HYOSUNG TNC

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

Influencers are setting the trend on social media with their respective personality and charm. What they do and wear gain attention and followers. Their influence is not confined to domestic audience but reaching out to global users via social medial, especially centering around the MZ generation. With all eyes on themselves, these influencers try out new clothing on a daily basis to differentiate, gain new followers and continue to create buzz. Their followers who admire and relate to them often follow suit the influencers’ pattern of consumption, further facilitating the cycle of fast fashion. The biggest issue of the fast fashion industry is its environmental impact. According to UNECE (UN Economic Commission for Europe), fashion industry as a whole account for 20 percent of water consumption and 10 percent of carbon dioxide emissions across different industries in the world. Its manufacturing process requires lots of resource input and emits greenhouse gas, a main culprit of climate change. Its distribution process also has a large carbon footprint across the world as clothes manufactured in countries with cheap labor travel around the world before they are purchased by end-users. Clothes never sold are either incinerated or end up in landfill. As such, fashion industry is now faced with a new challenge of fulfilling the need of the day, preservation of environment, while continues to put forth beautiful and unique clothes. With many celebrities voicing their concerns about the environment, the general public are increasingly awakened to the importance of the environmental issue. Global Web Index, a UK-based marketing company, released a report that 61 percent of the millennials are aware of the issue and willing to purchase ‘green products’ even if they are pricier than others. In other words, we now have a growing demographic of ‘eco consumers’ who make their consumption choices in consideration of environmental issues. The corporate world is also responding and it is not only fashion industry but also other industries that have been responsive. Hyosung is no exception. It has been working tirelessly to lead a sustainable fashion industry and develop eco-friendly materials. Hyosung TNC, for instance, has developed recycled textiles for polyester, nylon, and spandex for the first time in Korea. In so doing, Hyosung TNC has contributed to cutting down on plastic consumption in the clothing manufacturing process and promoting plastic recycling. Here are some of the company’s innovative products, a by-product of its continuous research and development endeavor. First recycled polyester yarn in Korea, regen Hyosung regen is the first product in Korea that applied a technology that recycles discarded PET bottles. Regen polyester contributes to reducing landfill volume and CO2 emissions. Based on its 15-year know-how and technology, Hyosung has created a recycled yarn that maintains the function and quality of virgin polyester. It has been working on materialistic and chemical recycling through its R&D efforts. As such, Hyosung TNC continues to offer green products, protect environments, and create a responsible consumption culture among consumers and corporates. World’s best recycled nylon yarn, regen Ocean Nylon Hyosung TNC has worked together with local fishing communities to separately discard waste fishing nets so that they can be easily recycled. Collaborating with venture companies working on sustainability, Hyosung TNC collects, shreds, and cleans waste fishing nets for pre-production process. After this, the fishing net waste are melted to separate raw materials to be recycled to regen Ocean Nylon, creating a virtuous cycle. regen® Jeju, a recycled yarn from used PET bottles in Jeju Hyosung TNC is committed to turning discarded PET bottles from Jeju into recycled yarns. To that end, the company has formed an MOU with the Jeju Special Self-governing province, Ministry of Environment and Jeju Province Development Corporation for a project of recycling PET bottle waste in Jeju into plastic bags. This should be a good example of positive influence by a private-public cooperation. Under this project, the Ministry of Environment and Jeju local government established the so-called ‘Clean House’ system of household waste collection facilities while Jeju Development Corporation collects discarded PET bottles. These PET bottle wastes are fed into Hyosung TNC’s manufacturing system to produce regen® Jeju, the 100% recycled yarn, which is then used for production of fashion items under the brand of Pleatsmama. A knit pleats bag produced by Pleastsmama out of this virtuous cycle uses 16 PET bottles of 500ml. regen Spandex made of recycled waste regen Spandex is 100% recycled spandex made of reclaimed waste, which is not only eco-friendly but also boasts excellent functions. Its global market share is over 30%, securing global number one name. Hyosung TNC has also been on a journey to develop various types of eco-friendly recycled yarns. After all, fashion is about reflecting who you are in a stylish manner. But fast fashion industry is blamed for its role in environmental degradation to speed up climate crisis. Realistically, it is almost impossible to put a stop to clothing manufacturing and purchase. This is where innovation in technology come in handy. With the innovative technology of recycling discarded PET bottles into a yarn while cutting down on carbon footprint of the whole fashion manufacturing process, we can move a step closer to addressing environmental issues caused by the fashion industry as a whole. Hyosung TNC is committed to taking the leadership in creating such a virtuous manufacturing cycle with its innovative technology, and to continuing its pursuit of a sound manufacturing industry going forward.

