanced Materials strives to tackle climate change and improve people’s lives. Led by the CEO, the 'Sustainable Management Committee' charts the path for decision-making in the company. The focus is on reducing carbon emissions through innovations like 'TANSOME®’ and ‘UT Steel Cord (ultra-high tensile strength)', which were developed for the first time in S. Korea in 2011 with proprietary technology, enhancing fuel efficiency. The company has extended tire lifespans with its Dip technology, which strengthens tire’s fatigue resistance, and resulted in reducing tire waste and environmental pollution. In 2022, Hyosung Advanced Materials signed MOUs with Jeonju City and the National Ecological Institute to actively engage in biodiversity conservation and restore the endangered species, 'Jeonju Dysophylla yatabeana Makino.’ Hyosung's sustainable management, RE:GEN, is even more promising for the future Hyosung is actively expanding sustainable management practices through advanced technology and dedicated employees. In 2018, the company announced 'Green Management Vision 2030' with a goal to reduce greenhouse gas emissions by 14.5% by 2030 compared to 2018 levels. Since then, Hyosung has been actively involved in carbon reduction initiatives. As a recognition of their efforts, Hyosung, Hyosung Advanced Materials, Hyosung TNC, and Hyosung Heavy Industries have each received a Grade A or higher from the global sustainability assessment agency, CDP, in 2020, 2021, and 2022. Hyosung has instituted five sustainable management themes under the ‘RE:GEN’ brand, to maximize the reach of technology for future generations. These themes include recycling and upcycling for a circular economy, carbon neutrality, clean renewable energy, tree and forest protection, and smart reduction through efficient energy use. Through Hyosung’s RE:GEN brand, the company is dedicated to creating a beautiful and healthy planet for future generations by promoting ESG values. Hyosung’s sustainable management strategy focuses on the principle of sustainability, while capitalizing on proprietary advanced product technology. Hyosung is committed to implementing systematic, practical, and exemplary sustainable management practices, setting a positive benchmark for global companies. By striving to create a better society and environment, Hyosung aims to ensure a brighter future for many more generations to come.

We are experiencing the most significant recession since the 2008 financial crisis due to the global economic downturn and rising interest rates. In response to rising commodity prices and volatile exchange rates, companies examining their management processes to enhance efficiency. Hyosung focuses on agile management. Cho Hyun-joon, Chairman of Hyosung Group, stressed the importance of agile management, saying, "Like a tiger, we must adapt swiftly and efficiently to new technologies and trends to remain competitive." The dictionary meaning of “agile” is "nimble" or "quick-witted," but what exactly does agile management involve? Agile was originally one of the software development methods. In software development, it refers to the ability to respond to the environment without sticking rigidly to an initial plan, corporate management has adopted this characteristic. By responding rapidly to customers and employee feedback, this management style actively responds to changes by constantly revising processes and policies. The previously management styles, known as 'waterfall,' developments progressed sequentially according to the plans, much like a waterfall cascading down from top. In this management style, it was difficult to respond appropriately to sudden issues or changes. As a result, agile management is becoming increasingly important and valuable, as it continuously reflects and modifies the market's evolving needs based on customer feedback from start to finish. Agile Management: Millennials’ Choice Millennial, who represents a large percentage of the labor market, were born between the 1980s and early 2000s and place a high value on personal freedom and work-life balance. Therefore, corporations are no longer able to maintain their pyramid structure. The millennial generation prefers startups with flexible cultures and highly values horizontal and open communication within organizations. Rather than simply working to make a living, people seek jobs that allow them to voice their opinions. Through agile management, companies can break free from traditional corporate cultures and facilitate active communication between the older and millennial generations, attracting high-quality millennial talent. The benefits of agile management are aligned with the needs of this generation's workforce in recruiting top talent. Agile management has the advantage of being able to generate rapid and more effective conclusions and implantation through prompt execution and continuous incorporation of external feedback, all without rigid plans. Essentially, it enables flexible responses to environmental changes while achieving high-quality results. When many companies halted investment and faced challenges due to the COVID-19 