HYOSUNG TNC

What makes a company complete? Emergence and success of companies are largely based on pioneering technology or the establishment of robust hardware, but we observe their gradual maturation into a comprehensive organization as well. To become a complete company, a 'corporate value system' must be established. A corporate value system encompasses the corporate ideology, mission/vision, core values, strategies for attaining them, and the behavioral standards and support systems. Corporate culture is defined as how the company will be operated and guided by its values. A company’s core values are aligned with its mission/vision and business strategy to guide the implementation of strategies and form the foundation for all management activities. Corporate value systems go beyond simply articulating core values. In addition, it defines behavioral guidelines and support systems, which are then applied to actual business operations. This comprehensive approach is imperative to create a positive image of the company, not only among employees but also in the public eye. Hyosung Way, A Path toward a Better Future Hyosung, a global company in innovation, has a value system called Hyosung Way, designed to share competencies and capabilities needed by all employees. Throughout our company and our employees, Hyosung Way has served as a standard of value assessment by which we demonstrate our values, judgment, and behavior internally and externally. Hyosung Way aims to lead a better life for humanity based on the best technology and management capabilities. Hyosung Way is an important milestone in our mission and vision, solidifying our value system. All Hyosung employees around the world have united our strength and will to make our dreams a reality. Our actions have contributed to Hyosung’s global leadership and improvement of customers’ lives. The mission of Hyosung is to provide the best products and services to maximize customer value through the best human resources and management capabilities. Hyosung's goal remains the same, but many of the values needed to achieve it have changed. Integrating Hyosung Way with the brand identity was urgent, as well as the avoiding emotional disconnect due to the gap between the current system and the management situation and merging new generations/trends with the identity. Ultimately, internal branding was designed to align the company and employees’ philosophies, so we created the "New Hyosung Way," which maintains our path while applying new social values. Redefining Hyosung Way Hyosung's management philosophy, Hyosung Way, represents the culmination of our direction and core values throughout our founding and management journey. Even though Hyosung’s identity has undoubtedly strengthened its brand, it has also presented challenges regarding the rapid changes and disconnections caused by the new brand. Adapting to the changes brought about by the new corporate brand required reinterpreted the existing Hyosung Way to reflect the new brand’s core values. While still upholding Hyosung’s core values over the years, we were able to make agile decisions and actions aligned with the new corporate brand identity. Establishing New Hyosung Way and the brand activity system required defining the development direction. It was important to interpret the new concept from various perspectives, incorporating specific expressions and contents to ensure employees and marketing efforts consistently demonstrated the defined core values. Additionally, we aimed to give the brand a distinct appearance and attitude through external expressions while keeping a consistent brand code of conduct throughout the organization. It was necessary to redefine the long-established values of "Global Excellence," "Innovation," "Accountability," and "Integrity," which had been cherished over the years. Thus, in New Hyosung Way, the meaning of "Global Excellence," "Innovation," "Accountability," and "Integrity" has been redefined to reflect changing customer requirements as well as the current era. Instead of aiming to be the "Global Excellence" in the market, we now strive to earn recognition from global customers by implementing the necessary changes and innovations that enhance their lives. The concept of "Innovation" has shifted from merely challenging the new with a positive mindset to continuously pursuing change by fearlessly overcoming challenges and difficulties through novel approaches. "Accountability" not only involves completing tasks with a strong sense of ownership, but also fulfilling our commitments to customers, and contributing to a sustainable future society through our unwavering dedication. As for "Integrity," it no longer solely pertains to conducting work in a fair and transparent manner. It now encompasses building flexible and dynamic synergy based on mutual respect, trust, and equitable distribution of resources. New Hyosung Way represents a reinterpretation of the existing values, providing clearer and more specific expressions and an action-oriented vision. In the previous value system and behavioral framework, the core elements of the corporate culture were strongly linked to achievement-oriented "results" and "order" while neglecting values such as "caring," "learning," and ESG-related "goals" that are crucial within Hyosung. This limitation hindered effective communication, collaboration, creativity, and the individual capabilities that arise when the stability-focused and result-driven mindset of a B2B company becomes excessive. To overcome the cultures overly focused on results and stability, a shift was necessary towards values that foster a