Influencers are setting the trend on social media with their respective personality and charm. What they do and wear gain attention and followers. Their influence is not confined to domestic audience but reaching out to global users via social medial, especially centering around the MZ generation. With all eyes on themselves, these influencers try out new clothing on a daily basis to differentiate, gain new followers and continue to create buzz. Their followers who admire and relate to them often follow suit the influencers’ pattern of consumption, further facilitating the cycle of fast fashion. The biggest issue of the fast fashion industry is its environmental impact. According to UNECE (UN Economic Commission for Europe), fashion industry as a whole account for 20 percent of water consumption and 10 percent of carbon dioxide emissions across different industries in the world. Its manufacturing process requires lots of resource input and emits greenhouse gas, a main culprit of climate change. Its distribution process also has a large carbon footprint across the world as clothes manufactured in countries with cheap labor travel around the world before they are purchased by end-users. Clothes never sold are either incinerated or end up in landfill. As such, fashion industry is now faced with a new challenge of fulfilling the need of the day, preservation of environment, while continues to put forth beautiful and unique clothes. With many celebrities voicing their concerns about the environment, the general public are increasingly awakened to the importance of the environmental issue. Global Web Index, a UK-based marketing company, released a report that 61 percent of the millennials are aware of the issue and willing to purchase ‘green products’ even if they are pricier than others. In other words, we now have a growing demographic of ‘eco consumers’ who make their consumption choices in consideration of environmental issues. The corporate world is also responding and it is not only fashion industry but also other industries that have been responsive. Hyosung is no exception. It has been working tirelessly to lead a sustainable fashion industry and develop eco-friendly materials. Hyosung TNC, for instance, has developed recycled textiles for polyester, nylon, and spandex for the first time in Korea. In so doing, Hyosung TNC has contributed to cutting down on plastic consumption in the clothing manufacturing process and promoting plastic recycling. Here are some of the company’s innovative products, a by-product of its continuous research and development endeavor. First recycled polyester yarn in Korea, regen Hyosung regen is the first product in Korea that applied a technology that recycles discarded PET bottles. Regen polyester contributes to reducing landfill volume and CO2 emissions. Based on its 15-year know-how and technology, Hyosung has created a recycled yarn that maintains the function and quality of virgin polyester. It has been working on materialistic and chemical recycling through its R&D efforts. As such, Hyosung TNC continues to offer green products, protect environments, and create a responsible consumption culture among consumers and corporates. World’s best recycled nylon yarn, regen Ocean Nylon Hyosung TNC has worked together with local fishing communities to separately discard waste fishing nets so that they can be easily recycled. Collaborating with venture companies working on sustainability, Hyosung TNC collects, shreds, and cleans waste fishing nets for pre-production process. After this, the fishing net waste are melted to separate raw materials to be recycled to regen Ocean Nylon, creating a virtuous cycle. regen® Jeju, a recycled yarn from used PET bottles in Jeju Hyosung TNC is committed to turning discarded PET bottles from Jeju into recycled yarns. To that end, the company has formed an MOU with the Jeju Special Self-governing province, Ministry of Environment and Jeju Province Development Corporation for a project of recycling PET bottle waste in Jeju into plastic bags. This should be a good example of positive influence by a private-public cooperation. Under this project, the Ministry of Environment and Jeju local government established the so-called ‘Clean House’ system of household waste collection facilities while Jeju Development Corporation collects discarded PET bottles. These PET bottle wastes are fed into Hyosung TNC’s manufacturing system to produce regen® Jeju, the 100% recycled yarn, which is then used for production of fashion items under the brand of Pleatsmama. A knit pleats bag produced by Pleastsmama out of this virtuous cycle uses 16 PET bottles of 500ml. regen Spandex made of recycled waste regen Spandex is 100% recycled spandex made of reclaimed waste, which is not only eco-friendly but also boasts excellent functions. Its global market share is over 30%, securing global number one name. Hyosung TNC has also been on a journey to develop various types of eco-friendly recycled yarns. After all, fashion is about reflecting who you are in a stylish manner. But fast fashion industry is blamed for its role in environmental degradation to speed up climate crisis. Realistically, it is almost impossible to put a stop to clothing manufacturing and purchase. This is where innovation in technology come in handy. With the innovative technology of recycling discarded PET bottles into a yarn while cutting down on carbon footprint of the whole fashion manufacturing process, we can move a step closer to addressing environmental issues caused by the fashion industry as a whole. Hyosung TNC is committed to taking the leadership in creating such a virtuous manufacturing cycle with its innovative technology, and to continuing its pursuit of a sound manufacturing industry going forward.

