HYOSUNG TNC

Can you imagine a life where all clothes are made only of cotton or wool, where there is no functional fabrics available for sports wears (e.g., swimsuits made of stretchy spandex fabric and running suits that absorb sweat)? Hyosung TNC has continued to innovate the textile industry with a variety of products, including the world’s No. 1 market share spandex name creora® spandex as well as nylon and polyester, all of which have contributed to improving everyday lifestyle by brining comfort, convenience and ease. If textiles were the main driving force behind the second Industrial Revolution, eco-friendly textiles will be driving the Fourth Industrial Revolution. Leading the textile industry with an aim to enhance the quality of life, Hyosung TNC began its development journey of sustainable, green fiber 20 years ago. The company has long put a lot of thought into operate its production lines sustainably to co-exist and protect our planet Earth. The company manages all of its production sites in line with the ISO 14001, the international standard for environmental management system in order to monitor and control greenhouse gas emission and energy consumption. Fiber it produces are made of eco-friendly materials or recycled consumer waste. Envisioning a virtuous cycle of sustainability, Hyosung is taking the lead in green textile industry. Here are some snapshots. Saving the planet Earth begins with eco-friendly manufacturing Hyosung TNC actively pursues the use of renewable energy sources in a bid to reduce greenhouse gas emission by recycling at its production sites. Hyosung uses the waste heat supplied by neighboring municipal landfill incineration facilities, and biogas produced in its factories are used as an energy source for the boilers located in the production sites. Using such waste resources as energy source aims to contribute to sustainability and thus benefit everyone involved. Waste energy sellers can monetize energy sources that could be otherwise disposed while the buyers can purchase this recycled energy at more affordable and rational prices. Isn’t it amazing to see that greenhouse gas, a threat to our environment, can be recycled to help cut down on carbon emission? A global leader in eco-friendly textile, Hyosung TNC Hyosung TNC produces eco-friendly textiles made from sustainable fiber. regen® spandex, the first 100% recycled spandex, and creora® bio-based spandex, the world’s first spandex made from industrial field corn, are made from reclaimed waste and bio-based raw materials, respectively. In particular, creora® bio-based is considered an enormous success. Corn fiber has already been extensively applied to areas such as packaging paper, cosmetics and liquid detergent. Due to technological limitations, however, it could not be applied to high performance textiles which require stretch, flexibility and resilience. Despite much doubts and questions, Hyosung TNC set out to develop high-stretch corn-based spandex fiber, continuing to invest in its R&D for over two years. Based on its technological edge and know-how as the global No.1 spandex name, Hyosung TNC became the world’s first company to commercialize a high-performance spandex made of plant-based materials. Hyosung also developed fiber made of reclaimed waste. Good examples are regen® ocean nylon made of recycled fishing nets and 100% recycled polyester yarn from post-consumer PET bottles. regen® ocean nylon is made from post-consumer recycled (PCR) nylon, first developed by Hyosung in 2007. PCR products refer to material made from consumer waste. regen® ocean nylon is made from recycled waste fishing nets that are collected from the ocean and cleaned for special proprietary processing. regen® polyester is made from discarded PET bottles. These PCR products help reduce waste that are thrown away indiscriminately. They also help Hyosung TNC reduce its carbon footprint during the manufacturing stage. regen® polyester and creora® regen respectively has 60% and 66.8% of carbon reduction impact. Hyosung TNC continues to invest in research and development in sustainable textiles. Eco-friendly management begins at work Member of the company also try to play their part. Hyosung TNC employees are using tumblers and cups at work under the campaign “No disposable items at work’ while the company pays for the reusable personal cups. Hyosung TNC has launched regen® Seoul and regen® Jeju, 100% recycled polyester made from discarded PET bottles from Seoul and Jeju Island. These eco-friendly fiber were made into jerseys, jackets and pants in collaboration with global apparel brands. Hyosung TNC also has turned the recycled plastic bottles collected within the company into eco-friendly bags made from regen® polyester which later were given to the employees as gift. Its employees and management have also launched ‘plogging’ campaigns to join hands to jog and pick up trash while supporting NGOs working on collecting ocean-bound waste. Play by examples in ESG management As such, Hyosung TNC seeks to reflect its Green Management Vision 2030 in everything it does as part of its efforts to fight the climate change. It tries to cut down on greenhouse gas emissions as much as possible during the manufacturing process while continuing to invest in R&D to develop sustainable products such as functional fiber, material made from industrial waste and PCR fiber. It has also been actively engaging in various environmental campaigns as part of its corporate culture. With its long-held vision of co-existing in harmony with nature, Hyosung TNC will continue to strive to build trust as an eco-friendly global brand with customers, vendors and consumers around the world. As a global textile name, it will also continue to lead by examples in ESG and green management.