more flexible and adaptive "agile process" of change and growth. The ideology of the "agile promise" emerges as a new management philosophy, combining the two core values of "pioneering innovation," and "promising a better future through innovation" which is expected to illuminate Hyosung's vision. Communication and acceptance were key components of the New Hyosung Way, which encourages mutual reinforcement between employees and the company. We identified fairness/transparency, member growth, and social and environmental values as key motivators for employees. The value of fairness/transparency is intended to drive employee motivation concerning direct compensation, while the value of member growth aims to promote a positive working environment by instilling a sense of happiness through respect and consideration. Social and environmental values will be actively practiced through ESG, eco-friendly practices, and CSR initiatives. In essence, we derived and redefined the values of the New Hyosung Way based on five key areas. 'Innovation' is a value-driving organizational growth, 'Accountability' is a foundation for building strong internal and external customer relationships, 'Fairness/Transparency' is a value to motivate employees, as well as 'Member Growth' and 'Social and Environmental' values. Hyosung’s Future Plans Hyosung’s brand value system has also evolved and adapted to changing goals, market dynamics, and societal environments. As a global top-tier company, New Hyosung Way comes at a critical juncture when the company has successfully navigated economic crises and resolved internal and external challenges. In addition to incorporating new perspectives, the new brand development also upholds the company’s past ideology and introduces a new management philosophy. Hyosung Way represents a value system designed to foster the competencies and mindsets required by all Hyosung employees worldwide as we strive to become a global leader in innovation. By adhering to the principles of the Hyosung Way, we aim to spearhead digital, eco-friendly, and social transformation, enriching the lives of today with the technologies of tomorrow. Our mission is rooted in being the first to fulfill our promises to customers, delivering innovative and sustainable solutions for a better future. We commit to leveraging our exceptional talent, pioneering technologies, and management capabilities to proactively meet our customers’ evolving needs and drive innovation and sustainability as we navigate future changes. 'Hyosung Way Credo', Hyosung's unwavering thoughts A "Credo" serves as the foundational guidelines encompassing a company's values and principles. It encapsulates the company's vision, mission, and values and plays a crucial role in conveying these values to employees and consumers. New Hyosung Way will be ingrained within the company through the establishment of a Credo, guiding consistent behavior and decision-making. The Credo also gives rise to the brand's Code of Conduct. The brand's Code of Conduct revolves around cultivating the desired brand value through specific behaviors. How the brand interacts with "customers," "internal organization," "society," and "innovation" as a unified entity becomes the focal point of the Code of Conduct. Therefore, the re-interpretation of Hyosung's core values of "Global Excellence, Innovation, Accountability, and Integrity" based on the new concept becomes the most significant aspect of the New Hyosung Way. Building upon the New Hyosung Way, which establishes the core values of the existing Hyosung Way as the foundation for reinterpreting the new brand concept, Hyosung has formulated the following Code of Conduct. How do we deliver the excellence value to our customers? Global Excellence – Customer Oriented - Global Excellence for Customers - 1. We prioritize the voice of the customer above all else. 2. We consistently deliver valuable products and services before others. 3. We strive to be recognized as the best in the eyes of our customers. 4. We adopt a global mindset to create a competitive advantage on a global scale. How do we foster innovation inside and outside our organization? Innovation – Striving for Innovation – 1. We continuously learn and create new competitive opportunities. 2. We embrace change and boldly implement better approaches. 3. We foster a positive mindset to be at the forefront of innovation. 4. We view challenges as opportunities for feedback and improvement. How do we take responsibility for the future and society? Accountability – Taking Responsibility for the Future – 1. We lead our work as professionals and take ownership of our responsibilities. 2. We are accountable and fulfill our promises to our customers. 3. We consider the impact of our technology on society and the environment. 4. We prioritize life and prioritize safety, never compromising safety measures. How do we create flexible synergy based on trust within the organization? Integrity – Flexible Synergy -Trust for Synergy- 1. We foster organized teamwork based on common goals. 2. We recognize and support each other's growth as individuals. 3. We communicate concisely, transparently, and broadly. 4. We collaborate with stakeholders based on respect and trust. New Hyosung Way, built on the foundation of our Credo, is created with our customers in mind. It is a response to the evolving times and the feedback we receive from our customers. We are dedicated to fulfilling the needs of society, and through our values of excellence, innovation, responsibility, and trust, we strive to be the first to fulfill our promises to our customers and create a sustainable future.

