Brand Journalism


Five Different regen Brand Stories

You may have heard that the fast fashion industry is the main culprit of climate change. A fast fashion trend life cycle is often two weeks and the industry as a whole accounts for around half of the global fashion industry. With the ever-increasing influence of the fast fashion names, overall fashion trend cycles are getting shorter than every before. Given the amount of discarded clothing, consumption of industrial water for the manufacturing process, and its impact on global carbon emissions, it is no exaggeration at all to say the industry is one of the biggest contributor to climate change. What has recently been witnessed is the growing call for ‘slow fashion’ in opposition to its counterpart, especially among consumers wary of the issues of climate change. In turn, many global fashion names are turning to an eco-friendlier textile brand which could help them better respond to such demand. That is Hyosung TNC’s regen which first was introduced to the market in the 2000s. That is when the fast fashion industry was also gaining traction. Hyosung TNC had long been working on developing the eco-friendly textile even when the fashion industry was not necessarily environmentally conscious. In 2007, the company finally succeeded in developing regen nylon with a technology that recycles discarded fishing net and rope. In the following year, Hyosung TNC developed a regen Polyester fiber by recycling used PET bottles. As such, Hyosung TNC has literally been trailblazing on this issue. Let’s take a look at the company’s journey of developing full regen product line-ups of recycled fibers from polyester to spandex. 'regen' is Hyosung TNC's brand name for its eco-friendly spandex, nylon and polyester fiber. Facing the challenge to save the earth, Hyosung TNC strives to show the next generations a better world through the eco-friendly 'regen' brand. With a spirit of challenge and innovation, Hyosung TNC gives new life to plastic waste as high-quality eco-friendly fiber, while leading the circular economy of the petrochemical industry. Hyosung TNC will continue to aim to building a virtuous cycle through fiber technology, looking far into a more sustainable future. I. regen Spandex, the eco-friendly story of the world's No. 1 spandex A life without spandex fibers is almost unimaginable. Just imagine if you have to walk in a suit or leggings that do not stretch. Can spandex fabric be environmentally friendly? The answer is yes. Hyosung TNC regen spandex is made from industrial waste while maintaining regular spandex function. Producing one ton of regen spandex would in turn have the same environment-friendly impact as planting 889 pine trees that are 30 years old. Consumers wearing clothing made of regen spandex constitute a small step toward building an eco-friendly lifestyle and make a difference in the efforts to save our planet. II. regen Nylon, a revolutionary eco-friendly fiber Nylon is the world’s first synthetic fiber used for making stockings and underwear. Hyosung TNC brings added value to nylon too. The company developed a technology that recycles materials from discarded fishing nets and ropes to produce regen Nylon in 2007, for the first time in the world. The fabric is not only environmentally friendly but also considered high performance. Hyosung regen Aqua-X fabric is used for swim suits or workout outfits for its sweat-absorbing and quick-drying properties as well as cool-touch, soft and skin-friendly quality. Naturally, demand for this fabric increases in summer time. The world’s first environmentally friendly heavy-duty nylon regen Robic is known for its super resistance to tear and abrasion as well as wind and rain. It is also for its lightweight technology, suitable for outdoor gears. If you are up for workouts in summer time or outdoor adventures, this is the fabric that can offer you joy, health and a sense of fulfilment for your contribution to the environment. III. urning marine pollutants into a valuable material, regen Ocean Nylon It may not intuitively be obvious that an eco-friendly fiber helps preservation of the marine ecosystem. Discard fishing nets are one of the main culprits of the destruction of marine ecosystem. Abandoned, lost or otherwise discarded fishing nets destroy the underwater ecosystem, taking the lives of marine organisms that become entangled. It takes up around 600 years for them to break down and in doing so they shed microplastics that are becoming some of the biggest threats to the marine ecosystem. Even if these fishing nets are collected for incineration, this process also could entail the emission of a lot of pollutants into the air. As such, Hyosung TNC has developed regen Ocean Nylon in order for these abandoned fishing nets to be reborn as a valuable eco-material. The company is expanding its facility for depolymerization to increase the production capacity of regen Ocean Nylon. IV. To catch two birds with one stone, regen Polyester Hyosung TNC regen Polyester is an environmentally friendly fiber made of discarded PET bottles. It comes with various features with high performance such as regen Askin of cool touch yarn, regen Cotna of natural cotton-touch polyester yarn, regen Aerolight of lightweight yarn, regen Aerosilver of odor-resistant yarn, regen Xanadu of strong elasticity, and regen Aerocool of sweat-absorption and quick-drying yarn. Pursuing environmental friendliness is itself commendable but producing such eco-friendly yarns with high performance is even more commendable. Hyosung TNC is committed to offering more diverse regen polyester products of eco-friendly nature to help better protect our planet. V. regen Ocean polyester, contributing to healthy ocean ecosystems It is not only discarded fishing nets that destroy the marine ecosystem. Across the world, around a million sea birds and 100,000 marine mammals die[1] each year from plastic waste. In order to protect the ocean wildlife and humanity from plastic debris in the ocean that account for 47% of the ocean waste[2], Hyosung TNC collects PET bottle waste from the ocean and turn them into regen Ocean Polyester fiber. It obtained the Ocean Bound Plastic (OBP) certification for its contribution and has been extensively used in various apparel brand names for their production. You might be surprised to find how easily you will bump into this name on the tag of your clothes. Isn’t it just cool to wear clothes that could have contributed to saving a whale or two in the ocean? The tale of two cities, regen Jeju and regen Seoul project initiative designed to recycle waste in the two cities If you want to know more about Hyosung TNC’s eco-friendly fiber products? Look no further than Seoul and Jeju. Firstly, Jeju is an island of three UNESCO heritage sites and known for breathtaking beauty. Hyosung TNC has launched a joint project titled ‘regen Jeju, Restoration to be Reborn’ alongside Jeju local government and the Ministry of Environment in 2020. Under this initiative, discarded PET bottles in Jeju Island are collected to be reborn as regen Jeju polyester fiber, which then has been used by the global outdoor brand North Face for its products. Building on its success story in Jeju, Hyosung TNC embarked on ‘regen Seoul’ project in 2021 by joining hands with Seoul Metropolitan Government to create an eco-friendly regen Seoul yarn. Going forward, this initiative is to be expanded under ‘regen Korea’ project to use plastic waste in Korea for another eco-friendly fiber. Whether it is on land or in ocean, collecting waste and turning them into eco-friendly yarns is not an easy feat. It requires unwavering efforts in research and development as well as investment and energy to produce a high quality performance yarn that is eco-friendly. That said, it is worth doing it if it means we can contribute to the value of sustainability and environmental friendliness that will be critical for the life of our future generations. Since as early as 2007 when not many paid attention to the environmental issue, Hyosung TNC has put strenuous efforts to research and develop technologies to protect our environment. The company is to continue on its endeavor to produce eco-friendly fibers for the sake of our future generations. Hyosung TNC’s regen brands as well as RE:GEN(Reply to Every Generation's Future) that is Hyosung Group’s ESG initiative are all about responding to the call of our time for the sake of our future generations. If we put extra attention to things taken for granted for a long time, our future should be filled with hope. Hyosung TNC is ready to put more emphasis on environment and our future generations than we do for immediate profits and management outcome. In doing so, we at Hyosung believe we can bring in a future where humanity as a whole can live happier and longer on our planet Earth. To this end, Hyosung is to continue to pursue collaborations and joint projects for the sake of sustainability and environment. [1] Source: UNEP [2] Source: Ocean Conservancy, a US based NGO committed to a healthy ocean and the wildlife

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Innovue - A New Vision Towards Innovation for Hyosung TNS

A mere 20 years ago, few could have imagined that small mobile phones would enable internet browsing akin to computers, facilitate video calls, and even allow for viewing such diverse contents. Video conferencing and conference calls were reserved only for important business, online banking was scarce, and telebanking remained quite unreliable. However, we can now perform all of these aforementioned activities with smartphones; devices that receive an array of new and diverse application-based services every day. Working from home, the collective wealth of human knowledge in our pockets, and improved banking services are just some of the conveniences made possible by steady advances in technology. This trailblazing spirit, forging a path into the unexplored, epitomizes the essence of Hyosung TNS. Just as smartphones revolutionized our lives, Hyosung TNS tirelessly endeavors to transform our tomorrow, making it even more extraordinary and convenient. Hyosung TNS - Revolutionizing Today and Tomorrow When people think of bank branches, they typically envision customers pulling numbered tickets and waiting in line for service while bank employees tend to various transactions and ATM machines stand idle in the corner. In the past, ATMs only permitted simple cash withdrawals, but with advancements in technology, they now enable simultaneous withdrawals and deposits, account transfers, bill payments, and even card issuance, passbook updates, and loan consultations - all tasks previously exclusive to bank employees. The advent of these multifaceted ATMs has heightened satisfaction levels for both customers and banks. Customers can conduct their banking business without being constrained by operating hours or long wait times. Banks can allocate time to each customer who visits the branch, moving away from simple and repetitive tasks. This provides more opportunities to introduce and sell profitable and customized products, increasing customer trust and loyalty to attract more dedicated patrons. For instance, the Digital KioskTM supports over 90% of a bank branch's primary business, while the Digital DeskTM enables greater banking services, such as account opening and savings consultations, through video teller technology. These technologies serve as important milestones for the future of self-service banking technology. Hyosung TNS' retail business follows a similar trajectory in advancement. The various retail solutions developed and supplied by Hyosung TNS, particularly robot cafes and unmanned refrigerators, drive innovation in the retail industry. Unmanned retail solutions applied to general stores provide customers with excellent retail shopping experiences and store owners with greater operational efficiency. In addition to this, Hyosung is also working on new payment services that will lead the industry and further enhance convenience. As a result of continually developing and refining new payment services and other technologies, Hyosung TNS has introduced a new brand identity to serve as a comprehensive platform for the promotion of further growth and its business evolution. Innovue - Hyosung TNS' New Brand Identity for Greater Innovations Hyosung TNS, the future technology and IT innovation unit of the Hyosung Group, has initiated a brand revision project to take a quantum leap forward as a global brand. This has led to their recent announcement of a new brand identity, Innovue, which expands their existing business area, previously limited to ATM manufacturing, to a 'global IT company'. The name Innovue, a combination of 'innovation' and 'vision', represents their aspiration to enhance the everyday interactions of all people by connecting the physical reality and the virtual world. Under this new brand, anyone can become a customer. The goal of the innovation that Hyosung Innovue aims to achieve is to provide better experiences for all consumers. To this end, Hyosung TNS avoids complacency and continually researches and develops its services with the goal of offering new experiences. Hyosung Innovue aspires to be a human experience maker, constantly considering what kind of interaction their technology and solutions must produce to act as the connection between people, finance, retail, and other platforms. Walking Alongside Hyosung Innovue, Innovation for You Hyosung Innovue aims to provide customer-oriented innovation, starting from within Hyosung TNS. Hyosung TNS believes that its employees' efforts to develop better technology and services for their customers are at the heart of what makes an innovative experience. As a result, since innovative customer services originate from Hyosung TNS' internal employees' deliberations, all organization members are considered Human Experience Makers. All members who contribute to creating Hyosung Innovue become ‘makers’, striving towards a common goal and vision of becoming a Global Human Experience Maker. Furthermore, Hyosung TNS is developing and implementing the HExA (Human Experience Accelerator) program to encourage self-directed innovation in employees and to promote changes in KPI and reward systems which further emphasize a new beginning for Hyosung Innovue. To achieve their mission of creating an exceptional experience and providing value in everyday interactions, Hyosung TNS will work to develop a positive and interactive culture among leaders and members to increase awareness of these new value systems through programs such as the Junior Board (HExA Agent), Reverse Mentoring Program (HExA Reverse Mentoring), Leadership Program (HExA Leadership), and Employee Learning Program (HExA Learner). Hyosung TNS, having already demonstrated tangible success in the global market, continues to flourish. In particular, the company's primary focus on ATMs has led to an impressive achievement of securing the third-highest market share worldwide. Yet, Hyosung TNS does not rest on its laurels, persistently striving to deliver an innovative customer experience and relentlessly pursuing the unattained technologies of tomorrow and beyond. The self-driven innovation and embrace of change displayed by every member of the Hyosung TNS team underscores the mutual growth of both the individual and the organization. By crafting a blueprint for innovation alongside its employees, Hyosung TNS is able to provide customers with groundbreaking experiences and serve as a partner for innovation and growth to an international clientele. The future of Hyosung TNS walks hand in hand with the evolution and innovation of its members, customers, and client companies. The company is committed to redoubling its efforts as Hyosung Innovue to emerge as a leading IT enterprise in the global market.

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Collaboration of Hyosung Advanced Materials and KANGHYUK

More than any other company, Hyosung is committed to environmental preservation and strives to develop and commercialize various eco-friendly materials. Hyosung Advanced Materials produces industrial materials for various applications, making our lives more comfortable and safer with optimal advanced materials. Hyosung Advanced Materials is proud to produce tire reinforcement materials such as tirecords, steel cords, bead wire, and global-quality airbag fabrics. It also supplies aramid and carbon fiber, as well as industrial polyester, nylon, and carpet yarns to global and domestic customers, boasting high market shares. Hyosung Group, including Hyosung Advanced Materials, has always been interested in environmental fashion and fiber trends through upcycling. Through this interest, they came across the eco-friendly upcycling fashion brand 'KANGHYUK.' The collaboration between Hyosung and KANGHYUK brings about a synergistic effect in transforming Hyosung Advanced Materials' airbags into fashionable clothing. Creating Fashion from Airbags with KANGHYUK There is a designer who was inspired by the sight of someone picking up airbags that can no longer be used from a scrapyard, while preparing a graduation project. The designer saw the possibility of an airbag, which had once been thrown away after saving a life, being recollected and given new life as material for clothing. This is the environmentally conscious upcycling fashion brand, KANGHYUK, which creates trendy and fashionable clothes that have become synonymous with today's fashion. The brand was launched by Kanghyuk Choi, a graduate of the Royal College of Art in the UK, and is currently being operated with his fellow graduate, Sanglak Shon. KANGHYUK is known for creating clothes with airbags disassembled by hand and using the original pattern and details of the airbag's logo, barcode, holes and stitches to preserve the unique personality of each airbag. This environmentally friendly upcycling fashion brand suggests the future of sustainable fashion by utilizing the otherwise one-time use airbag fabrics. A special encounter between Hyosung Advanced Materials and KANGHYUK through airbags What material constitutes the core of KANGHYUK's artwork? The airbag! The primary reason Hyosung Advanced Materials can be the global leader in airbag manufacturing lies in its unparalleled technical prowess, which underpins its exceptional and reliable quality. Airbags must exhibit a paradoxical characteristic of 'external softness, internal strength,’ instantaneously inflating when filled with gas. The airbag fabric demands construction from high-strength yarn that is soft yet durable, able to withstand sudden expansion due to its high-elongation properties, resist momentary high temperatures produced by propellant ignition, and remain preserved for extended periods within a vehicle, demonstrating resistance to fluctuations in temperature and humidity. Only materials that pass such exacting standards can be utilized in airbag production. Hyosung Advanced Materials is the first domestic and global company to develop and sell Nylon 66 yarn and polyester yarn for airbags, boasting the highest quality and meeting all the criteria above. It is also capable of vertically manufacturing both nylon and polyester airbags. In 2011, it acquired GST (Global Safety Textiles), the world's largest airbag maker, enabling the establishment of a vertical supply chain of airbag yarn, fabric and sewing through GST. As such, Hyosung Advanced Materials firmly retains its position as the world's foremost purveyor of airbag fabrics, covering the majority of the airbag production value chain from the foundational yarn to the OPW that forms the shape of the bag and also the airbag cushion created by sewing the fabric. A special encounter between Hyosung Advanced Materials and KANGHYUK through airbags In an interview, Kanghyuk revealed that he faced numerous trials and errors when he first attempted to create clothing using airbags. Acquiring airbag materials was comparatively more straightforward while studying in the United Kingdom; however, it proved challenging in Korea, where he began his formal fashion endeavors. Kanghyuk's brand struggled due to inconsistent airbag fabric thickness, excessively contaminated fabric, and other non-reusable airbag materials, leading him to seek assistance from Hyosung. Chairman Cho Hyun-Joon of the Hyosung Group first recognized KANGHYUK's potential and decided to extend substantial support beyond merely providing sample materials. Chairman Cho has always been deeply interested in eco-friendly fashion and textile trends. Hyosung Group, known for its eco-friendly initiatives, decided to provide a large quantity of airbag fabric to the fashion brand KANGHYUK, which they had been keeping a close eye on. Hyosung Advanced Materials produces Hyosung's airbag fabric. This vertically integrated company leads the airbag manufacturing industry and is solely responsible for the entire airbag value chain, including yarn, fabric, coating, and cushion. This enabled the company to supply airbag fabrics to the fashion brand KANGHYUK. Hyosung Advanced Materials provided enough airbag fabrics—made from products that did not meet dimension specifications or were otherwise unsellable—to produce approximately 700 jackets. In May 2021, KANGHYUK debuted its eco-friendly apparel, including ski-inspired jackets and pants crafted from Hyosung Advanced Materials' airbags. This extraordinary, environmentally conscious clothing line also aligns with Hyosung Advanced Materials' aim of developing new materials to enhance safety and comfort in people's lives. The collaboration between the brand KANGHYUK and Hyosung Advanced Materials, resulting in the transformation of airbag fabrics into a unique and delightful fashion, means the beginning of the infinite potential of various materials developed by Hyosung Advanced Materials to provide safety, comfort and a more convenient lifestyle for people. A Remarkable Union of Hyosung Advanced Materials and KANGHYUK through Airbags The connection between Hyosung Advanced Materials and KANGHYUK extends beyond fashion apparel; the artist has also showcased sculptural art pieces using eco-friendly seatbelt materials and carbon fiber frames provided by Hyosung Advanced Materials. Incorporating the distinctive characteristics of the industrial materials into his artworks, KANGHYUK artistically reinterpreted them, earning acclaim for presenting a fresh and eco-conscious perspective. Through collaboration with fashion brands, Hyosung Advanced Materials has laid the foundation for innovation within the fashion industry and created opportunities for adding new value to used industrial materials. Airbags and seatbelt fabrics, designed by Hyosung Advanced Materials to protect passengers, are continuing to be reborn as innovative art pieces. Utilizing lightweight yet high-strength carbon fiber, the artist overcame physical challenges to create visually captivating sculptural works, showcasing the potential for added value in Hyosung-produced materials. When the intricate details of an airbag - from the placement of holes and stitches to the logo and barcode - are transformed into clothing, designer KANGHYUK claims the fabric itself seems to come alive, conveying a sense of protection. The metamorphosis of life-saving airbags into fashionable jackets exemplifies the boundless possibilities of upcycling. It is time to look beyond the simple recycling of paper cups and plastic bottles and view upcycling with a fresh perspective, as it contributes to building a more diverse and sustainable society. Hyosung eagerly anticipates further collaborations, similar to the successful partnership wherein eco-friendly airbag materials designed to save lives and protect the environment were given new life in the world of fashion. Hyosung is committed to actively exploring and supporting opportunities that create a virtuous cycle, enabling its sustainable and eco-friendly materials to be reborn in fashion, shape new consumer lifestyles, and protect the planet for future generations.

