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