Hyosung TNC is a fiber materials company that has emphasized functionality by dividing its brands based on materials, gaining recognition for its technological prowess in the field of textile materials. Recently, Hyosung TNC has begun a brand restructuring effort to go beyond its role as a supplier of high-tech materials and become a Lifestyle Facilitator that leads a sustainable lifestyle. In contrast to the previous approach of dividing brands based on materials, the newly reorganized brand architecture separates functional fibers and environmentally friendly fibers into an integrated system, branding them as CREORA and regen, respectively. The restructuring aims to raise customers’ awareness of each brand and the type of fiber used to make clothes, marking the beginning of a change that will lead the entire fashion lifestyle industry beyond a simple supplier. CREORA is now the newly reorganized functional fiber brand from Hyosung TNC. CREORA is a leading brand representing high-performance fibers that aims to pioneer a new global consumer lifestyle. Under the slogan "SUPER LIFESTYLE SEEKER," Hyosung TNC aims to lead innovative lifestyle changes among consumers by redefining the limits of fibers. It strives to become a fashion innovation leader by providing cutting-edge and pioneering fiber products through the new CREORA, which offers a perfect balance of fashion and functionality, leading and creating the latest trends. CREORA, creating a new lifestyle The beginning of Hyosung TNC's high-performance fiber brand, CREORA, started with spandex, which holds the top market share in the world with its outstanding technological capabilities. By integrating the branding of spandex, nylon, and polyester, the three major fibers, which are already recognized as leading global brands with excellent technological capabilities and functionality, Hyosung TNC aims to become a pioneering brand of high-performance fibers. The newly launched CREORA aims to go beyond the high-performance material brands and become a fashion innovation leader that proposes new lifestyles, enabling the exploration of new boundaries in global consumer lifestyles. The company seeks to exceed the functionality of the materials provided by spandex, nylon, and polyester, pursue new fashion that could not be achieved with existing materials, and play a role as a SUPER LIFESTYLE SEEKER to lead consumers beyond their expectations. Expect the new lifestyle and fashion that CREORA from Hyosung TNC will bring with its innovative high-performance fibers. SUPER LIFESTYLE SEEKER, CREORA The discovery of spandex allowed for the creation of lightweight and elastic underwear, as well as athleisure wear such as leggings, which have now become a part of our daily lives. Since the development of spandex, it has been applied to sportswear, swimwear, and other functional athletic clothing, making our daily lives more convenient and comfortable. After the discovery of nylon, the development of stockings began. Nylon is a fiber that is thinner than spider silk and stronger than steel, and is used in military parachutes, bulletproof vests, tires, ropes, and other military equipment. It played a significant role in World War II and is now used in sturdy and durable products such as backpacks. Polyester is used as a material for various products in our daily lives, such as cushions, bedding, curtains, bags, and more. It is resistant to wrinkles, has high durability, and is also strong against discoloration, making it easy to find in various places in our daily lives. Prior to the discovery of synthetic fibers such as spandex, nylon, and polyester, only natural fibers such as rubber, cotton, and silk were used. Natural fibers have the advantage of being derived from nature, but they have several disadvantages such as being prone to discoloration, having low durability, and being difficult to process. The development of synthetic fibers such as spandex, nylon, and polyester minimizes the disadvantages of natural fibers while also allowing for lower prices and the incorporation of various functionalities, making our daily lives more convenient and rich. With the discovery of spandex, we can now wear clothes that hug our bodies comfortably in a more pleasant environment for exercising. The development of nylon, starting with stockings, has made the materials we use in our daily lives, such as bags, more sturdy. The development of polyester has given us curtains and bedding that we can use for a long time without discoloration or staining. Considering that nylon was used in military equipment during World War II and experienced explosive growth, it is not difficult to imagine how much our daily lives can be changed by the development of synthetic fibers and the addition of new functionalities to them. Hyosung TNC aims to become a leader and SUPER LIFESTYLE SEEKER in fashion innovation by introducing new materials with high functionality through its high-strength and high-performance fiber brand, CREORA, which includes spandex, nylon, and polyester. CREORA will push the boundaries of new lifestyles by offering new materials with added functionality in fashion. We invite everyone to join CREORA's journey of presenting new fibers and fashion that were never seen before. Hyosung TNC is a leading company in the fiber industry, with excellent technological capabilities and a dominant market share in the global market. However, Hyosung does not settle for fiber supplier, but seeks to bring about change to become a lifestyle facilitator. Through the brand revisioning and the new start of the brand CREORA, Hyosung aims to lead innovation in consumers' lifestyles and become a foremost brand that leads into new areas. CREORA, which seeks to become a SUPER LIFESTYLE SEEKER, goes beyond the function of supplying functional fibers and aims to expand into an eco-friendly technology-based lifestyle facilitator. Hyosung TNC is making efforts to create a sustainable future beyond the limits of fashion. The company will innovate limitless possibilities of fibers that can transform and upgrade people's lifestyles. Witness the soaring vision of CREORA, shaping the future with innovation.