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RE:GEN, Reply to Every Generation’s Future

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

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The meaningful transformation of waste fishing nets, regen Ocean Nylon

“Green marketing, ESG marketing, a good consumption that incorporates environment-friendly aspects, meaning-out consumption”. The above buzzwords are always included in conversations about marketing and consumption trends today. As consumers are more directly experiencing the detrimental effects of climate change, their awareness of and interest in environmental issues have increased. The MZ generation has risen as the main active consumer segment, pursuing an environment-friendly lifestyle and prioritizing consumption habits or activities that minimize the footprint on earth. A growing number of people, including the next generation who believe in the importance of sustainable value consumption for the planet, are bringing about change, leading companies to assume more social and ethical responsibilities. In line with the trend of pursuing value consumption, companies are pursuing ESG management for the sake of the next generation and the environment, while also making substantial investments when it comes to research and development for sustainable growth engines. Also, an increasing number of people are taking small conscious steps in their daily lives, such as drinking from tumblers, using reusable mugs instead of disposable paper cups, and being less wasteful with consumables, such as food. These individual efforts and small gestures in practice are aggregating into a social trend, with companies also implementing sustainable management. What could be another example of this trend of behaving with a more environmentally conscious mindset? Clothing is one example. We wear it every day and it is indispensable in our lives. An increasing number of consumers are checking to make sure the fabrics used in articles of clothing are environment-friendly before purchasing them. How and where can we purchase clothing made from environment-friendly fabrics so as to contribute in a small way to environmental protection? We at Hyosung TNC can teach you how it’s possible. regen Ocean Nylon, the rebirth of waste fishing nets Waste fishing nets that threaten the marine ecosystem are recycled and made into environment-friendly fiber. In 2007, Hyosung became the world’s first company to succeed in commercializing the technology for making environment-friendly fiber from fishing nets that otherwise would have added to the destruction of the marine ecosystem. Back in 2007, environmental issues were not a top priority in people's minds but Hyosung was already at the forefront of developing environment-friendly products for the future generation. This is how Hyosung successfully launched the regen Ocean Nylon in the global market. Today the fashion industry has emerged as a strong advocate of the environment, and Hyosung has become a company celebrated by the industry for its environment-friendly products. Global fashion brands have taken heed of the growing consumer interest in ‘meaning-out consumption’ and the environment, and in response, they have announced plans to use eco-materials, including recycled materials. In the future, more apparel brands will switch to environment-friendly materials, with the recycle markets and upcycle markets both forecasted to expand. The pro-environmental shift gaining traction in the fashion industry is about to go mainstream in full scale. As an all-around materials company, including textiles, that makes the yarns essential for producing environment-friendly clothing, Hyosung TNC is dedicated to creating high-value products needed in our daily lives using recycled resources. regen Ocean Nylon is a prime example of this dedication. How great is it that by just using products made with environment-friendly materials that convey Hyosung’s genuine commitment to the environment in our daily lives, we have a role to play in the global campaign to save the earth? How is regen Ocean Nylon produced? In 2007, Hyosung TNC became the first company in the world to commercialize high-quality nylon made from discarded fishing nets. The fact that it is an environment-friendly yarn is impressive enough, but the quality of regen Ocean Nylon is also outstanding. Just how do waste fishing nets become Hyosung’s recycled nylon of the highest quality? Recycled nylon is made by flattening out the collected waste fishing net, cutting them into little pieces, washing them thoroughly to remove any impurities, and then restoring them into recycled nylon pieces. To set up a stable process for recycling this resource in South Korea, Hyosung TNC entered into a business partnership with Busan City and NETSPA and is presently producing regen Ocean Nylon by recycling discarded fishing nets. Busan has collaborated with local governments to establish a system for sorting out reusable fishing nets. While NETSPA is tasked with shredding and washing the sorted fishing nets, Hyosung takes over the highly sensitive and difficult process of depolymerization to produce the regen Ocean Nylon. The process of producing regen Ocean Nylon starts with collecting discarded fishing nets and includes several different impurity-removal steps, and thus is a costly and laborious endeavor. But at the end of the day, it contributes to reducing carbon emissions and preventing ocean pollution. The manufacturing process also lowers carbon dioxide emissions since it reuses resources, produces a high-value product through virtuous recycling, and has a positive footprint on the environment. Despite the complex business process and difficult preprocessing steps, regen Ocean Nylon was conceived owing to Hyosung’s determination and relentless efforts to bringing an environment-friendly nylon to the market. Exemplary definition of virtuous recycling: a culprit of ocean pollution is now being used to clean up the ocean. If you want to reduce ocean trash and protect the marine ecosystem, remember regen Ocean Nylon, the high-quality recycled nylon brand from Hyosung. Wearing clothes made from eco-friendly recycled nylon that substitutes traditional nylon can be your first step for reducing carbon emissions. Recycled nylon is more effective in protecting the environment because 1 kg of recycled nylon fiber can reduce 6.7 kg of CO2 which is well-known as a major greenhouse gas. However, Hyosung will not settle for just being a producer of recycled nylon. It is taking further steps by implementing and executing measures designed to protect the environment. It not only sponsors ocean cleanup activities of ocean conservation groups like ReDi and Ocean Care, but also produces lift bags, buoys, and collection nets made with Hyosung’s ocean-friendly recycled yarn (while also providing customer support). Hyosung and ReDi jointly held a plogging (a portmanteau of "plockupp" in Swedish meaning "pick up the grains" and "jogging" which blend to denote the act of picking up trash while jogging) event on the banks of the Hangang River, as part of Hyosung’s Sevit ESG Color Festival's environmental cleanup program. This is just one example of how Hyosung is venturing beyond just producing recycled nylon and actively supporting various ocean cleanup activities. As a producer of recycled environment-friendly fibers, the company is at the vanguard of the environmental movement. At the same time, Hyosung is also spreading the culture of green diving through environment conservation groups, to actively support the ocean cleanup efforts nationwide. These efforts show Hyosung’s devotion to the mission of environmental protection. Hyosung's environmental activities do not end here because the company announced that it is set to sponsor apparel made with OBP-certified recycled yarn at the International Marine Debris Conference, further showing the company's commitment to resolving marine environmental issues. This is why we are more excited about the milestones that will be set in the coming years by Hyosung in the arena of marine environmental protection. Through the process of developing and manufacturing recycled nylon, Hyosung is protecting the environment, while also exploring diverse approaches to making the oceans a lot cleaner for the next generation. Plastic and marine pollution are serious issues that are not far removed from us. Insofar as Hyosung is exerting voluntary efforts to safeguard the environment for our children’s future through continuous research and investments, shouldn’t everyone play a small role in our daily lives for the environment? To make sure the future generation will be able to live on a cleaner planet that does not get more polluted, Hyosung will relentlessly pursue its sustainable development of materials, with the aim of developing and researching materials for the next generation to create a sustainable future for them. In addition to sustainable material development, Hyosung, through its ESG brand RE:GEN, intends to earnestly fulfill its responsibilities as a company for the sake of nature, for the planet, and for the future of everyone inhabiting it. It is up to us to create a future where people, Earth, and all living organisms can coexist and all the possibilities on Earth will bear fruit only if we act together for the common good. To endow the future of the world we dream about to the next generation, we at Hyosung will stay committed to its promises and fulfill them.

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Would You Care to Walk Down a Red Carpet to Find Out Hidden Stories Behind the Glamour?

The red carpet symbolizes colorful events where celebrities give photographers opportunities to take their picture on the way into an awards ceremony. Red color used to only belong to members of the aristocracy in Europe where the color embodied authority and honor. Originated from European monarchs whose palaces always had red carpets, the idiom “roll out the red carpet” means to welcome someone with special treatment. It is now used for important events including awards ceremonies. But carpets are used in other places. It can be used in offices, lobbies of buildings, entrances of houses, hotels, exhibitions, museums and the interior of automobiles, and many other places. The carpets we see in everyday life are the result of technology and efforts put forth for a long time. Throughout history, carpets have evolved into a more sustainable and eco-friendlier version. In 1983, Hyosung Advanced Materials began developing and manufacturing carpets, which helped it secure the largest share of the domestic carpet market. From carpet yarns to finished products Only Hyosung Advanced Materials can manufacture carpets from yarns to finished products in Korea. Every carpet product is made of the Hyosung’s propriety BCF (Bulk Continuous Filament) yarn. This filament yarn has high degree of consistency and tensile strength, and is manufactured to give more volume. Compared to wool or acrylic filament yarns, it does not tend to slip or snag as much. As a result, it is extensively used in automobile and industrial carpets. Moreover, it comes in clearer and more distinctive colors for a better aesthetic appearance. A carpet’s quality is largely determined by the quality of its yarns. Consequently, it is important to be able to produce a lighter and stronger yarn, such as the BCF yarn made by Hyosung. Car mats on the cabin floors of a car cut down road noise significantly Car mats often used for luxury vehicles use Hyosung Advanced Materials’ BCF yarn. There are two types of car mats: automobile floor mats and supplement mats. The floor mats are regarded as one of the key parts of an automobile as they are manufactured to fit the structure of the steel body of a car. They are excellent in soundproofing to cut down road noise while driving. Supplement mats that are laid over the top of the floor mats are designed to protect the vehicle’s floor from dirt or humidity as well as road noise entering the inside of the car. Hyosung’s car mats are processed by strand and strand and thus they do not slip or snag. The BCF yarn also comes with soundproofing functionality to cut down on the noise not only from the road but also from engine and the tremor you feel as you drive. It can be easily cleaned. Hyosung’s car mats also come in the best quality in adequate elasticity to make it even more appealing to various global automobile makers who are increasingly concerned with lightweight. Hyosung Advanced Materials has also developed a bio-pet BCF yarn to produce the world’s first PET car mats. The company has been working to further expand PET car mat market. With the growing interest in ESG in businesses, many car names are turning their eyes to sustainable ways of management. As such, demand for car mats made of discarded fishing nets is growing. Hyosung has also been working on developing eco-friendly yarns that could contribute to a recycling economy where discarded materials such as discarded fishing nets, recycled polyester chips, waste from chemical processing including polyester chip recycling. Hyosung’s eco-friendly BCF yarn made car mats have in turn contributed to building a more sustainable automobile market including e-Vehicles and hydrogen vehicles. Industrial carpets on durability and technology Industrial carpets are used in hotels, wedding venues, and office buildings and when it comes to the Korean Industrial carpet market Hyosung’s Swan Carpet is the number one player. Swan Carpet is a proprietary technology of Hyosung Advanced Materials and made of PCF yarns which boast easier maintenance compared to its natural yarns as well as excellent durability and wear resistance. It has acquired the Korean Environmental Industry and Technology Institute accreditation’s eco-label certification and the US Carpet & Rug Institute’s Green Label Plus accreditation. With its unparalleled quality, it has been leading the Industrial carpet market. Hyosung is the first Korean company to develop the hollow fiber of rectangular cross-section that is known for excellent wear and fouling resistance. As such, it has been continuously working on developing new products. Industrial carpets are composed of tile and roll carpets. Tile carpets come in rectangular tile shapes so customers can easily pick and choose the exact size and number of the product. They are relatively thin so fit for office environments. Roll carpets come in rolls and thus you can go as large as you want and often are used for settings where you need a little of volume and weight for your carpets. Roll carpets thus are often used for hotels, museums and exhibitions. Hyosung, leading the sustainable carpet market Hyosung Advanced Materials is not to be complacent but to continue research and develop sustainable carpet products. It has been working on developing a 100% recyclable carpet on PET bottles and recycled PET. With its Sustainability Steering Committee, it has been sharing information related to its greenhouse gas emissions in a bid to better respond to climate change and build a sustainable consumption and production mechanism. In doing so, Hyosung believes that companies will only continue to improve their manufacturing processes while value-driven consumers will be able to make a better choice. With its advanced technologies, Hyosung is to continue developing sustainable yarns on discarded materials which will help manufacturers to produce products on those sustainable yarns. Then, consumers will have more options when it comes to their value-driven consumption. By creating such a virtuous cycle, Hyosung believes that we will be one step closer to a truly sustainable future.

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Green hydrogen, bringing closer a green eco-friendly future

On November 2nd of last year, a remarkable ceremony was held, taking us a step closer to an eco-friendly green future. It was Hydrogen Day. The Ministry of Trade, Industry and Energy, along with the Hydrogen Fusion Alliance (H2KOREA), designated November 2nd as South Korea's Hydrogen Day, symbolized by the elemental symbol H2, and hosted the first ceremony last year. Jeong Sang-yeol, head of Hyosung Heavy Industries, received a commendation from the Minister of Trade, Industry and Energy for his contributions to developing the hydrogen industry, which include introducing core technology from abroad and expanding hydrogen refueling infrastructure. As concern for the environment rises and various external factors contribute to uncertainties in the energy supply, a swift transition from a carbon-based-economy to a hydrogen economy is underway. As a result, hydrogen, the key to sustainable alternative energy, is gaining attention, particularly blue and green hydrogen, which excludes carbon dioxide-emitting grey/brown hydrogen. Green hydrogen is produced by electrolyzing water using renewable energy-generated electricity. Although its production cost is currently higher than other forms of hydrogen, the long-term trend reveals a decrease in green hydrogen production costs, mitigating its drawbacks. Conversely, as regulations tighten in accordance with global climate policies, the limitations of carbon dioxide-emitting grey, brown, and blue hydrogen become increasingly apparent. Green hydrogen appears to be the most promising energy source for the future. Hydrogen color deferred by the manufacturing process Hydrogen is getting attention because it is a clean fuel that doesn’t emit carbon dioxide when it burns and has endless applications, including hydrogen vehicles and fuel cells. Hydrogen is a colorless, odorless, tasteless, lightweight gas, constituting 75% of the universe and a plentiful resource from water. Since hydrogen combustion produces water vapor, there is no concern about depletion. Hydrogen does not exist as a single element (element symbol H), but in compound forms such as water (H2O). In order to utilize hydrogen as an energy source, it must be separated from other compounds through a preliminary process. There are three primary methods for obtaining hydrogen: 'byproduct hydrogen' produced as a byproduct of petrochemical processes or steel manufacturing, 'reformed hydrogen' generated by decomposing natural gas at high temperatures and pressures, and 'electrolyzed hydrogen' produced by the electrolysis of water. Among the hydrogen produced in this manner, byproduct hydrogen and reformed hydrogen are categorized as grey hydrogen. Byproduct hydrogen has limitations in increasing production since it is generated as a byproduct in petrochemical and steel plants, while reformed hydrogen allows for mass production but produces a significant amount of carbon dioxide as a byproduct. Blue hydrogen addresses these limitations. Blue hydrogen shares the same production method as grey hydrogen, but carbon dioxide generated during the process is captured, utilized, and stored. The CCUS technology is employed to remove it, leading to its classification as clean hydrogen. The captured carbon dioxide is stored or used in cement, semiconductor gases, tire materials, and other applications, earning blue hydrogen recognition as a viable renewable energy alternative. Green Hydrogen, the real eco-friendly hydrogen with no carbon emissions Hydrogen exists that does not emit carbon dioxide during its production process. This is carbon-neutral, truly eco-friendly hydrogen, known as green hydrogen. Green hydrogen is produced through water electrolysis, using electricity generated from renewable energy sources, such as solar and wind power, to separate hydrogen and oxygen. Not only does the water electrolysis method have the advantage of zero carbon emissions, but it also addresses the intermittency of renewable energy sources that rely on variable weather conditions by converting and storing electricity into hydrogen as an energy carrier, thus mitigating rapid uncertainties in the power grid. Hyosung, pioneering the new age of green hydrogen As a leading company in renewable energy, Hyosung is dedicated to producing green hydrogen. Hyosung was the first company in South Korea to develop a 750 kW wind turbine and is trying to get KS certification for 10 MW offshore wind turbine. Hyosung also has a leading position in the domestic energy storage system (ESS) market, essential of stabilizing renewable energy output. Leveraging its extensive know-how and technological prowess in renewable energy, Hyosung aims to expedite the energy transition towards green hydrogen and usher in a new era of hydrogen-based solutions. Hyosung plans to invest KRW 1 trillion to build an offshore wind power assembly plant in the Jeonnam by 2030, thereby establishing a green hydrogen production system utilizing renewable energy. Having signed an agreement with Jeollanam-do on fostering the green hydrogen industry, Hyosung aims to construction of the country's largest-scale 10 MW-class electrolysis facility this year, with a goal to increase annual green hydrogen production capacity to 200,000 tons. Additionally, the company plans to lead the dawn of the green hydrogen era by building two 10,000-ton-per-year liquefied hydrogen plants for storage and utilization and installing liquefied hydrogen refueling stations in nine key areas of Jeollanam-do. Moreover, Hyosung Heavy Industries has been supplying gaseous hydrogen refueling systems in response to the growing demand for hydrogen fuel cell vehicles and commercial hydrogen vehicles based on the hydrogen economy. Through a technological partnership with Linde, the only company globally with a commercialized liquefied hydrogen refueling station model, Hyosung is planning and promoting the construction of domestic liquefied hydrogen refueling stations. In addition to developing green hydrogen fuel, the company also plans to expand hydrogen refueling stations and develop supply technologies to expedite commercialization of hydrogen fuel. As the world transitions to a hydrogen economy, green hydrogen has been gaining attention as a clean energy source as it emits no carbon dioxide and relies on renewable energy. Despite its many benefits, the high cost of green hydrogen makes it unsuitable as an alternative energy source. According to a recent analysis by London-based firm ICIS, as of November 9th last year, the price of green hydrogen under renewable energy power purchase agreements (PPAs) remained stable at £3.99, while the cost of grey hydrogen increased approximately 20% to £4.16 per kilogram. Due to the concerns over environmental and climate crises and factors like the Russian-Ukrainian war, gray hydrogen prices are always volatile and have uncertainties in the energy supply. As global climate policies tighten and carbon-emitting energy becomes more limited, green hydrogen is expected to establish itself as stable, as a carbon-neutral raw material. Hyosung, which has the best expertise in renewable energy domestically, has the technological capabilities and infrastructure to accelerate the transition to green hydrogen that utilizes renewable energy. With advanced expertise in renewable energy and green hydrogen, Hyosung is actively contributing to the widespread adoption of green hydrogen through proactive investment and R&D. The realization of an eco-friendly green future with green hydrogen is becoming an achievable reality, and Hyosung is leading the way to a greener future.

