HYOSUNG TNC

In the evolving modern society, marketing is an accurate reflection of the social flow and trends of the times. A major marketing phenomenon rivaling search engines and social media in importance today is brand journalism. Hyosung has adopted expert brand journalism methodologies for brand communication with customers. Hyosung's exclusive brand journalism is referred to as the "brand media of Hyosung." The company develops exclusive brand media through brand journalism. The brand media of Hyosung provide subscribers with stories about its subsidiaries and Hyosung Group that are in-depth yet easy to understand. The brand media are in both Korean and English, for international customers visiting Hyosung's brand journalism webpage. Hyosung joins many other companies focusing on brand journalism. What are the origins of brand journalism and what are its effects? Brand Media, Brand Journalism? Brand media of Hyosung are based on brand journalism, a method of marketing that combines advertising and journalism. It is characterized as producing news articles and other content that consumers find useful, while also employing the principles on which journalists work in content marketing. Brand journalism allows a company to put out brand narratives without direct marketing or sales activities and provides consumers with accurate and detailed information about a company as such. From the consumer's standpoint, brand journalism content must be worth reading, deliver a point, and be interesting. With the advances made on the internet and technology, people are exposed to more and more advertising and information. One effect of that is that they do not rely 100% on advertising and news, but rather turn to brand narratives to form conclusions about companies. Because brand narratives are written to have a company or organization come across as a persona through media, a bond between the customer and company is created. A brand story is usually written by an employee of a company with expert knowledge of its business, so the reader can have confidence in it. A customer can access accurate information about the products and services a company provides by reading brand journalism materials written by an expert on the company, and can even come across additional, unexpected knowledge about it. In an age where the traditional marketing method such as advertising alone cannot fully engage and intrigue customers, companies can use brand journalism to convince target audiences to trust and relate to their brands, which raises the value of a company and its brand in the customer's eye. History of Brand Journalism Brand journalism dates back about 20 years. It was when the public's trust in the business sector was at its lowest in the aftermath of the global financial crisis. Larry Light, then-chief marketing officer of McDonald's, said in 2004 that mass marketing was no longer effective, that a single advertisement could not tell the whole story about a company, and that McDonald's would resort to brand journalism, a new marketing technique. Under Larry Light's direction, McDonald's departed from the traditional marketing and advertising focused on brand positioning and issued news article-style content through a variety of channels. Its brand journalism was akin to a chief editor's creation of a magazine covering a diverse range of topics. Boeing, Cisco, and many other companies have followed in McDonald's footsteps and reaped the benefits of brand journalism. Perhaps the most well-known case is the brand journalism of the Coca-Cola Company. In 2012, the Coca-Cola Company launched its digital magazine, Coca-Cola Journey. Published daily, Coca-Cola Journey is a potpourri of narratives about the world of Coca-Cola, including descriptions of Coca-Cola products and advertising campaigns, narratives of interest to Coca-Cola buffs, interviews with Coca-Cola Company employees, information about the company's brand and history, and job ads. Coca-Cola Journey was such a success that the Coca-Cola Company integrated its official website into Coca-Cola Journey. Difference between Brand Journalism & News Articles How brand journalism differs fundamentally from traditional media is that its target is the consumer, not media outlets. Let's compare brand journalism with two common types of media formats: press releases and special articles. A press release is an article prepared by a company about its brand and offerings, and distributed to broadcasters, newspapers, magazines, and other media outlets. The article gets edited by a media outlet and reaches its target audience under the byline of a staff member at the media outlet, so more often than not it can reflect added opinions or biases of the media outlet. Because media outlets are inundated with press release requests from companies, if a particular company's press release does not get picked, its narrative will not reach the end consumers. Alternatively, brand journalism can deliver a company's independently produced content and narratives to the consumers through its own channel. A brand journalism narrative does not get distorted by third parties. A special article is a news article about a company or brand written in a way to pique the reader’s interest by the consumer. Compared to a regular news article, a special article is longer and more in-depth, but its narrative is not disseminated, because it is released by a single media outlet. A special article about a company or brand usually mentions other companies and brands as well, resulting in a loss of reader’s focus on the main company or brand, whereas brand journalism focuses entirely on one company or brand so that the reader is thinking only about that one company or brand. Today, when the public's distrust of the media is high, brand journalism presents the most effective communication