Over 120 countries, including South Korea, the United States, and China, have declared carbon neutrality by 2050, aiming to achieve zero carbon emissions. More than 170 countries have signed international environmental agreements, including the Climate Change Agreement, the Biodiversity Agreement, and the Desertification Prevention Agreement, commonly referred to as the three major environmental agreements of the United Nations (UN). As environmental pollution reaches critical levels and climate change threatens human survival, many countries are working together to prevent further damage. Consumers are also participating in this movement, not just at the national level. The need for improving working conditions and considering social minorities increases as awareness and living standards improve. Companies are also expected to take responsibility for environmental and social impacts. The world has become increasingly interested in social values such as environmental stewardship, social contributions, and ethical business practices. It has become imperative for companies to consider sustainability alongside profit-seeking to flourish and survive. In South Korea, ESG management is becoming increasingly important, and ESG evaluations are predicted to impact consumer brand loyalty significantly. Due to global warming and changes in tropical climate, Korea faces undeniable climate crises, such as severe droughts and floods. During trans-seasons, air pollution, including fine dust and yellow dust, reaches alarming levels, making it impossible to leave the house without wearing a mask. Due to these factors, ESG management has become increasingly important, focusing on environmental issues. Z generation consumers, who are primarily in their 20s and 30s and have high purchasing power, are more sensitive to environmental issues of companies. Hyosung has been investing generously in technology development and research for environmental protection and sustainable development and is sincerely committed to concrete ESG management through its ESG brand RE:GEN, staking the group's prosperity on it. Hyosung is placing ESG at the core of its business as an important direction and growth axis and expanding it. However, since there are limitations to generating social results for ESG alone, Hyosung is leading a change in social awareness and has launched the RE:GEN Alliance, which pursues the same values for ESG management through alliances based on goodwill to expand the entire value chain. Meaningful Companionship for All Generations, RE:GEN Alliance Hyosung is taking a more proactive approach than anyone else in the practice of ESG management and has positioned ESG as the most critical element in the direction of social responsibility and business innovation. As an important business direction and growth axis, Hyosung Group plans to expand ESG and establish it as the core of its business. It aims to accelerate ESG innovation in all aspects, from the production to all subsidiaries, major products, services, and solutions that reflect ESG core values. Drawing upon its technological DNA, Hyosung Group is constantly innovating and striving to respond to the future of all generations, centered around its core values of a circular economy, carbon neutrality, hydrogen and renewable energy, and energy redesign through its ESG brand, RE:GEN. Hyosung recognizes that there are limits to creating great social outcomes by taking responsibility for the environment, engaging in social contribution activities, and conducting ethical management alone. We know that environmental protection and consideration for social minorities require collective efforts. Knowing this, Hyosung is leading in bringing about practical changes in ESG and enhancing ESG activities to generate even greater social outcomes. We have launched the RE:GEN Alliance to collaborate with other companies that strive to achieve sustainable responses for future generations, centered around core values including a circular economy, carbon neutrality, hydrogen and renewable energy, and energy redesign. RE:GEN Alliance will strive to create social outcomes of ESG management with the core values of cooperation for a better future, responsibility for all generations, sharing of resources for good, and a commitment to achieving concrete results through tangible ESG management, together with Hyosung. RE:GEN Alliance TO-BE Hyosung is already operating RE:GEN with a genuine and substantive approach to ESG management. By launching the RE:GEN Alliance and making the decision to collaborate for greater achievements, Hyosung aims to strengthen the trust and authenticity of its ESG brand, RE:GEN. The alliance provides an opportunity for partners who participate in ESG management to share in Hyosung's genuine ESG values and