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Hyosung’s Youth Marketing Targets Generation Z

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

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Create an eco-friendly world with Hyosung’s colors: Carbon fibers and artists Collaboration

Can you believe that you can pull a car with a thread? You can, with a few strands of carbon fiber, which is stronger but lighter than steel. Carbon fiber is emerging as the new material of dreams and showing limitless possibilities. Hyosung’s TANSOME® is the first high-performance carbon fiber developed in South Korea with endless potential. It can be transformed into various materials with infinite possibilities including musical instruments. Let’s find out if the music played with instruments made of carbon fiber can cheer us up amid the gradual recovery post-COVID-19. Limitless possibilities with TANSOME® It is not safe to say that strong things are heavier anymore because of Hyosung’s carbon fiber, a thread stronger than steel. It is a special material with over 92 percent of carbon, ten times stronger and seven times more elastic but 4 times lighter than steel. What can you do with a thread stronger but lighter than steel? You can make spaceship lighter, for which reducing weight is critical, and make bullet-proof vest and vehicle lighter. The hydrogen industry requires a high level of reliability, and carbon fiber plays a critical role. Carbon fiber has limitless potential as it plays a prominent role in storing and transporting the hydrogen, which is the future clean energy for environment. It indeed has limitless possibilities. Thanks to Hyosung, South Korea developed its own carbon fiber, with the brand name TANSOME®. It is the first high-performing carbon fiber brand and works as a core material in the hydrogen industry. In short, TANSOME® is awesome as its name suggests. Music made with TANSOME®, Make Your Color! Concerts are where you can enjoy the endless possibilities of Hyosung’s TANSOME® up close. Hyosung hosted the TANSOME® X Make Your Color concert on January, 6th at the KT&G Sangsangmadang in the youthful Hongdae region as part of Hyosung’s ESG campaign. Famous rock bands of Korea, NOBRAIN and Lazybone performed with electric guitars and drumsticks made of carbon fiber. They performed “Make your color,” Hyosung’s ESG theme song. It was a great opportunity to experience the versatility of TANSOME®. It started with a collaboration project between Hyosung’s TANSOME® and the two representative punk rock bands of Korea, NOBRAIN and Lazybone. The two bands were selected based on their interest in living a sustainable lifestyle, and their positive attitude which has gained fandom across all generations. Previous to the concert, the two bands pre-recorded the song “Make Your Color,” and the recording session in the form of a mini live gig at the recording studio was made into music videos to match the song. A close interview session with all the band members revealed their passion for Hyosung’s advanced materials technology while they expressed gratitude to Hyosung for making sustainable and strong instruments out of carbon fiber. The two bands shared Hyosung’s vision behind its ESG brand, RE:GEN, ‘Reply to Every Generation’s Future’, and the message behind “Make Your Color” which invited them to participate in this project. “Make Your Color” is Hyosung’s ESG theme song, which reflects Hyosung’s vision to reply to every generation’s future through its inherent technology DNA and innovation, that will enable a sustainable lifestyle throughout generations. According to the lyrics, Hyosung invites everyone to paint the gray city in vibrant colors, to achieve a sustainable lifestyle in each their own colors and manner. Therefore, to Hyosung, the color of ESG is not green but multiple colors. Hyosung aims to continue to contribute to making people’s future brighter with their own personality, under its slogan “Make Your Color.” There is another secret to the song. It was recorded with guitars and drumsticks made of carbon fiber! The electric guitar and drumsticks NOBRAIN used at the ESG Color Festival at Sevit were made of carbon fiber. It made the guitar much lighter, so the guitar player could carry on more comfortably without any shoulder pain, and move around to the music with ease. The carbon fiber also made it possible to implement a unique design which is impossible to render with wood. It is all the more meaningful in that the theme song “Make Your Color” was performed with TANSOME®. Another high-technology regarding TANSOME®, collaboration with NFT! There is another way to enjoy TANSOME®, and that is the music source of “Make Your Color.” The music source of the song recorded using carbon fiber instruments was revealed in NFT (Non-fungible Token) form. NFT marks the ownership of digital asset that is verified with blockchain technology and used to indicate the authenticity and ownership of pictures or videos by storing the digital file address in the token. The music source of “Make Your Color,” made out of carbon fiber, was revealed for the first time at the Hyosung’s Sevit ESG Color Festival in October, 2022. Citizens who visited the carbon fiber brand zone were able to get a hold of the music source via airdrop, with special access to the song before its official release at the end of 2022. After the official release, people were able to listen to the song, played with musical instruments made out of carbon fiber at the TANSOME® X Make Your Color concert. NOBRAIN and Lazybone performed passionately, driving the audience of all ages into a wave of excitement. The concert also featured the trendy DJ R2 and DJ ARI. The purchasers of NFT ticket were admitted after the verification. As an invisible code was inserted in the NFT, it could verify the authenticity and prevent unauthorized entrance, working as a digital coded ticket. Participants who purchased a ticket type NFT of the concert were gifted with the brand album kit containing a sturdy TANSOME tumbler, USB music file, a brand album book sharing the story of TANSOME, and a cute rockstar LEGO piece as a souvenir. TANSOME® is of the epitome of carbon fiber in Korea. The brand name combines ‘tanning’, a core high-temperature procedure to produce carbon fiber, with ‘something special.’ Hyosung’s carbon fiber, TANSOME® plays a prominent role in the next generation clean energy, hydrogen, and can also become musical instruments. With its outstanding properties and versatilities, there will be more application for TANSOME in the future, even beyond the music and hydrogen industry.

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Minimizing Harmful Impact on Humans and Nature

Siberian tigers, Asiatic black bears, otters.... These are some of the endangered species that are rarely found in nature. The best way to preserve the natural environment is to leave animals and plants to grow and live freely in the natural environment as is. All creatures except humans are at risk from environmental pollution and global warming, however. Is there a way to ensure coexistence with all living things on Earth? Employees of Hyosung Chemical’s Oksan Factory who care about environmental protection came together to protect endangered species and preserve biodiversity. So they met up at a local zoo. Cheongju Zoo looks after nationally-protected species that cannot survive in their natural habitats. The zoo, designated in 2014 as “the man-made habitat for nationally-protected species” by the Ministry of Environment, is home to a total of endangered 18 species including Asiatic black bears, Japanese cranes and leopard cats. Our employees got actively participated in animal behavior enrichment activities in order to assist the animals in feeding, acting and using their instincts and senses in a natural way. What is animal behavior enrichment? Wild animals use most of their energy and time to search for food, hide from predators and defend their territories. On the other hand, zoo animals have far more free time and extra energy than they do in the wild because they are fed well-balanced meals at the zoo. As a result, some of them get stressed out and display so-called “stereotypical behaviors” including pacing back and forth in the same place, constantly shaking or scratching a certain part of their body. In order to maintain their physical and psychological health, zookeepers provide animal behavior enrichment so that animals can mimic as many wild behaviors as possible in their second home, the zoo. To broaden the animal's range of behavior within the limited space, they hide food in various places and ways, allow the animals to find it, and place different toys for them, enabling them to play, have fun, and exercise. Help nationally protected animals keep their natural habits! Hyosung Chemical employees gathered kudzu vines from around the zoo, and weaved them into a ball. They tossed the ball to Himalayan tahrs so that they would smell the vines, and roll and nibble on it as a way to relieve stress. To treat Endangered Wildlife Class 1 Asiatic black bears with a keen sense of smell, they scraped out the inside of ripe pumpkins and stuffed them with nuts, fruit and vegetables that bears enjoy. Playing with the pumpkins keeps the bears physically active as they pull the treats out of the pumpkins. Hyosung Chemical employees plan to visit the zoo regularly, and get actively involved in animal behavior enrichment to help these animals maintain their natural behaviors. “Green actions” at the factory beyond the zoo Hyosung Chemical’s products reflect their commitment to preserving biodiversity and the environment. The key is polyketone, a type of plastic that consumes carbon monoxide, one of the major air pollutants. Polyketone, the result of long years of research and development by Hyosung Chemical, uses carbon monoxide and olefin as its key ingredients, which are known to be the main factors of global warming. Generally, factories emit greenhouse gases in the process of manufacturing their products, but the production of polyketone reduces greenhouse gas emissions. In contrast to other major materials which emit greenhouse gases in the manufacturing process, Hyosung Chemical’s new material, polyketone creates an opposite consequence, due to company’s commitment to reducing carbon emissions. Hyosung Chemical is taking several actions to increase the quality of life for mankind, protect the ecosystem for peaceful coexistence of humans and nature, and cope with climate change. Eco-friendly plastics for lowering carbon monoxide Let’s learn more about polyketone, a leading eco-friendly material from Hyosung Chemical. Hyosung Chemical became the world’s first producer of polyketone, a new type of engineering plastic in 2013 and the first to commercialize it successfully two years later. Since it is made from carbon monoxide, which is a major air pollutant and olefin (ethylene, propylene), a type of petrochemical material, the more polyketone is produced, the more carbon monoxide and olefin are consumed, making it a smart material that contributes to improving the planet’s environment. Polyketone, the new material developed by Hyosung Chemical alone has lower global warning potential than other engineering plastics. Life cycle assessment (LCA) and objective reviews have found that this special material has CO2-reducing effects. Because of this property, polyketones are widely used in various fields. With the acquisition of FDA certifications for zero harm to the human body and safety, it is currently used as a key material for many household items including food conveyors, wrapping materials for cosmetics and beauty products and baby toys. Due to its superior features including shock, wear and chemical resistance, the scope of its application continues to widen to automobile connectors, electronic and electrical gears, and oil-drilling pipes. Energy-saving smart factory In 2020, Hyosung Chemical launched a smart factory system in 2020 that utilizes real time data on all production-related resources used in all factories, and analyzes the collected data to create an optimal production environment. An optimized operation in 2021 resulted KRW 11.7 billion in cost savings, including a higher yield and energy savings. The activities of Hyosung’s contribute to cost reduction, as well as reducing unnecessary resource use that would negatively impact on the environment, and preserving the environment by saving resources. In 2022, it reduced energy use and carbon emissions through system advancement, proactively responding to climate change. Make factories run on new renewable energy Hyosung Chemical uses steam produced by waste heat generated from burning waste at municipal waste incinerators near its factories to save energy at its factories, and installed photovoltaic power generation facilities within its factories. As a result, the company produced a total of 171,694kWh in 2021, while also planning to introduce more such facilities and gradually increasing the use of new renewable energy as a percentage of total energy use. Energy saving training for employees To raise awareness of the importance of responding to climate change, Hyosung Chemical provides its employees with group training every year for two hours on how to save energy. In order to reduce greenhouse gas emissions, production, process, and technology teams of factories engaged in energy saving are taught how to reduce greenhouse gas emissions in a tangible manner. In addition, the company conducts an internal audit on greenhouse gas emissions once every year. The Environmental Safety Team distributes a self-evaluation sheet to each business division, and notifies areas of improvement and recommendations based on the results of the evaluation so that they are reflected and implemented at worksites. Hyosung Chemical strives to ensure no harm to the environment akin to polyketone. Hyosung Chemical’s efforts to upgrade the quality of life for mankind are not limited to making environmentally friendly products. Above all, it is actively involved in keeping the planet and environment clean by reducing the company’s carbon footprint throughout the entire manufacturing process. The company continues helps nationally-protected species at the zoo return to their natural habitats and live as nature intended. Hyosung Chemical contributes to the coexistence of nature and people in a better future. With Hyosung Chemical, the dream of coexistence comes true slowly but surely.

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Farewell to the Eiffel-Tower-shaped substations!

Landmark of Paris, the Eiffel Tower, will be reborn as a virtual Eiffel Tower 133 years after its construction. This is designed to create a low carbon, cyclical, and regenerated version for sustainable future, resolving the issues of accelerated urbanization, greenhouse gas emissions, and excessive energy consumption. You might find similar shapes around you, those “analog” substations, which are gradually being digitalized. They have a smart digital system to monitor the status of power facilities, collect data, and control various devices. What would happen if electricity became unavailable for just a few seconds in Korea? It is unimaginable. Korea recorded 10,039㎾h of electricity usage per person in 2019, much higher than that of the U.K. (4,431㎾h), Germany (6,107㎾h), France (6,739㎾h), and Japan (7,545㎾h). A high demand calls for ways to increase energy efficiency. Transition into digital substation is valid in terms of cost and environment. That is why Hyosung Heavy Industries, the leader of transmission and substation business at home and abroad, has been focusing on digitalizing the substations and making them eco-friendly. Transition to digital substations to build an intelligent power grid Though substations visibly around us, it is hard to see how important they are. This is where electricity with a higher than 50,000V of voltage from power plants is transformed and transmitted to end users. This is also where transformers and other electric facilities are located. Electricity goes through substations from power plants to end users via long transmission lines. To minimize the power loss while passing through the transmission lines, thicker lines are chosen for lower resistance or transmission voltage is increased. However, thicker lines require bigger substations and utility poles, so it is more economical to increase the transmission voltage and decrease the current at substations. In Korea, it is increased to hundreds of kV (154kV, 345kV, 765kV) or decreased to 22.9V or 220V at the substations before it reaches end users at home and businesses. Substations concentrate or distribute the voltage and control load flow and protect transmission lines and equipment. Hyosung Heavy Industries has provided power equipment including extra-high voltage transformer, circuit breaker, and electric components for more than 50 years. It succeeded in developing the voltage-type extra HVDC for the first time in Korea. This is a core technology for the next-generation power grid as it can improve the transmission efficiency and reliability for long-distance transmission compared to AC. It is also equipped with the world-class technology related to heavy electric machinery, a critical part in industrial energy. Thanks to its know-how, it is recognized as a company with excellent quality and technology in global markets including the US, the Middle East, and Europe. Substations are becoming digitalized in the age of digitalization, which is automatically operated. Connection and disconnection of power can be controlled with the IT system, and real-time monitoring is possible. Previous with analog substations, the health of the equipment had to be checked manually, but digital substations are intelligently operated as they have automated and advanced digital technology for monitoring, controlling, and instrumentation of power equipment. Faults can even be predicted and troubleshot. This is why it is called an “intelligent substation” thanks to its high performance and easy operation. Substations play a prominent role in power supply, working like a person’s heart. Therefore, it is important to manage it in a sophisticated manner. Facilities and equipments in the substation communicate with each other for monitoring, controlling, and protection. In the analog way, there was a limit to the amount of data that can be secured, with electric signals transmitted through copper wires. Also, workers had to take a risk as they had to manually handle the faults. With the digital substation, however, it is possible to transform electric signals into digital signals thanks to fiber cables among substation systems, which enables a faster and more efficient operation. You can identify the health of more complicated and sophisticated systems. Inefficient distribution of power might lead to power shortage or errors in usage instrumentation and bills. With the digital substation, you can check and resolve these issues in a swift manner. The digital substation is an essential part to build an intelligent power grid and digitalize power equipment as it enables a stable and efficient operation of a complicated grid system with various energy sources. This is the reason countries with advanced grid systems focus on digitalizing substations for future power grid. Hyosung Heavy Industries is also committed to creating digital substation under the belief that it will improve the quality of life and prepare for an eco-friendly future. Hyosung Heavy Industries’ core technology opened the door to overseas markets with technology localization Hyosung Heavy Industries has led the power equipment business including transformers and circuit breakers, major devices for power transmission lines. Countries around the globe have been building an intelligent transmission infrastructure with digital substations. In line, Hyosung Heavy Industries’ LPIT and MU with its own technology passed the official certificate test by the IEC. LPIT and MU are core technology to build a digital substation based on IEC 61850-9-2, and international companies have dominated the domestic market so far. With its successful localization, Hyosung offers an alternative to imports, sharpening its competitive edge. Hyosung’s LPIT applies the built-in voltage/current sensor within the GIS module, offering better precision than the existing metal pin-type transformers with less volume and 60% less SF6. With the digital data communication based on MU, it will use less control cables and trays. It will be easier to apply new technology such as predictive diagnostics and asset management system. Also, it reduces the required space by scaling down the control and protection board. It has a great potential in the global market. Hyosung Heavy Industries’ efforts to supply eco-friendly power Hyosung Heavy Industries has also concentrated on developing and providing products with eco-friendly insulating materials. It uses ester oil instead of mineral oil, removing the risk of environmental degradation and securing the safety. It has offered transformers with eco-friendly insulating oil to countries in Europe and the Middle East while continuing its research. Ester oil is from plants or animals, and it has the best viscosity and excellent solvency without any impurities. It works well at a low or high temperature and causes less sludge. Though it is more expensive than mineral oil, it is environmentally friendly as it can be dissolved in nature. Hyosung has also been developing 170kW eco-friendly gas switchgear with CO2 (combined with fluorine nitril) instead of SF6 for internal insulation. It will take the lead in reducing greenhouse gas from the power system by applying it to new substations and replacing dilapidated facilities in Korea. Hyosung Heavy Industries will apply sustainable and eco-friendly technology to various power facilities including switchgears and transformers. With its environmentally friendly cutting edge, it will continue to expand its global market share, starting with Europe. Hyosung has expanded its investment in future technology to prepare against the domestic and global market trend of eco-friendliness and digitalization. Hyosung has continued its efforts to provide the optimal performance and quality in line with the market demand and trend. It has also concentrated on minimizing the environmental impact by developing technologies for the next generation energy including ESS, expansion and supply of hydrogen charging stations. Hyosung is proud to be committed to making people’s lives more convenient and sustainable with smarter digital substations and eco-friendly energy system, replacing the Eiffel Tower-like substations. Hyosung Heavy Industries will continue to progress in the direction of future technology and sustainability.