channel for a company. Hyosung’s Way to Deliver Its Brand Media For Hyosung, which does business in many countries, its brand journalism, or brand media, is about making potential customers worldwide aware of its global leadership and all the different activities that its subsidiaries and their brands conduct in their respective business areas. Hyosung is particularly prolific in the B2B business. Since the general public would not be familiar with its eco-friendly materials development, customer-friendly management, data-centric operations, and ESG management, narratives that paint a genuine picture of Hyosung are released to inform target audiences that Hyosung is a company and a global premium brand that leads positive change. Hyosung's narratives are strategically categorized. The worsening climate change has made ESG management a requisite for companies. Since long ago, Hyosung has foreseen the changing times and searched for the right path for mankind to take. That is how it has developed its innovative technologies and products, which are eco-friendly and sustainable for future generations and distinctly Hyosung. Its brand media allows its technologies and products, commonly used in everyday life, to be introduced to the audience. Moreover, it introduces the values we pursue for the sake of our future generations, and how Hyosung's mission and vision are aligned with this pursuit. Those values are explained in narratives about Hyosung's breakthrough technologies that make sustainability and innovation possible. Hyosung subsidiaries operate in lockstep with the mission and vision of Hyosung Group and are responsible for upholding the core values of Hyosung in their respective fields of business. The brand media of Hyosung provides readers with an understanding of its heritage and subsidiaries, core technologies and products, what it is doing for the environment, and the corporate identity that underlies its operations. Brand Media of Hyosung in the Everyday Life The brand media of Hyosung delivers easy-to-follow narratives about not only brands the average consumer would be familiar with, like regen®, but also Hyosung-led businesses that would likely be unfamiliar to the general public such as hydrogen, tirecords, carbon fiber, films, and pumps to give them a good understanding of the many different Hyosung-led businesses. Delving into Hyosung's industries and businesses, these narratives are informative to industry professionals as well. Hyosung cares deeply about climate change, and stories about its ESG activities allow consumers to learn about its unsung efforts and rediscover its true value. The brand media of Hyosung is posted on the official website as well as Instagram, LinkedIn, Facebook, etc., edited for a lighter vibe. The imagery featured in Hyosung's brand media delivers sophisticated visual messages that encapsulate Hyosung. Its brand media is more than just an outlet for information. It is a window that looks into its various B2B businesses which the average consumer would not interact with directly. The audience gets to understand the true value of Hyosung, its technologically driven and environmentally conscious management. You can connect with how Hyosung works to improve the quality of life for man step by step. You are invited to open the brand media of Hyosung to understand its past, present, and future as a company working to create new value for you.

Throughout history, mankind has exploited Earth's resources for a more convenient life and industrial advancement. For centuries, we have cut down trees for paper, burned fossil fuels for electricity, utilized the internet, and driven cars to enjoy comfortable lifestyles. We use wood and fossil fuels to enrich our lives, but they are finite resources. Our planet’s escalating resource depletion and anomalies in global weather patterns are crucial signals that we need to stop our reckless consumption. However, ceasing resource usage is not feasible since it is essential to our survival. Consequently, Hyosung is exploring ways to smartly conserve resources for our future and searching for solutions. Hyosung aspires to propose smart reduction solutions by minimizing energy and resource usage at every step of the production and operation cycle through philosophy and design technologies based on smart technology. This represents the final core value that Hyosung strives for in RE:GEN, namely, RE:GEN SAVE smart resource conservation. Resource-Saving Office Environment with Hyosung INNOVUE Paper is an eco-friendly material that doesn't destroy ecosystems when it degrades naturally. However, it should not be used recklessly. We all know that trees are the raw material for paper, and their continual felling is destroying our ecosystem, not to mention the energy required to produce it. As paper usage has been reduced, we are getting closer to paperless life with the advent of the digital age. Hyosung has been focusing on the Digital Transformation (DX) era, where a paperless office environment without face-to-face human interaction and efficient data management without recording and organizing data on paper is possible. Hyosung INNOVUE is at the forefront of this smart technology. Hyosung TNS, a global leader in the ATM industry, has ushered in a financial era without face-to-face interaction. A new financial innovation service, the Digital Desk, allows most of the bank's work to be done without face-to-face interaction and without needing to print, sign, or fax dozens of documents. The Digital Desk allows almost all banking transactions to be conducted without face-do-face interaction with a bank employee, and all personal information entered and signed is stored digitally, minimizing data leakage and reducing all paper waste. Besides financial solutions, Hyosung INNOVUE showcases retail solutions such as