HYOSUNG TNC

‘An Era of Inevitable Business Competition’ In the modern business world, with countless corporations engaged in relentless competition globally, it is no longer sufficient for a business to merely deliver superior products and services or to advance its technological prowess. Corporations must proactively interact with customers, imprinting a positive and vivid brand image while accumulating cognizance and trust. This highlights the paramount importance of marketing. Within this dynamic, new marketing methodologies are fervently adopted across organizations. Recently, B2C2B marketing has emerged as a key component of targeted audience engagement and dissemination strategy. About B2C2B Marketing B2C2B, an acronym for ‘Business to Consumer to Business.’ is a sophisticated marketing model that seamlessly integrates the principles of B2B (Business to Business) and B2C (Business to Consumer) marketing. To grasp the concept of B2C2B, it is essential to first understand the concept of B2B and B2C marketing. B2B marketing targets organizational needs, interests, and challenges, while B2C marketing transcends mere transactions, seeking to captivate consumer interest. Although targeted at different audiences, these marketing strategies share many similarities and are not entirely distinct concepts. B2C2B marketing is a strategy where B2B companies increase their visibility through B2C marketing, thereby exerting a positive brand influence on B2B customers via a ripple effect. Hence, B2C2B marketing can be construed as a strategy that melds B2B and B2C marketing to reap greater marketing returns. B2C2B Success Stories Around Us As B2C2B marketing gains prominence, numerous global corporations are actively adopting this strategy. A prime example is Naver's Zepeto, widely recognized as a triumphant illustration of B2C2B. Zepeto, a metaverse service that has gained massive popularity amongst Generation Z, surpassed three hundred million registered users worldwide as of 2022. Zepeto's escalating user base spurred its application of B2C2B marketing, executing content marketing via blogs and social media platforms. Through blogs, Zepeto provides information and tips related to its in-app content, while sharing content-related reviews and events on social media. This strategy enhances interaction with consumers, raising awareness of the products, services, and content within Zepeto. Concurrently, Zepeto imparts valuable information such as industry trends and emerging patterns to its corporate clients. Beyond Zepeto, other corporations, like Airbnb, have found success through the B2C2B model. Airbnb operates a review system, allowing consumers to share their experiences in accommodations. These reviews offer critical information for other consumers contemplating a reservation, inducing hosts to provide superior service and increasing the probability of a positive experience for guests. Similarly, Uber has integrated the B2C2B marketing model. As an American ride-sharing service based on smartphone technology, Uber operates a referral program to increase new user sign-ups. Existing users can receive discounted or free services when they refer new users. This tactic enables Uber to recruit new users while encouraging existing ones to participate. B2C2B marketing represents a distinctive approach to B2C marketing. Initially, the business engages with the consumer, and subsequently, it becomes the consumer's participation that generates additional value for the business through their experiences. Essentially, B2C2B marketing fosters an uninterrupted stream of consumer-to-business communication, resulting in positive customer experiences and enhancing customer loyalty. Hyosung, Adapting to The B2C2B Trend Hyosung recently launched 'HYOSUNG X ONAD,' a collaborative marketing project targeting Generation Z. As part of its B2C2B marketing communication initiative, the project aimed to elevate Hyosung's brand awareness among Generation Z while planning creative marketing communications from their perspective. The project was operated for roughly three months, from September to December 2022, and was a collaboration with 'ONAD,' a marketing association club from the Seoul and Incheon area universities. A total of 48 college students who are members of ONAD participated in the project, operating in 15 teams. Each team chose a different marketing task to execute. After analyzing the materials provided by Hyosung and interviewing professionals to evaluate current issues, they carried out their assignments. They were also given intermediate feedback on their tasks. The final projects were personally assessed by ONAD members and Hyosung employees, and awards were presented to the top three teams. Through this project, Hyosung sought to engage in emotional branding by utilizing marketing communications for Generation Z, a future key consumer demographic. Though well-recognized by older generations, Hyosung was less familiar to Generation Z. The company aimed to position itself as a tangible, colorful corporate group for them, primarily by fostering 'Active' and 'Young' brand imagery through dynamic B2C2B communication. The integration of fresh and innovative ideas from the university students into Hyosung's branding and marketing communications became a possibility. Furthermore, a strategic direction was established, allowing the potential implementation of viral marketing targeting the younger generation using both ONAD's platform and Hyosung's in-house platform. By utilizing such B2C2B projects, Hyosung is expected to enhance positive brand associations with Generation Z in the future. Hyosung is attempting to incorporate the B2C2B model into its marketing strategies across various target groups in this era of marketing revolution. The marketing environment is anticipated to evolve even more rapidly in the future. Hyosung plans to establish efficient marketing methods and business models that connect customers and businesses, as well as businesses with each other, through a balanced approach to B2C and B2B marketing. By researching and analyzing the value chain of how Hyosung's services and technology reach customers and how this subsequently leads to the creation of added value between businesses, Hyosung aims to innovate and build global competitiveness. Look forward to the continued growth of Hyosung as a leader in marketing trends like B2C2B in the globally competitive business world.