On a sunny autumn day, Hyosung held the Sevit ESG Color Festival to make our own color for eco-friendliness. Sevit Island of Banpo Hangang Park, a landmark of Seoul, was full of vibrant colors. Let’s find out more. Promoting Eco-Friendly Activities, Make Your Color! Sevit ESG Color Festival was first held in October 2022, with the aim of promoting harmony with the environment through vibrant, eco-friendly activities. Under the slogan of “Make Your Color,” the festival had seven themes with seven different colors and various eco-conscious programs were carried out: participants wore regen® T-shirts, walked around, watched performances and engaged in eco-friendly activities. Anyone interested in living an eco-friendly life attended the festival to experience diverse activities and had a wonderful time. So, let’s explore the vivid scenes of the event. WHITE: Reply to Every Generation’s Future, RE:GEN Hyosung Group vigorously carries out environmental activities with its eco-friendly brand slogan: Re:GEN, Reply to Every Generation’s Future. Hyosung Group, through its ESG brand RE:GEN, is responding to the request from our future generations to keep the Earth that we temporarily borrowed from our children clean and return it to them. The regen® zone delivered stories of Hyosung Group and Hyosung TNC brands: RE:GEN, a brand that represents eco-friendliness and regen®, Hyosung’s eco-friendly recycled fiber brand. In line with the theme “eco-friendliness” of the festival, the booth structure of Hyosung regen® Zone was made of recycled, reusable paper panels. Hyosung TNC conveyed the story of how regen® came to life as a recycled polyester brand that promotes circular economy. Branding stories of regen® Seoul, recycled polyester made from discarded PET bottles in Seoul, and regen® ocean nylon, the nylon fiber recycled from waste fishing nets, were also delivered in the zone. There were also shoes, clothes, ties, and bags made by regen® polyester in the zone for people to see and touch. Visitors were so impressed, saying it’s fascinating that the products are made of used plastic bottles. We encouraged the separate disposal of transparent PET bottles and handed out reusable tarpaulin bags to visitors. Furthermore, diverse activities were prepared for visitors to participate, such as playing basketball with PET bottles, or soccer with plastic bottle caps. regen® Zone was shining brightly with many people making memories full of joy as they visited Han River on this sunny day. TANSOME®, a carbon fiber brand of Hyosung Advanced Materials, also joined the Eco-friendly Brand Zone of the festival. Carbon fiber, stronger but lighter than steel, is a key material in the hydrogen industry, which is a clean energy industry. Various products were presented in the carbon fiber brand zone, from hydrogen fuel tanks, musical instruments, golf clubs, luggage, prosthetic legs, to a heating bench, all made of TANSOME® carbon fiber. You won’t know how much lighter and stronger carbon fiber is until you feel the weight yourself. So, there was a place for the visitors to lift the same volume of steel and carbon fiber and compare the difference in weight. Isn’t it marvelous that merely 2.5kg of carbon fiber can replace 11.7kg of steel, with even better strength? Hyosung Advanced Materials is working on a collaboration project with artists and musicians with TANSOME® as its central theme. The company is also partnering with Meta Galaxia, an NFT platform company. An interesting even was held at the booth regarding the NFT project: using AirDrop to download an NFT of ‘Make Your Color’, the ESG soundtrack recorded by Korea’s legendary rock band, No Brain and instruments made of carbon fiber. So, anyone who visited the booth could keep the NFT soundtrack as a unique virtual asset. YELLOW: Meeting Eco-friendly Brands of Our Everyday Lives, Eco-Friendly Brand Zone How much are you aware of eco-friendly brands that contribute to protecting the environment in our everyday lives? We organized booths in the Eco-Friendly Brand Zone where visitors could meet and experience eco-conscious brands that are with us in our daily lives. TOPTEN, a Korean SPA brand, joined the Eco-Friendly Brand zone. The brand signed an MOU with Hyosung TNC for eco-friendly collaboration, and it showcased various clothing made from sustainable material. Its booth was bustling with visitors through the festival coming to join a balance contest in which people had to complete missions such as jumping rope, Korean Jegi kicking, and hula hooping. Samdasoo, a bottled water brand, also joined the zone. The brand belongs to the Jeju Province Development Co. which also signed an MOU with Hyosung TNC for the regen® Jeju project. An Eco-Boongboong truck was brought to the zone all the way from Jeju Island and many programs, including a true-or-false quiz on carbon neutrality, eco-friendly tattoos, were carried out to convey eco-friendly messages to the visitors. Many other brands also made their presence felt in the zone