NFTs (non-fungible tokens), which use block chain technology to authenticate the ownership of digital assets like images and videos, are attracting significant attention with the expansion of the metaverse industry. This is because NFTs play a crucial role in the metaverse economy by securely protecting ownership through unique identifications assigned to digital products. The NFT market is particularly appealing to Generation Z, who are emerging as a primary target audience. As they enter the job market, Generation Z possesses increasing purchasing power and are known as ’digital natives’ who are well-versed in digital culture and enthusiastic about new experiences. With these characteristics, Generation Z readily adopts NFTs, using digital photo cards in fandom culture and engaging in games that feature NFT items, thereby driving the growth of the NFT market. In January, Hyosung Group captured public attention by hosting the ‘Hyosung TANSOME x Make Your Color’ concert, featuring renowned rock bands like No Brain and Lazybone, and introducing NFTs for ticket issuance and sales. Ticket holders were able to enter the concert venue through on-site NFT authentication and received limited edition brand album kits. Hyosung is actively engaged in youth marketing, including the launch of an NFT platform, to specifically target the younger generation. Youth marketing is a corporate strategy that aims to communicate with and meet the values and expectations of the younger generation, who represent the potential of the future customer base. Effective communication forms the basis of this marketing approach, as companies need to genuinely engage with the youth. Simply showcasing technical competencies or activities may not be enough to earn the loyalty and trust of Generation Z. Companies must actively listen to the voices of the youth, incorporate their insights into marketing strategies, develop technologies that align with their environmentally friendly values, and more. As part of their youth marketing initiatives, many companies are striving to build a brand image that resonate with the youth and are involved in various activities tailored to Generation Z’s interests and tastes, such as hosting online and offline events and developing relevant content. Hyosung’s Youth Marketing Project is for, of, and by Generation Z Hyosung Group is a leading player in various industrial sectors, including textiles, heavy industries/construction and industrial equipment. With a 56-year track record of delivering exceptional products and technologies, Hyosung has established strong presence in global markets. However, there is a lack of sufficient brand awareness regarding Hyosung’s products. While older generations in South Korea are familiar with Hyosung and its history, the overall visibility of the brand among younger South Koreans remains low. This is mainly due Hyosung’s identity as a B2B company that primarily engages in business-to-business transactions, rather than direct interactions with end-consumers. As a result, younger consumers rarely come across the Hyosung brand in their daily lives. To target Generation Z as potential future customers, Hyosung has implemented youth marketing activities. Generation Z is known for their heightened environmental awareness and their commitment to creating sustainable future. They embrace lifestyles aligned with veganism and actively seek out products from environmentally conscious companies, making them “greensumers.” Additionally, Generation Z prefers two-way communication, valuing direct expression of opinions over one-sided communication. Hyosung has tailored its marketing efforts to cater these communication preferences and address areas where they can provide practical support to Generation Z. 16th ASL Academic Festival – Exploring Hyosung’s Marketing from the Perspective of College Students The 16th ASL Academic Festival is one of the many youth marketing activities organized by Hyosung, specifically targeting college students. In collaboration with the Association of Strategic Leaders (ASL), this event was designed with three main objectives in mind. Firstly, it aims to assist college students in their job search, which is their primary concern. Secondly, it provides them with an opportunity to gain insights into how companies operate. Lastly, it serves as a platform to promote Hyosung Group to college students, who form an active segment of Generation Z. At this event, held in collaboration with ASL (a forum founded by the Hanyang Strategic Thinking Association (HSTA), Ewha Consulting (ECON), SKKU Society of Strategic Consulting (SSC)), participating students were tasked with developing marketing strategies to enhance Hyosung’s value-add and raise its brand recognition. The 62 students invited to the event were divided into nine teams and worked diligently to complete various assignments. These tasks included conducting an assessment of the Hyosung brand and developing a plan to improve its value among the MZ generation, creating a strategy to differentiate Hyosung’s business and promote the regen brand in alignment with the environment-friendly agenda, and enhancing