automated (unmanned) kiosks and automated stores. With a single smartphone app, everything from real-time inventory to revenue management is possible. Hyosung INNOUVE’s retail solution makes efficient management possible while saving manpower resources, paper and electricity. Using Standby Power Efficiently with Hyosung Heavy Industries Our lives are increasingly connected to the internet, and thanks to IoT technology, smart factories, and smart home systems are becoming more and more prevalent, enabling us to access services wherever and wherever we are. This is made possible by being constantly connected to power, standing by for real-time monitoring and instantaneous data retrieval. Electricity isn’t wasted if we have a reliable energy supply and can efficiently use energy even when on standby. Hyosung Heavy Industries has the world's leading technology in heavy electric machine industry, a key component of industrial energy. For the construction of future power grid systems, Hyosung Heavy Industries provide all key technologies, including power equipment like transformers and breakers, electrical machines, gears, Energy Storage Systems (ESS), Static Var Compensators (STATCOM), High Voltage Direct Current (HVDC) systems, and Smart Grids. Using ESS, STATCOM, and Medium Voltage Direct Current (MVDC), Hyosung Heavy Industries can supply renewable energy obtained from nature efficiently without wasting resources. Furthermore, Hyosung Heavy Industries has contributed to the activation of renewable energy businesses by carrying out various projects in solar power design, engineering, and construction. In addition to building solar power plants in general areas, we install them parking lot roofs, wastewater treatment plants, and other sites. Our high-efficiency solar inverter technology ensures stable solar power plant operation. In the construction of buildings by Hyosung Heavy Industries, we meticulously design energy-efficient buildings with solar power fuel cell technology. Hyosung Heavy Industries, armed with this range of technologies, is reducing fossil fuel energy use by developing renewable power plants, ensuring reliable supply and efficient operation of generated electricity. This helps reduce both carbon emissions and resource conservation. Hyosung Advanced Materials, Scrupulous in Energy Management. Dedicated to rigorous energy management, Hyosung Advanced Materials persistently seeks, invests, and innovates for non-renewable energy reduction. Notable efforts include reducing steam usage through improvements in the condensate recovery process at the Jeonju plant, diminishing LNG consumption via the upgrade of the heat recovery system in the RTO equipment, and refining the waste heat recovery system and incinerator operation method at the Jeonju and Ulsan plants. Hyosung Advanced Materials has also increased its use of renewable energy by installing solar power generation facilities in domestic office buildings and at Gaoqing and Qingdao corporations in China. Even the GST corporation is advancing its energy transition to reduce greenhouse gas emissions and curtail the use of non-renewable energy through solar power generation. Furthermore, Hyosung Advanced Materials is advancing its diverse efforts through employee education, energy reduction method training for energy managers, and a comprehensive management approach to address climate change risks, reduce carbon emissions, and conserve resources by transitioning to renewable sources. Hyosung Chemical, a Leading Company in Energy Conservation through Smart Factories. Hyosung Chemical is well-known for using smart factories to optimize operations and save energy. In 2020, Hyosung Chemical established smart factories across all its workplaces, connecting all production-related resources in real-time and creating an optimized production environment by analyzing the collected data. This improved production efficiency and achieved significant energy savings, resulting in a cost-benefit of 11.7 billion KRW. Hyosung Chemical is also pushing for the use of renewable energy to increase. Hyosung Chemical obtains waste heat steam, a type of renewable energy, from a nearby waste incineration plant and also has solar power facilities installed within the factory. This helps reduce the use of fossil fuels like oil and coal, contributing to resource conservation. In addition, Hyosung Chemical regularly conducts energy-saving training for its employees. It separately provides training for production, process, and technology departments at workplaces that implement energy conservation and greenhouse gas reduction measures, thus ensuring the effective implementation of these reduction strategies. We lead smart lives by turning on the TV, playing music, and setting timers with a single word through artificial intelligence. However, invisible energy must always stand by for such a smart lifestyle. Hyosung is constantly researching and investing in technologies to use this standby power more efficiently and prevent wastage, enabling us to enjoy a convenient life. Aside from cutting down on tree felling for paper production, Hyosung is also working on minimizing fossil fuel use, and ensuring that natural resources, such as hydrogen, solar, and wind, are used effectively and efficiently in the production, supply, and usage processes. As a company-wide initiative to conserve resources, Hyosung seeks to maintain a convenient lifestyle without wasting resources, thereby preserving a healthy planet. Hyosung is developing technologies that coexist with nature, and researching smart designs to prevent the wasteful use of energy provides. Thanks to these efforts, we can look forward to a better future and have confidence that we will make our own generation more prosperous. Keeping a close eye on Hyosung Group's RE:GEN Movement for future generations.