promote good faith. RE:GEN Alliance is thrilled to announce its first collaboration with the upcycling fashion brand Harlie K. Harlie K is a sustainable fashion brand dedicated to enhancing the value of resources and promoting a shift towards environmentally friendly consumption. They achieve this by incorporating various eco-friendly materials such as recycled denim, coffee bags, and vegan Korean paper (Hanji) leather into their designs. Through Hyosung's open innovation project, Harlie K was discovered and initiated a collaboration, leading to their official partnership with the RE:GEN Alliance. As part of the RE:GEN Alliance's inaugural project, the collaboration between Hyosung and Harlie K has unveiled the "Mare Bag," an environmentally friendly recycling bag made from upcycled fishing nets. This collaboration not only allows Hyosung to achieve tangible results regarding ESG management and social impact but it also provides significant benefits to Harlie K as a participating brand. The RE:GEN Alliance firmly believes that all companies and brands involved in the alliance can achieve similar positive outcomes. Through its partnership with various companies, Hyosung aims to enhance the social awareness and brand recognition of RE:GEN, while supporting to its partners to engage in consistent activities based on Hyosung's practical ESG management know-how in their respective fields. As of 2023, Hyosung is supporting a number of brands as part of the RE:GEN Alliance, including Harlie K, which was the starting point for its brand enhancement activities, 119 REO, LUCA LAB, which produces accessories using industrial materials, and Axoo, which supports ESG activities and biodiversity projects and sponsored the Oop Seoul Festival. In addition, Hyosung is collaborating with other brands such as CUECLYP, NoPlasticSunday, Kanei Tei, Over Lab, Jerrybag, LAR, Montsenu, OWNU, Continew, EGS, Understand Avenue, Trashbusters, among others, to develop brands under the RE:GEN Alliance name. As part of its ESG management practices, Hyosung has established a public-private partnership fund to support co-prosperity management. We are working with companies that produce outstanding eco-friendly products under the RE:GEN Alliance name to share core values and develop brands for eco-friendly products while supporting the growth of environmental technology and brands. Hyosung's partnership with its partners in the RE:GEN Alliance generates social contributions, ethical management, and environmental benefits, resulting in the acceleration of innovation and solutions for a better future for all generations. The RE:GEN Alliance aspires to work together to solve today's environmental and social problems through its practical implementation of ESG management with the aspiration that future generations will enjoy as much prosperity as the current generation. Our management philosophy, known as the Hyosung Way, is dedicated to transforming dreams into reality by uniting the strength and determination of Hyosung employees worldwide. Our primary objective is to set a new trend rooted in Hyosung's brand identity while upholding our core values. The Hyosung Way aspires to establish our company as a global leader, pioneering innovative lifestyles for our customers with a focus on Global Excellence, Innovation, Accountability, Integrity. At the heart of the Hyosung Way lies a commitment to bring significant changes and advancements in our customers' lives. We prioritize core values such as customer-recognized “Global Excellence” relentless "Innovation" that embraces and pursues change, unwavering "Accountability" in fulfilling promises and ensuring a sustainable future and fostering "Integrity" that promotes dynamic and flexible synergy through mutual respect, trust, and resource allocation. Hyosung Group firmly believes that by cultivating dependable partnerships within the RE:GEN Alliance, we can effectively pursue the Hyosung Way, making meaningful social contributions through eco-friendliness, social responsibility, and ethical management for all generations. We strive to create a dynamic and flexible synergy with our RE:GEN Alliance partners and provide various forms of support to nurture shared growth and coexistence in alignment with our core values, as well as practice ESG management. Now is the time for Hyosung and our RE:GEN Alliance partners to jointly address the diverse environmental and social challenges that lie before us, working towards a future that surpasses what any individual company can accomplish alone. Hyosung Group views the RE:GEN Alliance initiative as a transformative journey, forging a better tomorrow and Earth by fostering a partnership for the well-being of all generations. RE:GEN Alliance, a partnership for all generations, for a better tomorrow.