from Donggubat, which makes eco-friendly products such as soap and shampoo bars with intellectually and developmentally challenged people, Cueclyp, which produces fashion goods using eco-friendly materials, Rewind, which manufactures compostable, biodegradable packaging, Wright Brothers, a secondhand bicycle trading platform, to the Seoul Green Purchase Support Center which works on promoting green activities in our daily lives. These brands offered various activities for everyone to enjoy, such as making organic soap and upcycling keychains, planting byproducts of coffee beans, and playing true-or-false quizzes. BLUE&GREEN: Caring Health and Environment at Once, Sevit regen® Walk, Sevit regen® Plogging Everyone is wearing the same shirt and walking together. So where are they heading to? They are on their way to join the Sevit regen® Walk, and Sevit regen® Plogging to protect both their health and the environment. The eco-friendly t-shirts they were wearing were made of regen® Seoul, Hyosung’s eco-friendly polyester fiber produced by using wasted PET bottles in collaboration with TOPTEN. Participants from both programs joined an environmental cleanup activity on Sevit island by collecting trash. Sevit regen® Plogging was carried out in collaboration with ReDi, an organization for marine environment protection, sponsored by Hyosung TNC. Participants were able to contributing to a cleaner marine environment, preventing waste from making their way into the river and ocean by picking up the waste around the Han River. Citizens had a meaningful time with their family, friends, and loved ones under the clean blue sky, picking up trash with a plogging kit made of regen® of Hyosung TNC. ORANGE: Caring Sustainability of Our Mind and Body, Sevit Han River Yoga Class The health of our mind and body comes first before we care about the health of the Earth. In the Sevit ESG Festival, a Sevit Han River Yoga Class was held to help people care for their minds and bodies and enjoy a relaxing moment in their daily lives. Sunday Namaste, which runs online and offline yoga classes, offered three different yoga programs in the peaceful urban environment, with Sevit island and Han River in the background. Through the three programs, participants were able to gain awareness of their inner circulation, feel a sense of balance and connection to nature, and sustainably build muscles of their mind and body. Overall, it was a time to think about sustainability, and a moment to get away from busy everday lives while looking back on oneself in front of the peaceful Han River. PURPLE: Sevit Music Concert After completing the Sevit regen® Walk, Sevit Plogging, and yoga classes, it is time to dance to music. Let’s look at the Sevit Music Concert that involved exciting performances on the stage of the Sevit island. The concert was in full swing with performances by rock bands like No Brain, Monni and Zitten, exciting EDM DJ performances as well as a wonderful jazz performance by Get All Right. The ESG soundtrack of Hyosung, Make Your Color, was first introduced during the performance by No Brain. Many people who were taking a walk in the park stopped by and enjoyed the music. PINK: Eco-friendly Future doesn’t Happen Overnight, Tree Planting in Hyosung Sharing Forest in Seoul In the World Cup Park in Seoul, there is a forest called Hyosung Sharing Forest in Seoul which Hyosung Group employees have continued to take care of for the last decade. On October 22nd, a follow-up event was held in the forest to plant trees with volunteers who attended the festival. Sevit ESG Color Festival came to a successful end with voluntary practices for making the forest greener. Through the Sevit ESG Festival of Hyosung, the city of Seoul full of gray buildings was shining with vibrant and dynamic colors through the colorful programs that joyfully revealed Hyosung’s earnest wishes for a greener environment. Hyosung is dreaming of and will work toward making our city and the Earth brighter and more colorful. Hyosung will continue to strive to make your everyday life colorful, full of eco-friendly products. [Epilogue] MAKE YOUR COLOR! Shining the Gray City with Our Color Busy Days Passing by, Cities Left with Gray Buildings, Blue Skies Gone Our sky, losing its color, must be a clean blue sky, and our city must be vibrant full of color. Hyosung’s passion for the environment is bearing fruit. It has created recycled materials and explored new energy sources, imbuing the world with vibrant color. Hyosung will continue to dream of and move forward to making our cities and earth brighter with our color. RE:GEN, Reply to Every Generation’s Future

