HYOSUNG TNC

The pandemic that swept across the globe in 2019 was a stark reminder of humanity's fragility and vulnerability in the face of natural disasters. We have taken steps away from the immediate impact of the infectious disease crisis, but climate change continues to pose a challenge. It is becoming increasingly evident that climate change is having profound effects on our lives and is reshaping the way we live. Individuals and corporations alike are beginning to understand that this change impacts our lives and our existence. Climate change has emerged as an issue of paramount importance for humanity's continued survival on Earth, and the climate crisis has become an unavoidable problem that we must directly confront. As a result, numerous corporations, including Hyosung, are dedicated to relentless research and exploration of diverse solutions to address the climate crisis. In response to this global societal crisis known as climate change, we at Hyosung have established 'Green Management VISION 2030'. We have implemented green management principles, enhanced green business execution, expanded green purchasing, taken a leading role in climate change response, and generated eco-friendly growth momentum. Through these efforts, we are striving to reduce greenhouse gas emissions. Hyosung's Endeavors to Slow Climate Change In 2015, the United Nations unveiled the Sustainable Development Goals (SDGs), arguably the most closely watched benchmark of our time. SDGs embody the philosophy of sustainable development through 17 common goals and 19 specific targets for humanity under the slogan ‘Leave No One Behind.’ To achieve the SDGs, corporations worldwide are adopting these shared goals for humanity and fostering change through individual actions and practices. Hyosung, having declared 'Green Management VISION 2030' based on the SDG indicators, is sparing no effort in its company-wide endeavors to combat climate change by advancing various initiatives. Embracing ESG (Environmental, Social, Governance) management, Hyosung sets greenhouse gas reduction targets suitable for each business and formulates annual investment plans for energy-saving facilities to reach these goals. As a result, in 2020, Hyosung achieved approximately 4.3% reduction in energy consumption and greenhouse gas emissions compared to 2019. Hyosung has integrated its EHS (Environment, Health, Safety) and CSR (Corporate Social Responsibility) committees into an 'ESG Management Committee' under the jurisdiction of the CEO. This integration allows Hyosung to address not only environmental, safety, and health sectors but also social and governance structures. Hyosung's 'ESG Management Committee’ engages in deliberations on a wide range of matters relevant to the ESG era. These include climate change countermeasures, the establishment of ESG-related policies and goals, risk management and investment, and activity planning. Such discussions clearly demonstrate Hyosung's strong and steadfast commitment to ESG management. Hyosung's Pursuit of Low-Carbon Energy Transition Tailored to Each Business Hyosung Heavy Industries is preparing for the next era of high-efficiency energy, mitigating the variables encountered when utilizing renewable energy that does not emit carbon, and equipping facilities to supply such energy reliably. They are also developing energy storage systems (ESS) for efficient energy use and spearheading the realization of a hydrogen society through the expansion of hydrogen charging stations and the development of hydrogen supply technologies. Hyosung Chemical has successfully developed and commercialized Polyketone, an eco-friendly high-molecular engineering plastic. This innovative material reduces carbon dioxide emissions and produces byproduct hydrogen during production. By producing and selling liquid hydrogen and contributing to the establishment of domestic hydrogen ecosystems, Hyosung Chemical plays a crucial role in advancing the construction of the envisioned hydrogen value chain. Hyosung Advanced Materials has announced three strategic green management directions, including 'ZERO Emission (carbon)', and is continuously striving to reduce greenhouse gas emissions and minimize the climate change impact. Carbon fiber, a next-generation advanced material successfully developed by Hyosung, is a core component used in ultra-high-pressure hydrogen storage vessels for hydrogen mobility infrastructure, such as hydrogen fueling stations. It is gaining attention for its ability to facilitate the movement and storage of gaseous hydrogen, contributing to the convenience and efficiency of hydrogen activation. Carbon fiber is also recognized for its potential for reducing greenhouse gas emissions. Lastly, Hyosung TNC, which focuses on developing low-carbon materials while considering sustainable growth in the textile industry and reducing greenhouse gas emissions, offers a wide range of eco-friendly functional fibers such as regen Spandex, regen Nylon, regen Ocean Nylon, regen Polyester, and regen Ocean Polyester. Hyosung TNC's eco-friendly fibers, produced by recycling discarded fishing nets, PET bottles, or waste generated during the production process, have gained recognition for their environmental value. Thus, Hyosung leads the eco-friendly market with tailored technology development for each business and strives to reduce carbon emissions in ways that are