pandemic, Hyosung took proactive measures by investing in advance. They anticipated that working from home would become the norm and “at-home workout” trend would rise, increasing demand for comfortable clothing materials and spandex. As a result, Hyosung expanded its overseas spandex factories and restructured its global production system by the end of 2020. Therefore, Hyosung maintained its position as the top market share holder in the global spandex market and achieved impressive business performance despite the economic downturn. There was more to their efforts. The company launched a wide range of environmentally friendly black products in April this year, eliminating the need for a separate dyeing process. Due to the increasing demand for eco-friendly materials in manufacturing processes, especially among renowned global fashion brands, they developed black spandex that does not require dyeing. This demonstrates their ability to adapt quickly to changes in consumer awareness and their commitment to practicing environmental sustainability. Moreover, Hyosung continues to invest in new ventures, including liquid hydrogen and advanced carbon fiber materials. By 2023, Hyosung Heavy Industries, plans to construct Ulsan's largest single-scale liquid hydrogen plant. As part of its expansion, Hyosung Advanced Materials operates a carbon fiber factory with a capacity of 4,000 tons. Hyosung’s core subsidiaries have achieved commendable result despite the COVID-19 situation. The company’s ability to sustain steady growth can be attributed to agile management, which enables it to respond promptly to changing trends and market feedback. The Foundation of Agile Management: Digital Transformation Agile management is rooted in digital transformation. By leveraging digital technology across various domains of life, agile processes are deeply intertwined with revolutionary concept digital transformation. There are numerous examples of digital transformation in everyday life in this era. Digital innovations like artificial intelligence, cloud computing, big data, and 3D printing to instigate radical organizational changes or integrate digital elements into existing industries. Some examples include using cloud services to access data anytime and anywhere and engaging in conversations with AI chatbots. Automating repetitive tasks can significantly enhance the quality and speed of work, naturally increasing productivity. As a result of big data analysis, we can gain a more systematic understanding of market trends and customer behavior, surpassing the previous reliance on human conjecture and prediction. By implementing such strategies, costs can be reduced while results can be improved. As a result of combining agile approaches with digital transformation, refined outcomes can be generated by continuously incorporating data insights and adapting to changes. In its subsidiaries, Hyosung Group has established Smart Factory Task Force Teams. From raw material imports to production and shipping, the company integrates newly acquired technologies into the Smart Factory system to control processes. It collects and analyzes product conditions and equipment status data to control processes. In 2019, Hyosung launched the "C-Cube Project" to accurately evaluate customer needs by collecting customer voices (VOCs) for databasing and subsequent business incorporation. 62 global trading corporations and 32 production corporations provide feedback as part of the project. These companies are in China, Vietnam, Turkey, and Brazil. Hyosung is also actively engaged in digital-based management, collaborating with ST Telemedia Global Data Centers for data center operations and launching a curation-based NFT platform with Galaxia Metaverse. Hyosung has uses the metaverse platform "Gather Town" to introduce new employees to the company. A sense of community and camaraderie was cultivated among newcomers while overcoming the limitations of remote training. By mimicking real-world environments, they created virtual training spaces resembled the company's headquarters, auditoriums, and factories. In an immersive environment, new employees explored the virtual space as avatars, learning about their job and company life. Hyosung's proactive adoption of the latest technologies to communicate effectively with millennials is an example of agile management. Hyosung Group: Building the Future with Agility: Hyosung recently implemented an independent management system led by professional managers at each subsidiary to streamline group operations. Based on each subsidiary's strengths, the company aims for competitiveness through rapid decision-making and expertise in their respective fields. Hyosung TNC, Hyosung Advanced Materials, and Hyosung Chemical, collectively called the "Big Three in Materials," have achieved their highest performance since they were founded. One’s ability to respond nimbly to uncertain times can determine whether it becomes a crisis or an opportunity for new growth. By embracing agile management policies, Hyosung will continue to achieve new heights with agility and swiftness, demonstrating its spectacular growth.