An unforgettable, depressing 90s shook Korea - a period of which parents still tell stories of the hardships they had to overcome. A crisis that led 11 out of 30 major Korean companies to go bankrupt and over 1.27 million people to lose their jobs simultaneously. In the summer of 1997, the Asian financial crisis originated in Thailand and swept across Southeast Asian countries, including Malaysia and Indonesia. Unfortunately, Korea was taken hold that same year. On November 21st, 1997, Stanley Fischer, the Deputy Managing Director of the IMF, and Changyuel Lim, Deputy Prime Minister of Finance & Economy, held a confidential meeting in Seoul. That night, the government decided to request liquidity support from the IMF. These requests came at a cost, as the IMF had demanded high-interest rates, restructuring, and more. Korea was nearing default status, and nationwide movements took action to collect as much money and gold as possible from company executives and local citizens. As a result, the exchange rate soared exponentially, which had caused more than 3,000 companies in Seoul to go bankrupt. 1998 became a year of sadness, where numerous, hardworking individuals lost their jobs. Hyosung was no exception. Like many others, the company faced a desperate situation as the business declined in revenue. Hyosung had developed a strong, close-knit company where employees had been working together for years. Instead of laying off the employees, who were like family, Hyosung opted for a business restructuring strategy that was based on humanism. Hyosung chose to overcome the crisis together with the employees. Now, Hyosung shines as brightly as its name, which means ‘morning star’. It is global number one in the world’s spandex market share and selected as the world's best GIS (Gas Insulated Switchgear) company. Not to mention, Hyosung boasts number one in the world’s market share for tirecords, seatbelt yarns, and airbag fabrics. Their achievements are the result of overcoming numerous challenges, including the foreign exchange crisis. The journey of Hyosung, becoming an icon of trust Since the founding of Hyosung Corporation in 1957, followed by the establishment of Dongyang Nylon in 1966, Hyosung began its journey as a comprehensive chemical fiber maker. In order to secure certified patent technology, Hyosung established the first private technology research institute in Korea in 1971. This research institute became a major engine for their corporate growth. That same year, Hyosung Advanced Materials' tirecords came into the spotlight. Hyosung developed its own technology to produce tirecords, which are now used by 50% of the world's automobiles. Based on keen business foresight and technical know-how, Hyosung expanded its materials business to produce PET containers, which were mostly glass products. This moment of innovation brought a paradigm shift to the container market in the late 1970s. The 1990s saw a rise in global competition, and Hyosung took the opportunity to focus on developing high-value-added products. It developed its own technology to produce spandex, also known as ‘semiconductors of the fiber business,’ and core products such as 765KV transformers for ultra-high-speed power transmission systems. This helped kick-start their chemical business into the polypropylene, film, and TPA industry. Hyosung has a long-established trust with its customers, owing to its solid technical capabilities and quality standards, which have been steadily recognized since its establishment. Furthermore, Hyosung is widely recognized as a top-tier, trusted company in not only South Korea, but across the global continent with a customer-centered mindset. Hyosung's bold move in forecasting the future With the looming foreign exchange crisis around the corner, Hyosung took a step forward in pursuing management efficiency through business restructuring and achieving record-breaking sales of one trillion won. In 1998, the company built on a new driving force to cope with the crisis. At that time, Hyosung Group's flagship companies (Hyosung Industrial, Hyosung Heavy Industries, Hyosung Living Industry, and Hyosung T&C) all merged into Hyosung Corporation. The company took bold action to sell off its non-core businesses, including Hyosung BASF and Hyosung ABB, which were forecasted to be profitable during the crisis. Instead, Hyosung introduced the PG (Performance Group) and PU (Performance Unit) systems in order to pursue significant financial restructuring and management efficiency. As a result, Hyosung's operating profit increased, and its debt ratio significantly improved after the foreign exchange crisis. Seizing the crisis as an opportunity, Hyosung secured a growth momentum since the start of the crisis to a fully established global market network in the present. Through globalization, the company has become a major player in the global market. In the 2000s, Hyosung dedicated its resources to exploring overseas markets and establishing itself as the world’s best in its flagship products, including tirecords and spandex. From then on, Hyosung embarked on a journey to become a global company by establishing a presence in the United States, China, Vietnam, Europe, and South America. Currently, it is expanding its global production bases to respond to overseas market entry and rapid growth, with 106 factories in 