appropriate for the company's operations. Internally, the company is making relentless efforts in various ways to reduce carbon emissions, including the replacement of high-efficiency facilities, the supply of high-efficiency energy products and solutions, and investments in facilities for reducing greenhouse gas emissions through the transition to low-carbon energy. Green Action for the Environment! Hyosung's Eco-friendly Challenges To ensure a better and healthier planet for both our current and future generations, Hyosung invests in, researches, and develops technologies that enable resource circulation without harming the environment. Hyosung is also actively involved in implementing eco-friendly initiatives, including environmental challenges, in addition to technology development. Hyosung TNC's 'regen Jeju' and 'regen Seoul' projects, started in Jeju and expanded to Seoul, are initiatives aimed at collecting discarded PET bottles and transforming them into eco-friendly regen Jeju Polyester fiber and regen Seoul Polyester yarn. These projects contribute to Jeju and Seoul’s environmental preservation by collecting and repurposing PET and also provided an opportunity to raise public awareness about plastic recycling. Additionally, they served as a platform to showcase Hyosung's technological capabilities in eco-friendly fibers. In addition, Hyosung has conducted various eco-friendly challenges within the company. Hyosung Advanced Materials and Hyosung Chemical organized the 'Eco-friendly, Geumsangchumhwa (finishing touch)’ and 'Zero Waste Day' challenges for their employees. The challenges involved the use of bamboo toothbrushes and reusable shopping bags to reduce plastic consumption and lowering the resolution and brightness of monitors to reduce carbon footprints. These internal eco-friendly challenges reflect Hyosung's commitment to shifting environmental perceptions, not only through research and development of eco-conscious technologies but also through practical implementation by its employees. Hyosung TNC has committed to joining the public-private cooperation network to address environmental issues as part of the ‘Zero Seoul Activist Group’ initiative led by Seoul Metropolitan Government. A total of 13 companies, three economic councils, and one media company are participating in this initiative. In addition to its ongoing eco-friendly initiatives, Hyosung will collaborate on Seoul's environmental policies, including building energy efficiency, electric vehicle charger distribution, and zero waste management. The company will also actively participate in citizen campaigns to address the climate crisis. As a member of the Zero Seoul Activist Group, Hyosung is dedicated to continuing its diverse range of eco-friendly activities. Hyosung’s green actions through its eco-friendly challenges hold significant meaning as they provide an opportunity to shift the perception that discarded resources can be circularly utilized to create new high-value products and reduce our carbon footprint. Hyosung is committed to actively participating in the eco-friendly movement at various levels, including each business, Hyosung Group as a whole, and in collaboration with Seoul. Hyosung will take every step possible to slow climate change and make the planet a better place. Another Move by Hyosung to Protect the Environment Hyosung's commitment to environmental protection goes beyond eco-friendly products and reducing carbon emissions. They have organized tree-planting events to restore endangered plants, donated saplings, and provided funding for the creation of planting areas. They conducted beach cleanup activities to commemorate the International Day for Biological Diversity. Moreover, recognizing the impact of the ongoing climate crisis on biodiversity, including changes in species distribution and composition, the spread of invasive pests, and ecosystem disruptions, Hyosung is actively engaged in biodiversity conservation activities to preserve flora and fauna that have lost their habitats. Understanding that protecting diverse animals and plants that have lost their habitats or are facing extinction due to climate change is crucial to safeguarding the planet, Hyosung continues its biodiversity conservation activities alongside technology development for carbon neutrality. While we enjoy more comfortable and prosperous lives, the damaged environment and the resulting climate crisis pose risks to ecosystems which, in turn, endanger our own lives. Hyosung works daily to reduce carbon emissions and prevent ecosystem collapse from breaking this destructive cycle. Hyosung's careful consideration of the climate crisis and its focus on ecosystem preservation and eco-friendly product development reflects its desire for current and future generations to live on a healthier Earth. Hyosung consistently prioritizes the environment and strives to conduct business activities that preserve and do not harm it, ensuring that our next and subsequent generations can live in a more sustainable world. Hyosung is continuously implementing ESG management practices, which include comprehensive environmental management, strengthening compliance management systems, operating the ESG Management Committee, and publishing Sustainability Reports. Hyosung remains committed to these practices and will strive to create a better Earth for all generations without ceasing its efforts.