The 'Metaverse,' a three-dimensional digital space enabling social and economic activities beyond virtual reality, is emerging as the next-generation alternative universe. Diving deeper into the rise of the Metaverse, the shift in our perception of living spaces is one of the reasons for it becoming more prevalent. The digital 'space' is now recognized as the 'world' in which we live. Digital technology has become an integral part of our daily lives, required for eating, playing, enjoying, obtaining information, and consuming. As digital living becomes common, the boundaries between businesses and customers in transactional and communicative relationships have begun to blur. Consequently, a new strategy called B2C2B (Business to Consumer to Business) marketing has emerged, combining elements of B2C and B2B marketing. B2B marketing targets organizational needs, interests, and challenges, while B2C marketing pursues customer interests beyond mere transactions. Although these two marketing approaches have different target audiences, they cannot be considered completely separate. For instance, a company that designs office spaces may also sell office supplies to individuals, encompassing both aspects of its marketing strategy. According to Salesforce’s Global Marketing Trends report (State of Marketing), businesses and customers alike have shown an increasing tendency to expand marketing in digital environments following the pandemic. Among B2C/B2B customers, 81% spend more time online, with social media (91%) and digital advertising (91%) identified as actively utilized digital channels. This increased focus on online marketing channels indicates that B2B customers also significantly influence the general public, as publicly accessible digital channels can ultimately reach ordinary customers. These changes underscore the growing importance of direct 'communication' between businesses and customers. Companies that can quickly share information and engage with customers at the right time are more likely to thrive. In light of these changes, Hyosung is ramping up its digital marketing efforts to enhance customer communication, empowering the general public to better comprehend and capitalize on its offerings. Hyosung's products are providing convenience in various aspects of daily life, beyond what customers may realize, making proactive communication more crucial than ever before. Hyosung’s Consumer-centric Marketing aims to Showcase the Brand Value in Everyday Life Although Hyosung products are incorporated in most aspects of daily life, it is still challenging for customers to identify them if they don't pay close attention to products’ components or materials. Thus, Hyosung is introducing areas where its technological expertise is applied, such as water and electricity, food, various detergents, clothing, and more. This includes nylon and PET films that keep food ingredients fresher for longer, TAC films that enhance screen visibility for devices like TVs and tablets, spandex fibers used in leggings, energy-saving pumps that supply domestic water, and digital substations that provide electricity to households. The goal is to communicate to customers the wide variety and range of products developed and produced by Hyosung. Hyosung has launched a 'Brand Revisioning' project to increase the Hyosung brand awareness, and has restructured its marketing approach accordingly. The goal is to effectively implement not only B2B marketing targeting businesses but also B2C marketing for end consumers and stakeholders. The brand revitalization project is a medium-to-long-term initiative to enhance Hyosung's brand value and recognition. Moreover, it aims to convey Hyosung's innovative efforts by transforming stories that capture the value of its brand and numerous products into digital content. This can be attributed to digital media diversification, including YouTube and social media platforms. The more significant reason, however, is that Hyosung's messages and contents are conveyed and communicated in a way that resonates with its target audience. As a result, its digital content marketing can be more customer-centric rather than company-centric. By tailoring content to suit the unique characteristics of each channel, a virtuous cycle of communication is established. This cycle involves continuously gathering customer feedback, leveraging data, and promptly incorporating insights into the content to consistently provide desired information. Hyosung: Committed to a Sustainable Future and Planet The impetus for such a confident focus on content stems from Hyosung’s unique development and origin stories for its products. From eco-friendly technology development to production processes, Hyosung prioritizes future generations and the planet. Embracing