28 countries. Hyosung strives to provide differentiated products and services through a global production and sales system. In 2018, Hyosung achieved a holding company structure to strengthen its management expertise. It established four subsidiaries, Hyosung TNC, Hyosung Advanced Materials, Hyosung Heavy Industries and Hyosung Chemical, and an independent management system led by professional management specialists. Hyosung has leaped forward to become a materials expert through outstanding technological prowess and bold decision-making, and currently holds approximately 550 domestic and foreign fiber patents. Additionally, it holds over 700 patents related to advanced materials, more than 1,000 patents related to chemicals, and approximately 700 patents related to heavy industries. As a global company operating businesses in various countries, Hyosung has firmly established its position as a global enterprise; by pioneering overseas markets while contributing to the Korean economy. A hundred years of tomorrow, prepared through the voice of the customers With its bold and innovative management foundation, Hyosung has been at the forefront of addressing environmental concerns. Hyosung TNC developed their iconic green recycled fiber, ‘regen’. In 2008, regen took off as an eco-friendly fiber made from recycled PET bottles. Since then, Hyosung has greatly expanded its lineup of eco-friendly functional fibers, which is now the leading global trend in eco-friendly fibers. Hyosung Chemical was also the first in the world to commercialize polyketone, an eco-friendly engineering plastic, and the liquid hydrogen project. Led by Hyosung Heavy Industries, this project is still being actively pursued today. In 2017, during Chairman Cho Hyun-Joon of the Hyosung Group’s inaugural speech, he stated that he would create a company that listens to the voices of its customers and clients. Hyosung will strive to be a company whose pride lies in technology and a company that always wins. All of these points were embodied in the word 'customer.' In 2023, he expressed his aspiration to pursue customer satisfaction and happiness by moving toward a 'customer-immersed management' through a 'customer-first' policy. The mission to emphasize the 'customer,' has led Hyosung in a symbolic endeavor to not only listen and respond to the voice of the customer but also to understand the customer through multiple perspectives. Hyosung's growth has always been based on the VOC (Voice of Customer) management philosophy, taken at every direction, and has enabled them to move strategically. Through reliable technological innovation for customer satisfaction, Hyosung is preparing for a leap toward a strong and successful future for the next 100 years.

Leaders from across the world gathered in Paris in December 2015. Their nationalities and cultures differed, but they had a single goal in mind: To curb temperature rise caused by global warming. There had been numerous meetings of the Conference of the Parties to the United Nations Framework Convention on Climate Change before this one, but they all had ended without any resolution due to conflicting interests. However, this time was different, because everyone at the table knew what was at stake: the imminent and urgent necessity of addressing climate change. With the Paris agreement adopted, the world is pulling together to curb down the temperature rise to below 1.5 °C. Hyosung as a global citizen is also playing its part. It is envisioning a carbon neutral future by promoting hydrogen, a clean energy source. By 2025, Hyosung plans to secure hydrogen production technologies driven by blue and green hydrogen that emits lower or zero greenhouse gas in a bid to build a clean hydrogen ecosystem. Based on such technologies, development and demonstration of carbon-reduction technologies will be pursued accordingly. By 2030, a total of 1 trillion Won (equivalent to 1 billion USD) will be invested to achieve technological self-sufficiency when it comes to development and utilization of hydrogen energy. This is also expected to help Korea reduce carbon emission by 10%. To this end, key affiliates of Hyosung Group are putting efforts to build the hydrogen value chain of production, storage, distribution, supply and consumption. Why is holding global warming to 1.5 °C such a big deal? 1.5 Degrees, the Danger Line for Global Warming According to the ‘Special Report on Global Warming of 1.5 °C’ released by Intergovernmental Panel on Climate Change (IPCC) in 2018, a 1.5°C global warming above pre-industrial levels will put the humanity as a whole and our home planet Earth in grave danger. Can you imagine the North Pole without ice? A 1.5°C average temperature rise would increase the probability of an iceless summer to every 100 years. A 2°C rise would mean the probability increase to once every ten years. An iceless Arctic Ocean will absorb a larger proportion of sunlight and in turn further accelerate global warming. This will mean higher