An island in the vast Pacific has been ridiculed as a seventh continent, an island made of plastic. This enormous trash island, known as the Great Pacific Garbage Patch, stretches 1.6 million square kilometers, roughly seven times the area of the Korean peninsula and three times the size of France, weighing in at an astounding eighty thousand tons. A tragic monument of human avarice, the island is an amalgamation of discarded nets, plastic bottles, cups, straws, tires, and other refuse. Though plastic brings convenience to our lives, it does not biodegrade and continues to drift, causing the death of marine creatures. Reduced to microscopic size, microplastics have become a menace, even infiltrating our meals. We have begun to feel the necessity to find ways to protect the ecosystem so our health is not threatened by microplastics and creatures living on Earth do not lose their habitats. 'Conservation of Biodiversity' for the Earth and Our Survive Barely 15% of untouched forests and a meager 3% of oceans remain untouched by human hands on Earth. We are facing extinction crisis comparable to that which occurred 65 million years ago. The relentless pursuit of convenience has resulted in severe ecological destruction. The absence of a single species in an ecosystem, where diverse life forms coexist organically, disrupts the ecological chain, endangering the entire ecosystem. Dr. Jane Goodall, who likens biodiversity to the web of life, emphasizes that the disappearance of one species, akin to a few strands of a spider's web being cut, creates a hole in Earth's safety net, upsetting the balance. A species’ extinction could cause a butterfly effect, shaking the entire food chain and threatening human existence. Knowing the importance of preserving biodiversity, Hyosung has initiated the RE:GEN Guardian activity to ensure all species live safely on Earth, starting with a marine forest project. RE:GEN Guardian By leveraging its technological expertise, Hyosung is committed to delivering a sustainable future for all generations through its ESG brand, RE:GEN (Reply to every generation’s future). This brand advocates circular economy, carbon neutrality, new energy, and resource conservation. Having launched its marine forest management project in 2022 to preserve marine habitats, Hyosung has been working to restore and protect biodiversity and ecosystems. Hyosung and its subsidiaries Hyosung TNC and Hyosung Heavy Industries initiated the project, which was expanded in 2023 to include all group companies. As part of its conservation effort, Hyosung Heavy Industries restores marine habitats, purifies wetlands, and creates resting areas. Seagrass, a blue carbon species designated as a protected marine organism under the Marine Ecosystem Protection Act, is the only type of underwater plant that produces flowers in the ocean. Since 2009, the Korea Fisheries Resources Agency has been managing a seagrass bed near Geoje-Si in Gyeongsangnam-Do. Hyosung has established a fund to cultivate and preserve marine forests for seagrass survival. This includes monitoring seagrass distribution and habitat, transplanting it to necessary areas, and collecting discarded fishing gear from the sea. Seagrass is crucial breeding ground, habitat, and refuge for various marine organisms, making it essential to conserving marine ecosystems as a quintessential blue carbon species. Blue carbon refers to the carbon absorbed by marine ecosystems, including organisms that live near the sea, like seagrass and shellfish, and coastal forests, mangroves, and salt marshes. Since they absorb carbon up to 50 times faster than terrestrial ecosystems such as forests and pose fewer risks, such as forest fires, they have gained attention as carbon reservoirs. To improve the marine ecological environment and take an active step towards carbon neutrality, Hyosung has launched RE:GEN Guardian to protect the ecosystem, ensuring that all life has a right of exist in peace and harmony. As biodiversity conservation becomes increasingly important, RE:GEN Guardian will undertake various activities to prevent species disappearance due to human-induced ecological destruction, thereby fostering a sustainable planet. Hyosung's Commitment to Earth Through Its RE:GEN Guardian Activities Hyosung, considering ESG management as its core value, continues various activities for the environment due to concerns about climate change and ecosystems. It has been recognized as an the "Endangered Species Conservation Sponsorship Recognition System" company by the National Ecological Institute for its efforts to preserve endangered species. In response to climate change and to conserve biodiversity, it conducts company-wide online education. RE:GEN Guardian activities are also underway in each business area. Through the restoration of Jeonju Dysophylla yatabeana Makino habitats and companion beach purification activities, Hyosung Advanced Materials is working to prevent and restore ecosystem destruction. A habitat has been created in the nearby Girin Park near Jeonju-Si for the endangerd Jeonju Dysophylla yatabeana Makino, a wild plant designated as a class II endangered species. Meanwhile, 2,000 Jeonju Dysophylla yatabeana Makino have been donated. In the companion beach cleaning activity, they removed harmful plants as part of a plant