HYOSUNG TNC

There is an African proverb that says," If you want to go quickly, go alone, if you want to go far, go together." This proverb emphasizes the importance of collaboration and the value working with others. At Hyosung, we view everyone we work with as cherished partners who help us achieve our goals in in life. We share our vision with our partners and strive towards common objectives. By recognizing the power of collaboration, both Hyosung and its partners can create a future that aligns with their shared dreams. We firmly believe that supporting the growth and competitiveness of our partners is essential for our own success, which is why we actively engage in various activities and provide support to foster mutual prosperity and co-development.

Hyosung actively support the growth of its partners from various angles. This includes implementing programs to enhance the competitiveness of small businesses, promoting joint participation in exhibitions to expand overseas markets, and engaging in open innovation projects to discover promising startups.

Hyosung's Commitment to Empowering Small Business Partners’ Competitiveness

Hyosung recognizes the critical role of enhancing the competitiveness of its primary partners for its own growth, and it leaves no stone unturned in providing diverse support. By tailoring support methods to specific circumstances of each partner, Hyosung actively endorses collaborative efforts. For instance, Hyosung TNC offers customized trend information based on customer characteristics, provides personalized consultations through "Creora Workshops," for new fabric developments, and introduces partner fabrics to renowned global brands through the ongoing operation of the Creora "Fabric Library" in multiple locations such as South Korea, Hong Kong, New York, Shanghai, and Indonesia. Furthermore, Hyosung has made strategic investments in environmentally friendly startups like Pleatsmama to supply their eco-friendly textiles, expand sales channels, develop branding, and facilitate their entry into the global fashion market. In this way, Hyosung is dedicated to enhancing the competitiveness of its smaller partners through external professional education and consulting, strengthening their position within the industry.

Support for Market Expansion to Stabilize the Management of Partners

Sustaining lasting partnerships and fostering mutual growth with affiliates is crucial for their business stability. Companies delivering top-notch products and services can only succeed with future growth and prosperity if they face difficulties. To strengthen the operational stability of its partners, Hyosung provides support for market expansion, a task that can pose significant challenges for them.

Hyosung Heavy Industries has inked a business agreement with the Small Business Distribution Center, an arm of the Ministry of SMEs and Startups, thereby launching a mutual growth e-commerce platform. This digital marketplace, dedicated to facilitating the distribution of products crafted by small to medium-sized enterprises, showcases goods from distinguished domestic SMEs. Hyosung employees can acquire quality items at fair prices through this mutual growth platform while participating SMEs can broaden their domestic market footprint, As a result, this initiative has earned   reputation as a symbiotic online shopping venue.

In addition, Hyosung encourages involvement in diverse exhibitions, creating avenues for expansion into international markets. Hyosung offers SMEs to showcase their products by jointly attending shows alongside commendable partners. Not confined to domestic exhibitions, Hyosung has accompanied partners to overseas exhibitions in Shanghai, China, and Germany, paving the way for new growth potential and facilitating encounters international buyers. Furthermore, in response to consecutive cancellations of overseas exhibitions due to COVID-19, Hyosung has organized online video meetings with foreign brands, providing its partners with promotional and market expansion opportunities.

Hyosung provides various opportunities to overcome challenges in market expansion and sales growth for its outstanding SME partners, utilizing these opportunities to secure the stability of their businesses and foster mutual growth.

Hyosung’s Open Innovation Projects: Fostering Startup Growth and Eco-friendly Innovation

Hyosung's commitment to mutual growth is not limited to its partners. Hyosung participates in open innovation projects to address the challenges startups face attempting to commercialize their unique ideas, ensuring that new technologies and ideas lead to innovation. Open innovation projects, a management technique that aims to improve corporate competitiveness by innovating business models and core technologies through collaboration with external companies such as startups, are being conducted by Hyosung TNC in partnership with the Korea Trade Association.

Through this project, Hyosung TNC plans to discover startups with specialized expertise in eco-friendly textiles, such as bio-based, biodegradable fibers, recycled fiber raw materials, eco-friendly dyeing and processing technologies, wearable fiber technology, and innovative smart textile technology combined with IT. Furthermore, Hyosung TNC is also seeking startups with expertise in carbon and energy-saving technology, sustainability, and ESG management to advance the innovation of existing businesses and propose new business models. Hyosung TNC plans to support the commercialization of the startups discovered through this open innovation project by providing technology development support, equity investment, and initiating joint product development through business collaboration.

Hyosung's Support for Strengthening ESG Management Capabilities

Hyosung, a proponent of mutual growth, not only bolsters competitiveness, stabilizing management, and uncovers potential but also executes supportive initiatives to amplify the capabilities of small and medium-sized enterprises (SMEs) to achieve 'ESG (Environment, Social, Governance) management,’ a key concern in modern business. Recognizing the elevating its partners’ competitiveness will, in turn, enhance Hyosung’s own, the company provides aid in establishing eco-friendly management systems, endorsing mutual growth, and fortifying social contribution activities.

For example, Hyosung TNC has enacted ESG education, consulting support, and eco-friendly certification cost support projects in preparation for the 'Supply Chain Due Diligence Act', which is set to be implemented globally, including in the European Union (EU), next year. Collaborating with ESG-specialized consulting firms, Hyosung TNC delivers ESG education to employees, conducts ESG diagnosis and guidance, and offers improvement consulting for 11 partner companies. Additionally, it assists in issuing eco-friendly certifications for SMEs in the domestic textile industry for the first time.

Furthermore, the group has substantially contributed KRW 5.5 billion to the large, medium, and small enterprise mutual growth cooperation fund. This fund is committed to aiding partner companies in reducing energy consumption, attending eco-friendly certifications such as carbon labeling, fortifying supply chain ESG management, and developing eco-friendly materials. As the significance of ESG becomes increasingly evident in the global market, Hyosung is proactive in bolstering the ESG management capabilities of its partners to secure competitiveness and to help them penetrate global market where carbon emission regulations are growing more stringent.

As mentioned, Hyosung carries out mutual growth programs and partner support programs to seek new business opportunities through collaboration, fostering innovation, and building solid trust relationships through consistent communication for mutual growth and co-prosperity with its partners. Mutual growth remains a vital keyword for Hyosung. Hyosung Group Chairman Cho Hyun-Joon has consistently highlights the mutual growth between large and small enterprises, proclaiming, "Our customers' competitiveness is our competitiveness." Hyosung recognizes that the path towards a better future can only be tread with cooperative effort and will persist in working in union with its partners to ensure that brilliant ideas do not dim in the face of real-world obstacles.

The sustainable management pursued by Hyosung is intended to benefit all. The term 'we' for Hyosung encompasses not just Hyosung and its employees but also customers and partners. Hyosung will strive for a path where everyone can grow together and work towards mutual prosperity so that the growth of Hyosung and all of us can continue to propel future generations forward.