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Together, for Greater Value - Let’s Do It All Together, Even the Small Things

"Within the company, we utilize tumblers instead of paper cups. Employing tumblers is one of the most effortless methods to enact a zero-waste lifestyle." At Hyosung TNC, paper cups are nowhere to be found. This is due to their ongoing 'Eliminate Disposable Cups in the Workplace' campaign, aimed at reducing single-use items in daily life. In order to encourage participation in this campaign, employees have been provided with funds to purchase personal tumblers, and disposable items such as paper cups in break rooms have been eliminated. Initiated in May 2021, the campaign continues to this day. Approximately 190,000 paper cups were used in Hyosung TNC offices during 2020, which equates to an annual emission of roughly 2 tons of carbon dioxide. The collective efforts of individuals willing to endure minor inconveniences can result in a staggering reduction of 2 tons of carbon dioxide emissions – is that not truly remarkable? We gathered firsthand impressions from three employees actively participating in eco-friendly campaigns at a company that vigorously promotes environmentally conscious workplace culture. Q. What were your initial thoughts upon hearing about the 'Eliminate Disposable Cups in the Workplace' campaign? Employee A(🥰): I was intrigued by the prospect of directly participating in 'ESG activities', which have been a rising issue. Although ESG activities are a global direction, I thought they had little direct relevance to my everyday life. However, through the in-house campaign, I found it fascinating that I could naturally contribute to ESG activities in my daily life and closely experience ESG endeavors. Employee B(🌞): I knew that ESG activities were beneficial for the environment, but I didn't think there would be any direct benefits for me. Protecting the environment inevitably entails some inconvenience for people. But by using a tumbler instead of paper cups, I was able to gain financial benefits. The company could reduce the cost of purchasing disposable cups, and I could receive discounts at cafes by using a tumbler. I thought it was a good campaign since it reduced disposable cup expenses while directly contributing to environmental protection. Q. Were there any concerns among employees when they first heard about the campaign? Employee A(🥰): When I first learned of the company's plans for the campaign, several concerns came to mind. The main reason we had failed to reduce the use of disposable items was the need to accept personal inconveniences. To carry out the campaign, we had to allocate sometime during work to wash cups and prepare mugs for client visits. Although seemingly trivial, changing our daily routines required us to develop a sense of purpose and adjust our mindset for participating in the campaign. Considering the negative impact of disposable items and the environmental benefits of using tumblers and mugs, I eventually decided to practice it. Q. What is the most significant change you've noticed since implementing the 'Eliminate Disposable Cups in the Workplace' campaign? Employee C(🌸): Naturally, the amount of waste from disposable items has decreased considerably. In the past, I used 2-3 paper cups daily, but since the campaign, I've consciously avoided not only paper cups but also other disposable items. I initially thought of it as a small habit-changing campaign, but it seems to have gradually altered my environmental awareness. Q. If your environmental consciousness has changed, do you also practice this outside of work? Employee B(🌞): I use a tumbler when I go to the gym for exercise, and I actively try to use a tumbler when visiting cafes outside of work. Some cafes even offer discounts when using a tumbler. In such cases, I feel proud to contribute to environmental protection while enjoying the added benefit of a coffee discount. Employee C(🌸): Since becoming more aware of disposable items, I realized I use many of them when ordering delivery food. So, when I order food at home, I indicate 'no need for disposable items' in the request section. Washing dishes after eating may be a bit bothersome, but considering the impact these habits have on the environment, I'm happy to practice them willingly. Q. Your participation in the in-house campaign has contributed to reducing annual greenhouse gas emissions by 2 tons. You must be very proud. How do you feel about this achievement? Employee A(🥰): Although it may seem like a small practice, it was even more meaningful that we could easily contribute to preventing environmental destruction just by participating. Before the campaign, I was well aware of the seriousness of environmental destruction through articles and documentaries addressing issues like the Amazon rainforest deforestation and the risk of polar bear extinction. However, I didn't actually practice environmental protection for reasons like lack of awareness or inconvenience. But with the company's active encouragement to use tumblers, a simple action, I was very proud to contribute to reducing greenhouse gas emissions. I also found it rewarding that small practices from my colleagues came together to achieve such significant results. Employee B(🌞): The activity I started for participating in the campaign has now become my habit. I used to find washing tumblers bothersome, and carrying them around inconvenient, sometimes forgetting them, but now I always carry one when I go out. In addition to tumblers, I started using reusable items like hand towels instead of disposable ones. Practicing these habits, I feel like I have become more diligent than before. I am very proud to have recognized the necessity of environmental protection through the in-house campaign and to practice it even outside the company. Q. What other eco-friendly campaigns can be carried out in the workplace? Employee C(🌸): I think implementing a 'Reuse One-sided Paper Campaign' would be beneficial. There is a lot of paper used only once and then discarded in office life, which feels wasteful. Actively encouraging the use of the blank side of printed pages could help protect the environment. Additionally, starting with small actions like unplugging unused power cords or using stairs for short-distance travel within the building could lead everyone to practice them, just like the 'Eliminate Disposable Cups in the Workplace' campaign. In addition to these efforts, Hyosung TNC has expanded the 'regen® Upcycling Campaign' to its business locations nationwide this year. The 'regen® Upcycling Campaign' is a PET bottle collection campaign where employees bring PET bottles, which are then exchanged for goods and bags made from Hyosung TNC's recycled polyester fiber, regen Polyester. Last year, about 9,000 PET bottles were collected, and this year's goal is to collect 15,000. The carbon reduction effect of this campaign is similar to the amount of carbon dioxide absorbed by approximately 70 pine trees in a year. There is a theory called the 'butterfly effect,' which states that a small flap of a butterfly's wings can cause a typhoon on the other side of the earth. Although it is currently a campaign limited to Hyosung TNC employees, their small efforts, when combined, can someday instill a belief in eco-friendliness among all members of every company. As this culture becomes established, wouldn't it lead to all people around the world actively practicing environmental protection? Today, as they dream of an eco-friendly future, Hyosung TNC employees continue to participate in eco-friendly campaigns.

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Hyosung’s Nylon Liner for FCEV

When we think of eco-friendly cars, hydrogen, electric, and hybrid cars come up to one’s mind. Did you know that hydrogen car is a kind of electric car? The official name of hydrogen car is Fuel Cell Electric Vehicle (FCEV). FCEV generates electricity from hydrogen, which runs vehicles. Hydrogen chemically reacts with oxygen at the fuel cell, creating electricity, which is transformed into kinetic energy that runs vehicles. It is different from electric cars as it has a built-in hydrogen tank for storage and fuel cell. The most important part of hydrogen cars is a vessel to safely store highly pressurized hydrogen. What kinds of high-pressure vessels are there? High-pressure storage vessel – the core part of hydrogen cars There are four types of high-pressure containers to store gas such as hydrogen.  Type 1) working pressure: 175-200 bar, for LPG (vehicle, household) or CNG  Type 2) working pressure: 250-300 bar, for CNG  Type 3) working pressure: 300-450 bar, for CNG, ventilator  Type 4) working pressure: 700-800 bar, for hydrogen You can choose a different type of high-pressure vessel based on the features required. Only Type 4 is suitable for storing hydrogen higher than the pressure of 700-bar as it is the most lightweight but most durable which helps to increase the efficiency. Type 1 and Type 2 are relatively cheaper but heavy and vulnerable to corrosion, there is not suitable for cars. Type 3 is lighter than Type 1 and 2, but it cannot withstand the required pressure of hydrogen cars. Type 4 can withstand a much higher pressure but lighter weight than Type 3 thanks to the special liner material. Common liners are steel or aluminum, but Type 4 uses nylon. This is where Hyosung TNC comes in as the manufacturer of the nylon liner. Hyosung TNC’s Nylon liner, what is special about it? What is a liner? The high-pressure container that stores hydrogen needs to be resistant to high pressure to store hydrogen safely, block gas to prevent hydrogen leakage, withstand the drastic temperature differences between charging and discharging, and be lightweight to increase the fuel efficiency. It must meet all these requirements, and the liners determine how much pressure the container can withstand. It is inside the fuel tank and an essential component to store hydrogen and prevent leakage. Conventional high-pressure containers such as Type 1 to 3 use metal liners. They are heavy with a high risk of breakage that cracks when exposed to hydrogen for a long time. You can use HDPE (High Density Polyethylene) for Type 4 at 400-bar levels. However, it cannot withstand the 700-bar required by an FCEV. It also has a low level of gas blocking. Meanwhile, Hyosung developed the nylon liner, first of its kind in Korea. It has low hydrogen absorption and air permeability, eliminating potential brittleness, enabling longer and safer use. Hyosung TNC created the special nylon liner Hyosung’s nylon liner is 70% lighter than metal and 50% lighter than HDPE. Its gas barrier property is also 30% higher than metal and 50% higher than HDPE. It has everything required by FCEV. It also has an optimized impact resistance from -40ºC to 85ºC. The nylon liner is enough to be recognized as an outstanding core component, but there is more to Hyosung’s innovation around hydrogen storage technology. Hyosung also has carbon fiber composite on top of the nylon liner, which further enhances the safety of the high-pressure storage tank. FCEV! Hydrogen Mobility! Hyosung accelerates its efforts for eco-friendliness The nylon liner market has been dominated by international companies, but Hyosung became the first Korean company to develop the nylon liner, laying the foundation for global market expansion. H2 Research, a renowned market research firm specializing in hydrogen market, predicts that the production of global FCEV market is expected to grow in earnest from 10 thousand and record 1.05 million annual productions by 2030. There is an increasing demand for the nylon liner, where you can use Hyosung’s products. If various hydrogen mobility markets including FCEV expand, it means more potential for nylon liners. With its technology, Hyosung aims to contribute to transitioning into an eco-friendly hydrogen society. Hyosung has the largest capacity in terms of hydrogen charging stations. It has created a hydrogen value chain through various efforts including construction of liquefied hydrogen plant and filling stations. It also manufactures carbon fiber, an essential element for fuel tanks for FCEV. With nylon liners, it is transforming into a company specializing in hydrogen, with manufacturing capabilities ranging from production to distribution, storage, and utilization. Considering Hyosung’s commitment to environment, it is expected to play a bigger role in the hydrogen industry. The nylon liner is expected to be combined with Hyosung’s regen Nylon, recycled nylon yarn, to become an eco-friendly nylon liner in the future. Hyosung is making its utmost efforts to live up to the industry expectation. Based on advanced technology, Hyosung has been striving to develop sustainable technology for the next generation and the environment. Hyosung’s endeavor to create better solution and technology for better quality of life continues into the future.

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Active Packaging that Maintains the Freshness of Products

The digitalization of our food purchasing culture is gaining momentum, with the ease and convenience of shopping for groceries using mobile delivery apps. However, food can get spoilt, or its freshness can be compromised during the delivery process. No matter how quickly or how easily food can be delivered, if the food that you ordered after mulling over the choices must be thrown into the wastebasket, you will hesitate the next time you order food delivery. Today, “smart” packaging materials are being developed with which you can package and store foods to prolong their freshness. Hyosung Chemical is one of the most outstanding manufacturers that is adding value and convenience to our eating lifestyles through its world-class nylon films, PET films, and polypropylene (PP) films. Active packaging using “smart” film that ensures the freshness and safety of groceries The big issue in industries is how to provide food products more safely and in a way that ensures their freshness. The ability to store food for as long as possible without destroying or degrading it also affects customer satisfaction, not just the food hygiene. The traditional wrapping materials with which foods were wrapped merely protected them from external shocks and impurities. Today, however, new types of packaging materials, collectively referred to as “active packaging”, are being introduced that extends the expiration dates of food products by improving freshness and by removing or adding elements like oxygen and carbon dioxide that are needed to extend the shelf life of food products. Hyosung Chemical's self-developed nylon film, the top seller in South Korea’s nylon film market, boasts excellent impact resistance characteristics, has anti-pinhole characteristics, is very printable, and can block out oxygen molecules. This means food can be stored for a long time without requiring a separate preservation process. Hyosung’s nylon film in particular, can maintain a vacuum state inside the packaging through its ability to block out oxygen, and hence it can protect the sterilized interior without the need for preservatives. Due to this characteristic, nylon is widely used as a pouch for packaging fresh produce, container lids, and for retort food packaging, i.e. food that is processed by sealing and then pressurizing it for long-term storage. Thanks to their excellent quality, Hyosung’s nylon films are not only used for diverse purposes in the food industry but are also used widely as a packaging material for detergents, refillable goods, and other daily necessities that we encounter in our daily lives. Besides nylon film, PET film is another product that has become the core product of the food industry. Hyosung Chemical's PET film is non-toxic and non-odorous, and excels in blocking out air. Its uniform thickness translates into very high mechanical strength, and it has excellent thermal characteristics as well as chemical stability. As a result, it is widely used as a material for packaging food. Due to its excellent product characteristics, just like in the case of nylon, Hyosung’s PET film is used as a retort food packaging material, and even more widely for packaging daily necessities. Furthermore, due to their excellent printability, PET films are used as a material for labels, stickers, and advertising banners, as well as for high-gloss sheets on home appliances such as screen displays, refrigerators, and washing machines. To keep pace with the pro-environmental trend, Hyosung Chemical has been busy at work developing and researching post-consumer recycled (PCR) products that can reduce carbon emissions. An excellent example is mechanically recycled PET film. As it can be inferred from its name, environmentally-friendly PET film is made from discarded PET bottle materials that are collected and recycled mechanically. That said, it would be wrong to view recycled film as a simple product. Around 99% of Hyosung Chemical's mechanically recycled PET film is made from environmentally-friendly raw materials. This is a product with a high degree of purity because it is manufactured with recycled flake chips made from discarded PET bottles. As such, it should be viewed as a truly environmentally-friendly recycled PET film. During the manufacturing process, the carbon emission rate is reduced by 30% or more when compared to the manufacturing process for regular films. Are you perhaps concerned that a product made from PET bottles might have quality problems while not discounting its positive effects on the environment? Well, there is nothing to worry about. MR recycled PET film is not only an environmentally-friendly product, but it is also a high-quality film created with technological know-how developed through years of effort and investment. Through continuous research and quality testing, Hyosung is now manufacturing MR recycled PET films whose quality is on par with regular PET films. With PP materials, it’s okay to heat your food in a microwave oven! Were you ever worried about the safety of eating hot food delivered in a container or heated in a microwave with the packaging material left intact? This is an unnecessary concern because, nowadays, food producers use PP materials - smart plastics that are safe, harmless to the human body, can withstand high heat, and do not secrete environmental hormones. Used widely by many people in their daily lives, PP (polypropylene) material is a high-tech product with advanced attributes such as the ability to withstand high temperatures and pressures, high rigidity, and strong resistance to impacts. So it would be a mistake to view PP in the same light as ordinary plastic. In addition, PP is composed solely of carbon and oxygen; it does not contain any raw ingredients that are harmful to the human body, and hence no environmental hormones are emitted by PP. For this reason, PP is used widely in numerous objects that come into contact with the human body, such as food containers and packaging films. You can tell whether a food container is made from a safe PP material simply by checking for the existence of a PP mark (No. 5) on the container. This mark identifies the container as being made from a PP material that does not secrete any bisphenol A, an environmental hormone. A PP material can withstand both high and cold temperatures, tolerating high temperatures of up to 121-165°C and cold temperatures as low as -20°C. This is why bowls used to carry food deliveries, containers for storing food ingredients in refrigerators, multi-use containers, water bottles, containers for instant rice, and lunchboxes are often made of a PP material. Due to its excellent durability and material properties, PP is also widely used in baby bottles and other baby products that come into contact with the skin of infants who have weaker immunity than adults. This is the reason PP is sometimes called a safe baby bottle material. As befits its name, PP containers melt at temperatures above 165°C. Because they neither become deformed nor secrete environmental hormones when they are disinfected or heated in a microwave at temperatures of around 100°C, they are very safe to use. However, for the sake of safety, using a PP container not to warm food but rather to directly cook food is something that is highly discouraged. You should also bear in my mind that removing the packaging vinyl or lid (if it is made of a material other than PP) before using a PP container is the most sensible way of using a PP material. Hyosung Chemical was the first company in South Korea to commercialize the dehydrogenation process for extracting PP from propane The company has been supplying products made of PP material over the past twenty or more years based on its independently developed technological capabilities. The know-how accumulated over many years has enabled Hyosung Chemical to manufacture PP materials of outstanding characteristics. Indeed, the company’s products are used in a broad range of products such as airtight food containers, shampoo bottles, coffee pots, and other home-use products, as well as for products in the pipe, film, and medical categories that require careful handling. Hyosung Chemical’s steady research and development efforts to improve product quality and increase product differentiation have resulted in product quality enhancements that have made its PP products globally competitive as well as making it the most preferred brand in the market. The lining and the outer fabric of face masks that we wear all the time, and which come into direct contact with our mouth and nose, are all made of PP, including the static electricity filter that goes into the mask. PP is the material of choice for products that come into close contact with people's respiratory systems because it is a safe plastic. In this way, PP has become indispensable in our daily lives. Hyosung Chemical for a safe and convenient daily life! Hyosung Chemical is improving our quality of life with nylon film, PET film, and PP products that deliver convenience, safety and value to our eating habits and daily lives. Hyosung is leading the acceleration of the industry’s shift to environment-friendly products by developing truly environmentally friendly packaging materials such as MR recycled PET film, and PCR PP made of recycled PP materials characterized by outstanding quality and environmental-friendliness. With these materials, customers can produce products that transform our lives for the better and create a more sustainable society. Hyosung Chemical plans to continuously identify new environment-friendly products, gradually expand the scope of application (to apply to industrial packaging, food packaging, daily necessity packaging) of recyclable PCT PET film, and comply fully with the government's environmental regulation on ‘recycling more than 50% of plastic packaging waste’.