diversity conservation program. In addition, Hyosung Chemical conducts various activities to protect the ecosystem. In 2022, they worked with Cheongju Zoo, an ex-situ (off-site) conservation agency, to enrich animal behavior. To protect animals that have lost their habitat and ensure their wildness, they create special food using pumpkins and kudzu vines and feed it directly to protected species such as Asiatic black bears and Himalayan tahrs. In addition to each business’s effort, Hyosung Advanced Materials and Hyosung Chemical have also collaborated on environmental protection. They conducted a plogging event at Han River Park near Mapo-Gu to protect the environment and reduce trash threatening marine life, like plastic islands. In addition to technological research and development, Hyosung is engaged in various activities to create a sustainable Earth. They strive to protect nature and the environment so that future generations can enjoy the Earth we have today or a better one. By forming the RE:GEN Alliance, Hyosung hopes to create synergy in environmental protection with companies that share the same environmental values. By promoting substantial ESG management, they intend to share and execute the core values of RE:GEN, such as the circular economies, carbon neutrality, hydrogen and renewable energy, and energy redesign. Under the name RE:GEN Alliance, they hope to make our planet safer and more sustainable by partnering with sincere and capable eco-friendly businesses. Hyosung incorporates the ESG value of RE:GEN into its products and businesses and takes steps to further enhance ESG management. Hyosung has formed the RE:GEN Alliance in collaboration with partner companies to achieve this. Moreover, Hyosung has expanded its commitment to the well-being of the Earth and ecosystems by establishing RE:GEN Guardian, broadening the scope of its ESG initiatives. Hyosung is committed to safeguarding the Earth and future generations and actively engages in various initiatives. These include establishing a resource-virtuous cycle through upcycling and recycling, commercializing eco-friendly technologies and energy, and addressing the climate crisis through carbon reduction efforts. Hyosung recognizes the interconnectedness of all life on our planet and values the preciousness of every living being. To protect all life on Earth, the focus begins with safeguarding creatures, life in all forms, and future generations. Through the endeavors of RE:GEN Guardian, Hyosung aims to protect a sustainable Earth by promoting activities that allow the environment to naturally rejuvenate itself without excessive intervention while maintaining its vitality.

In this age of the Fourth Industrial Revolution, we experience myriad changes in our daily lives. We all possess smartphones, conversing with artificial intelligence to glean everyday information. There's the Internet of Things, facilitating real-time data exchange, just like smartwatches. Rapid developments are afoot in various technologies driving the Fourth Industrial Revolution; 3D printers that conjure houses in a mere three days, drones widely utilized in farming, pest control, filming, and even education. Among these, digital showrooms, swiftly being incorporated into fieldwork, have lately been attracting considerable industrial attention. But what are digital showrooms, and how are they being integrated into the industrial landscape? About The Digital Showroom Technology A digital showroom is a technology based on three-dimensional virtual reality. Virtual Reality (VR) refers to a 3D space or a virtual environment created through computer-generated graphics or videos. Unlike merely presenting objects on a flat surface, this fabricated space allows you to rotate items 360 degrees, walk around in any direction, and even interact and converse with others encountered in the virtual space, thereby offering experiences akin to actual reality and finding use in various explorations. The goal of virtual reality is to create an artificial virtual world through computer technology, enabling users to experience it as if it were real. The level of this perceived authenticity depends on how faithfully it connects with our five senses and neural stimuli. By leveraging computer graphics, real images, display devices, etc., it attempts to replicate reality as closely as possible, utilizing 3D acoustics and visualization technology to stimulate auditory and visual senses. The closer it gets to reality, the more tangible the virtual space becomes. A digital showroom can realistically construct even elements challenging to implement in reality, offering boundless expressive possibilities. As such, the world we can experience potentially expands infinitely. Digital showrooms are currently being utilized across a broad spectrum of fields, including education, gaming, tourism, and more, easily accessible online via smartphones or VR devices. Cultural enjoyment without actual visits has become possible by introducing VR content in museums and exhibitions. Only a few years ago, digital showroom content was not commonplace. It was somewhat limited and reserved for special occasions, like watching 3D movies with special glasses or visiting theme park attractions. In the wake of Covid-19, the spread of non-face-to-face interactions has made VR