The world's first climate-related technology and industry expo, also known as “The World Climate Industry Expo (WCE 2023)” was held at BEXCO in Busan from last May 25th to 27th. With the overarching theme of "Beyond the Climate Crisis, the Path to Sustainable Prosperity," this event served as a meeting point for both domestic and international entities within the climate industry spectrum. Following attendees involved climate-focused companies, governmental bodies, international organizations, and the general public that collectively joined together to showcase cutting-edge technologies and policies that address the global climate challenge. The 2023 World Climate Expo (WCE 2023) was held by integrating four events that occurred separately every year which includes 'The Carbon Neutrality Conference', 'Korea Energy Show', 'The Carbon Neutrality EXPO' and the 'International Environment and Emergency Technology (ENTECH) Special Exhibition'. WCE 2023 was structured by planning pre-event, opening ceremony, conference, exhibition, and supplementary activities, all curated to highlight carbon neutrality and climate industry development as an agenda for global economic growth as a clear future vision. A notable highlight within the WCE 2023 landscape includes the Ministry of Foreign Affairs and Ministry of Oceans and Fisheries, which gained significant attention during joint international conference and leader’s summit that was held for overcoming climate change crisis. Leaders Summit 2023 The Leaders Summit, held as a part of the World Climate Industry EXPO 2023 (WCE 2023), was held to discuss the response under the theme of global cooperation and solidarity regarding climate change in the maritime sector. The theme "Global Cooperation and Solidarity in Responding to Climate Change in the Maritime Sector," stood as a crucial platform to plan international efforts. Leaders Summit invited leaders representing Pacific and Caribbean Island nations—regions affected by the repercussions of climate change which made this event more meaningful. During this summit, Hyosung also made a significant contribution by lending its voice to discussions centered on ocean protection and forging a sustainable future. Heads of state and government, including the Prime Minister of Tuvalu, the Prime Minister of Belize, the Prime Minister of Barbados, the Deputy Prime Minister of Fiji, the Foreign Minister of the Marshall Islands, and the Secretary of State of the Bahamas, as well as the heads of relevant international organizations such as the Pacific Islands Forum (PIF), the Intergovernmental Panel on Climate Change (IPCC), the International Maritime Organization (IMO), the Global Green Growth Institute (GGGI), and representatives from corporates and civil society organizations attended the Leaders' Summit and held in-depth discussions on climate change in the maritime sector. The Leaders Summit consisted of two sessions where the first session started with an opening speech on ocean conservation and climate change, then the second session on decarbonization of shipping for a better ocean, starting with an opening speech by Prime Minister Han Deok-soo. During the first session, Hyosung had the opportunity to share its efforts to protect the ocean and the importance of ocean conservation with heads of state, government officials, and companies. Hyosung's Initiatives to Protect the Ocean At the Leaders Summit which featured a keynote speech by Hwang Yun-Eon, the Head of Corporate Strategy Department at Hyosung Group shared the importance of ocean conservation and how Hyosung is working to protect the oceans with each country’s heads of state, government officials, and individuals from related companies. The speech started with the story of the Mariana Trench, the deepest ocean in the world, 10,000 meters below the surface where only a few people have been able to reach. James Cameron, the director of the movie ‘Avatar’, and American explorer Victor Vescovo was the starting point for the participants to hear about Hyosung's pledge to protect the ocean. Recently, the problem of plastic waste in the ocean has become so serious that it has even been found in the Mariana Trench, the world's deepest ocean, at a depth of 10,000 meters, and newly discovered species of sea creatures actually have plastic in their bodies, giving them the scientific name of "plastic." In addition, discarded fishing nets in the ocean are also known as "Ghost nets" because they depict mass deaths of marine life. Since the early 2000s, Hyosung understood the serious consequences of ocean plastics and discarded fishing nets on the ocean ecosystem, and has searched for ways to recycle the main source of marine pollution so that marine life does not die from these wastes. As a result, it came up with regen Ocean Nylon, the first of its kind in the world. regen Ocean Nylon is a nylon yarn made by collecting and recycling discarded fishing nets collected from the ocean. Following regen Ocean Nylon, Hyosung launched regen Ocean Polyester, which is made by collecting and recycling plastic bottles found in the ocean. regen Ocean Polyester is certified as Ocean Bound Plastic and is recognized for its eco-friendliness. Since the regen Ocean brand represents a series of yarn made from ocean waste, the technology itself can