the market competitiveness of Hyosung’s Harrington Place with its repositioning efforts. By selecting theses three topics, Hyosung addressed real-time world-marketing challenges it currently faces and sought solutions encouraging college students to generate creative and constructive ideas. This collaborative approach allowed Hyosung to tap into the fresh perspective of younger generations and gather valuable insights to enhance its marketing strategies. Hyosung oversaw the strategy development process, which involved studying tasks, an orientation period, sharing and presenting data, and Q&A session. The event provided college students with an opportunity to develop business strategies and gain insights into problem-solving in the workplace. The Hyosung staff served as mentors, offering practical suggestions to enhance the students’ strategies and providing them with valuable practical experience. The event was also valuable for Hyosung staff, as it allowed them to gain fresh insights. Brilliant ideas conceived by Generation Z that yielded practical benefits for Hyosung's marketing strategies The participating students at the festival expressed their appreciation for the opportunity to learn about Hyosung’s business values, technology development, ESG management and global market position. They were delighted to experience Hyosung’s dedication to the environment and its corporate efforts to make a positive impact. Furthermore, the college students showcased their original thinking abilities and generated brilliant, logical, and feasible ideas. They were adept presenters and witnessed remarkable growth in their skills during short month. On the other hand, the Hyosung staff had chance to gain insights into Generation Z’s perspective of the company. They valued this time to listen to the students’ opinions and engage in branding activities that align with Generation Z’s standards. Overall, it was a valuable and mutually beneficial experience for both the students and the Hyosung staff. Drawing from the insights gained this academic festival, Hyosung intends to establish a platform for open communication with Generation Z. This platform may encompass various initiatives, including similar academic festivals and other forms of content. By utilizing this platform, Hyosung aims to actively listen to the voices of Generation Z and reflect on the type of company they aspire to associate with a and work for. Furthermore, Hyosung will analyze internal challenges and engage in external youth marketing activities to become the ideal company admired by Generation Z. One participant shared their perspective on the festival stating, “Getting information about Hyosung was challenging as it is primarily seen as a B2B company. However, this project provided valuable insights into the various activities and initiatives undertaken by Hyosung in different domains. It helped me understand Hyosung’s focus on targeting Generation Z through youth marketing, and I will continue to show interest in Hyosung’s business.” Another participant emphasized the significance of communication in brand strategy and marketing, saying, “I strongly believe in the importance of communication, and this project reinforced that belief. The exchange of feedback and opinions highlighted the critical role of active idea sharing and feedback in perfecting business strategies in the real world.” Hyosung Group recognized the value of the feedback and opinions shared by the participants, who are Generation Z members with significant potential and influence. To honor their input, Hyosung plans to incorporate the outcomes of the 16th ASL Academic Festival into marketing strategy to enhance brand recognition. The company intends to integrate the ESG strategies and creora® marketing strategies proposed by the participants into its business operations, using them as case studies for a brand marketing campaign. These valuable contributions will serve as preliminary reference materials in the development of ideas and the creation of an environment-friendly brand narrative for Hyosung's strategies within an eco-conscious ecosystem. Additionally, the ideas generated through this festival will be thoughtfully considered and reflected upon as the company formulates its new branding strategy. Expanded digital marketing for steady communication with the future generation Moving forward, Hyosung aims to enhance its digital content marketing to engage in meaningful communication with Generation Z. Recognizing their interest in companies that prioritize environmental protection, Hyosung plans to create content highlighting its environmental technologies and initiatives. Additionally, the company will organize offline events such as environment-themed concerts and academic festivals, offering opportunities for Generation Z, to actively participate. Hyosung understands the importance of personal development, self-realization, personalized experiences, job prospects, and value-driven consumption for this generation. Therefore, the company will continue to provide platforms for Generation Z to gain practical knowledge through direct involvement and participation.