experiences in cyberspace a given. In some fields, online activities have already surpassed offline ones. Besides providing experiences, this virtual reality aims to 'expand human intelligence'. That is, it broadens human experiences difficult to achieve in real life through virtual reality, making experiences that were previously selectable by a limited range of people possible, thereby ultimately expanding the scope of intelligence utilization. Encountering Hyosung Through the Digital Showroom Hyosung aims to reach out to global customers and the public through a meta-showroom composed of eight galleries: the brand, ESG, TNC, Advanced Materials, Chemical, Heavy Industries, Innovue, and Lifestyle. Through this platform, the public can easily and conveniently learn about Hyosung's products, technologies, brands, eco-friendly visions, VOCs, and agile management. Upon entering the meta-showroom page, an eco-friendly cityscape blending with nature unfolds before your eyes, a conceptual depiction of a Coastal Eco City in New Zealand circa 2040. Beautiful curved structures harmonize with the surroundings. The design of each building, rendered with the latest 3D technology, accurately reflects the features of the respective gallery. For example, the Brand gallery, situated at the very center, embodies the initial 'H' of Hyosung, and the shape of the TNC gallery represents the twist of the fiber, the main business. The interior is also arranged to best reflect the characteristics of the subsidiary. Heavy Industries, primarily engaged in power-related businesses, captures a sense of connectivity with blue light details. The ESG gallery has signage revealing ESG values and directionality, designed to display related content upon clicking. On the left side of the screen, you can instantly apply for a newsletter through the notices category and leave any inquiries that arise while exploring the digital showroom. It will serve as a window for active communication. Furthermore, the layout enables checking the schedule of seminars through the web, i.e., webinars, and applying to participate in a diverse range of webinars where outsiders share trends and industry information. It's anticipated to serve as a platform that can smoothly conduct seminars, workshops, lectures, etc., targeting B2B customers. Future-Oriented Hyosung: Digital Showroom Utilizing 3D VR Hyosung's digital showroom has been carefully designed so that visitors of all ages can intuitively use it, with meticulous planning down to the details, all while embodying Hyosung's identity through all concepts, spaces, and items. Firstly, a tutorial appears on the first screen of the digital showroom for the convenience of the users. Alongside the welcome message, it guides how to rotate 360 degrees and change direction with mouse operations. It also shows that you can move straight and look around using the keyboard. At the top, all galleries are listed, allowing you to quickly move to your desired exhibition. The first thing that catches your eye after accessing the digital showroom is the brand gallery. The screen connected with the slogan, "Brand New Hyosung, a World Dreamed by the Brand," shows the play button of Hyosung's brand video directly in front of you. You can watch the video without having to search separately with just one click. The contents placed around the screen also expand as if you're walking towards them the moment you click. Videos, photos, text, and voice guidance are automatically played, providing easy access to the contents. In the ESG Hall on the left, Hyosung's ESG management policy is well embodied, and if you step into the Lifestyle gallery on the opposite side, you will find various activities of Hyosung that can be encountered in everyday life and a community category. Behind the Brand Hall, the Heavy Industries Hall, the Advanced Materials Hall, the TNC Hall, and the Chemical Hall are harmoniously arranged from left to right. The virtual space of the digital showroom gives a surreal yet believable and tangible feeling, offering an opportunity to understand the various business areas that Hyosung is promoting in a realistic, future-oriented concept. It feels as if you are touring the future lifestyle envisioned by Hyosung. People experience the digital showroom in the convenience of a virtual space, with access to contents similar to those from in-person visits to Hyosung's various subsidiaries. The world where reality and virtual space are closely linked and gradually merging has come. The digital showroom demonstrates Hyosung's exceptional drive to formulate corporate strategies in understanding the changing trends of the future retail environment and consumer behavior. It is a moment to pay attention to what changes Hyosung will show in the future. Hyosung Group is striving for innovation by rapidly introducing new technologies into the field in the era of the Fourth Industrial Revolution. In the future, the technologies related to the new era will develop more rapidly, and companies must respond flexibly to these changes. Hyosung Group is leading the advancement of the Fourth Industrial Revolution technologies, gaining global competitiveness through flexible technology convergence. We invite you to experience Hyosung’s global competitive edge through a visit to the digital showroom.