There has never been a greater concern for the environment than today, as environmental conservation and the climate change have become paramount issues. Many people recognize the severity of the climate crisis due to unprecedented heat waves, torrential rains, and typhoons. Increasing calls to replace fossil fuels such as oil and coal with clean, sustainable energy sources have been made in response to the devastating impact of fossil fuels on nature. As we enter a new era of energy, we must transition from fossil fuels to electric energy, which boasts significantly higher efficiency. Hyosung is committed to improving power infrastructure through decarbonization, accelerating hydrogen energy commercialization, and developing environmentally friendly solutions using eco-friendly insulating materials for electrical and industrial devices. Hyosung strives to supply and utilize clean energy from nature, such as wind, solar power, and hydrogen. Envisioning a New Energy Era through Decarbonization The push to reduce fossil fuel energy consumption stems from carbon emissions. Typically, fossil fuels are burned to generate energy, releasing carbon dioxide into the atmosphere. In response to these issues, electric energy has gained attention as a means of reducing carbon emissions simultaneously. It offers improved energy efficiency compared to fossil fuels and reduces air pollution and carbon emissions. Hyosung Heavy Industries, a global leader in total energy solutions, leads various efforts to enhance power infrastructure, electrify it, and decarbonize it. As part of these efforts, Hyosung is also focuses on developing systems that stably store and transmit energy from natural sources such as wind and solar power. Hyosung Heavy Industries has successfully localized South Korea's first Medium Voltage Direct Current (MVDC) transmission system for renewable energy and secured its first order. The MVDC system transmits medium voltage electricity at 1.5-100kV as direct current. Compared to the current alternating current (AC) transmission method, MVDC offers less power loss over long distances, can utilize existing transmission facilities, and can transmit 40% more electricity. This makes it an emerging method for efficiently transmitting renewable energy sources such as wind and solar power. Hyosung Heavy Industries plans to supply its domestically produced MVDC technology to Jeollanam-Do. Another technology that the company possesses is STATCOM, a domestically exclusive and internationally recognized technology in the field. STATCOM enables the stable supply of renewable energy, which can fluctuate rapidly depending on weather conditions, by maintaining a constant output voltage, ensuring a stable power supply. Lastly, Energy Storage Systems (ESS) significantly contribute to the commercializing renewable energy. These systems are crucial for stably using renewable energy sources with inconsistent generation capacities. Hyosung Heavy Industries has successfully entered the European ESS market, earning global recognition for its quality and technical capabilities. Hydrogen Society Started from Hyosung’s Hydrogen Value Chain Among the various clean energies that replace fossil fuels, hydrogen energy has the greatest potential for commercialization. Hydrogen can be obtained from water; when used as fuel, it does not produce pollutants that cause the greenhouse effect. Instead, hydrogen, which turns into water vapor, becomes water again, making it one of the resources that can be obtained endlessly. Hydrogen, which is most abundant on Earth in the form of water! Hyosung is focusing on hydrogen as the driving force for the future Earth and as a key energy that will lead the energy industry in the near future. At the group level, Hyosung is building a hydrogen value chain and developing various technologies to lead the hydrogen society. Hyosung Chemical produces and sells the by-product hydrogen. Hyosung Advanced Materials leads the commercialization of hydrogen cars with carbon fibers that go into hydrogen car fuel storage devices. Hyosung TNC is leading the way with a fuel tank liner made of nylon. In addition, Hyosung Heavy Industries is making company-wide efforts for the hydrogen society, such as expanding green hydrogen production using renewable energy such as solar and wind power and operating hydrogen fueling stations. Energy technologies to reduce carbon do not change at once, and particularly hydrogen and renewable energy cannot replace all fossil energy in a short time, but Hyosung's goal of building a hydrogen value chain is to lead the hydrogen society, reduce carbon emissions, and decarbonize through hydrogen energy and clean energy. Hyosung's Steps Towards a Hydrogen Vision Hyosung is diligently striving to expedite the transition toward a hydrogen society. Despite varying roles within individual companies, they share a common goal of achieving a hydrogen economy. Hyosung Chemical intends to utilize byproduct hydrogen, produced during the manufacture of high-purity propylene, a key component of Hyosung Chemical's proud polypropylene, in the creation of liquid hydrogen. Hyosung Heavy Industries is constructing a hydrogen liquefaction plant with an impressive capacity of 13,000 tons on the premises of