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Hyosung’s ESG brand strategy, RE:GEN, for the future of the next generation

Recently, the phenomenon of "eco-wakening" has been spreading, especially on social media. This trend signifies the increasing awareness and concern of people towards the destruction of nature. According to the World Wildlife Fund (WWF), environmental awareness and a sense of urgency have rapidly spread, with keywords such as "climate crisis," "biodiversity," "marine litter," and "environmentally friendly consumption" posted in YouTube comments. The public, now highly aware of environmental issues, seeks to consume products from "ethical companies" that go beyond being eco-friendly to becoming eco-necessary. In response to this demand, many companies are practicing ESG management. There are often companies that make not only genuine efforts to develop eco-friendly products but also lead ESG-compliant businesses to exert a positive influence, such as Hyosung. Hyosung goes beyond value-driven ESG management for social impact and creates eco-necessary products based on exceptional technology. Hyosung's technology is being utilized to achieve symbiotic purposes, specifically, to ensure that the future generations live in a more comfortable environment. Based on this technology, Hyosung aspires to reply to the needs of every generation’s future under Hyosung Group's ESG brand, RE:GEN. Hyosung achieving sustainable growth under the RE:GEN brand, with the purpose to ‘Reply to Every Generation’s Future For the sake of the future, it is crucial to confront reality first. In order to solve the global problems facing our generation today, innovative technologies are necessary. At the same time to enjoy current prosperity and wish for the well-being of future generations, these technologies must consider their environmental impact. What we need is an "ESG technology for every generation's future." Therefore, Hyosung is pursuing a realistic ESG strategy that combines Hyosung's technology to solve practical problems that will impact all generations' future. As the first step of this strategy, Hyosung Group has announced the RE:GEN branding, an ESG brand for the group. RE:GEN, which means "Reply to Every Generation's Future," is the direction that Hyosung intends to take in the future. In order to respond to a sustainable future for all generations. Hyosung is not simply engaging in ESG activities that are distinct from business, but continuing efforts in constant innovation and technological development based on its technological DNA. Hyosung aims to become a company that proposes innovative solutions for a better future for all generations. Hyosung's dedication to pursuing sustainability for every generation’s future Hyosung is pursuing sustainability through resource conservation and recycling, in the form of a circular economy. A circular economy cannot be created solely by Hyosung, but it rather requires collaboration among all stakeholders, from the supply chain to raw materials and end-users in establishing a perfect cycle. Hyosung is leading the way in this circular economy by building an eco-system with the goal of zero waste in this cycle. Carbon neutrality aims to increase the absorption rate of emitted carbon dioxide, ultimately reducing the actual amount of carbon dioxide emissions to zero. This carbon neutrality is achieved through various efforts ranging from resource conservation to energy efficiency throughout the entire production and consumption process. Hyosung is researching, developing, and innovating to minimize carbon emissions in its production processes and manufactured products, for the purpose of carbon neutrality. The scarce resources of the Earth we live in are rapidly depleting, and conventional fossil fuels and nuclear power are destroying the environment. New energy, which can replace them, such as renewable energy, is an essential field that must be developed for the future of the next generation. Sustainable new energy technologies cannot be achieved in a single moment. However, Hyosung’s DNA is essentially based on its efforts to achieve results through consistent efforts until hydrogen and renewable energy can replace fossil fuels and nuclear power. Hyosung aims to establish a value chain that covers materials, components, operational technologies, and distribution systems to commercialize and increase the efficiency of hydrogen and renewable energy. In addition, Hyosung strives to develop innovative technologies that minimize energy, resource usage, and harmful elements in all cycles of production and operation to reduce hazardous elements and conserve resources. Hyosung’s excellent technology in ESG management Hyosung TNC has pioneered environmentally friendly products, resulting in development of the wide range of eco-friendly polyester, nylon and spandex products domestically. Through the eco-friendly fiber brand regen, Hyosung TNC aims to create a virtuous eco-cycle for a more sustainable future. Hyosung TNC’s eco-friendly polyester yarn, 'regen Polyester,' utilizes useful components from discarded PET bottles, while 'regen Nylon' is produced by recycling discarded nylon or collecting discarded fishing nets to regenerate into environmentally friendly yarn. In addition, Hyosung TNC has developed 'regen Spandex' made from recycled spandex and regen Bio-Based Spandex' made from natural raw materials. Hyosung's environmentally conscious 'regen project' promotes a resource circulation system by recycling PET bottles collected from local governments such as Seoul and Jeju into recycled fibers and has gained recognition from consumers for the company's positive impact on the environment. Hyosung Advanced Materials has developed automotive carpets using recycled BCF (Bulked Continuous Filament) to reduce industrial waste and industrial Bio PET made from plant-based Bio EG and Bio TPA. Additionally, Hyosung Advanced Materials has developed an eco-friendly 'Dip' that does not use resorcinol or formalin, which not only reduces harmful substances within the production process but also extends the tire’s lifespan. The lyocell tirecord made from cellulose extracted from wood, reduces harmful waste generation, thereby preventing air and water pollution. Furthermore, the domestically developed ultra-lightweight high-strength carbon fiber 'TANSOME®' and steel cord contributes well to reducing carbon emissions by improving vehicle fuel efficiency. Hyosung Heavy Industries, a leader in domestic energy storage systems (ESS), supplies ESS for various purposes such as renewable energy integration, frequency regulation, peak reduction, and independent microgrids. The utilization of high-voltage direct current transmission (HVDC), which converts the high-voltage AC power from power plants into high-efficiency DC power, have opened up the possibilities for expanding the supply of renewable energy and increased the cross-border power interconnections. Hyosung Heavy Industries, which operates and constructs 700-bar hydrogen vehicle charging systems for next-generation eco-friendly hydrogen vehicles, has increased the convenience of hydrogen vehicle operation by supplying them to various places such as Hyundai Motor's Namyang Research Institute, Ulsan & Korea Expressway Corporation, and Hyundai Mobis. Additionally, Hyosung Heavy Industries has developed a smart grid technology, called the static compensator (STATCOM), which compensates for the relatively unstable power generation and supply of renewable energy. Hyosung Heavy Industries is the only company in Korea to possess the commercialization technology of STATCOM. The reason why Hyosung Chemical's polyketone brand, POKETONE™, is attracting more attention is because of its eco-friendliness. It captures carbon monoxide, the main culprit of air pollution, to create new resources. In addition, every time one ton of polyketone is produced, it reduces approximately 0.5 tons of carbon monoxide. Through the development of durable and eco-friendly technologies, Hyosung Chemical is contributing to reducing environmental pollution. Hyosung’s dynamic ESG activities Hyosung Group strives for sustainable growth from a long-term perspective, which is the ultimate goal of ESG management, making efforts to have a significant impact on social and environmental benefits. Hyosung aims to systematize and commercialize its technology to create a cycle structure that leads to environmentally friendly actions from raw materials to end-users. Moreover, Hyosung Group does not stop here. With its ESG brand RE:GEN, Hyosung seeks to show meticulous interest in many things we take for granted and execute meaningful projects for the future of the next generation. Furthermore, the future we dream of cannot be achieved solely by individual efforts. Hyosung seeks to discover RE:GEN Alliance brands that share its vision, and contribute practically to the world for better values and a better future together. Hyosung will support the growth and coexistence of the companies that have formed an alliance as a guaranteed brand of Hyosung RE:GEN Alliance. By thinking and executing for the future of the earth through an alliance, then a greener and more sustainable future will come. If the ocean becomes polluted, the fish and creatures within it disappear, causing the collapse of the marine food chain. Hyosung Group aims to take the first step towards a journey that benefits all generations and species beyond borders. To do so, Hyosung will become a RE:GEN GUARDIAN for biodiversity conservation and kick off the Seagrass Forest project. Under Marine Ecosystem Law, seagrass has been designated as a marine protected species and is recognized as a prominent source of blue carbon that plays a crucial role in absorbing carbon within the marine ecosystem. In order to conserve the habitat of these seagrasses, Hyosung has contributed to the Coastal Village Mutual Cooperation Fund. The fund that Hyosung contributed to will be used for various marine activities, such as "monitoring the distribution and habitat of seagrasses," "transplanting seagrass to locations for them to prosper," and "collecting abandoned fishing nets in the ocean." Furthermore, Hyosung is continuing its efforts to preserve the marine ecosystem by developing recycled fibers from discarded fishing nets. Hyosung's ESG activities are carried out in a practical and concrete way. Rather than simply offering abstract words such as symbiosis and sustainable future, Hyosung plans to contribute to creating a future where everyone can live together by developing tangible technologies that can be implemented directly. Hyosung will strive not only to provide convenient technologies for the current generation but also to create an environment where future generations can live with nature. With RE:GEN, which conveys Hyosung's unique philosophy and vision, together with technology, we will respond to the future of all generations.

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Hyosung’s Eco-Friendly Spandex Made From Corn

In August 2022, Korea-based comprehensive fiber manufacturer Hyosung TNC commercialized bio-based spandex, an innovative product that uses a strikingly unique ingredient: corn. Renowned for its exceptional elasticity, spandex is generally produced using raw materials extracted from petroleum. Then what inspired and enabled the invention of corn-based spandex, given that corn is a crop that typically hardens after processing? The answer lies in the UN General Assembly of 2015. UN’s 17 Collective Goals for Humanity At the 2015 UN General Assembly, the world came together to adopt the Sustainable Development Goals (SDGs), a set of 17 collective goals for humanity to achieve sustainable development. Aiming to be met by 2030, SDGs cover five different domains: people, planet, prosperity, peace, and partnership. As a company long committed to enhancing humanity's well-being, Hyosung TNC has been tirelessly working towards sustainable development. It has integrated four of the SDGs into its business operations, namely SDG3 for good health and well-being, SDG8 for decent work and economic growth, SDG12 for responsible consumption and production, and SDG13 for climate action. Hyosung TNC: Leading the Future of Eco-Friendly Yarns In pursuit of the four SDGs, Hyosung TNC has dedicated itself to leveraging innovative green technologies to better serve humanity. As a global leader in fiber materials, Hyosung feels an obligation to prevent climate change by developing eco-friendly fabrics and supporting a sustainable apparel industry. Pursing this path not only contributes to economic growth but also promotes the wellness and well-being of customers. Hyosung’s relentless efforts led to the successful commercialization of its bio-based spandex, the world’s first spandex using natural materials derived from corn. This breakthrough marked the debut of corn as a viable source for producing high-performance spandex, after having long been primarily used as a food source and partially for less sensitive bio products. The use of corns as raw materials is not entirely new, as we can see many examples around us. After corn-derived materials gained recognition as eco-friendly alternatives, polylactic acid (PLA), which is produced from lactic acid fermented from corn-derived glucose, has been widely used in toothbrushes, straws, baby tableware, trays, and other food containers, among others. Corn-based materials have already been used for various everyday items such as paint and wrapping paper, cosmetics containing corn-derived ingredients and liquid detergents containing corn-derived deodorants. However, technological limitations prevented its application in spandex, as highly advanced technology is required to produce such a high-performance fiber with remarkable elasticity. Hyosung TNC boasts accumulated experience and unrivaled technology for producing spandex yarn, which accounts for a third of the global spandex market. The bio-based spandex of Hyosung is the culmination of its technological prowess and more than three years of R&D efforts. Corn: The Key ingredient of Hyosung’s Bio-Based Spandex Corn-derived biomaterials are the key ingredients of Hyosung’s bio-based spandex. Through years-long research, Hyosung discovered the best combination of biomaterials and conventional spandex materials, developing a yarn that maintains the same performance and properties as conventional spandex. Compared to other yarns, spandex is a highly sensitive material. In fact, even slight changes in manufacturing conditions can greatly alter its elasticity. A piece of clothing made with spandex of an unusual elasticity level leads to lower product quality, such as sweatpants stretching out after a short period of wear. This explains why Hyosung TNC is so far the only one in the world to have succeeded in developing and commercializing bio-based spandex. Despite challenging conditions, Hyosung continued its research to utilize corn-derived materials as an eco-friendly source for spandex, placing the utmost priority on delivering world-class quality to customers. Eventually, Hyosung’s endeavor bore fruit, making it the first and only fiber manufacturer to have developed an eco-friendly spandex yarn that performs just as well as conventional spandex. The successful development of bio-based spandex is the ultimate testament to the technological prowess and know-how Hyosung has accumulated for 60 years. Ensuring Transparency and Environmental Friendliness across Manufacturing The use of bio-based materials has enabled Hyosung TNC to reduce its use of fossil fuels in proportion to its use of corn-derived materials, while lowering its dependence on petroleum, which is still essential for industrial processes. While gradually replacing more petroleum-sourced materials with corn-derived materials, Hyosung TNC will continue its research until it finally develops purely corn-based spandex. Hyosung is ensuring transparency and eco-friendliness across all manufacturing procedures, including thorough direct management of the supply of sustainable corn-derived materials. The corn used in manufacturing is not the type for human consumption, but dent corn used for industrial purposes such as fuel ethanol and cooking oil or livestock feed. Production management is also strict. Farmers who supply corn to Hyosung TNC must meet a wide variety of requirements such as reducing greenhouse gas emissions, improving nitrogen efficiency, meticulously managing soil quality in cultivation areas, and managing supply chains transparently. All this demonstrates how Hyosung TNC defines eco-friendliness: Being truly eco-friendly not only means replacing one raw material with a bio-based one but ensuring transparency and traceability from raw material procurement to the very end of the manufacturing process. Such an uncompromising approach has earned Hyosung's bio-based spandex the Eco Product Mark, an eco-friendly certification from the world’s leading certification body SGS (Société Générale de Surveillance), providing impetus to Hyosung’s green moves. Towards the Development of Biodegradable Yarns Amid increased public awareness of global warming, materials such as polybutylene adipate terephthalate (PBAT) and PLA are growing in popularity and applications for their low-carbon and biodegradable nature. Down the road, biodegradable fibers using natural materials are expected to advance from the recently emerging recycled fibers as the leading eco-friendly textiles. Indeed, biodegradable fibers decompose within a few years of being buried, causing less harm to the environment and serving as a more nature-friendly option than other fibers. As a pacesetter in biodegradable fibers, Hyosung has already embarked on R&D in biodegradable recycled PET yarns. From manufacturing to the end of product use, protecting the environment will be the utmost priority across the entire life cycle of biodegradable recycled PET yarns, which is why they are expected to contribute to the betterment of the environment. Hyosung TNC is leading the global fiber market while steadily developing eco-friendly fibers in a bid for a better life for everyone.

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ICEs, EVs, Autonomous Vehicles: They All Need Tires! (Part 3)

With the growing attention towards net zero and environmental awareness, the international community has been mobilizing itself to come up with ways to impose transnational regulations to protect our environment. Industries around the world have also begun paying more attention to ways of doing business that would enable them to co-exist with the environment, going beyond traditional business values of putting economic sense and efficiency first. The automobile industry is no exception. With the adoption of EVs and hydrogen cars that run without combustion engine, markets are now tilting toward using green raw materials and secondary materials. Tires are also part of this consideration. On top of performance enhancements, tire manufacturers are looking for ways to improve fuel efficiency by cutting down on carbon dioxide emission while putting more emphasis on life cycle assessment. As such, more and more makers are turning to green raw and secondary materials. Hyosung Advanced Materials has focused on environmental impact and climate change early on and has been pursuing businesses that would help us co-exist with our environment. As a leading tire reinforcement material maker, the company has been pioneering in the development and commercialization of tirecords with green materials. Hyosung has also introduced heavier denier cord for heavy duty tire construction which has improved fuel efficiency of automobiles. Hyosung Advanced Materials brings a difference to sustainable tirecords too. A tire cord from a fiber made from wood Hyosung Advanced Materials had been working on developing an eco-friendly material that could replace rayon reinforcement used for high-performance tires with excellent heat resistance. As a result, the company has developed and been producing lyocell tirecord made from wood pulp cellulose for the first time in the world. They are 100% biodegradable and emit 30% less greenhouse gases compared to existing rayon or nylon tirecords. Though they are made of eco-friendly materials, their quality and durability are the same as existing conventional tirecords, which are all attributable to Hyosung’s technology and strenuous efforts in R&D. In addition, its manufacturing process does not emit pollutants such as carbon disulfide or hydrogen sulfide thanks to its eco-friendly manufacturing processes including recycling of solvent extraction and non-reliance on toxic chemicals. Thus, lyocell tirecord and its manufacturing process heads off polluting the air or water to further contribute to environmental protection. All in all, it is an excellent alternative to high quality tires made of synthetic fibers. Tires made of eco-friendly PET Hyosung Advanced Materials has produced industrial-class bio-PET yarns based on ethylene glycol made from sugarcane or corns instead of the conventional way of extracting the material from crude oil. Hyosung’s bio-PET yarns are used for tirecords and car mats. These eco-friendly yarns are free from depletion of source materials or environmental impact. Some EVs and hydrogen vehicles have already been using products made of Hyosung’s bio-PET yarns. Since 2020, the company has been working with key vendors to develop PET tirecords made from recycled plastic including PET bottles. Eco-friendly polyester yarn extracted from recycled PET bottles is a product of Hyosung. As the world’s leading PET tirecord maker, the polyester yarn from the company has been gaining traction and trust from the market around the world. The recycled-PET yarn has acquired the Global Recycle Standard (GRS) certification from Control Union, the Netherlands based international certification body for eco-friendly businesses. The GRS certification is known for its thorough review process covering the origins of materials and eco-friendly manufacturing processes as well as the whole production supply chain and traceability of each step. As such, the product with a GRS certification is regarded as eco-friendly over the entire cycle of production. Hyosung’s recycled PET yarn is as such the most optimal material for next-generation PET tirecords as it meets the requirements of technology and sustainability. Green tirecords taking leadership in environmental protection It is notable that Hyosung’s eco-friendly tirecords cut down on carbon dioxide emissions dramatically compared to their conventional counterparts. The recycled PET tirecord made from recycled plastic emits 44% less carbon dioxide while bio PET tirecord made from plant extractions cut carbon emissions by 16%. Hyosung Advanced Materials aims for a transition of all tirecords products into eco-friendly PET tirecords by 2050. To this end, the company has been working hard on related technological development while collaborating with key vendors. In addition, the company has been working on developing various eco-friendly PET materials such as new tirecords made from discarded fishing nets and wastes from glass etching process in semiconductor industry. Its eco-friendly product portfolio is in turn only going to grow. Chemical solutions can be eco-friendly too For enhanced tire strengths, tirecords have to be dried at a high temperature with a combination of chemical solutions before they are finished in production. Hyosung Advanced Materials has recently developed an eco-friendly solution called ‘Eco Dip’ that can replace the existing chemical solutions and will soon be able to commercially introduce to the market. Hyosung’s Eco Dip does not use formaldehyde and resorcinol which are regulated under the EU REACH since June 1, 2007 by the EU to protect human health and the environment from the use of chemicals. Eco Dip is expected to contribute to environmental protection by extending the lifecycle of tires with its higher fatigue resistance. Leading in an era where eco-friendliness is not a choice but a must Being eco-friendly is no longer a matter of choice but a matter of course. Consumers can make informed choices based on their respective values when it comes to consumer goods such as clothing, toothbrush or tumbler. However, products such as automobile tires are hidden in the supply chain and thus out of reach for those looking for environmentally friendly products. Hyosung Advanced Materials has been filling this gap by developing and introducing products such as lyocell, bio-PET and recycled-PET tirecords and materials such as Eco Dip to create a green virtuous cycle. Hyosung Advanced Materials is committed to realizing a sustainable world for all generations, beyond just wishful thinking. Eco-friendly tirecords initiated by Hyosung are already sailing on fair winds.