temperature, more frequent heavy rain and flooding. If an iceless North Pole meets with heavy rain, it will lead to sea level rise to inundation of coastal residential areas. Marine ecosystems will be no exception. Especially, habitat-forming species such as coral reefs compared to their mobile counterparts will take the hardest hit. A 1.5°C rise in temperature could wipe out as much as up to 90% of coral reefs in the world. Without coral reefs, maritime biodiversity will be significantly destroyed which will then affect the world’s fish ecosystem. It is expected the global overall fish catch will decline 150,000 tons per annum. Remember the dire heat waves and droughts that hit around the globe last summer? A 1.5°C rise is estimated to bring such deadly heat waves to 14% of the global population at least once every five years. While we hesitate, the global temperature is fast approaching a 1.5°C rise. If we do not take action now, what was taken for granted will disappear very quickly, and there will only be regrets when the nature and ecosystem are destroyed. Let’s take a look at how Hyosung is partaking in building a carbon-neutral future driven by hydrogen. Hyosung, a hydrogen superhero Affiliated companies of Hyosung have been pulling together to commercialize hydrogen to replace fossil fuel, in order to build the hydrogen value chain of production, storage, distribution, supply and consumption. Liquid hydrogen is at the front line of Hyosung’s such efforts. As one of the largest industrial conglomerates in Korea, Hyosung has partnered with a global gas name Linde to jointly build Hyosung Hydrogen and Linde Hydrogen Energy. Linde Hydrogen Energy which will be responsible for production of hydrogen is to build the world’s largest liquid hydrogen facility with an annual capacity of 13,000 tons with an aim to kick off in May 2023. This facility will process enough hydrogen to fuel 100,000 cars. Hyosung Hydrogen will be leading the global expansion and distribution of the hydrogen production with an aim to expand its liquid hydrogen refueling stations up to 30 by the time the facility is built. The main driver of the entire hydrogen businesses pursued at the conglomerate is Hyosung Heavy Industries. Based on its experience of building a nation-wide network of CNG filling stations since 1999, the company has been the leading player in domestic hydrogen refueling stations. As of today, it has built 25 hydrogen gas stations across major cities in the country with 16 more in pipeline. Hyosung Heavy Industries is also a leader in wind power turbine and ESS. Its 50MW capacity ESSs require top notch technology as they are often directly connected to important facilities such as national grid and large-scale factories. Hyosung Heavy Industries supplies ESS to major electricity names from England and South Africa. Hyosung Chemical is responsible for production of hydrogen gas. It sells 12,000 tons of hydrogen gas extracted during the process of propylene, the key material for plastic production. Starting from next year, Hyosung Chemical is to supply liquid hydrogen jointly with Linde. When liquefied, hydrogen gas volume is reduced to 1/800, making storage easier and storage capacity larger. In turn, liquid hydrogen refueling stations require only 30% of the space required for hydrogen gas stations. All in all, supply of this by-product hydrogen with price competitiveness is expected to facilitate a hydrogen economy. Hyosung TNC and Hyosung Advanced Materials supply materials required for hydrogen storage tanks. Nylon for tank liners from Hyosung TNC and carbon fiber for tank structure from Hyosung Advanced Materials are critical for safe hydrogen transportation. Carbon fiber is also used in fuel tanks in hydrogen vehicles. Time to get used to charging, not refueling A future where we fill our cars not with gasoline or diesel but with hydrogen at gas stations is just around the corner. It will not end there. Electricity supplied to homes and buildings will be based on hydrogen, while fossil fuel power stations will be replaced with hydrogen fuel cell power plants. This will significantly cut down emission of air pollutants into the air. Steel mills will also be able to produce steels on carbon-free hydrogen energy. We already have witnessed how changes can bring about positive results amid the pandemic. Border lockdowns led to economy contraction but ironically the pandemic improved our environmental situations. Less vehicle travels and lower industrial production meant lower emission of greenhouse gas, carbon dioxide and air pollutants. According to the World Meteorological Organization, since the pandemic PM2.5 (fine particular matters) have declined as much as 40% in Africa, South Americas and South Asia. Hyosung hopes the clean blue sky we enjoyed during the pandemic is here to stay. In the face of the villain greenhouse gas that is inflicting the world, our superhero Hyosung continues on its fight to prevent global warming from reaching a 1.5 °C rise.