the Ulsan Yongyeon factory, aimed to be completed within the year. This facility, a singular entity boasting the world's largest scale, promises to supply enough fuel to power a hundred thousand passenger vehicles. To this end, an agreement has been made with Linde Group, a German industrial gas specialist chemical company, to cooperate on everything from the production of liquid hydrogen to transportation and fueling facility installation and operation. Upon completion, the full-scale operation is planned from May 2023. The plant will produce blue hydrogen, which reduces carbon dioxide emissions, by developing and utilizing Carbon Capture, Utilization, and Storage (CCUS) technology. Creating blue hydrogen, a next-generation eco-friendly energy, by capturing carbon dioxide emitted during product manufacturing at Hyosung Chemical, showcases the most practical approach to achieving carbon neutrality by transforming carbon into clean energy. Furthermore, Hyosung Heavy Industries partnered with the Jeollanam-Do to develop the green hydrogen industry and has broken ground on a marine wind power generation assembly plant. Hyosung, currently constructing the country's largest 10MW-class electrolysis facility, plans to increase the green hydrogen production volume to a maximum annual output of 200,000 tons. Not only in the realm of liquid hydrogen but also in the commercialization of hydrogen vehicles, Hyosung is making significant efforts. Hyosung Heavy Industries is spearheading the establishment of liquid hydrogen fueling stations in the regions of Ulsan, Gwangyang, Geoje, and Gyeongsan and planning to build a large-scale liquid hydrogen fueling station along with approximately 120 hydrogen fueling stations in critical national hub areas for the supply of liquid hydrogen produced at the factory. By constructing these liquid hydrogen fueling stations, Hyosung anticipates contributing to the commercialization of hydrogen vehicles. Additionally, Hyosung Advanced Materials and Hyosung TNC are leading the way in the commercialization of hydrogen by developing essential materials for it. Hyosung Advanced Materials primarily develops and produces carbon fiber, a material used in hydrogen vehicle fuel tanks. The application of carbon fiber fuel tanks is expected to significantly contribute to accelerating the commercialization of hydrogen vehicles by enhancing their safety, durability, and energy efficiency. Also, Hyosung TNC, for the first time among domestic companies, has utilized nylon as a liner material for hydrogen fuel tanks. This liner, an inner molded plastic of a nylon hydrogen fuel tank, is vital in preventing hydrogen leakage. Compared to the previously used metal liner, it is lighter and more durable, thus becoming a spotlighted key material that increases the energy efficiency of hydrogen vehicles. Hydrogen vehicles utilizing fuel tanks equipped with Hyosung TNC's carbon fiber and nylon liner are expected to elevate safety, durability, and energy efficiency, thus substantially accelerating the commercialization of hydrogen vehicles. Additional Endeavors for Renewable Energy Utilization Hyosung is dedicated to addressing various challenges and developing practical alternatives to fossil fuels in hydrogen and renewable energy utilization. In particular, Hyosung strives to develop and supply products that replace insulating materials in power and industrial equipment with eco-friendly alternatives, thereby enhancing efficiency. Hyosung Heavy Industries has signed an MOU with the Korea Electric Power Research Institute and developed an eco-friendly gas-insulated switchgear that substitutes the sulfur hexafluoride (SF6) gas commonly used in circuit breakers. SF6 gas is advantageous due to its excellent insulation and non-flammability, but its greenhouse gas emissions and negative environmental impact demand eco-friendly alternatives. Hyosung Heavy Industries has independently developed a 170kV eco-friendly gas-insulated switchgear and a circuit breaker utilizing a Vacuum Interrupter, which emits no greenhouse gases. Preceding the development of eco-friendly circuit breakers, Hyosung Heavy Industries has also replaced mineral oil previously used in transformers with biodegradable insulating oil, capable of decomposing over 60% naturally while ensuring fire safety. By contributing to environmental risk reduction, Hyosung Heavy Industries continues to expand its eco-friendly product lineup, preparing diverse solutions to replace materials in power and industrial equipment and enhance energy efficiency. In the face of the climate crisis, there is no longer any excuse for burning fossil fuels for convenience. Hyosung is exploring new energy sources to replace fossil fuels and searching for efficient commercialization methods for a better Earth, a better environment, and safer lives for future generations. Hyosung's technologies aim to use nature's energy to maintain a sustainable environment and prevent further damage to the planet. Combining Hyosung's technological DNA with perseverance, Hyosung aspires to build a better world powered by clean energy. Hyosung is committed to continuing research and development to ensure that generations in the future will enjoy a cleaner, safer world powered by clean energy.