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ICEs, EVs, Autonomous Vehicles: They All Need Tires! (Part 2)

One might be surprised to find how many reinforcements compose a tire when cut in half. Tires need various reinforcements other than rubber to withstand the weight of an automobile so that they can have better safety, durability and drivability. Tire reinforcements can come in a few different forms including steel. However, fiber-based materials such as polyester or nylon are the most common form. It may seem strange to have tires made of fibers when their purpose of existence is to enhance strength and durability. However, the more you find out about tirecord, the better you would understand the fact that high-quality fibers are the optimal material as of today for tire reinforcements. Tirecord is a reinforcing material that constitutes the inside of a tire and is a vital material that helps tires maintain their shape and makes the driving more comfortable. It is also critical in the shape of a tire as it helps maintain the tire pressure and withstand the vehicle weight. When driving, it also helps tires absorb shock and maintain stability while accelerating. Evolving tirecord Tirecord has evolved together with the development of the automobile industry. In the late 1980s when tires came out in pneumatic forms, plain weave fabrics were used as reinforcement materials, but lacked durability. In turn, tirecord fabrics which we see today were first developed in 1892. Initially, cotton fabrics were used for tirecords but coming into the 1940s tirecords adopted rayon fabrics for better heat-resistance. As commercial vehicles opted for bigger sizes and high-performing features into the late 1940s and 1950s, tires increasingly required better durability, weight-resistance, and heat-resistance. This was when researchers turned to nylon fabrics as an option. As a result, the transition was made in the late 1960s from rayon-based fabrics to nylon-based tirecords. Coming into the 1960s, radial tires with cord plies arranged at 90 degrees to the direction of the vehicle were introduced to a market where bias tires with crisscrossed plies were dominant. This was a game changer in the tire industry and in turn PET tirecords with better strength and rigidity emerged as the most favored material for radial tires. This has made polyester and nylon as the two key ingredients for tirecords. No.1 polyester tirecord maker, Hyosung Advanced Materials Hyosung Advanced Materials’ polyester tirecord is the world’s bestselling name with half of vehicles on the road in the world using it. Hyosung Advanced Materials entered the tire reinforcement market and in 1968 it introduced nylon tirecord for the first time in Korea, followed by polyester tirecord and bead wire in 1979. Entering 1987, the company started to produce steel cord with which it has grown into a world-class tire reinforcement brand with its all-round manufacturing and supply portfolio. Hyosung operates sophisticated production sites not only in Korea but also in countries such as Vietnam, China, US, and Europe to meet the demand of its global clients. It has also joined hands with other global leading tire names to work on developing safer and more convenient tires, tapping into its existing world-class technology. A variety of fiber-based tirecords by Hyosung Advanced Materials Hyosung Advanced Materials has been satisfying various needs of customers including ones related to sustainability. At the same time, it has been considering market situations requiring different functionality in line with different types of vehicles as well as the intrinsic nature of tires that prioritizes a high level of technology and quality. As such, it has been leading the global tire market by introducing various tirecords based on synthetic fibers such as nylon, polyester and lyocell. The reason Hyosung Advanced Materials has been able to meet such various needs of customers has to do with the company’s technology competitiveness and production capacity. Its top three tirecords are nylon tirecord, polyester tirecord and lyocell tirecord. Nylon tirecord is known for heat-resistance and adhesive property. It is used for cap plies for radial tires. Not only that, but it is also used for the carcass for special tires used in trucks, buses, airplanes, and motorcycles. Polyester tirecord is known for tensile strength, supreme shape stability and adhesive property. It is used for carcass for radial tires for passenger vehicles. Hyosung Advanced Materials has introduced lyocell tirecord for the first time in the world. It was produced in an environmentally friendly manner to replace rayon tirecord. Lyocell tirecord emits 30% less greenhouse gas than rayon or nylon tirecord. Enhanced tire reinforcements boost performance and contribute to sustainability! E-vehicles and hydrogen vehicles are on the rise as concerns over sustainability grow. They run on electric motors unlike their conventional counterparts. Using electric motors, an EV can make maximum torque at zero RPM which means an EV does not need time to accelerate unlike traditional engines. More torque means faster reach to maximum horsepower compared to gas-powered cars. But it means quicker wear and tear of tires. These vehicles also have narrower tires for better energy efficiency and lower rolling resistance. Because of the weight of the batteries, tires for EV should have much better durability than that of conventional vehicles. Therefore, sophisticated reinforcements are critical in tires for next-generation vehicles. The average drive distance per charge is an important measurement of EVs’ performance, and running on lightweight high-performance tires means better energy efficiency. Such tires will cut down on the overall weight of the automobile structure to enhance fuel efficiency. And thanks to their strength and durability they last longer to ensure safety. Hyosung Advanced Materials to pursue evolution of tires with its high-strength tirecord Hyosung Advanced Materials has introduced advanced high-strength tirecords on the combination of cap plies and aramid fiber it has developed with its proprietary technology. With the rolling process, the use of rubber in the manufacturing of the tirecords has dramatically reduced and thus they become much thinner. These high-strength tirecords render lower rolling resistance, better fuel efficiency and less greenhouse gas emission. They should bring in a breakthrough in traversability and stability of EVs and hydrogen vehicles. Hyosung Advanced Materials is not to stop here but to continue to move ahead with its commitment to technological innovation in research and development for better tirecords for safe driving. As the leading developer of sophisticated materials for tirecords, Hyosung Advanced Materials’ future endeavors are in turn to draw much traction. In the next part of this series, we will look into green trends in the tirecord industry.

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Ices, EVS, Autonomous Vehicles: They All Need Tires! (Part 1)

All roads lead to Rome. Indeed, when traveling in Europe, you are likely to find yourself on the vast network of Roman roads that stretches from the city throughout the continent. The Roman roads stand as a testament to the remarkable engineering expertise of ancient Romans and the immense hard work required in construction. Time has not diminished the impressive legacy of the Roman roads which served as fast and convenient routes for the Roman army and transportation of goods and resource. What is noteworthy is that the establishment of the Roman roads were driven by the wheel. With its circular frame rotating on an axis, the wheel revolutionized transportation by making it easier and faster to move people and transport heavy objects. But when did humanity first invent the wheel, which is hailed as one of the major inventions in history? By exploring the history of the wheel and the significance of Hyosung Advanced Material’s tire reinforcements, we can gain clearer insight into the present and future of tires. The World’s First Wheel While the exact date of the invention of the first wheel remains unknown, it is believed that disc-shaped logs were used as rollers since around 5000 BC. Depictions of chariots with wheels can be found in wall paintings from around 2500 BC in Mesopotamian Sumerian culture. The disc-shaped log was the first wheel in history, followed by the invention of the spoked wheel around 2000 BC, which is the wheel shape we know today. The evolution of wheel is closely tied to the evolution of warfare. Adding wheels to the chariot, the first mobile weapons platform, made it possible to move and fight simultaneously. The invention of wheeled carts was sparked by the use of heavy cannons. Wheels made of wood or iron have gradually evolved into more durable and stable forms. In 1865, R.W. Thompson ushered in the era of tires when he developed the solid tire, a metal wheel with rubber attached to it. John Boyd Dunlop invented the air-filled bicycle tire in 1888, which led to the development of air-filled tires used today. These tires are filled with water and then inflated with air to absorb shock and provide a smoother and more pleasant ride. In 1895, the Michelin brothers invented air pressure tires for automobiles with separable and replaceable tubes. The tube-type air pressure tires allow for a more comfortable ride by absorbing shocks better than solid rubber and better fuel efficiency thanks to their light weight. While air pressure tires are durable and suitable for poor road conditions, they are difficult to replace. On top of that, punctures during high-speed driving can cause air to escape quickly, leading to serious accidents. To improve tire safety and performance, the tire industry has developed stronger and more robust tires with steel tire beads that hold the tire to the rim, while using rayon cords to make new tires with enhanced performance. The tire industry is constantly developing new materials for even safer and higher-performing tires. The development of advanced materials for tires enhances tire performance, which underscores the significance of R&D efforts by Hyosung Advanced Materials, the global leader in tire reinforcement materials. Hyosung Advanced Materials, A Global Leader in Tire Reinforcements High-strength tire reinforcements inside the tire serve as its skeleton. Without these materials, the tire would not be able to withstand the weight of the car nor maintain a stable shape. In addition, shock absorption and driving performance would be diminished. In fact, imagine driving on an unpaved road with no tire reinforcements in the tires of our cars, buses, and taxis. It would be an uncomfortable and bumpy ride. Various parts made of different materials are used to produce tire reinforcements for improved vehicle safety, ride quality, handling, cornering, noise, and driving performance on the road. Hyosung Advanced Materials employs innovative technology and reliable production capabilities to produce a variety of tire reinforcements, playing an important role in the mobility industry. Steel Cord: The Indispensable Material for Tire Manufacturing The steel material used in tire reinforcements is called steel cord, which is made by twisting thin wires into a layered structure. Steel cords protect the tire reinforcements and absorb shocks from the road. It plays other critical roles, such as improving the vehicle's driving performance, maintaining tire pressure, and supporting the car's weight. These indispensable qualities highlight the importance of steel cords in tires. The significant role of steel cords means it must maintain high quality. In particular, it should have excellent resistance to internal wear to ensure tire durability even after long drives. Hyosung Advanced Materials’ steel cords boast high quality, preventing the weakening of the connection between steel cords and rubber due to external factors such as long-distance or high-speed driving, heavy loads, and low tire pressure, and minimizing the risk of separation. Steel cords must also meet various qualifications, such as having high rigidity to minimize tire deformation. Hyosung Advanced Materials produces steel cords that satisfy these diverse and stringent requirements and supplies them to leading global tire companies. Bead wire is another essential tire reinforcement made of steel, composed of multiple strands of steel wire that are twisted together. Bead wire is responsible for securing the tire to the wheel, as well as maintaining air pressure inside the tire. Hyosung Advanced Materials produces and supplies steel cords, bead wire and other various steel tire reinforcements which are all essential for tire safety and driving. Its work is reinforcing its position as a global innovator in tire reinforcement technology. Hyosung High-Strength Steel Cords Embrace Eco-Friendly Trend Recently, environmentally friendly tires with low fuel consumption and high durability have gained much attention in the market. Higher durability prolongs the lifespan of tires and reduces waste, while lighter tires can decrease the overall weight of the vehicle, improving fuel efficiency. For electric vehicles, more durable and lighter tires are needed to withstand the increased weight of the battery unit and improve fuel efficiency. In 1999, Hyosung Advanced Materials developed NT (Normal Tensile, 2850 MPa), HT (High Tensile, 3300 MPa), and ST (Super Tensile, 3650 MPa) steel cords which offer good fuel efficiency. In 2006, it introduced UT (Ultra Tensile, 4000 MPa) high-strength steel cords to the market. Hyosung's high-strength steel cords can reduce the amount of steel cords and rubber required for tire production, without sacrificing tire performance. In other words, it can help reduce CO2 footprint and mitigate air pollution by reducing tire weight and improving fuel efficiency while maintaining durability. Hyosung Advance Materials Leads the Way in Advancing Steel Cords In a bid to further enhance the durability of steel cords, Hyosung Advanced Materials is developing stronger filaments and experimenting with different twisting directions and lengths for steel cords to reduce wear and tear caused by long-term use. Development of a hybrid cord that combines iron and fiber is also underway. To improve the adhesion durability between the steel cord and rubber, Hyosung Advanced Materials is developing a new coating method that does not compromise adhesive strength. In parallel, it is exploring and employing technologies to minimize steel cords’ contact with moisture or air by improving rubber penetration. Hyosung Advanced Materials' research efforts to improve steel cords have no limits. It produces a wide variety of tire reinforcing materials, including steel cords, bead wires, and even fiber tire cords, all of which have improved driver safety around the world. Through continuous R&D of materials, including steel cords, Hyosung Advanced Materials is solidifying its position as a leader in the global tire reinforcements market. Along with steel cords, tirecords made of fibers are another innovative tire reinforcement created by Hyosung Advanced Materials. This material will be discussed in detail in the next article.

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Pump Innovations That Enable Strong Connections

Whenever we hear news about how a Korean drama that was moderately popular among domestic viewers has become a hit overseas, rising to Netflix's most-watched ranking, we are filled with a sense of excitement. It is not just K-dramas that are on a roll; there are hidden champions in the world of business, too. These companies are gaining popularity overseas while consolidating their positions in the domestic market. Hyosung Goodsprings, a leading South Korean pump manufacturer, is a case in point. A hidden ace that supplies every type of pump we need in our daily lives Images of large factories tend to spring to mind whenever someone mentions the word ‘pump’. A pump is a product that is closely connected to our daily lives. The tap water that feeds into your apartment or house can only flow in with the power supplied by a pump. And the electricity that we rely on every day are supplied to us through pumps at the electric power station where electricity is produced. Industrial water pumps for oil refineries and manufacturing processes enable the production of many, if not all, of the items necessary for our daily lives, such as toothbrushes, shampoos, apparel, cell phones, cosmetics, and medical drugs. This is how important pumps are in our lives. Hyosung Goodsprings established a pump manufacturing business back in 1962, and it has been manufacturing and supplying a wide range of pumps to the South Korean and overseas markets ever since. Hyosung’s pumps are used in oil and gas plants, power generation plants, and regular industrial plants, as well as in regular buildings and high-rise buildings. The company has contributed to the development of the domestic and foreign energy industries with its world's best technology for manufacturing and supplying not only boiler feed pumps (BFP) and circulation wave pumps (CWP), which are the main pumps of power plants, but also safety grade pumps for nuclear power plants. Especially since acquiring the Korea Electric Power Industry Code (KEPIC) certification for safety-rated pumps used in nuclear reactors in 1998, the company has been supplying key, technologically complex nuclear reactor pumps. Also, as the first South Korean company to develop a pump for nuclear reactors, Hyosung Goodsprings is today recognized as a specialist in power plant pumps. Recently, an increasing number of countries have been returning to nuclear power as it seems to be the scarcely viable solution for realizing carbon neutrality and energy security. The International Energy Agency (IEA) has concluded that in order to achieve Net Zero by 2050, nuclear power plant capacity will have to be doubled from the current 400GW to around 800GW. As such, it predicts that an increasing number of countries will choose to extend the lifespan of their existing nuclear power plants and construct new nuclear power plants. The South Korean government is also preparing to resume the construction of Shin Hanul Reactor Units 3 and 4 in accordance with its policies on national energy security and carbon neutrality. With the growing importance of nuclear reactors, the South Korean government is pushing hard to increase exports to the Czech Republic and Poland and is heavily promoting South Korea's feat of winning the project to construct the El Dabaa Nuclear Power Plant in Egypt. The government is hoping that if South Korea wins the bids to build nuclear power plants in the two eastern European countries, it will ultimately boost Korea’s competitiveness (when bidding for future projects) and power in the global market for nuclear power plants. Based on its outstanding technological capabilities and products, Hyosung Goodsprings has been able to maintain its position in the nuclear reactor pump business for many years. Starting with the Yeonggwang Reactor Units 3 and 4 in 1992, followed by eighteen other domestic reactors including the Uljin, Shin Kori, and Shin Uljin reactors, Hyosung Goodsprings has supplied around KRW 340 billion worth of pumps needed by these reactors for their operations. Meanwhile, in the global arena, the company has supplied pumps to the Barakah Reactor Unit 4 in the United Arab Emirates. As a major supplier of pumps, including safety-rated nuclear reactor pumps, the company is expected to contribute immensely to South Korea’s transformation into a powerhouse in the global nuclear market, by developing and delivering products whose performances are continuously upgraded. Hyosung Goodsprings’ competitiveness as a player in global markets Did you know that Hyosung Goodsprings' products are impressing many customers in the global markets? With high-pressure pumps that can tolerate 400 bar pressure and an operating range of -195°C to +450°C, the company's products satisfy the tight requirements of some of the world's most notable customers including Exxon Mobil of the United States and Aramco of Saudi Arabia, and the company is gaining recognition in overseas markets based on the strong performances of its products. The company develops and manufactures high-pressure and large-size pumps for use in power plants and petrochemical plants. Because the company’s pump products meet the ISO and API (American Petroleum Institute) standards, the company is able to export over 70% of its pumps to customers in foreign markets. The UAE’s ADNOC project of 2019 should be mentioned here as an exemplary illustration of the success Hyosung Goodsprings is enjoying in global markets. ADNOC, or Abu Dhabi National Oil Company, is the national oil company of the UAE. Hyosung Goodsprings supplied 79 different kinds of pumps worth 47.8 billion won to ADNOC through Samsung Engineering. The pumps included ultra-high temperature and ultra-high pressure-resistant reactor feed pumps for oil refineries. As a single feed pump can cause a whole plant to come to a halt if it is defective, it is a product that can only be manufactured and supplied by a few key manufacturers. Potential bidders to supply the pump are carefully screened before they are allowed to submit their bids. In addition to this, Hyosung Goodsprings is building its brand credibility by supplying pumps that are optimally designed to satisfy the technical specifications requested by global companies. Pumps are no exceptions! Hyosung’s efforts to reduce carbon emissions through energy savings The environmental regulations that are being introduced by countries around the world to reduce carbon dioxide emissions requires companies to respond actively with essential measures. Companies are concerned over how to cut back on energy consumption in order to reduce greenhouse gas emissions amid the current economic downturn. To address this issue, Hyosung Goodsprings designed a high-efficiency pump that saves energy by using less electric power. Immediately, an R&D project was initiated to develop this pump. The eco-friendly pump project was successful, and now it is being supplied to many industrial sites. The steel industry is an example of an industry that consumes substantial electric power. In the case of POSCO’s Pohang factory, its electricity expenses of around KRW 700 billion per year made it necessary to reduce its energy consumption. Normally, motor loads account for about 45% of electricity consumption, and 60% of the electricity consumed by motor loads can be traced to pumps. Also, about 25% of total electricity expenditure is due to the electricity used by pumps. As a matter of fact, after replacing aging pumps with high-efficiency pumps, POSCO was able to achieve significant energy cost reductions. POSCO's successful adoption of high-efficiency pumps piqued the interest of other industries. Hyosung soon began receiving requests from semiconductor companies and display manufacturers to replace their aging pumps. Hyosung Goodsprings carefully listened to the voices of such customers and developed a tailored high-efficiency pump replacement service in which the company conducts an analysis of the costs involved in purchasing, operations, maintenance, repair, and disposal of the pumps, and then proposes a customized replacement plan to the customer. Hyosung Goodsprings also spares no effort when it comes to developing new products for saving more energy. The sensorless in-line pump that it developed recently automatically controls the number of rotations of the pump, so that the right flow rate and lift level could be provided without the need for a pressure or a flow sensor. With this pump the stability of the whole system can be maintained, resulting in energy savings of up to 75%. Well-intentioned efforts to revitalize local economies Hyosung Goodsprings has focused on improving its technological competency and has been contributing to the localization of products that the country had long had to import from overseas. It has also contributed to the growth of South Korea's pump industry through its global business. Now, it intends to steadily grow its business of manufacturing pumps that save energy costs in response to the worldwide pro-environmental movement and South Korea’s efforts to export its nuclear reactor technologies.