a mission for a sustainable future, Hyosung has proclaimed its commitment to ESG management. It has been diligently improving existing products, developing proprietary technologies, and unveiling innovative offerings in alignment with this commitment. Prominent examples include Hyosung TNC's world-first nylon recycled fiber 'regen Ocean Nylon,' which was developed and commercialized by recycling discarded fishing nets using exceptional technology in eco-friendly textile manufacturing. Other examples include 'CREORA Bio-based', a bio-spandex fiber made from corn extracts, and Hyosung Advanced Materials' 'tirecord', which boasts around 50% global market share for its lightweight carbon fiber material technology. Hyosung Chemical leads the global component materials market with the highest market share for 'pipe-grade polypropylene' and globally competitive, high-quality chemical component materials such as 'TPA' and 'polyketone'. The list of products continues to grow, and with enhanced eco-friendly technology and product capabilities, Hyosung is rising to a top player position in various global industries. Over the years, Hyosung has solidified the foundation of its products and achieved growth. It has become increasingly important for Hyosung to actively share with its customers the stories behind the development and unveiling of these products. By using digital medium, Hyosung intends to proactively engage in storytelling. Hyosung: Connecting with Customers through Emotional Content Currently, Hyosung engages customers through various social media channels including YouTube, Facebook, Instagram, LinkedIn, and KakaoTalk, offering emotionally resonant content with relatable explanation of its products. YouTube channels, in particular, play a critical role in communicating stories about products and technologies to the global Gen Z audience. Hyosung manages multiple YouTube channels, including Hyosung Worldwide, Hyosung Chemical Worldwide, Hyosung Advanced Materials Worldwide, Hyosung Heavy Industries Worldwide, and Harrington Tube/ Hyosung's YouTube videos convey the company’s eco-friendly efforts under ESG management. The company explains the environment-friendly process in which its products are made, and their impact on transforming the daily lifestyle into a sustainable one. Audiences can easily understand previously hard-to-grasp mechanisms of the product and stories with these videos. This leads the audience to relate with Hyosung and actively participate in Hyosung’s efforts and eco-friendly values. Moreover, Hyosung’s success in the global market has exponentially increased demand and interest for its products around the world. This allows to reach a broader global audience and promote its efforts. Hyosung’s LinkedIn channel serves as a means of communication, utilizing brand manifestos, brand journalism, and timely content, to convey the company’s vision and innovative spirit to customers and facilitate effective communication. The channel provides relevant and timely digital content about Hyosung, including branding content and information on technological innovation and environmental friendliness, targeting global B2B industry professionals and potential customers. Additionally, job-related content is offered to those interested in employment opportunities at Hyosung. To improve the customers’ understanding of Hyosung, the company developed the Hyosung Metashowroom, which is a virtual 3D showroom that offers a unique perspective from the customers’ point of view. This showroom is divided into nine categories, including Hyosung Group, Brand, ESG, TNC, Advanced Materials, Chemical, Heavy Industries, TNS, and Lifestyle. Through the Hyosung Metashowroom, the audience can learn about Hyosung's products, technology, brand, eco-friendly vision, VOC, and agile management. This digital space allows for visits beyond the constraints of time and space. Additionally, Hyosung plans to continuously update the Metashowroom to provide audiences with interesting experiences. Hyosung plans to further establish its brand platform by renewing its official website and creating a 3D exhibition hall, the Hyosung Metashowroom, in order to enhance brand recognition. Additionally, Hyosung will continue to strengthen communication with its target audience, including employees, shareholders, B2B customers, and the general public, and differentiate itself through various strategies and channels. By offering tailored content to its target audience through a variety of strategies, Hyosung invites you to follow its channel now! Category Channel Channel Name Group Digital Showroom https://metashowroom.hyosung.com Group YouTube Hyosung Worldwide Facebook Hyosung Worldwide Instagram Hyosung_worldwide Linked in Hyosung Worldwide Kakao channel Hyosung_worldwide