The Earth is suffering from unprecedented droughts, heatwaves, and unexpected climate anomalies. In South Korea, the distinct four seasons are changing, and we are witnessing a shift towards a subtropical climate, where heavy rainfalls are localized. The global phenomenon of abnormal weather patterns may have multiple causes, but the most significant problem is the greenhouse effect. The increase in carbon dioxide emissions from using fossil fuels and deforestation is gradually elevating the Earth's temperature, threatening climate change and human safety. Climate change has become an issue that can no longer be postponed. Hyosung believes that this is a time when proactive responses are needed; thus it is making efforts across all business operations to minimize the impact of climate change. In particular, Hyosung incorporates the carbon management system required by the TCFD recommendations and discloses carbon information. Today’s topic is various efforts made by Hyosung for carbon reduction. The Carbon Reduction Story of RE:GEN Hyosung views carbon neutrality as an innovation from meticulous observations and improvements encompassing resource conservation and energy efficiency across all production and consumption phases. Thus, we endeavor to minimize carbon emissions at every stage, from raw material development, production, transportation, and usage to disposal, to realize carbon neutrality. Our efforts aim to create eco-friendly yarn from discarded plastic, thereby achieving resource circulation and reduction carbon. We are also incorporate energy-saving and renewable energy products into our production process, reducing energy use and greenhouse gas emissions. We are committed to achieving zero-emission by developing products and technologies that contribute to greenhouse gas reduction. By utilizing bio-based chips, we are producing and developing bio-based PET, bio-based NY, Lyocell, high-strength denier, bio-based spandex, and other products that can reduce both direct emissions and greenhouse gas emissions during product use. We are particularly focused on the development of new materials and products such as lyocell tire cords, which emit approximately 30% fewer greenhouse gases compared to rayon and nylon tire cords, and environmentally friendly key materials such as super lightweight and high-strength carbon fiber TANSOME. These can contribute to reducing greenhouse gas emissions and energy use. We are unceasingly striving for their research and commercialization. Hyosung's Path to Carbon Neutrality In response to the climate crisis, Hyosung is making a company-wide effort. Hyosung Corporation, Hyosung TNC, Hyosung Heavy Industries, and Hyosung Chemical operate an ESG management committee under their respective CEOs, where they discuss climate change countermeasures, ESG policies, targets, risk management, investments, and action plans. As of 2011, the company has implemented an IT-based Carbon Asset Management System for monitoring carbon emissions at all business locations, and they established a product carbon footprint assessment system in 2022. To achieve the Green Management Vision 2030 target of a 14.5% reduction in carbon emissions compared to 2018, they predict each site's product output, energy consumption, and greenhouse gas emissions, establishing and implementing annual reduction plans. Hyosung is establishing and achieving greenhouse gas reduction targets suitable for each subsidiary’s characteristics while executing annual investment plans for equipment upgrades. (Emission reductions in 2022 compared to 2018: Hyosung Corp. 9.2%, Hyosung TNC 26.8%, Hyosung Heavy Industries 30.2%, Hyosung Advanced Materials 21.3%) To achieve carbon reduction targets, they set a carbon price for emissions resulting from management and business activities, applying an internal carbon price to internalize the economic cost of greenhouse gas emissions voluntarily. They are making every effort across the group. Hyosung's Diverse Efforts to Tackle Carbon Reduction - ① Hyosung TNC Hyosung TNC is working towards achieving greenhouse gas reductions through low-carbon energy transitions at each factory. Annual environmental investment plans are established for every facility, involving processes improvements to save electricity, upgrades to high-efficiency motors, chillers, and air compressors, and renewable energy derived from waste heat from incineration plants. Additionally, they are employing biogas generated from anaerobic digesters at wastewater treatment plants for boilers, thereby further reducing greenhouse gas emissions. Since 2020, Hyosung TNC's Daegu factory has participated in the 'Seongseo Industrial Complex Smart Energy Platform Construction Project.' The plan involves installing meters on high-capacity power equipment and developing a Factory Energy Management System (FEMS) to identify and manage energy-saving factors. Scope 1 and 2 emissions have been calculated for China's Gaoxing Chemical Corporation, the Turkish Republic Corporation, and the Vietnam Dong Nai Corporation to construct greenhouse gas inventories for overseas operations. In 2022, these emission calculations were extended to Guangdong, Juhai, Ningxia, and Zhejiang Spandex Corporation in China and to operations in Brazil and India. The ultimate goal is constructing inventories and managing emissions for all global operations. (The Greenhouse Gas Protocol categorizes emissions into Scope 1, 2, and 3, based on the source of greenhouse gas emissions.) Scope 1: Direct emissions from operations owned or controlled by the company. Scope 2: Indirect emissions resulting from the company's consumption of purchased electricity, steam, and other forms of energy. Scope 3: All other indirect emissions from activities of the organization occurring from sources not owned or controlled by the organization as a part of its value chain. Hyosung's Diverse Initiatives to Address Carbon Reduction - ② Hyosung Heavy Industries Hyosung Heavy