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Tac Film, an Indispensable Component for Watching YouTube

It may not be an exaggeration to say that many people watch YouTube every day. But in order to do so, we need a device that connects us to the platform. We want to have better devices, be it mobile phone, TV or tablet PC, for better YouTube experience. When choosing a device, only few people would think of one material that works to render better image quality on the screen of the device of their choice. That is TAC film that protects polarizers. Polarizers in layman’s terms are the filters that pass through only the waves of the light in one direction while all other light waves are absorbed. For the polarizing filter to work properly, TAC film is the key as without it we will not be able to enjoy videos on our devices. Despite the importance of the material, Korea used to rely on imports until 2009 when Hyosung Chemical started to produce TAC film for the first time in Korea. A critical material in display production As crucial part of display production, polarized film has a thickness of 0.3mm which matches the width of two to three human hairs that pass through the light wave moving in one direction. In other words, it is an optical element that allows light to pass only if it is wiggling in a certain direction while absorbing or reflecting other lights. It helps improve display brightness in devices. Because it is very delicate in nature, it requires protection and this is where TAC film comes in handy. Polarizing film consists of PAV (Poly Vinyl Alcohol) of which light waves moving in one direction pass through, and TAC (Tri-Acetyl Cellulose) that has excellent polarization properties but with not much strength due to its thin layers. This is where TAC film comes in to play a crucial role. TAC film has to have high tensile strength with excellent optical isotropy for it to function properly. In this way, when polarized light passes through TAC film it is not distorted. As such, it plays an indispensable role in display devices. Hyosung Chemical has developed TAC film with its proprietary technology for TV, display screen, laptop, and mobile phone application. Its TAC film production facility in Ulsan is the first Korean TAC film production site to be established as of 2009. Its second production site was launched in 2013 in Cheongju. With established production capabilities, Hyosung Chemical now boasts an annual production capacity of 110million square meters. TAC film used to be imported but with Hyosung Chemical’s technology and production capacity now the country has a home-grown option. Not only that, domestic production has led to the development and refinement of technology and competitive edge in finished display products and helped solidify the domestic players’ position in the global industry. With its partial acquisition of Agfa Photo Germany’s assets, Hyosung Chemical’s productivity and product quality have been significantly improved. Its Optical Film PU has grown into a globally leading name. Hyosung Chemical has also been continuously expanding its production capacity domestically to position itself as a leading player in displays. Environmentally friendly yet more durable Hyosung Chemical TAC film not only boasts high quality but also eco-friendliness as it is made of organic materials such as cellulose from cotton linter. As such it is in compliance with regulations on hazardous substances and yet boasts high tensile strength in high-temperature and humidity. It also has excellent uniformity in its film surface which helps the coating layer added to the surface stay intact longer. In addition, its superior surface smoothness ensures better display quality. With TAC film, people can enjoy videos in high quality anytime anywhere as the videos they enjoy will be able to show the world as it is. A global pioneer, Hyosung Chemical Based on its home-grown technology, Hyosung Chemical has contributed to the development of the domestic industry. Recently, it has also successfully expanded into the Chinese market which is regarded as the world’s largest display market. With the advancement in electronic material technology, it has been developing new film materials in order to expand its horizon to various optical film markets. In so doing, Hyosung Chemical is to further grow its standing in the global display market. Hyosung Chemical is also working on the development of a retardation film that will improve oblique viewing property by expanding the viewing angle of display products with optical compensation. Hyosung believes it has great potential as the next-generation material. To fulfil its social responsibility as a key player in this industry, Hyosung Chemical has embarked on an early journey to reduce its carbon emission with an understanding petrochemical industry and its carbon footprint. As a result, Hyosung Chemical has succeeded in reducing its carbon intensity compared to that of 2018. Including greenhouse gas emission statement and external verification of the emission, the company continues on its efforts to reduce its carbon footprint. Hyosung Chemical will continue to take on the leading role in introducing green products by advancing technology via R&D and extensive and investment.

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Recalling the 56 splendid years of Hyosung, that shone as brilliantly as a morning star

An unforgettable, depressing 90s shook Korea - a period of which parents still tell stories of the hardships they had to overcome. A crisis that led 11 out of 30 major Korean companies to go bankrupt and over 1.27 million people to lose their jobs simultaneously. In the summer of 1997, the Asian financial crisis originated in Thailand and swept across Southeast Asian countries, including Malaysia and Indonesia. Unfortunately, Korea was taken hold that same year. On November 21st, 1997, Stanley Fischer, the Deputy Managing Director of the IMF, and Changyuel Lim, Deputy Prime Minister of Finance & Economy, held a confidential meeting in Seoul. That night, the government decided to request liquidity support from the IMF. These requests came at a cost, as the IMF had demanded high-interest rates, restructuring, and more. Korea was nearing default status, and nationwide movements took action to collect as much money and gold as possible from company executives and local citizens. As a result, the exchange rate soared exponentially, which had caused more than 3,000 companies in Seoul to go bankrupt. 1998 became a year of sadness, where numerous, hardworking individuals lost their jobs. Hyosung was no exception. Like many others, the company faced a desperate situation as the business declined in revenue. Hyosung had developed a strong, close-knit company where employees had been working together for years. Instead of laying off the employees, who were like family, Hyosung opted for a business restructuring strategy that was based on humanism. Hyosung chose to overcome the crisis together with the employees. Now, Hyosung shines as brightly as its name, which means ‘morning star’. It is global number one in the world’s spandex market share and selected as the world's best GIS (Gas Insulated Switchgear) company. Not to mention, Hyosung boasts number one in the world’s market share for tirecords, seatbelt yarns, and airbag fabrics. Their achievements are the result of overcoming numerous challenges, including the foreign exchange crisis. The journey of Hyosung, becoming an icon of trust Since the founding of Hyosung Corporation in 1957, followed by the establishment of Dongyang Nylon in 1966, Hyosung began its journey as a comprehensive chemical fiber maker. In order to secure certified patent technology, Hyosung established the first private technology research institute in Korea in 1971. This research institute became a major engine for their corporate growth. That same year, Hyosung Advanced Materials' tirecords came into the spotlight. Hyosung developed its own technology to produce tirecords, which are now used by 50% of the world's automobiles. Based on keen business foresight and technical know-how, Hyosung expanded its materials business to produce PET containers, which were mostly glass products. This moment of innovation brought a paradigm shift to the container market in the late 1970s. The 1990s saw a rise in global competition, and Hyosung took the opportunity to focus on developing high-value-added products. It developed its own technology to produce spandex, also known as ‘semiconductors of the fiber business,’ and core products such as 765KV transformers for ultra-high-speed power transmission systems. This helped kick-start their chemical business into the polypropylene, film, and TPA industry. Hyosung has a long-established trust with its customers, owing to its solid technical capabilities and quality standards, which have been steadily recognized since its establishment. Furthermore, Hyosung is widely recognized as a top-tier, trusted company in not only South Korea, but across the global continent with a customer-centered mindset. Hyosung's bold move in forecasting the future With the looming foreign exchange crisis around the corner, Hyosung took a step forward in pursuing management efficiency through business restructuring and achieving record-breaking sales of one trillion won. In 1998, the company built on a new driving force to cope with the crisis. At that time, Hyosung Group's flagship companies (Hyosung Industrial, Hyosung Heavy Industries, Hyosung Living Industry, and Hyosung T&C) all merged into Hyosung Corporation. The company took bold action to sell off its non-core businesses, including Hyosung BASF and Hyosung ABB, which were forecasted to be profitable during the crisis. Instead, Hyosung introduced the PG (Performance Group) and PU (Performance Unit) systems in order to pursue significant financial restructuring and management efficiency. As a result, Hyosung's operating profit increased, and its debt ratio significantly improved after the foreign exchange crisis. Seizing the crisis as an opportunity, Hyosung secured a growth momentum since the start of the crisis to a fully established global market network in the present. Through globalization, the company has become a major player in the global market. In the 2000s, Hyosung dedicated its resources to exploring overseas markets and establishing itself as the world’s best in its flagship products, including tirecords and spandex. From then on, Hyosung embarked on a journey to become a global company by establishing a presence in the United States, China, Vietnam, Europe, and South America. Currently, it is expanding its global production bases to respond to overseas market entry and rapid growth, with 106 factories in 28 countries. Hyosung strives to provide differentiated products and services through a global production and sales system. In 2018, Hyosung achieved a holding company structure to strengthen its management expertise. It established four subsidiaries, Hyosung TNC, Hyosung Advanced Materials, Hyosung Heavy Industries and Hyosung Chemical, and an independent management system led by professional management specialists. Hyosung has leaped forward to become a materials expert through outstanding technological prowess and bold decision-making, and currently holds approximately 550 domestic and foreign fiber patents. Additionally, it holds over 700 patents related to advanced materials, more than 1,000 patents related to chemicals, and approximately 700 patents related to heavy industries. As a global company operating businesses in various countries, Hyosung has firmly established its position as a global enterprise; by pioneering overseas markets while contributing to the Korean economy. A hundred years of tomorrow, prepared through the voice of the customers With its bold and innovative management foundation, Hyosung has been at the forefront of addressing environmental concerns. Hyosung TNC developed their iconic green recycled fiber, ‘regen’. In 2008, regen took off as an eco-friendly fiber made from recycled PET bottles. Since then, Hyosung has greatly expanded its lineup of eco-friendly functional fibers, which is now the leading global trend in eco-friendly fibers. Hyosung Chemical was also the first in the world to commercialize polyketone, an eco-friendly engineering plastic, and the liquid hydrogen project. Led by Hyosung Heavy Industries, this project is still being actively pursued today. In 2017, during Chairman Cho Hyun-Joon of the Hyosung Group’s inaugural speech, he stated that he would create a company that listens to the voices of its customers and clients. Hyosung will strive to be a company whose pride lies in technology and a company that always wins. All of these points were embodied in the word 'customer.' In 2023, he expressed his aspiration to pursue customer satisfaction and happiness by moving toward a 'customer-immersed management' through a 'customer-first' policy. The mission to emphasize the 'customer,' has led Hyosung in a symbolic endeavor to not only listen and respond to the voice of the customer but also to understand the customer through multiple perspectives. Hyosung's growth has always been based on the VOC (Voice of Customer) management philosophy, taken at every direction, and has enabled them to move strategically. Through reliable technological innovation for customer satisfaction, Hyosung is preparing for a leap toward a strong and successful future for the next 100 years.

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Discovering Hyosung Advanced Materials Hidden in Today’s Mobility Solutions

One could say that another word for mobility is freedom- the freedom to leave for someplace anytime from anywhere. Mobility allows us to circumvent the constraints of space and time. Commuting to work every morning, meeting with friends, going on a trip or taking a short break, and meeting family members who live far away, all these things would be difficult without mobility. Mobility has been a part of human life for a long time. In comparison with walking at an average speed of 4 km/h, traveling at an average speed of 80 km/h in a car each day seems beyond human capability. Since mobility entails great risks, high-performance components and materials that provide safety and convenience are essential in moving vehicles. Hyosung Advanced Materials, a global specialist in materials, supplies a considerable variety of such materials. Do you know how many Hyosung products there are inside a single car? Today, we’ll take a close look at some of the Hyosung Advanced Materials products that are hidden in automobiles. Introduction to Mobility (101), Safety Devices in Cars Do you remember your very first driving lesson? When you take driving lessons, the first thing you learn is how to put on the safety belt. Hyosung Advanced Materials is the world’s top supplier of polyester yarn for seatbelts. Just as a top supplier should, Hyosung Advanced Materials realized the importance of yarn in automobile seatbelts long ago and has been producing seatbelt yarns since 1987. As the material for seatbelts directly affects safety, the company pursued a high degree of durability without missing any tiny details. Seatbelts produced by Hyosung Advanced Materials have excellent dyeability and wear resistance as well as tight control over appearance Today it produces diverse types of seatbelt yarn (low denier, black spun dyed, etc.) that meet different needs. It is claimed that seatbelts alone can reduce the car accident fatality rate by 45%; therefore, you must never forget to fasten your seatbelt whenever you get in a car. Hyosung Advanced Materials is the only top global company to manufacture all of the airbag yarns, fabrics, coatings, and cushions that make up an airbag. Airbags have a variety of shapes and functions, not just for the steering wheel but for other places inside a car, too. The driver airbag, or DAB, is installed in the steering wheel to protect the driver, while the passenger airbag (PAB) protects the person in the front passenger seat, and the knee airbag is designed to protect the knees. Meanwhile, the curtain airbag drops from the ceiling and offers protection against side collisions, while the side airbag (SAB) inflates from the side of the seat to protect the upper torso of the passenger. The airbag cushions made by Hyosung Advanced Materials that go into these different types of airbags can be found hidden in various parts of your car. Hyosung Advanced Materials manufactures airbag fabrics and owns Global Safety Textiles (GST), the world's largest airbag fabric supplier. A world leader in airbag fabric manufacturing, Hyosung Advanced Materials excels in both technology and quality. Global manufacturing hubs in North America, Europe, and Asia provide the company’s products worldwide. A shoe that fits your car perfectly! What is the only part of an automobile that comes into direct contact with the surface of the road? It is the tire, of course. Tires, which we could say are the shoes of the car, hugely affect ride quality, handling, vibration, noise, and fuel efficiency – qualities that are generally considered to be the basic characteristics of any car. In addition, tires must be able to withstand unpredictable road conditions and the weight of the whole vehicle. For these reasons, reinforcements like tire cords are essential components of automobile tires. With its own technology, Hyosung Advanced Materials successfully developed the country’s first nylon-based tire cord in 1968, followed by of a polyester-based tire cord in 1978. Each tire cord is assembled from several different parts, each of which requires its own unique material. The tire cords developed by Hyosung Advanced Materials, as well as other tire reinforcements made by the company, can be found in the tires of the car you are driving today. In addition to PET tire cords, currently the world's bestselling tire cord, Hyosung Advanced Materials also manufactures nylon tire cords, steel cords, and bead-wire and supplies them to global tire manufacturers. It can be argued that one out of every two cars in the world uses PET tire cords made by Hyosung Advanced Materials. These days, a great deal of research and development are being conducted on tire reinforcements to meet the growing demand for environmentally-friendly mobility solutions. Recently, Hyosung Advanced Materials has developed high-strength PET tire cords and aramid-based tire cords to enhance fuel efficiency, and these are already being used in many tire products. In addition, the company is currently developing recycled PET made with discarded PET bottles, recycled steel cords made using an induction furnace, bead wire technology, and tire cords made from environmentally-friendly materials like bio-based PET and bio-based nylon. Will a new wonderous material show up in my car? Are you a person who drives a hydrogen car to preserve and protect the environment? The carbon fiber manufactured by Hyosung Advanced Materials is also used as the material for hydrogen fuel tanks. To store and transport hydrogen safely, a large container is needed due to its a high weight-to-energy density ratio and a large volume. For this reason, hydrogen is usually compressed with high pressure for storage purposes. Carbon fiber is the most suitable material for this purpose due to its low weight, high elasticity, and excellent thermal conductivity. Originally developed by Hyosung Advanced Materials in South Korea, carbon fiber is ten times stronger and seven times more elastic than steel. A hydrogen fuel storage tank made of carbon fiber weighs only half as much as a similarly-sized tank made of metal and thus can increase the fuel efficiency of vehicles. Besides the hydrogen fuel storage tank, carbon fiber’s excellent strength and light weight have made it an ideal material for a broad range of car components designed to increase fuel efficiency. Carbon fiber is used as the main material for monocoques (a type of automobile frame), wheels, bonnets, and sunroof frames, and its scope of application continues to expand. In order to meet the increasing demand for carbon fiber, Hyosung Advanced Materials is planning to invest a total of one trillion won by 2028. This will enable it to expand the capacity of its Jeonju plant to 24,000 tons. Phase 2 of this expansion project has already been completed, and Phase 3 is scheduled for completion in April 2023. Transforming your car into your own personal hideout! As a temporary refuge from adverse weather conditions like cold winds and a form of escape from a hectic, noisy world, a car can provide a cozy private escape. This is why so many of us like to take a drive whenever we need to clear our minds. Hyosung Advanced Materials is a leading supplier of car carpets, which make our car the most comfortable places to hide away. Floor carpets and mats are the two main types of carpets installed in cars. Floor carpets are molded to fit the shape of a car’s steel frame and are essential components of a car, unlike mats which are classed as an optional feature. As well as providing comfort and cushioning, carpets reduce noise and vibration and absorbing impacts. On the other hand, mats that are laid on top of the floor carpet help to prevent the floor carpet (which is difficult to replace) from getting contaminated by dirt and moisture while simultaneously serving as a cushion that relieves fatigue in one’s feet and improve the aesthetic of the interior of a car. Hyosung Advanced Materials produces carpets using BCF (bulked continuous filament) method, which makes them unique. With this method, each strand of yarn is produced individually, which results in a special yarn with excellent bulkiness (the characteristic of swelling in volume) and restoring force (the characteristic of bouncing back when pressed). Passengers and driver’s shoes always contact carpets, which wear out the carpet quickly. However, car carpets made with BCF yarn do not wear out easily compared to those made with regular nonwoven yarn, thanks to their ability to bulk up like a cotton ball. Floor carpets made from BCF yarn also reduce interior noise in cars by as much as 30%. It is undeniable that BCF is an essential product for comfortable driving. Today, we’ve examined in detail some of the products by Hyosung Advanced Materials makes for automobile. From safety to ride comfort, Hyosung Advanced Materials assumes responsibility for the quality of your car through its unstinting focus on material engineering. Providing uniform quality and flexible services to its customers is one of the hallmarks of Hyosung Advanced Materials.

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The Use of Hydrogen in Our Daily Lives Is No Longer Just a Dream for Future Generations!