Adored universally, denim transcends age and gender as a staple in everyone's wardrobe. Initially employed for workwear, this durable and fashionable material has evolved into an iconic fashion item. In producing these beloved jeans, it is said that approximately 32.5 kg of carbon dioxide is released, equivalent to the emissions from driving a car for 11 km. If there was a way to make the millions of pairs of jeans consumed globally each year more sustainable and fashionable without harming the environment, it would be the epitome of perfection. Enter Harlie K, a brand committed to showcasing denim as both chic and sustainable. Harlie K began as an upcycling fashion accessories brand, deconstructing and reconstructing discarded denim to create a one-of-a-kind. By constantly exploring eco-friendly materials like coffee sacks and vegan hanji leather, Harlie K has established itself as a brand that values conscious consumption and supports the circular economy. Moreover, Harlie K actively takes part in Hyosung's ESG brand, RE:GEN, fostering unique collaborations to drive the sustainable growth of the textile and fashion industry. RE:GEN (Reply to Every Generation's Future) stands as a powerful ESG brand that reflects Hyosung's unwavering dedication to continuous eco-friendly technological advancements, geared towards meeting the needs of future generations. With a strong focus on four core values - circular economy, carbon reduction, new energy, and resource conservation - Hyosung solidifies its commitment to ESG management, ensuring meaningful and substantial actions. As Hyosung strives to create a virtuous cycle of sustainable resources, a mission embodied by RE:GEN, Harlie K fully embraces the significance of eco-friendliness as one of its fundamental principles. United by shared values: RE:GEN Hyosung and Harlie K are bonded by their dedication to building an eco-friendly and sustainable fashion industry. As a leading company in the global fashion textile industry, Hyosung continuously challenges and innovates to create a sustainable future for all generations. This commitment has led to open innovation projects to pioneer the future textile market, with eco-friendly fibers and smart textiles at the forefront. Hyosung's enthusiastic pursuit of green brands has culminated in this collaboration with Harlie K, an upcycling fashion accessories brand. Hyosung and Harlie K share a striking resemblance in their pursuit of sustainable fashion and core values. Hyosung produces environmentally friendly yarn from discarded plastic and fishing nets, while Harlie K presents upcycled fashion accessories crafted from repurposed denim. RE:GEN, Hyosung's ESG brand, emphasizes a circular economy and resource circulation, with which Harlie K’s brand identity seamlessly aligns. Hyosung x Harlie K: A Special Collaboration The dynamic collaboration between Hyosung and Harlie K revolves around creating innovative upcycled products that aim to minimize fiber consumption and environmental pollution generated during the production process. Both brands, Hyosung and Harlie K, have joined forces to create a remarkable bag using Hyosung's eco-friendly materials. The first collaborative venture between the two, launched through crowdfunding, introduced the extraordinary Mare Bag, dedicated to preserving the ocean ecosystem. This eco-friendly bag ingeniously combines Hyosung's durable and luxurious recycled materials sourced from fishing nets and waste plastics – two major contributors to the degradation of marine ecosystems – with Harlie K's signature style and practicality. The Mare Bag lineup includes the Mare Bag Ocean Black, featuring Hyosung's regen Ocean Nylon crafted from recycled fishing nets that threaten marine life; the Mare Bag Marina Blue, using Hyosung's regen Polyester made from recycled plastic bottles and boasting a soft touch due to a special process; the Mare Bag Denim Edition, a Harlie K flagship upcycled denim bag; and the Mare Bag Ladder Black, made from Harlie K's vegan leather, Hanji leather. This compelling story of a stylish, lightweight, and practical upcycled bag firmly rooted in an eco-friendly philosophy garnered significant attention, leading to a groundbreaking crowdfunding campaign that raised an astounding KRW280 million in funding – far surpassing the initial target of KRW100 million. Hyosung and Harlie K, after the successful crowdfunding of the Mare Bag, are now preparing to participate in pop-up stores, exhibitions, and festivals to introduce it to a wider audience. RE:GEN ALLIANCE Partner, Harlie K Recently, Hyosung launched the RE:GEN ALLIANCE to collaborate with companies that share the values of its ESG brand RE:GEN. We aim to grow and coexist with authentic and capable green companies, united in the goal of creating a safer and more sustainable future for our planet. By pursuing substantial ESG management through RE:GEN, Hyosung and its RE:GEN ALLIANCE partners work together to deliver ESG values through products and services, enabling practical implementation of the values. Hyosung begins this value-sharing journey with Harlie K, a company they first connected with through an open innovation project. As an eco-friendly brand, Harlie K aspires to contribute significantly to a sustainable future alongside Hyosung. All RE:GEN ALLIANCE partners will collaborate for a better future, sharing responsibility for all generations, resources for good, and striving for tangible results. The alliance aims to grow and coexist with genuinely environment-friendly companies to create a safer and more sustainable future for the planet. Valuable Partnerships with Hyosung, RE:GEN ALLIANCE Hyosung aims to continue collaborating with brands and companies that share its core values of environmental friendliness and sustainability. Upcoming collaborations will involve B2C brands like Harlie K, which share