Industries contributes to carbon reduction by developing technologies to replace greenhouse gases. They have independently developed an environmentally friendly 170kV gas-insulated switchgear (GIS), which substitutes SF6, a greenhouse gas used in the breaker process, with an eco-friendly Novec Mixture (a mixture of CO2 and fluoronitrile). This development is expected to reduce approximately 98% of greenhouse gas emissions compared to the conventional method. Hyosung Heavy Industries was the first domestic company to secure a supply contract for a 30MW-grade Medium Voltage Direct Current (MVDC) power transmission system. A 230MW-grade MVDC system can supply power to about 67,000 households. The MVDC system, which transmits medium voltage electricity from 1.5 to 100kV as direct current, has the advantage of less power loss during long-distance transmission compared to current methods and can transmit 40% more electricity using existing transmission equipment. Transitioning to a DC method from the existing method significantly reduces carbon dioxide emissions and increases energy efficiency, making it a highly preferred future method. Hyosung Heavy Industries is also voluntarily making efforts to reduce carbon emissions in the construction field. During the construction of buildings, they install solar power generation and fuel cell facilities, using them in common areas of structures such as elevators and parking lot lights. Based on these achievements, they have developed Vision 2030, a climate change response strategy, and are strengthening their greenhouse gas emission management system. Hyosung's Additional Efforts for Carbon Reduction Hyosung is setting and implementing specific goals for carbon reduction across the entire group. Hyosung Advanced Materials is strives to reduce energy usage through energy management and by introducing renewable energy sources. This includes its domestic branches and subsidiaries utilizing solar power generation facilities in Gaheung and Qingdao, China. GST Sangsook has also reduced greenhouse gas emissions by 12.5 tons annually by harnessing 27.2MWh of energy through solar power generation. Hyosung Chemical works to conserve energy by implementing a smart factory that links and manages all production-related resources in real-time at all business sites. They have also installed a task force team (TFT) to reduce carbon emissions, intending to cut greenhouse gas emissions by 14.5% by 2030 compared to 2018. They have even developed eco-friendly, low-carbon plastic called Polyketone. This material is produced by capturing the carbon dioxide in factory emissions and using renewable energy. On a company-wide basis, they are researching ways to replace single-use plastic with reusable PP containers and undertaking various initiatives such as energy-saving campaigns, educational programs, and contests for employees. Hyosung is committed to carbon reduction across the entire company and diligently works to set specific, clear goals and achieve them. The carbon we unknowingly emit is warming the atmosphere, raising the Earth's temperature, and disrupting the Earth's natural cycles. At a time when efforts to reduce carbon emissions- a threat to humanity- are more urgent than ever, systems such as the implementing carbon taxes, stimulating the carbon trading market, and declarations of carbon neutrality are being made globally under government leadership. Now, more than ever, companies are being called upon to innovate technology and products that can turn the risks of climate change into opportunities. However, reducing carbon emissions is a collaborative endeavor and must be achieved through concerted efforts at every stage, from raw material development to product production and transportation. While this is not a task Hyosung can tackle alone, we believe that significant change can be achieved if our company-wide efforts extend to our partners and customers. Our commitment to carbon reduction stems from our desire to preserve the beauty of Earth for us and future generations. To ensure that all future generations can enjoy our beautiful planet with its four seasons, Hyosung will continue to set, pursue, and implement specific goals to reduce carbon emissions today and tomorrow.

The devastating impact of discarded plastics on our oceans and the emergence of a massive garbage island in the Pacific are not new issues. Unless we stop using resources altogether, we will continue to generate waste at an alarming rate, posing a significant environmental challenge. Hyosung recognized this problem and began researching ways to protect our planet and its resources long before the crisis hit. Hyosung’s efforts led to the developing of a circular economy system that revolves around its product line. This system aims to create a closed-loop cycle that starts with discarded plastics and ends with the final product, ultimately achieving a zero-waste ecosystem. Hyosung's commitment to leading the way in building such a system is a testament to their dedication to the environment. The Circular Economy Story of RE:GEN For the sustainable lives of future generations, Hyosung aspires to implement authentic ESG management across all its business units, centered around five themes: recycling, upcycling for a circular economy, carbon neutrality, renewable energy, and smart reduction. RE:GEN, Hyosung’s ESG brand, is built on these themes. Through RE:GEN, an acronym for 'Reply to Every Generation's Future,' Hyosung strives to leave a more habitable Earth for future generations. As part of this pursuit, innovative solutions are proposed based on the core values of a circular economy, carbon neutrality, renewable energy infrastructure, and resource conservation. Hyosung's initially focused on establishing a circular economy system based on its three chemical companies. Because so much of what we use is made of plastic, it isn't an exaggeration to call the planet we live on a plastic planet. While plastic