For over six decades, Hyosung has opened up new horizons in numerous technological developments aimed at improving people’s lives. In doing so, Hyosung has come to stand shoulder to shoulder with global companies in technology and product quality. Hyosung's wish for a better life for humanity has led to concrete achievements in various fields. Hyosung has been leading the circular economy, producing eco-friendly B2B products, and taking the lead in protecting the global environment by reducing greenhouse gas emissions. Today, Hyosung is relentless in innovations to achieve a greener planet, utilizing hydrogen to make a net-zero environment for our future generation. Hyosung has continued its efforts toward environmental, social, and governance (ESG) issues, such as circular economy, sustainability, and carbon neutrality. Let’s take a look at Hyosung’s Five Management Principles. These principles, the basis for all Hyosung-affiliated businesses, provide a glimpse of its future initiatives. Here are the detailed descriptions of the five principles that have been the backbone of Hyosung's business. [Hyosung's Five Management Principles] l People-oriented business: Valuable relationship with people always comes first. l Customer-oriented Management: We listen to the Voice of the Customer (VOC) l AGILE Management: Quick response to change l Exceed expectations: Offer the best quality l Data Utilization: Think and prove based on systematic, scientific data 1) People-oriented business: Valuable relationship with people always comes first Hyosung’s first and far most crucial management principle is putting people at the front line of business. The engine for success is all about people. Suppose Hyosung is a large ship sailing the sea of the economic market. In that case, a navigator must establish a destination, a helmsperson who steers the ship, and a captain to direct the crew. In other words, Hyosung can only arrive at its destination with the collective power of talented individuals as a team, using their skills in various fields to sail the ship. Hyosung has grown into an international corporation leading the global market trend thanks to the efforts and passion of its executives and employees in various fields. Hyosung exists because of its employees. This principle is proven by their various employee education programs, fostering next-generation leaders. Hyosung provides training for all employees of all duty and position. In addition, the company annually selects employees above the manager level to conduct an interview with executives, and run mentoring programs. They also operate motivational programs encouraging employees to learn a new language. A short-term executive MBA course is also in place for executives to share the professional knowledge necessary for business division management. In addition, the Hyosung Talent Award and Outstanding Employee Award celebrate individuals in all Hyosung affiliations who have achieved personal growth and excellent business performance in their areas. These awards strengthen loyalty and provide valuable experiences for employees to feel rewarded, motivated and pride in their work. 2) Customer-oriented Management: We listen to the Voice of the Customer (VOC) Hyosung's management principal goal is to satisfy its clients. Under the belief that all answers in the market lie with the customers, Hyosung has concentrated its management on identifying and discovering the needs of consumers and providing good value. By listening to the voices of customers, Hyosung understands what they desire more quickly and accurately than anyone else. This approach has become the foundation for Hyosung in developing new technologies and products in the market, discovering new global supply chains, and building a worldwide network. Hyosung developed a project coined ‘C-Cube,’ a big data based on customers' feedback, opinions and market situations, and has been utilized across all affiliations. This project has been developed to satisfy Hyosung's B2B customers. The big data is based on the voices of our customers and competition. Based on this data, Hyosung is consistently connecting with the Voice of Customer (VOC) and is striving to improve customer satisfaction. In addition, Hyosung has been seeking a win-win growth strategy with small and medium-sized enterprise (SMEs) customers by supporting them to enter overseas markets. Also, The Company is installing booths and seeking marketing opportunities with SMEs at various global exhibitions. 