Hyosung TNC YouTube Hyosung Performance Textiles - YouTube Facebook Hyosung Performance Textiles Worldwide Instagram Hyosung Performance Textiles Worldwide Linked in Hyosung-performance-textiles Hyosung Advanced Materials YouTube Hyosung Advanced Materials Worldwide Facebook Hyosung Advanced Materials Worldwide Instagram Hyosung_advanced_materials Linked in Hyosung Advanced Materials Worldwide Hyosung Chemical YouTube Hyosung Chemical Worldwide Facebook Hyosung Chemical Worldwide Instagram Hyosung_chemical Linked in Hyosung Chemical Worldwide Hyosung Heavy Industries YouTube Hyosung Heavy Industries Worldwide Facebook Hyosungheavyindustries.worldwide Instagram Hyosung_heavy_industries Linked in Hyosungheavyindustriesworldwide Hyosung Harrington Place YouTube HarringtonTube Facebook Hyosung Harrington Place Instagram Hyosung_harrington_place Linked in -

There is an African proverb that says," If you want to go quickly, go alone, if you want to go far, go together." This proverb emphasizes the importance of collaboration and the value working with others. At Hyosung, we view everyone we work with as cherished partners who help us achieve our goals in in life. We share our vision with our partners and strive towards common objectives. By recognizing the power of collaboration, both Hyosung and its partners can create a future that aligns with their shared dreams. We firmly believe that supporting the growth and competitiveness of our partners is essential for our own success, which is why we actively engage in various activities and provide support to foster mutual prosperity and co-development. Hyosung actively support the growth of its partners from various angles. This includes implementing programs to enhance the competitiveness of small businesses, promoting joint participation in exhibitions to expand overseas markets, and engaging in open innovation projects to discover promising startups. Hyosung's Commitment to Empowering Small Business Partners’ Competitiveness Hyosung recognizes the critical role of enhancing the competitiveness of its primary partners for its own growth, and it leaves no stone unturned in providing diverse support. By tailoring support methods to specific circumstances of each partner, Hyosung actively endorses collaborative efforts. For instance, Hyosung TNC offers customized trend information based on customer characteristics, provides personalized consultations through "Creora Workshops," for new fabric developments, and introduces partner fabrics to renowned global brands through the ongoing operation of the Creora "Fabric Library" in multiple locations such as South Korea, Hong Kong, New York, Shanghai, and Indonesia. Furthermore, Hyosung has made strategic investments in environmentally friendly startups like Pleatsmama to supply their eco-friendly textiles, expand sales channels, develop branding, and facilitate their entry into the global fashion market. In this way, Hyosung is dedicated to enhancing the competitiveness of its smaller partners through external professional education and consulting, strengthening their position within the industry. Support for Market Expansion to Stabilize the Management of Partners Sustaining lasting partnerships and fostering mutual growth with affiliates is crucial for their business stability. Companies delivering top-notch products and services can only succeed with future growth and prosperity if they face difficulties. To strengthen the operational stability of its partners, Hyosung provides support for market expansion, a task that can pose significant challenges for them. Hyosung Heavy Industries has inked a business agreement with the Small Business Distribution Center, an arm of the Ministry of SMEs and Startups, thereby launching a mutual growth e-commerce platform. This digital marketplace, dedicated to facilitating the distribution of products crafted by small to medium-sized enterprises, showcases goods from distinguished domestic SMEs. Hyosung employees can acquire quality items at fair prices through this mutual growth platform while participating SMEs can broaden their domestic market footprint, As a result, this initiative has earned reputation as a symbiotic online shopping venue. In addition, Hyosung encourages involvement in diverse exhibitions, creating avenues for expansion into international markets. Hyosung offers SMEs to showcase their products by jointly attending shows alongside commendable partners. Not confined to domestic exhibitions, Hyosung has accompanied partners to overseas exhibitions in Shanghai, China, and Germany, paving the way for new growth potential and facilitating encounters international buyers. Furthermore, in response to consecutive cancellations of overseas exhibitions due to COVID-19, Hyosung has organized online