has made our lives convenient, it has contaminated the Earth's ecosystem, and unbeknownst to us, microplastics ingested are jeopardizing our health. Reducing plastic use is a fundamental solution, but it is challenging to achieve immediately, so Hyosung decided to recycle plastic to build an ecosystem for a circular economy. Conserving the Earth's limited resources and reducing waste are important, but minimizing and reincarnating waste as a new resource is equally significant. The circular economy that Hyosung envisions a circular economy in which waste materials are transformed into high-value products, creating a zero-waste ecosystem. The circular economy promoted by RE:GEN embodies core values of a circular supply chain, eco-friendly brand platform, and leading the establishment of a global eco-friendly market ecosystem. To realize a circular economy, they intend to build a circular supply chain that converts waste into resources, establish an eco-friendly brand platform that produces sustainable products with zero-waste, and form partnerships with various global eco-friendly companies. Hyosung's Efforts for a Circular Economy - ① Hyosung TNC Hyosung needs to invest more actively to practice a circular economy that breathes new life into resources. This initiative is supported by Hyosung TNC, Hyosung Chemical, and Hyosung Advanced Materials. In 2007, when environmental concerns were relatively low, Hyosung TNC developed a world-first technology to produce regen nylon yarn from discarded fishing nets. In 2008, they were the first in Korea to successfully develop and produce regen polyester yarn by recycling waste PET bottles. They develop and produce a variety of eco-friendly fibers, including regen ocean nylon, regen polyester from recycling plastics, and regen polyester born from recycling discarded PET bottles. Hyosung TNC is undertaking three phases of research, development, and commercialization of eco-friendly yarns for the circular economy. The first phase involves eco-friendly fibers, regen, created through recycling, as mentioned earlier. The second phase is represented by bio-fibers, such as regen bio-based, made from plant resources using corn extract as raw material. Hyosung TNC has developed world-first technology in producing raw materials for high-functionality fibers using corn resources instead of petroleum chemistry through biomass technology. The final third phase involves biodegradable fibers. Hyosung TNC is currently conducting relentless research for the developing and commercializing biodegradable yarns. Hyosung's Efforts for a Circular Economy - ② Hyosung Advanced Materials Hyosung Advanced Materials holds the world's number-one position in the field of PET tire cords. Hyosung Advanced Materials has developed high-strength Recycled PET yarn using materials extracted from waste PET bottles and industrial Bio-PET yarn produced from plant-derived materials. They are applying these developments to tire cords and are constantly researching and developing to meet a wide range of eco-friendly needs. Hyosung Advanced Materials, which strives to use eco-friendly materials, is leading the development of new materials with outstanding application potential and carbon reduction effects, like carbon fiber, TANSOME®, which it has developed using its own technology. Carbon fiber is lighter than iron and has higher strength, making it applicable to various industries. Its production also reduces carbon emissions. It is especially recognized as a necessary material for commercializing hydrogen cars and is expected to be the key to advancing the transition to hydrogen energy. Hyosung Advanced Materials' development of new materials that reduce carbon emissions and apply to various industries can secure future growth drivers and guide a greener path. Hyosung's Efforts for a Circular Economy - ③ Hyosung Chemical The use of chemicals has made our lives easier and opened up new opportunities, but they have also exposed us to dangers, such as the release of carbon dioxide. Hyosung Chemical focuses on producing materials for human life more safely and sustainably rather than just seeking convenience for mankind through chemicals. Hyosung Chemical aims to develop eco-friendly products that use Post-consumer recycled pp (PCR PP) raw materials to ensure a sustainable future for mankind. As part of its initiatives, it has developed a project to replace disposable containers used in sports stadiums with reusable containers made of PP. Moreover, they are developing eco-friendly products using PET bottle recycled chip (PCR PET) raw materials for PU films. They are also developing recycling technology that re-collects silicone release coating products, which are disposed of after use by customers and reintroduces them into Hyosung Chemical's process. As part of its commitment to circular chemistry, Hyosung Chemical is researching a chemistry for the next generation that can offer humanity greater possibilities more safely and sustainably. Plastic was an innovation when it was developed and made our lives more convenient. It is stigmatized as an environmentally damaging, wasteful resource and treated as an unwanted annoyance. The emergence of microplastic issues has made plastic a harmful resource that threatens the environment and our health. The convenience of plastic, however, remains irreplaceable. Hyosung holds a vision to build an ecosystem of a circular economy that recycles and replaces plastics, considering the future and environment of the Earth. Hyosung is dedicated to recycling and replacing plastic to create a circular economy ecosystem that prioritizes the future and the environment. Hyosung aims to revive plastic and allow resources to circulate, benefiting all life on Earth, including future generations. Hyosung Group believes that reducing the use of new plastic and repurposing used plastic can make the world healthier, and the company is committed to finding new ways to circulate resources.