3) AGILE Management: Quick response to change Hyosung has experienced dramatic economic growth from the 70s to the 80s, when manufacturing was the dominant industry, to the blooming of the IT industry in the 2000s. Hyosung is now facing the 4th industrial revolution and understands the importance of organizational agility. It is critical to efficiently adopt new technologies and trends in this time of transformation. AGILE management principle aims to increase the speed and efficiency of the organization and quickly grasp the flow of market changes that lead to the trends. With AGILE management, Hyosung expects to create new business opportunities and quickly grasp the opportunity. Hyosung's development of eco-friendly B2B products is a typical example. From the early 2000s, Hyosung began paying attention to sustainability and environmental issues. At that time, interests in the global environment were less fervent. Leading eco-friendly innovation, Hyosung developed regen® ocean nylon, the world's first recycled yarn produced from fishing net waste, one of the main culprits of marine pollution. In addition, the company developed regen® polyester made from 100% plastic bottle wastes for the first time in Korea, and is supplying the recycled yarn to global apparel brands. By developing post-consumer recycled (PCR) products, Hyosung has successfully introduced an economic cycle in the textile industry and creating consumption value for environmentally conscious consumers. Furthermore, Hyosung is actively developing new businesses that can contribute to solving global warming. Specifically, the company has built a liquefied hydrogen plant for hydrogen vehicles to reduce greenhouse gas emissions and become carbon neutral. Hyosung has also been working to produce green hydrogen by developing carbon fibers essential for high-pressure hydrogen transportation. 4) Exceed expectations: Offer the best quality Since the 1960s, Hyosung has been leading the synthetic fiber industries, heavy industries, advanced material, and chemical industries. Hyosung has been concentrating on technology development and product innovation to produce high-quality products that exceed the expectations of customers. Its achievements are evident through numerous domestic and overseas patents - 548 domestic and foreign textile-related patents, 708 advanced materials-related patents, 1,037 chemical-related patents, and 692 heavy industries-related patents. Multiple patented technologies created by Hyosung's researchers and technicians are truly the foundation for the company's sustainable growth and customers' better future. Hyosung succeeded in developing recycled nylon yarn for the first time in the world, leading the production of environmentally friendly fibers and accelerating the economic cycle in the textile market. Through constant technological development, Hyosung is being recognized in many fields, including the global spandex and tire cord, where Hyosung boasts global no. 1 market share. Hyosung has been continuously developing new materials, including spandex creora®, and carbon fiber TANSOME®, the primary material for hydrogen storage containers. Polyketone, FDA-approved eco-friendly plastic using carbon monoxide as raw material, is the world’s first of its kind. Hyosung's best technology permeates every aspect of our daily lives with these new materials. In addition, Hyosung has continued R&D and investments to take lead in the high-technology industry and is continuously developing technologies with new materials, big data, and artificial intelligence. 5) Data Utilization: Think and prove based on systematic, scientific data Hyosung's customers are not limited to specific regions as they are distributed worldwide. They are diversified around multiple industries, value chains and roles, including production, sales, management, and R&D. Hyosung's branches and corporations worldwide collect VOC and vast information regarding customers, competitors, and markets. Hyosung intends to utilize such data through systematic and scientific database management based on VOC collection. Data-based management has the advantage of being able to identify and collect data to lead the market trend. Hyosung uses VOC in various ways, from customer strategy to product and technology development, investment-related strategy establishment, and decision-making. For B2B clients who have been our clients for a long time, Hyosung considers trust crucial in business relationships. The data Hyosung accumulates from the customers enables to build a long-term relationship by predicting future market changes and identifying the correlation between our customers’ competition and the market. Hyosung is also building an intelligent factory as digital transformation (DX) in the 4th industrial revolution will increase the competitiveness of the manufacturing industry. Hence, Hyosung is innovating the production process by introducing smart factories domestically in the Changwon plant and overseas locations, including China, Vietnam, and India. Hyosung's Five Management Principles for Sustainable Growth to Protect the Future of Mankind Hyosung's Five Management Principles outline the company's present and future directions. Each of these principles is closely related to ESG and sustainability. Based on the philosophy of placing people first, Hyosung listens to customers, responds flexibly and with agility to the changing markets, develops high-technology quality products, and carries out scientific management. Through mission-driven management toward ESG, Hyosung has developed eco-friendly products ahead of the times. Hyosung makes an enterprise-wide effort to operate its company considering even the small details, with the intention to create an environment where people can lead a comfortable, safe and eco-friendly life. Hyosung's multifaceted efforts illuminate the company's successful future by enabling rapid change ahead of the era of constant development and revolution.