be considered a project to save the ocean, and consumers can participate in the project to protect the marine ecosystem just by wearing clothes or bags made with regen Ocean. In addition, Hyosung is directly engaged in marine forest conservation activities to improve the marine environment. Marine organisms need marine forests as it acts as food sources, spawning grounds, and habitats for them. Hyosung has been conducting activities to preserve one of these forests such as the seagrass forest, and sparing no effort to preserve the diversity of marine species and protect their right to live. Seagrass is an important plant that serves as a food source, spawning ground, habitat, and shelter for marine life, and the seagrass forest has been certified as blue carbon by the IPCC, the Intergovernmental Panel on Climate Change. Hyosung is taking action to preserve the seagrass forest, which is shrinking due to rising water temperatures, marine pollution, and coastal development, and to protect 'biodiversity' beyond the rights of living species. In fact, Hyosung is not only responding to the marine environment; it has established RE:GEN, the groups ESG brand, and is continuously conducting various activities for the environment, reflecting Hyosung's will to respond to the future of all generations through eco-friendly technology innovation. Hyosung's presentation at the Leaders Summit not only highlighted the group's efforts to respond to climate change through RE:GEN, but also how it is specifically responding to climate change in the marine sector, and was an opportunity to reiterate the importance of preserving marine biodiversity. Marine plays an important role in regulating and observing global weather patterns, as climate change is expected to cause ocean anomalies such as melting ice, sea level rise, and ocean acidification due to rising temperatures, which in turn will harm marine life and ecosystems. The Leaders' Summit was held to discuss solutions to climate change issues in the ocean, requiring global and national attention and efforts for conservation. It was a meaningful time where officials from various countries and international organizations came together to discuss international efforts and the way forward under the theme of global cooperation and solidarity to respond to climate change in the ocean. Hyosung hopes that the Leaders' Summit will serve as an opportunity for a better future and sustainable ocean protection. Each government, international organization, and companies shared their efforts to preserve the ocean, slow down climate change, and develop technologies to decarbonize shipping for a better ocean, Hyosung used this opportunity to not only promote the brand,’ RE:GEN’, but also showcase the various efforts it has been implementing to protect the ocean. Hyosung will continue its efforts to protect the oceans and defend the rights of various species on the planet to live in order to create a sustainable tomorrow. This Leaders’ Summit was an opportunity for Hyosung to raise awareness of the importance of protecting the oceans. Hyosung will continue to preserve marine ecosystems and raise awareness of marine ecosystem preservation in order to create a better future and a sustainable tomorrow for all generations.

Hyosung runs the ESG brand RE:GEN while realizing the core values of recycle, upcycle, zero, new energy, and save, and aiming for genuine and practical ESG management. Under the banner of RE:GEN, Hyosung endeavors to practice circular economy, carbon neutrality, new energy, and resource-saving in an effort to ensure a sustainable future based on eco-friendly and innovative technology. In line with Hyosung's aspiration to be a life innovator for the happiness and sustainable future of all generations under RE:GEN, each affiliate applies different ESG brand themes under five brands: RE:GEN ECO LIFESTYLE (Hyosung TNC), RE:GEN SMART IT (Hyosung TNS), RE:GEN FUTURE MATERIALS (Hyosung Advanced Materials), RE:GEN NEW ENERGY (Hyosung Heavy Industries), and RE:GEN NEXT CHEMISTRY (Hyosung Chemical). This series begins with RE:GEN ECO-LIFESTYLE of Hyosung TNC, the innovator of material technology for every generation. Hyosung TNC is a company that manufactures materials and textiles seen in our daily life using sustainable technologies. Its ESG theme is ECO-LIFESTYLE. For Sustainable Oceans While PET bottles, which require recycling, are the primary cause of land pollution, discarded fishing nets are the main contributor to marine pollution. According to Netflix's environmental documentary Seaspiracy, which was released in 2021, it is waste fishing nets that are destroying the marine ecosystem, not plastic straws. Statistics released by the Korea Maritime Institute in 2018 reveal that around 44,000 tons of fishing nets are abandoned in Korea each year. Around 640,000 tons of fishing nets are discarded in the sea each year, according to research by the National Academy of Sciences in the United States. Fishing nets that are lost in the water instead of reaching shore drift in the sea, killing marine species. It is estimated that marine life destroyed by waste fishing nets amounts to 10% of the overall catch, which cannot be overlooked. Fishing nets drifting in the sea are called ghost nets, which lead to the deaths of marine