Environment, social and governance(ESG) management is now an essential part of corporate activities that many corporations take seriously as ESG has emerged as one of the major concerns among consumers. As ESG management is becoming increasingly important, some corporations have attempted to take advantage of consumers’ interests in ESG issues, instead of engaging in bona fide ESG activities, which is known as “green washing”. In reality, it is not easy for companies to think and act in a way that benefits the environment, and to link outcomes of their business activities to the environment. It is never an easy task for corporations to consistently invest in preserving the environment, conduct R&D, implement social contribution activities, and manage ethics fairly and transparently, but the consensus is that ESG is not an option. If corporations opt to race on the one-track path of simply profit seeking, it would be much easier for them. But what is the impact on our future? Although it takes more effort and costs more, we all should protect the environment and consider social contribution because we need to ensure a sustainable future for us today and for our future generations. RE:GEN, Reply to Every Generation’s Future Hyosung is working to build a sustainable future for all generations and help them live a happy life although it takes more time and effort. Hyosung does not relegate ESG to a marketing tool strategy, taking ESG more seriously than that. Hyosung does its part in preparing for the future and solving environmental challenges with its technology and commitment to the future generations. Specifically, it has rolled out a plan to contribute to forming a circular economy via 5 ESG themes (recycling and upcycling, carbon neutrality, new and renewable energy and smart reduction) in all of its business areas to promote sustainable ESG management. Some of the core eco-friendly circular economy themed technologies (recycle, upcycle) at Hyosung are aimed at building an ecosystem through tangible technology, products and manufacturing process. To reduce greenhouse gas emissions, Hyosung Heavy Industries has introduced an energy storage system (ESS), a key technology of new renewable energy, which allows users to save electricity for later use, and replaced materials used in insulators of power apparatuses, such as transformers and gas insulated switchgears, with eco-friendly materials. Furthermore, Hyosung has plans to expand the use of hydrogen energy, which includes construction of liquefied hydrogen plants and hydrogen stations. With the application of TANSOME®, hydrogen-fueled vehicles can be made lightweight, accelerating the arrival of a hydrogen society. Hyosung’s eco-friendly products including polyketone, a type of eco-friendly engineering plastic, and regen, eco-friendly yarn made of recycled waste, contribute to creating a virtuous cycle of resources and achieving carbon neutrality by reducing CO2 emissions. With its technology, it envisions the coexistence of life and technology while preserving nature. RE:GEN, which means “Reply to Every Generation’s Future” embodies the corporate vision that its technology can benefit all generations of the future. Theme#1, Circular Economy(Recycle, Upcycle), Progress in Creating a Sustainable Future for the Next Generation Hyosung’s first step toward creating a sustainable future for the next generation is a circular economy in which waste is recycled into high-value added products. In 2007 when people were not as interested in environmental issues as they are now, Hyosung developed the world’s first technology to extract regen Nylon yarn from waste fishing nets which posed a serious threat to the marine ecosystem. In 2008, it developed and produced regen Polyester yarn made from recycled plastic bottles. Given that abandoned fishing nets and ropes floating in the sea are one of the major causes of the destruction of marine ecosystem, discarded fishing nets were transformed into regen Ocean Nylon with value creation, rather than being burned. It plans to expand its depolymerization facility to steadily increase the production and supply of the nylon. Plastics do pose a threat to humans and all living creatures on Earth, but when it meets Hyosung’s technology, it can be reborn as regen Polyester. Eco-friendly fiber regen Polyester made of used plastics has multiple features too. Hyosung is working with various corporations and organizations to promote upcycling of resources. ‘KANGHYUK’, a fashion brand that has recently garnered publicity produces fashion items with used airbags. Learning that KANGHYUK has difficulty obtaining used airbags, Hyosung Advanced Materials offered the brand the fabric used to make airbags, which is not suitable for sale due to size and other reasons. Airbags that otherwise would have been thrown away without being used or sold have found a new use with KANGHYUK, a trendy and upcoming fashion brand that cares about building a sustainable future, and been reborn into eco-friendly ski suit-style jackets and pants. Well-known upcycling brand ‘CUECLYP’ and ‘Preview In Seoul’ made banners with regen Polyester. Then, used banners were made into phone cases, string corner wallets and pouches, while the regen yarn was used to make umbrellas, wallets, pouches and mini bags. Hyosung TNC focused on value creation from circulating resources that would otherwise be thrown away by transforming used plastic and fishing nets into regen yarn and recycling useless airbags into highfashion accessory. . Saving limited resources of the planet and not generating waste is essential for preserving the environment. But reducing and transforming waste into new resources is equally important. Theme#2, Carbon Neutrality that Reverses Climate Change We often hear that climate change is largely attributed to carbon emissions. Carbon