The Foundation of RE:GEN GUARDIAN In an era where environmental concerns are rapidly escalating, many corporations are increasingly feeling their responsibility towards the environment, adopting eco-friendly management policies, and continuously contemplating ways to fulfill their social duties. This sincerity towards environmental issues has given rise to eco-consumers who seek products from companies with a strong environmental stance. They aim to purchase eco-friendly products that embody a vision for a sustainable future when faced with similar products. The movement is accelerating at an unprecedented pace, as consumers seek to practice environmental protection by consuming products that are produced in an environmentally friendly way and embody a philosophy of sustainability. What environmental interest does Hyosung have? First and foremost, Hyosung has established a brand mission to create an ecosystem where future generations and all living beings can coexist harmoniously. Numerous species have vanished due to human industrial activities, and even a single organism being removed from the chain can cause a minute fissure in Earth's circulation, potentially leading to an imbalance. Hyosung is acutely aware of this issue and strives to protect and restore the habitats of all living beings, preserving their diversity. Moreover, transcending ethical perspectives, we recognize that each organism inherently possesses the right and purpose to exist. In order to preserve these roles and safeguard the symbiosis between humanity and Earth, Hyosung has launched RE:GEN GUARDIAN. RE:GEN GUARDIAN’s Core Values RE:GEN GUARDIAN operates on four fundamental values. Firstly, it aims to broaden awareness of the inherent right of all living beings to survive. Hyosung seeks to disseminate the notion that all creatures have the right to live, regardless of human necessity. Secondly, Hyosung takes responsibility for the environmental improvement of all living beings. Countless extinctions throughout human history can be attributed to our industrial activities. We must protect, restore, and take responsibility for ensuring that diverse organisms can forge a peaceful future on their own terms. Thirdly, Hyosung recognizes that "coexistence is mutual prosperity." All living beings, including humans, maintain a balance essential to Earth's circulation; the system will quickly collapse if links are severed. Consequently, the survival of all living beings is interconnected with human survival. Fourthly, Hyosung advocates for bold action and improvement through tangible practices. Mere value-oriented attitudes will not resolve the pressing issues before us; practical and concrete actions for the environment are indispensable. Hyosung's restoration project for biodiversity protection, RE:GEN GUARDIAN, follows a set of guiding principles that include establishing relevance with actual businesses, focusing on ESG philosophy over ESG scores, and implementing genuine and substantive environmental management practices. Our first priority is to anticipate and proactively address the environmental impacts that may arise from our business operations. As we actively evaluate and respond to the direct effects of our activities on the natural environment, such as the destruction of marine habitats from our plastic business or water pollution from wastewater discharge during manufacturing, Hyosung is committed to finding responsible ways to protect the environment and transform our business practices to be more eco-friendly. Rather than engaging in superficial environmental conservation activities based solely on ESG scores, our aim is to safeguard the environment from the perspective of Earth's long-term sustainability and the rights of living beings, grounded in ESG philosophy. At Hyosung, we recognize the importance of avoiding excessive associations with specific species, as doing so can create confusion within ecosystems. Instead, we strive to show concern for a diverse range of living beings that make up our world. Furthermore, Hyosung aspires to a sustainable future through ESG management, which encompasses environmental protection and includes social contribution activities, such as supporting socially vulnerable groups and adhering strictly to laws and ethics. Seagrass Forests and Jeonju Dysophylla yatabeana Makino: Breathing New Life One of the most representative eco-friendly initiative of the RE:GEN GUARDIAN project is the preservation of seagrass forests. In November 2022, Hyosung Corporation, Hyosung TNC, and Hyosung Heavy Industries collaborated with the Korea Fisheries Resources Agency and Geoje City by contributing to the Rural Community Cooperation Fund. Seagrass, a representative of blue carbon, serves as a nursery for marine life, aiding in the growth of young fish and habitat. Due to its significant impact on the marine ecosystem, seagrass is designated as a marine protected species and managed accordingly. The funds contributed by Hyosung will be used for monitoring seagrass distribution and habitat conditions, transplanting seagrass to necessary locations, and collecting abandoned fishing gear in the ocean. In particular, Hyosung Heavy Industries is carrying out a wetland conservation project, which is expected to contribute to ecosystem restoration by focusing on wetland purification activities and creating resting spaces this year. Additionally, Hyosung is actively involved in a planting and conservation project for the Class II endangered species, Jeonju Dysophylla yatabeana Makino. In collaboration with the National Institute of Ecology, Hyosung is expanding restoration areas for the disappearing Dysophylla yatabeana Makino by donating 2,000 plants and the construction cost for planting sites at the