Hyosung's core values. Together with capable partners walking in the same direction, Hyosung will strive to improve tangible results in South Korea's ESG landscape and contribute to the success of participating companies and brands by expanding its ESG capabilities. RE:GEN, Hyosung's response for future generations, will be a brand that grows and coexists with RE:GEN ALLIANCE partners who share its values. The RE:GEN ALLIANCE, a journey towards the future envisioned by Hyosung, will address the pressing global issues and focus on technologies, products, and services that cherish and love the Earth for the well-being of future generations and the progress of human life. Hyosung will lead substantial ESG management, striving for a safer and more sustainable Earth, together with everyone who shares its values. Hyosung believes in the potential of eco-friendly upcycling fashion accessory brand Harlie K, respects their conviction, and acknowledges that they are walking in the same direction. Hyosung will continue to collaborate with various companies and value-driven brands that share its principles. Hyosung plans to showcase various collaborations as a leader and partner in South Korea's substantial ESG management by working with consumer-oriented brands like Harlie K that listen closely to consumer stories. This collaboration will give substance to Hyosung's efforts for a sustainable Earth for all generations, focusing on environmental friendliness and resource circulation.

Adapting communication methods in line with current market trends and targets not only enhances customer convenience but also triggers sales growth for businesses. For example, recently an integrated online mall has undertaken a website renovation to provide customers with a holistic brand experience. While numerous areas have been revamped, the standout element was undoubtedly the new services intended for the next generation. By offering a wealth of entertainment, including live commerce and video content, not only were explanations about products delivered, but also a variety of information that the next generation desires, such as styling tips. This strategy resulted in an impressive increase in sales of over 30% compared to the same period last year. Hyosung TNC is also adjusting its approach to communicate more proactively with today's consumers. The Hyosung Group, founded in 1957 and boasting 64 years of history and tradition, and within it, Hyosung TNC, a pivotal part of the group, is the world's No. 1 spandex market share holder. It is the representative textile company of Korea, owning not only a variety of high-functioning nylon and polyester chemical fibers, and the country's first self-developed spandex, but also an eco-friendly textile brand. Hyosung TNC has thoroughly reorganized its brand and significantly renewed its primary communication channel, the website, based on the brand value and tradition Hyosung has held. All of these changes have been made to adapt to emerging trends and facilitate smoother communication with consumers. Hyosung TNC's technical prowess captivating both the market and the general consumer Hyosung TNC is a firm not only firmly established domestically but also on the global stage. As the world's only leading company possessing eco-friendly recycled fibers of nylon, polyester, and spandex, along with the globally recognized ‘CREORA Spandex' and a variety of functional yarns, Hyosung TNC stands unparalleled. It is also a powerful company capable of independently producing 'spandex', referred to as the 'semiconductor of fibers', which requires advanced technical and production capabilities to enhance comfort, strength, and elasticity in textiles. Upholding the belief that product power equates to competitiveness, Hyosung has been striving to develop technologies to produce innovative textile products. From 2007, it has strived to create eco-friendly products in the textile industry, and as a result of consistent effort, it has begun to garner interest from not only the textile and fashion industries but also general consumers by showcasing innovative eco-friendly materials. With the rising popularity of yoga and Pilates clothing, lifestyle trends focused on comfort and environmental consideration have become fashionable. Consumers' direct interest and needs for 'CREORA', a brand with various high-quality textile materials, and 'regen', an eco-friendly material brand, have increased. Naturally, this led to a growing number of consumers wanting to know more about Hyosung TNC's products. In particular, the eco-friendly fiber brand 'regen', which Hyosung brought to life through long-term investment and technological development, received much attention not only in the textile industry but also in various business fields. In response to this interest, Hyosung TNC has renewed its brand architecture based on Hyosung's technological edge. The company has also redesigned its website to encapsulate the communication values - innovation, forward-thinking, sustainability, and brand story. TNC Performance Textile Brand Website as a Communications Channel for the Renewed Brand Identity Until now, as a B2B company dealing with materials, Hyosung focused on delivering information primarily through content with high business relevance, communicating through a business-centered website tailored to the needs of stakeholders and existing customers. However, as the boundary between B2B and B2C communication is breaking down, a communication style and channel that matches the perspective of general consumers have become necessary. In response to these changes, Hyosung TNC has revamped its existing CREORA-centric brand site in line with the brand identity renewal into a textile brand website. The appearance of the website and also the structure and contents have been entirely revised. By building an intuitive and highly