neutrality that is globally practiced to keep the earth’s average temperatures from rising refers to a state in which greenhouse gas emissions, a major cause of global warming, and greenhouse gas absorption are in equilibrium. Hyosung works to reduce carbon emissions through the entire production process including development of ingredients, production of materials, and transportation. Recycling waste plastic into yarn helps create a virtuous cycle of resources and reduce carbon emissions. Hyosung TNC has developed regen Polyester that is made from useful ingredients extracted from used plastic bottles and regen Nylon, recycled nylon made of yarn that is discarded in the process of producing nylon yarn. Hyosung Advanced Materials’ R&D efforts focus on developing lightweight materials and high-strength products in a bid to reduce greenhouse gas emissions and energy use from mobility including vehicles, and successfully developed TANSOME®, an ultra-lightweight, high-strength material that is four times lighter and 10 times stronger than iron, contributing to making vehicles strong and lightweight. The company also developed lyocell tirecords made of cellulose extracted from wood, which reduces harmful emissions of substances including carbon disulfide and hydrogen sulfide that are generated in the manufacturing process. Use of the new material can help reduce air and water pollution that occurs in the process of disposing these harmful materials. Power, generation and construction divisions of Hyosung Heavy Industries have been making diverse efforts in different areas to contribute to reducing carbon emissions caused by climate change. To this end, it uses ESS that allows users to store electricity when power demand is low, so that it can be used later when necessary, and high early strength concrete to reduce water use. In addition, it employs eco-friendly construction techniques that help decrease emissions of air pollutants in winter. Hyosung Chemical developed polyketone, the world’s first eco-friendly engineering plastic, based on its self-initiated technology using carbon monoxide, a major air pollutant as its main ingredient, and has a relatively lower global warming potential than other types of engineering plastic. Polyketone is used to create various eco-friendly products and technology, thereby reducing negative impacts of its production activities on the environment. Through all these efforts, Hyosung is committed in earnest to fulfilling its corporate social responsibility with positive actions. Theme#3, Nature-Derived Energy Makes Our Life Clean. How can we produce energy we need and still preserve nature? We can do so by making new renewable energy with energy sources that are naturally available to us. Hyosung’s attention has turned to hydrogen, the first element that was created in the universe. We can use hydrogen to create energy as it can be easily converted into water. Using energy made from natural sources for materials, technology, transportation and supply systems is how Hyosung preserves the Earth and cares about future generations. Hyosung contributes to building a sustainable and clean future with its technology and endeavors to tap into hydrogen, solar energy and wind energy bestowed in nature. Theme# 4, Smart reduction: use energy smartly Paper is eco-friendly and biodegradable, doing nature no harm. However, we have to cut down trees and destroy the forest to make paper. Is this really eco-friendly? Although paper itself is biodegradable, reckless use of paper can cause serious damage to the environment and eventually make the planet sick. Hyosung is actively involved in reducing the use of paper at work to protect forests. Hyosung is working to create a paperless office and work environment with minimum waste. Furthermore, Hyosung has presented digital desk technology that allows users to get their job done in a contactless way and without using paper in the financial sector, thereby accelerating office digitalization. Using less paper translates into preserving forests and nature. Just like we cannot preserve nature when we cut down trees to make paper which is a pseudo eco-friendly resource, there are some drawbacks to using nature-derived energy sources including hydrogen, solar and wind energy. Although we produce energy from these sources, wasting energy is detrimental to the environment. So we need technology that can help us use energy more efficiently without keeping the networks waiting longer, which we use every day like the air we breathe. In this sense, Hyosung implements STATCOM and ESS technology to raise energy efficiency by ensuring that hydrogen, solar and wind energy are not wasted when the networks are not in use. Our future will be better than the present with Hyosung’s technology to reduce paper use and standby energy, designs to ensure smart use of energy, and smart technology to implement the designs. We can make the planet healthier by thinking ahead into the future rather than focusing on our needs today to preserve nature and save resources by making recycling part of our daily life and taking actions to protect the environment. We can make the planet more beautiful, and slow the pace of climate change if we reduce waste and recycle resources, create and implement designs that can conserve energy for efficient use, use energy that Mother Nature endows, and work together to reduce carbon emissions. Hyosung hopes everyone living today and all future generations dream of a sustainable future and enjoy their life on a healthy and clean planet, which we will help regain its gleaming luster by engaging in many ESG management activities. The healthy planet for future generations should be conceived by us today. A promise to all future generations! The ESG brand of Hyosung Group RE:GEN will turn our promise into reality.