Girin Park in Jeonju City. The natural habitats of these plants have been vanishing due to environmental destruction, and Hyosung is doing its best to restore them. Moreover, Hyosung Chemical is promoting various biodiversity conservation activities and expanding their scope. This includes the plogging campaign conducted around the Han River to address the biodiversity crisis resulting from climate change and improving environmental awareness among employees. They are passionate about conserving biodiversity and are gradually expanding their activities. A Sustainable Future with RE:GEN GUARDIAN Aiming for "ESG technology for the future of all generations," the Hyosung Group has two main objectives: "solving the imminent global issues" and "well-being of future generations." To solve the environmental issues faced by today's generation, Hyosung continuously reflects and seeks solutions. The company aims to practice management that ensures future generations enjoy the same level of prosperity as we do today. This eco-friendly management mindset, combined with Hyosung Group's wide range of technological capabilities, will enable a significant reduction in climate crises and waste issues. The Earth owes it abundance of oxygen and beauty as a planet to marine phytoplankton. Various creatures exist in places we may not be aware of, maintaining balance for Earth's circulation. Amid ongoing survival crises threatening survival, countless living beings enjoy the blessing of coexistence due to the resilience of life. Hyosung's RE:GEN GUARDIAN movement, aimed at protecting biodiversity and preserving the circulation of humanity and Earth, is poised to expand even more vigorously in the future. With the belief that a green Earth lies at the end of the arrow pointed by our eco-friendly actions today, Hyosung is committed to unfolding ESG management.

Smart cities are no longer the settings of science fiction or a matter of the far future. With the widespread use of smartphones and AI technologies, advanced technologies have emerged, enabling us to ride in self-driving cars, replace identification with QR code recognition, and manage crops and home gardens through smart farming. We can already use augmented reality (AR) to see how clothes look on us without physically wearing them and pre-order cars to be delivered with the full options requested. It is common to have AI technology embedded in our smartphones collecting our data on how we commute and what our interests and consumption patterns are. Advancements in AI technology, along with the widespread use of smartphones, have accelerated the development of information and communication technology (ICT), which is changing our lives in remarkable ways. Technology-driven Acceleration of Digital Transformation The COVID-19 pandemic has fueled this trend, with recent advancements in AI bringing us closer to the era of technological singularity, where machines may surpass human intelligence. The pandemic has also disrupted traditional business models, emphasizing the need for platform-based super-convergence and super-connectivity. As such, companies across all industries are prioritizing digital transformation (DX) to stay competitive and create new business opportunities. In this era, successful incorporation of digital transformation (DX) is critical for business success, and manufacturers are particularly challenged to effectively utilize data to restructure their business models, improve competitiveness, and develop new growth opportunities. Hyosung recognizes the importance of leveraging concrete data on customer feedback and market situations to remain competitive and achieve growth. Smart factory - How Hyosung Capitalizes on DX Hyosung is committed to leveraging digital transformation (DX) to enhance its manufacturing competitiveness and build smart factories across its global locations. In this regard, the company has been incorporating the latest technological developments to upgrade its manufacturing operations in South Korea, China, Vietnam, and India. One of the most significant initiatives in this area is the implementation of 'XTRM FACTORY’ system since 2018, which is a big data analysis and monitoring system designed for factory applications. The 'XTRM FACTORY’ system automatically collects and stores quality data generated during the manufacturing process. This data is analyzed by factory managers who can analyze past problems and accidents as well as any deviations from normal operations. Based on this analysis, optimal operation requirements are determined, and corrective actions are taken to improve the safety of factory operations. Additionally, the XTRM FACTORY has another key advantage of enabling factory managers to immediately identify issues and implement countermeasures immediately in the event of a sudden accident or problem. Global Smart Factories Built by Hyosung Hyosung implements various types of smart factory technologies in its domestic factories. At the Changwon plant, Hyosung Heavy Industries has designed a smart factory system based on a manufacturing execution system (MES) and IoT (Internet of Things). At the heart of this smart factory system is a wireless network (WIFI 10G) that covers approximately 220,000 square meters of the entire plant complex, consisting of manufacturing facility units 1 to 4. This wireless network connects around 980 IoT devices ranging from kiosks to smart pads, scanners, and PDAs. Through the smart factory system, factory managers can check work progress at each manufacturing process and monitor changes in the plan on the spot. Data collected and analyzed on the spot are then used for the overall management of factory processes such as quality management, process management, equipment