video meetings with foreign brands, providing its partners with promotional and market expansion opportunities. Hyosung provides various opportunities to overcome challenges in market expansion and sales growth for its outstanding SME partners, utilizing these opportunities to secure the stability of their businesses and foster mutual growth. Hyosung’s Open Innovation Projects: Fostering Startup Growth and Eco-friendly Innovation Hyosung's commitment to mutual growth is not limited to its partners. Hyosung participates in open innovation projects to address the challenges startups face attempting to commercialize their unique ideas, ensuring that new technologies and ideas lead to innovation. Open innovation projects, a management technique that aims to improve corporate competitiveness by innovating business models and core technologies through collaboration with external companies such as startups, are being conducted by Hyosung TNC in partnership with the Korea Trade Association. Through this project, Hyosung TNC plans to discover startups with specialized expertise in eco-friendly textiles, such as bio-based, biodegradable fibers, recycled fiber raw materials, eco-friendly dyeing and processing technologies, wearable fiber technology, and innovative smart textile technology combined with IT. Furthermore, Hyosung TNC is also seeking startups with expertise in carbon and energy-saving technology, sustainability, and ESG management to advance the innovation of existing businesses and propose new business models. Hyosung TNC plans to support the commercialization of the startups discovered through this open innovation project by providing technology development support, equity investment, and initiating joint product development through business collaboration. Hyosung's Support for Strengthening ESG Management Capabilities Hyosung, a proponent of mutual growth, not only bolsters competitiveness, stabilizing management, and uncovers potential but also executes supportive initiatives to amplify the capabilities of small and medium-sized enterprises (SMEs) to achieve 'ESG (Environment, Social, Governance) management,’ a key concern in modern business. Recognizing the elevating its partners’ competitiveness will, in turn, enhance Hyosung’s own, the company provides aid in establishing eco-friendly management systems, endorsing mutual growth, and fortifying social contribution activities. For example, Hyosung TNC has enacted ESG education, consulting support, and eco-friendly certification cost support projects in preparation for the 'Supply Chain Due Diligence Act', which is set to be implemented globally, including in the European Union (EU), next year. Collaborating with ESG-specialized consulting firms, Hyosung TNC delivers ESG education to employees, conducts ESG diagnosis and guidance, and offers improvement consulting for 11 partner companies. Additionally, it assists in issuing eco-friendly certifications for SMEs in the domestic textile industry for the first time. Furthermore, the group has substantially contributed KRW 5.5 billion to the large, medium, and small enterprise mutual growth cooperation fund. This fund is committed to aiding partner companies in reducing energy consumption, attending eco-friendly certifications such as carbon labeling, fortifying supply chain ESG management, and developing eco-friendly materials. As the significance of ESG becomes increasingly evident in the global market, Hyosung is proactive in bolstering the ESG management capabilities of its partners to secure competitiveness and to help them penetrate global market where carbon emission regulations are growing more stringent. As mentioned, Hyosung carries out mutual growth programs and partner support programs to seek new business opportunities through collaboration, fostering innovation, and building solid trust relationships through consistent communication for mutual growth and co-prosperity with its partners. Mutual growth remains a vital keyword for Hyosung. Hyosung Group Chairman Cho Hyun-Joon has consistently highlights the mutual growth between large and small enterprises, proclaiming, "Our customers' competitiveness is our competitiveness." Hyosung recognizes that the path towards a better future can only be tread with cooperative effort and will persist in working in union with its partners to ensure that brilliant ideas do not dim in the face of real-world obstacles. The sustainable management pursued by Hyosung is intended to benefit all. The term 'we' for Hyosung encompasses not just Hyosung and its employees but also customers and partners. Hyosung will strive for a path where everyone can grow together and work towards mutual prosperity so that the growth of Hyosung and all of us can continue to propel future generations forward.