accessible website based on the new textile brand identity, it is expected to increase the influx rate and expand the preference effect. Hyosung TNC aims to enhance communication with customers based on trendy and timely content by delivering information more intuitively through the renewed website. It is strengthening global content through the introduction of brand journalism, and linking with social media. Furthermore, there are plans to consistently diversify new content. To properly convey the unique values of Hyosung TNC's products. A more readable UI has been developed to properly convey the unique values of Hyosung TNC and its products. Also, the website structure has been revised to make it easier to understand the renewed brand architecture and to provide information about the products, and the site has been designed to make it easy to access the necessary information within the website. Not only the products, but also the history of Hyosung TNC, the future value of the company, and information on sustainability based on ESG management have been revised to make it easier to check. In other words, the new TNC textile brand website aims to effectively and easily convey the values and information that Hyosung TNC wants to convey from the user's standpoint, aiming to play an important role as a hub channel centered on customer experience. Considering that more than half of the consumers of Hyosung products are global consumers and that website visitors come from all over the world including China, India, and Brazil where there are Hyosung TNC production sites, the company intended to build a dealer connection page by country. In addition, to increase the usability of global client companies, a design structure that is easy to handle in multiple languages has been introduced. Global content has been prepared for various overseas consumers and expected to be communicated actively at a global level. The searchability of information on the website has been enhanced by providing detailed search tools by category and search filters so that users who visit the TNC textile brand website can easily find the information they want, and improved accessibility and usability by separately exposing highly accessible products. The Renewed Brand Identity Previously, the brand was divided and emphasized based on materials and functionality. The newly restructured brand architecture consolidates into two main brands, 'CREORA' and 'regen', redefining our product lineup. This renewed brand framework not only offers the advantage of clear and straightforward consumer recognition but also signifies Hyosung TNC's stride towards becoming a brand that leads the entire fashion lifestyle industry, transcending its role as a textile material supplier. 'CREORA' is a leading brand representing high functionality, striving to pioneer the global consumer's lifestyle and redefine the boundaries of textiles. It is a diverse high-functional textile product lineup that creates and pioneers the latest trends, offering a perfect balance of fashion and functionality. 'regen' is an eco-friendly textile brand that seeks to create a circular chain of progress with environmentally thoughtful textile technology. Looking towards an eco-friendly future, regen leads and innovates in the eco-friendly textile market, aiming to build a more distant future eco-system. Not only does regen possess numerous world’s first recycled products, but it is also a brand encompassing a product range made from biodegradable raw materials. On the website, the introduction and story of the newly restructured brand have been arranged in content that ordinary consumers can easily understand, with the aim to communicate the values Hyosung TNC seeks to promote more easily. The new TNC textile brand website, housing the reorganized brand identity, allows you to appreciate appealing visuals, including videos. Breaking away from pages dominated by texts with low readability, we aimed to provide a concise yet powerful brand experience. Furthermore, by primarily exposing the product's model name and summarized specs, we have maximized the information, readability, and concentration provided to the user. With high-resolution images lined up for a quick product overview, users can experience the feeling of browsing a catalog merely by visiting the website. For convenient and smooth business communication with customers related to products, a separate menu has been formed. In the Customer menu, customers can directly request hangtag applications, certification issuance, and R-Scan issuance, and check the list of Hyosung TNC's partners. This menu enhances practical touchpoints with customers and improves their website experience. In addition, through the Brand Now menu, you can easily access TNC's new and diverse brand journalism and Instagram content. The newly added FDC menu provides the latest textile trends and lifestyles conveyed by Hyosung TNC, thereby playing the role of a lifestyle facilitator leading textile trends. A New Leap as a Lifestyle Facilitator, Hyosung TNC Hyosung TNC is set to advance as a lifestyle facilitator, grounded in eco-friendly technological innovation. CREORA aims to transcend consumer lifestyle boundaries, leading into new territories as a pioneering brand, fulfilling its role as a SUPER LIFESTYLE SEEKER. regen, utilizing environmentally thoughtful textile technology, looks towards a developed eco-friendly future, creating a circular chain of progress and solidifying its global market position as the leading brand for eco-friendly textile materials. We invite you to observe the new endeavors and efforts of Hyosung TNC as it unfolds as a lifestyle facilitator through the newly renovated TNC textile brand website. ▶ Discover the Dazzling Leap of Lifestyle Facilitator Hyosung TNC (insert link)

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.