creatures. Because they are large, durable, and non-degradable, they've emerged as the primary contributor to marine pollution. To address this issue, Hyosung TNC took the initiative to recycle discarded fishing nets. By converting marine debris into fibers, Hyosung TNC develops a range of eco-friendly materials to save marine organisms, stop marine pollution, and introduce an eco-friendly lifestyle. This is how the company utilizes ghost nets that have put marine creatures and the environment at risk. Let's take a closer look. Hyosung TNC’s Efforts to Keep the Sea Clean Hyosung TNC spares no effort to save marine life, particularly sea turtles, and to develop a sustainable sea by converting marine debris into fiber. One of its efforts to save the oceans was the development of the world's first technology to produce fibers from ghost nets. It is regen® nylon, the world's first recycled nylon. The manufacturing process of regen® nylon goes in the order of collecting waste fishing nets, cleaning them, extracting caprolactam, and using it as a raw material to spin it into yarn for garments. When it comes to recycling, there is a misconception that the end product is of lower quality since it is not manufactured using conventional processes. regen® nylon, on the other hand, is a chemically recycled product made by returning waste to the raw material stage and then polymerizing and spinning again. It is an eco-friendly textile that not only has the same quality as premium nylon, but can also be produced into a wide range of recycled products, allowing for sustainable recycling. Because regen® nylon is lightweight and has exceptional tear strength and abrasion resistance, it is used in numerous outdoor items and garments. In addition, Hyosung TNS signed an eco-friendly material supply contract with Osprey, a well-known outdoor backpack brand that debuted a regen® nylon backpack. What's more, regen® nylon saves 955 kg of oil per ton, saving resources by 27% compared to conventional nylon. It also emits 2.09 tons less CO2 per ton during production, resulting in a 28% reduction in GHG emissions. It is true that regen® nylon demands more labor and costs than traditional nylon, since it involves pretreatment processes such as collecting fishing nets, removing impurities, and washing. Nonetheless, in order to serve a pivotal role in achieving net zero, attaining a virtuous economy via sustainable recycling, and cleaning up the marine environment, Hyosung TNC is concentrating its efforts on the production of regen® nylon as part of its worldwide clients’ efforts to go carbon neutral. Saving the Earth with Sweetcorn regen® nylon contributes to keeping the waters clean by recycling fishing nets. regen® Bio-based, on the other hand, uses sweetcorn to save the earth. regen® Bio-based is the world's first bio-based spandex made from natural ingredients extracted from sweetcorn. Unlike ordinary spandex, which is derived from coal and petroleum, regen® Bio-based is made up of 70% petroleum and coal extracts and 30% bio-based material—an industrial sweetcorn extract—that was grown using eco-friendly farming practices and green fertilizers. According to the life cycle assessment (an international standard environmental impact assessment) findings, water usage was 39% lower and CO2 emissions were 23% lower compared to traditional spandex, earning the Eco-Product certification mark from SGS, a renowned eco-friendly certifying body based in Switzerland. Because regen® Bio-based employs less coal and petroleum-based raw ingredients and more renewable ingredients than conventional spandex, it is recognized as an eco-friendly material that opened a new horizon in the textile industry while reducing carbon emissions. It is projected that bio-based spandex, developed by Hyosung TNC as a novel method to deviate from the conventional approach of using petroleum and coal, will further expand its influence in the next-generation eco-friendly textile market. For the first time in the world, Hyosung TNC created regen® nylon by recycling fishing nets, the leading cause of marine pollution, and introduced regen® Bio-based, bio-based spandex that employs sweetcorn extracts to reduce the consumption of coal and petroleum in an eco-friendly way. The company works tirelessly on developing green technology and achieving practical ESG management. As a world-class nylon yarn manufacturer, Hyosung TNC successfully developed eco-friendly yarn following relentless research and development for sustainable technology, and is expanding its product line. The company’s efforts to build a better future through closed-loop recycling, which is the core value of Hyosung's ESG brand RE:GEN, have paid off as Hyosung TNC's eco-friendly textile brand regen®, including regen® nylon and regen® Bio-based. By taking sincere actions and making tangible efforts, Hyosung TNC strives to conserve the environment as well as uphold its social responsibilities. The company leads changes in the entire lifestyle by taking the environment into consideration and switching to sustainable ones, from fabrics and materials that are close to our daily lives. Hyosung TNC will keep working until its sustainable materials can replace the ones we use every day and create an "eco-lifestyle." Reply to Every Generation's Future, RE:GEN ECO-LIFESTYLE