In spring, we go to scenic flower-blooming spots, and in summer, we go to the beach. In autumn, we go to enjoy the colorful leaves, and in winter, we go to snow-covered scenic spots! These days, far more people enjoy outdoor activities such as hiking and camping, which only a limited number of enthusiasts could enjoy in the past. Such outdoor activities have increased more than in the pre-pandemic days. More people opted to visit nature as their indoor activities were restricted by the pandemic. Nowadays, it has become a tendency for people to go camping or hiking, whether it is cold, warm, sunny, or rainy. Durable, robust clothes and backpacks are essential for outdoor activities! Durable, robust clothes and backpacks are essential items when you go on outdoor activities. You are exposed to unexpected risks in nature when you go camping or hiking. To be prepared against such unknown risks, we should put on durable, robust outdoor wear that can protect our body, and prepare a durable backpack to carry and bear the weight of all of the many essential gears, snacks and supplies. What fiber or yarn should be used for such outdoor wear and backpacks? Hyosung TNC has the answer. A highly durable fiber should generally be used and is recommended. Hyosung TNC produces a nylon fiber called CREORA Robic that is suitable for exactly this application. regen Robic Nylon is a highly durable, eco-friendly fiber Hyosung TNC has developed, which is suitable for outdoor products as it is light yet durable to withstand frequent friction or wear. regen Robic is eco-friendly because it is made by recycling pre-consumer wastes generated in the production process of textile products. Light weight is as crucial for the outdoor wear or backpacks as high strength. Hyosung also offers lightweight hollow CREORA Robic-Air nylon, which is much lighter than regen Robic Nylon but strong. Furthermore, Hyosung TNC has also launched high-strength regen Ocean Robic Nylon fibers it produces by recycling discarded waste fishing nets. It is a fiber that truly cares about the environment as roughly 93.4% of carbon dioxide discharged during the production of nylon fiber is reduced for every 1kg of regen Robic that is produced recycling discarded waste fishing nets. The opportunity that instigated Hyosung TNC to produce regen Robic Hyosung TNC developed eco-friendly regen fiber of diverse lines for mass production through in-house R&D efforts. Among them, regen Robic was developed from an extraordinary opportunity that came up. Here is the story behind its development. Hyosung TNC has technological competence to produce all of the three major eco-friendly synthetic fiber of polyester, nylon and spandex. Further, many global fashion companies prefer these eco-friendly fiber products of Hyosung TNC as they provide high transparency and reliability certified by GRS (Global Recycle Standard), the eco certification issued by Netherland’s Control Union. Osprey, an outdoor backpack brand that noted the eco-friendly fiber technology requested Hyosung TNC help in developing highly durable, eco-friendly fiber products. Hyosung TNC launched regen Robic Nylon after over a year's long process. Immediately after its launch, regen Robic Nylon fiber has piqued the greater interest of many people by being introduced through a newly launched but well-known backpack brand. Hyosung's technological capability was affirmed by a global company specializing in durable backpacks. As it was developed through an extraordinary opportunity that came up, this marks only the start of the transformation of regen Robic Nylon fiber through diverse outdoor products of global brand backpacks and camping goods. A series of regen Robic eco-friendly functional fibers developed by Hyosung! Recognizing Hyosung TNC's technological excellence, a well-known backpack brand requested a collaboration to develop fiber, and Hyosung TNC is producing and supplying diverse lines of eco-friendly fibers. Hyosung has implemented collaborative brand promotion tie-ups to produce excellent products with many different companies while providing high-quality, eco-friendly fiber products well-reputed globally. Thanks to such efforts, you can avail yourselves of many different brand goods made of Hyosung eco-friendly fiber. Outdoor backpack brand Osprey incorporated regen Robic and created whole new durable eco-friendly backpack lines ‘Talon’ and ‘Tempest,’ its flagship backpack lines. With the success of Osprey's eco-friendly backpacks, many other brands started to adopt regen Robic Nylon to their backpack lines, including Big Agnes, Mystery Ranch, Gregory, etc. in