management, etc., resulting in increased productivity. Hyosung Chemical has built a smart factory equipped with a process monitoring system (PMS), quality management system (QMS), and visual analysis system (VAS). This system connects all resources related to manufacturing, enabling business decisions to be made based on collected data. To utilize the smart factory more actively, Hyosung Chemical has delegated the role of managing the smart factory system to competent workers in-charge. Hyosung has implemented smart factory technologies not only at its domestic factories but also some of its overseas manufacturing plants. For example, Hyosung Advanced Materials launched a big data analysis project in 2017 to increase efficiencies in its textile and steel wire manufacturing processes and to establish quality management at its Vietnam subsidiary. The project culminated in the construction of a big data system at its Vietnam facility. In 2020, Hyosung Advanced Materials formed a company-wide smart factory task force that identified three key tasks necessary for implementing data-based management: digital transformation of all manufacturing plants, big data analysis, and the application of AI and process automation. The task force cooperates with other departments by sharing the progress status of the project. Hyosung TNC is another subsidiary that has upgraded its spandex factory in China and Vietnam to smart factories. These factories now operate in a next-generation production environment that allows for real-time monitoring, quality level management, and consistent quality levels. Smart factories provide another advantage of collecting data during the entire manufacturing process (from raw material importing to production and shipping), which can be analyzed and controlled for managing manufacturing more effectively. Customer Interface in the Virtual World Through Hyosung Group’s Digital Showroom To better communicate with customer while leveraging technology, Hyosung has decided to create a virtual showroom on digital platform to showcase its products and services. Hyosung Group’s digital showroom is designed to be an interactive platform that allows the company to communicate and engage with customers in exciting and innovative ways. Customers from all over the world can visit Hyosung Group’s showroom without the physical constraints of time and space. The digital showroom is testament to Hyosung’s commitment to delivering its brand story through the virtual world. By visiting the digital showroom, customers can learn more about Hyosung’s key businesses, including heavy industries, advanced materials, chemicals, and Hyosung TNS, as well as its ESG management and vision for a sustainable lifestyle. The virtual world offers an opportunity for the company to update different forms of content and provide new and exciting experiences that are not possible in the physical world. The Hyosung Group digital showroom is a convenient and accessible platform that enables anyone to explore the company's products and services from anywhere in the world. The company hopes that the digital showroom will provide customers with a unique and memorable experience and is excited to see how the image of Hyosung unfolds in the virtual world. Retail Solution, a New Vision of Retail Developed by Hyosung TNS Around us, there is already a very familiar future technology. Since the beginning of the pandemic, face-to-face services have been gradually declining, and people are more comfortable than ever using kiosks with self-check-in and check-out functions. Due to the growing number of unmanned cafes and stores where vending machines or AI robots take orders, serve, and even prepare beverages, many stores are now equipped with kiosks capable of handling orders and payments from customers. Similar to the kiosks that were unfamiliar to most before the pandemic, but are now well-known to everyone, the retail solutions from Hyosung TNS have become an integral part of our daily lives. In a store equipped with Hyosung TNS’s retail solution, customers can self-check in and check out, order and pay for goods using AI, and have an AI robot prepare their drink. Also, with a single mobile app, customers can remotely control all data related to ordering and paying on the kiosk. The retail solution from Hyosung TNS eliminates the need for manual inventory checks. The solution enables the store manager to check what products are being purchased by customers, and the system takes care of both inventory and sales management. Even an AI robot makes drinks for the customers. The store owner simply monitors the store using the mobile app on a smartphone, check data, and confirm the sale with one click. Hyosung’s retail solutions that we have been using are considered the retail of the future. At the advent of the coming era of singularity, accelerated by advancements in AI, it is imperative for companies to equip a system that combines data with IT that enables quick response to customer requirements. Today, the success of a company is heavily reliant on its ability to undergo successful digital transformation, and all companies will face the crossroads of either reaping digital rewards or losing out, given the inevitable and critical role of digital transformation. In order to become a leader in technology, rather than simply following it, a company must proactively manage its businesses more efficiently by utilizing evolving technologies. To provide customers with better products, services, and innovative lifestyles, the company is preparing itself for the era of singularity. Going forward, Hyosung will pursue company-wide efforts to lead the transformation era by responding with greater flexibly and adopting the latest technological advancements.