the U.S., Orthodox in Germany, and Berghaus and Lowe Alpine in the UK. regen Robic has become the brand of essential eco-friendly fiber for leading outdoor backpack brands that pursue a shift to eco-friendly recycled products. In addition to regen Robic, Hyosung produces many other kinds of eco-friendly nylon fiber products. With the ordinary high-strength nylon fiber called CREORA Robic Nylon, which was developed and sold starting in early 2000, Hyosung has produced many other nylon brands, including regen Nylon (*formerly MIPAN regen), regen Ocean Nylon (*formerly MIPAN regen ocean), and regen Ocean Robic (*formerly MIPAN regen ocean robic), in addition to regen Robic Nylon (*formerly MIPAN regen robic) and CREORA Robic Air nylon (*formerly MIPAN robic air) introduced above. regen Nylon (*formerly MIPAN regen) is the world-first recycled nylon fiber through post-consumer depolymerization or chemical recycling of waste fishing nets in 2007. This nylon fiber brand was GRS certified for the first time in the world at that time. regen Nylon (*formerly MIPAN regen) is a pre-consumer (post-industrial recycled nylon by mechanical recycling) recycled yarn still produced today and is one of the most important fiber products produced by Hyosung at present. regen Ocean Nylon is a renewed nylon brand that was brought back and relaunched by replenishing and expanding the facility Hyosung developed in 2007 for the recycled nylon of waste fishing nets using the post-consumer depolymerization (chemical recycling) process. Hyosung successfully developed and mass-produced regen Robic Nylon fiber based on Osprey’s request. Hyosung recycled nylon brands also include regen Ocean Robic, a high-strength nylon fiber made of waste fishing nets using the post-consumer depolymerization process, which will be used by Osprey for its SS24 for the first time. Hyosung has produced regen Ocean Robic fiber since December 2022 and has plans to formally launch it in 2024 after releasing sales samples to gauge the response of the market in March 2023. Many different outdoor brands have ordered regen Ocean Nylon after it was published in the news media that the global backpack brand Osprey had adopted regen Ocean Robic which was newly released at Munich ISPO in November 2022. Diverse outdoor brands have sought to adopt regen Robic as it can satisfy consumers' needs for switching to eco-friendly products after eco-friendly, high-strength nylon newly emerged. Fashion brands have actively attempted to develop diverse products as they believe in the durability and wear resistance of regen Robic, an eco-friendly fiber that leads the efforts to protect the environment in response to the climate crisis. Consumers are now able to purchase diverse brand products adopting Hyosung’s eco-friendly fiber overcoming the preconception that eco-friendliness lacks technological competence. Garments and backpacks that have adopted eco-friendly fiber have come close to our daily life. regen Robic was conceived with a little-known story concerning its development. It is excellent in its sturdiness and technology supporting the environment akin to its conception background. Hyosung has developed a great technology as the eco-friendly, high-strength nylon fiber also reduces greenhouse gas emissions by producing more of the fiber at scale. The 'meaning out' consumption trend is reported to only gain traction, with M, Z generation consumers leading the market trend these days as they actively express their opinion and conviction through consumption. The demand for eco-friendly products has increased steadily for protecting the environment and cruelty-free ethics based on such a trend vesting meaning to consumption. As the use of disposable products has grown rapidly during the pandemic, the voices of concern are also growing about the increase in plastic waste. Eco-friendliness has become a household term driven by the mega trend. The fashion material companies forecast that eco-friendly products will be emphasized from the initial stage (of fiber production) to produce eco-friendly end-consumer products. The eco-friendly, high-strength regen Robic Nylon fiber was first adopted for outdoor backpacks prioritizing the environment. However, we expect Hyosung’s eco-friendly, highly functional fibers including regen Robic to gain traction with more diverse fashion brands beyond the outdoor outfit market. Hyosung will continue its relentless efforts to develop and propagate more innovative sustainable products in addition to the success of regen Robic Nylon fiber. * regen Nylon is a renewal brand of former MIPAN regen.