What is the first thing that springs to mind when you think of the word ‘hydrogen’? You might think of it as something that exists in abundance all around us, as one of the elements of water (H2O) that could be extracted, or as a gas that doesn’t cause environmental pollution and could be used as an energy system – images that suggest ease of supply and environmental friendliness. A hydrogen car propelled by hydrogen is one of the first images that come to mind. Indeed, mobility is one of the sectors where hydrogen is actively used. As a hydrogen specialist company, Hyosung is a group whose subsidiaries are cooperating with various businesses to develop the hydrogen mobility market. However, when people speak about ‘environment-friendly’ cars, most people equate them with battery-powered cars (FCEV) rather than hydrogen-powered cars (BEV) because electric cars have long been viewed as the mobility solution that will eventually replace internal combustion engine cars. But the days are not far off when hydrogen-powered cars on the streets will be a common sight. Let’s consider why hydrogen is attracting interest as the energy source of the future by examining the characteristics of hydrogen-powered cars that could make them an engine of growth in the mobility markets of the future. Q. What are the main reasons hydrogen attracts interest as a future energy resource? The first reason has to do with the environment-friendly nature of hydrogen. Hydrogen is an infinite energy source and a universal resource that exists in abundance in water and on Earth. This is backed up by evidence: hydrogen constitutes 75% of the universe’s mass and 90% of its molecules. Furthermore, hydrogen does not emit any air pollutants that produce greenhouse effects, unlike the carbon dioxide (and small amounts of nitrogen) generated by the burning of fossil fuels. Because hydrogen can be converted back to the water, hydrogen can also be recycled after it has been used to produce energy. The second reason for the growing interest in hydrogen is that it can be used in many industries that require energy. Hydrogen fuel cells can power airplanes and cars. Hydrogen gas can replace traditional LPG for cooking in residential homes, heating buildings, and generating electric power. Although hydrogen as a fuel is perfectly safe, Hyosung Heavy Industries is paying close attention to the its safe transportation and storage because the market for liquid hydrogen is growing. Hydrogen is transported and sold as a liquid because its volume is reduced significantly when hydrogen gas is compressed into its liquid form. Therefore, before high-pressure tanks containing liquid hydrogen are installed in vehicles, Hyosung Heavy Industries conducts rigorous safety tests such as flameproof, collision, and leakage tests. It also manufactures and supplies the nylon liner resin needed to stop hydrogen leaks. Q. I am curious about the state of the hydrogen market today. Do you think hydrogen could succeed globally? The conventional cars with internal combustion engines that people drive are responsible for most of the environmental pollution we see today. According to the Ministry of Environment's Greenhouse Gas Information System, South Korea generated 727.6 million tons of carbon dioxide emissions in 2018, of which 98.1 million tons (13.5%) were produced by the transportation sector, which includes automobiles. This is why the advantages of hydrogen and electric cars are being hyped to such a remarkable extent. Of the two, many people already drive electric vehicles, but their shortcomings, namely the lack of charging infrastructures and faster charging technology, still need to be fully resolved. The batteries used in electric cars are relatively inexpensive. Since many companies are investing heavily in hydrogen technology, there are signs that these problems will be resolved, making the hydrogen market look more favorable. However, with hydrogen cars, the availability of hydrogen as a fuel and the fact that they discharge only water instead of exhaust gas makes it easy to handle unexpected situations involving fuels. However, hydrogen cars require more advanced technologies and are sold at premium prices that are 60-70%. More expensive (the high cost of hydrogen fuel cells being the main factor) than electric cars, consumer prices are expected to fall in the future as the market expands, and the production and supply of hydrogen cars will increase, leading to improved productivity. Q. Hydrogen car vs. battery-powered electric car: which is better? Hydrogen and electric cars differ in how fuel is generated and recharged. Hydrogen cars are powered by electricity generated by combining hydrogen atoms with oxygen atoms, whereas electric vehicles are powered by electric charges stored in their batteries. Thus, a hydrogen car generates the electricity it needs to move by itself. Furthermore, hydrogen has the advantage of being lighter with a very high energy density compared to batteries. While the battery capacity of a typical electric car is 60kwh, 1kg of hydrogen contains 33.3kwh of energy. This means that the same amount of energy can be stored with just 2kg of hydrogen. In fact, hydrogen cars not only boast a short charging time but can travel 600 m on a single charge. On the other hand, electric vehicles require long charging times and can only travel 300-400km on a single charge. In particular, there are no benefits to be gained from making electric versions of commercial vehicles like buses and trucks because the long distances require massive amounts of energy, which can only be supplied with a heavy battery and longer charging times. Therefore, hydrogen technologies are being developed primarily for commercial vehicles where there is a clear advantage to using hydrogen power. Europe introduced hydrogen-powered buses over ten years ago. In South Korea, cities like Jeju, Busan, and Pohang are introducing hydrogen-powered buses, and Ulsan is planning to pilot a hydrogen-powered tram service in 2023, which will become the first service of its kind in the world. Meanwhile, over 50,000 hydrogen-powered forklifts have already been sold in the United States. Due to their dependence on raw materials like cobalt, nickel, and lithium and the issue of discarded batteries, electric cars have come under considerable criticism for not being a completely environment-friendly solution. In contrast, hydrogen cars are relatively free from such criticism because when green hydrogen is used as a fuel, vehicles could be operated as a completely non-polluting mobility solution. Q. So, why is there more publicity and hype surrounding electric cars than hydrogen cars? The reason is simple – a greater number of electric cars have been sold than hydrogen cars. A comparison of the global sales figures for 2021 shows that 4.73 million electric cars were sold that year, against only 15,500 hydrogen cars. The South Korean government plans to increase the number of charging stations to around 510,000 by 2025, but the number of hydrogen refueling stations under this plan will be only 450. A huge gap of this magnitude is largely attributable to inadequate support infrastructure. Charging stations for electric vehicles only leave a small footprint and are relatively cheap to install, whereas hydrogen refueling stations require a large area and are more expensive. But investments are still being made in hydrogen-powered cars because the energy content of hydrogen is three times that provided by an internal combustion engine, and it is far more environmentally friendly. Governments all around the world are working hard to find ways of quickly installing as many hydrogen refueling stations as possible. Recently, the European Union tabled a bill to increase the number of refueling stations aggressively. If this bill becomes law, Europeans will see a tenfold increase in the number of hydrogen refueling stations on the continent, rising from the current 150 to over 1,500 by 2030. Hyosung Heavy Industries, the top hydrogen refueling station supplier in South Korea, is also leading the effort to build more hydrogen refueling infrastructure to meet the growing demand. There are just twenty five hydrogen refueling stations in operation around the country, but fifteen additional stations are now under construction. Q. What was the hot topic of discussion in the hydrogen industry just now? Right now, liquefied hydrogen is the area that’s attracting all the attention of the hydrogen industry. Liquefied hydrogen means precisely what it suggests. It is hydrogen in the form of a liquid, created when hydrogen is cooled to below minus 253 degrees Celsius. There is a sound reason why people are using hydrogen in its liquid form despite it being a gas in its natural state. Hydrogen gas must be compressed at high pressure to store it in large volumes before it can be stored. High compression requires containers with thick walls, which will be heavy and relatively inefficient for transporting hydrogen gas. Compressed hydrogen gas still occupies a huge volume, so acquiring sufficient land to construct refueling stations could be somewhat problematic. Liquefied hydrogen has 1/800 the volume of hydrogen in its gas state and, therefore, could be kept at atmospheric pressure, relieving operators from the burden of handling highly compressed gas. Because of its reduced volume, ten times more hydrogen can be transported in the liquid state. This advantage naturally implies that the space required to build a refueling station would be smaller, with lower facility costs and transportation costs, making hydrogen more economically feasible. To accelerate the adoption of liquefied hydrogen, Hyosung Heavy Industries has partnered with Linde Group of Ireland to build a liquefied hydrogen plant in South Korea. This plant, currently being built in Ulsan, is scheduled to operate in May 2023. Once completed, it can produce 13,000 tons of hydrogen per year. Hyosung is planning to increase the plant’s capacity to 39,000 tons per year by expanding it and building new facilities. In the hydrogen business, Hyosung Heavy Industries is concentrating all its efforts on constructing core hydrogen infrastructures and refueling stations. The company will also construct Ulsan’s first hydrogen refueling station when its liquid hydrogen plant goes into operation. By the end of next year, the company will complete the construction of four other refueling stations at various locations across the country, including Gwangyang, Gyeongsan, and Geoje. It also plans to construct new refueling stations at thirty other places across the country in the longer term. Q. We are curious about the future of hydrogen use in our daily lives! Hydrogen is an energy of the future that is being adopted by many countries to protect the environment. Passenger cars, buses, and trucks are our daily lives in the mobility ecosystem. Hydrogen will be widely used in passenger cars, buses, trucks, trams, trains, airplanes, drones, UAM, equipment, forklifts, ships, and submarines. Hydrogen will soon flow directly into our homes through our LPG city gas pipelines. The South Korean government has developed a hydrogen supply via the existing LPG pipelines by mixing it with LPG (80%combiningnd 20% hydrogen), and a stem has been in operation since this year. Supplying hydrogen by mixing it with LPG is an idea that is being tested in countries like the United States, the United Kingdom, and Germany. Now that you have learned all about hydrogen, don’t you think it’s much closer to us than you imagined? As the leading company in the hydrogen economy, Hyosung will lay the foundations for bringing hydrogen to your daily lives. A future with a cleaner environment made possible by environmentally friendly energy awaits us all, a future where we can all drive hydrogen cars.

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POKETONE™, the safer plastic for everyday products

Watching your child play, you may wonder if children’s toys are truly safe for your child to play with. One day, your child may be stacking toy blocks one by one, when suddenly you see the small, chubby hands putting the toy up to his or her mouth. At that moment, your mind flashes back to the news you saw on television the other day about the potential harm of plastic toys. However, you have nothing to worry about if the toy is made from an eco-friendly polymer material called polyketone, which was first commercialized by Hyosung Chemical and marketed under the brand name POKETONE™. Because we want our children to hold only good things in their hands Toys are essential tools for a child's cognitive and social development, as well as for developing fine motor skills and fostering a creative mind. Toys made from plastic are usually lightweight and will not cause injuries even if your child drops or throws them. They are easy to wash and dry if they get dirty, so they are relatively easy-care. When your child plays with plastic toys in the swimming pool, you have nothing to worry about because plastic toys do not get deformed or decay in water. However, despite their many advantages, plastics have had their share of controversies. To make soft plastic toys that are also durable, plasticizers that soften hard plastic must be used as additives. In general many parents do not necessarily check whether the toys you buy for your child are made with environment-friendly plasticizers or that the toys themselves are made with materials that are harmless to the human body. However, your child may become exposed to such hormones and carcinogens. In particular, phthalates, which are additives used in the production of a popular plastic-based material called PVC (polyvinyl chloride), contain high levels of environmental hormones and carcinogens. This dangerous substance can even cause autism and ADHD (attention deficit hyperactivity disorder) in children. Plastics can also pose a never-ending issue. A few years ago, a huge controversy arose when baby bottle sterilizers were found to contain microplastics. Hyosung Chemical, having recognized the importance of addressing such concerns and preventing risks, succeeded in developing the innovative plastic by the brand name POKETONE™, which has exceptionally strong chemical resistance. Hyosung Chemical’s POKETONE™ contains no hazardous substances like phthalates, formaldehyde, halogens, heavy metals, or organic residues. POKETONE™ is a safe material that the US Food and Drug Administration (FDA) approved as being harmless to the human body. It is an outstanding engineering plastic with better properties with similar materials. It has an impact strength that is 2.3 times better and chemical resistance that is 30% more effective than nylon, a material already widely known for its robustness. Its properties hardly change in the presence of moisture, and its ability to resist wear is more than fourteen times better than POM (polyacetal), a material whose wear resistance is at the top of the charts. POKETONE™ can also block out gas very effectively, which is why it is being used extensively in diverse industrial applications. Polyketone is extremely difficult to produce, and despite the continuous research that has been carried out on this material, it was never commercialized. In 2004, however, Hyosung Chemical launched a project to research POKETONE™ with the aim of developing an innovative plastic that would be safer and more sustainable for future generations. Finally, after ten years of R&D, the company succeeded in developing POKETONE™ in 2013. In 2015, it completed all the preparations for its commercialization, which included designing a manufacturing plant and forming a business unit. To this day, Hyosung Chemical is the only company in the world to possess POKETONE™ commercialization technology. POKETONE™, a material that is present in every aspect of our daily lives! POKETONE™, with its excellent safety and attributes, can be found in every aspect of our daily lives, not just in toys. One industry where POKETONE™ is widely used in the food industry, where the importance of safety cannot be understated. POKETONE™, which is harmless to the human body and resistant to moisture, is also used as the material of the components that go into water purifiers. Due to its excellent chemical- and wear-resisting characteristics, it is also used as a material for food conveyor components. POKETONE™ is even used in the production of the food trays that we see every day in cafeterias and schools. When we are eating, invisible particles inevitably fall off our spoons and chopsticks. However, no harmful substances are detected in POKETONE™ because it is so resistant to wear, which also means that it is resistant to friction. Furthermore, when it is used as a material for gear components, POKETONE™ reduces noise, leading to a more pleasant working environment in manufacturing facilities. Another application of POKETONE™ is the cosmetics container, a product that comes into direct contact with our skin. Due to the chemical- and oil-resisting characteristics of POKETONE™, the cosmetic product held by a container made with POKETONE™ does not get altered, and the cosmetic is preserved in its original state. Unlike other substances that leave organic residues that are harmful to the human body, POKETONE™ has been certified as a safe product by the U.S. Food and Drug Administration (FDA) and is commonly used in the manufacture of everyday items such as shower parts, all manner of sports goods ranging from tennis rackets to golf tees. The scope of its application is expanding continuously. There are many advantages to using POKETONE™ in pumps that move liquids like water and cosmetics in liquid form. Metals rust and this rust can contaminate the contents in a pump. But when POKETONE™ is used instead, concerns about contamination are completely alleviated, and moreover, the recyclability of the pump can be improved. Because POKETONE™ is resistant to impacts and fire, it is also used as the material for water meters and electric power meters. In 2016, Hyosung Chemical launched POKETONE™ in overseas markets, and since then, it has become a strong seller in many countries in Asia, including China, as well as in the European and North American markets. ‘Environment-friendly Plastic’ - the more we make, the more we think about how to increase its benefits. POKETONE™ is a material that is not only harmless to the human body but possesses excellent properties, too. Would you believe this material is even environment-friendly? POKETONE™ is produced with carbon monoxide, the chief culprit of air pollution. Carbon monoxide is released in massive amounts as a byproduct in steel-making factories or when fossil fuels, biomass, and waste materials are converted into gas. When carbon monoxide is burned, it is transformed into carbon dioxide, the primary greenhouse gas that we know so well. POKETONE™ was born through the transformation of carbon monoxide into a new resource instead of allowing it to be released as a harmful gas that threatens the Earth. POKETONE™ is an environmentally friendly engineering plastic whose production process by itself contributes to reducing environmental pollution. In fact, the results of life cycle assessments (LCA) conducted by certification authorities have shown that the production process for POKETONE™ has a far less harmful impact on the environment than that of other similar materials. Life cycle assessment quantifies the input and output materials of the entire production process and analyzes the overall impact on the environment, and is performed according to international guidelines. The invention of plastic and the following advances have made it possible for people today to purchase numerous household items at very affordable prices and store food for long periods. However, despite its history of bringing revolutionary changes and remarkable progress, plastics are now blamed for all sorts of dangerous effects and environmental pollution. All living organisms and humans are entirely exposed to the “revenge” of microplastics and environmental hormones, the remnants of the ‘plastic revolution.’ Under these circumstances, the invention of POKETONE™ was a challenge that Hyosung Chemical had to take up in order to protect mankind, the environment, and the health of all living organisms. The plastic revolution of the twentieth century brought endless conveniences to mankind. At the dawn of the twenty-first century, Hyosung Chemical is resuming this revolution with POKETONE™. Hyosung Chemical continues to carry out innovation research today, just as it did in the past and will do in the future, so that everyone in the world can use plastic with perfect peace of mind!

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Together, for better value: Our efforts to combat climate change!

Mankind and nature have always coexisted. Nature has always been an integral part of human existence and humans have been a part of nature’s history. Because mankind cannot exist without nature, mankind must find a way to coexist and prosper with nature. In order to create a natural environment where sustainability is guaranteed, the ability of individuals, enterprises and the world to coexist, the value of ‘togetherness’ is now more important than ever before. Many people around the world today are working feverishly to combat climate change on multiple fronts. All these human efforts are being made for the sake of one goal: ‘the coexistence of mankind and nature’. This goal is the very definition and objective of ‘living well together by helping each other’. There is a company that practices this value of ‘togetherness’, the very meaning of coexistence. That company is Hyosung TNC! According to the UN, the fashion industry is responsible for about 8-10% of CO2 emissions, the main cause of climate change. Hyosung TNC, which manufactures textile yarns for the fashion industry, is the world’s top maker of spandex. As a responsible member of the industry, the company has been introducing many types of eco-friendly products over the years with the hope of contributing to the mitigation of the climate change crisis. The brand that symbolizes the company’s efforts in this regard is regen®, a recycled yarn brand. To produce and supply regen®, Hyosung is collaborating with a slew of fashion companies and organizations and creating the value of mutual growth. regen® is not the only example of the sustainability drive being pursued by Hyosung TNC. Hyosung TNC is ceaselessly researching new ways of reducing carbon emissions throughout the lifecycle of its products. Today, we at Hyosung TNC intend to fully disclose the details of our environmental activities. Transition to environmentally-friendly fuels Hyosung TNC’s factories were able to reduce their greenhouse gas emissions significantly after switching to low carbon energy sources. The factories receive waste heat (a renewable energy source) from nearby household waste incineration centers, after which biogas generated by the anaerobic digestion tank of the wastewater treatment plant is fed into the boilers. The company’s Gumi factory has reduced its greenhouse gas emissions by replacing B-C oil with LNG and LPG gas. Until recently, B-C oil was widely used in the manufacturing sector because it was cheap and had high energy efficiency, but it was blamed for polluting the environment because it produced diverse pollutants including soot. Therefore, the Gumi factory gradually increased the substitution of B-C oil, the source of so many pollutants, and reached a milestone in November 2019 when it stopped using it completely. Hyosung TNC is paving the way forward as a global leader that considers the value of the environment, rather than as one that thinks only about minimizing costs to boost efficiencies. 1) Reducing GHG emissions through improved processes and the construction of a smart energy platform The environmental investment plan for each factory is the one thing that Hyosung TNC never forgets to prepare every year. The company is dedicated to reducing carbon emissions through energy savings that are concretized in the yearly environment investment plans. Every year, Hyosung implements the environment investment plan thoroughly and strictly according to the schedules set forth in the plan. Manufacturing processes are improved to cut down on energy usage rates, while equipment like motors, freezers and air compressors are replaced with high efficiency ones. In addition, in 2020, Hyosung TNC’s Daegu factory participated in the ‘Seongseo Industrial Complex Smart Energy Platform Construction Project’ launched by the Korea Industrial Complex Corporation. In this project, twenty instruments were installed in facilities that consume large amounts of electricity, and a Factory Energy Management System (FEMS) was set up in the factory. The FEMS is a system that enables energy to be used effectively in a factory thanks to the application of information communication technologies and computing software. It analyzes how much energy is used by a particular facility, forecasts the level of energy demand, and calculates the appropriate energy usage rate and costs. With the deployment of the FEMS, Hyosung TNC is able to operate its facilities more efficiently because it can determine in real time where and when energy is used and then make adjustments to the amount of energy to be supplied. 2) Building a GHG inventory at global factories Depending on the nature and scope of emission rates, greenhouse gas emissions can be classified into Scope 1 (direct emissions), Scope 2 (indirect emissions), or Scope 3 (other emissions). Hyosung TNC not only monitors and manages the scope 1 greenhouse gases directly emitted by its factories, but also manages indirectly emitted scope 2 greenhouse gases. To build an inventory of greenhouse gases at its global factories, and not just its factories in South Korea, the company calculates scope 1 and scope 2 emission rates at the factories run by its subsidiaries in China (Hyosung Spandex Jiaxing Co. Ltd.), Republic of Türkiye (Hyosung Istanbul Tekstil Ltd.), and Vietnam (Hyosung Dong Nai Ltd.). In the case of its domestic factories, Hyosung TNC even calculates its scope 3 emission rates (i.e. emissions across the entire value chain) voluntarily and reports the data to the Carbon Disclosure Project (CDP). With the aim of building greenhouse gas inventories and controlling the emission rates of all its global factories, the company is planning to gradually introduce the calculation of scope 3 emission rates to its other factories. By managing indirect emission rates and emission rates at its overseas subsidiaries, Hyosung TNC is working hard to reduce greenhouse gas emissions. 3) Gradual transition to environmentally-friendly businesses As mentioned earlier, Hyosung TNC is a global fabric producer that supplies, in close collaboration with global fashion brands, environmentally-friendly yarns made from recycled materials which are sold under the brand name regen®. Through ceaseless research and development activities, the company is also introducing an entire product lineup that will expand the functionalities of regen®-based products. For example, it supplies recycled yarn made from post-consumer waste materials (waste materials discarded by end consumers) such as PET bottles and used fishing nets, and pre-consumer waste materials (waste materials generated before a product reaches the consumer), with the latter being a by-product of the manufacturing process. Recycled yarns not only help to reduce the amount of waste buried in landfills, but also lower the use of petroleum resources during the production of normal yarns, which in turn naturally aids the environment because lower petroleum resource usage means lower carbon dioxide emissions and energy usage. Hyosung TNC is also leading the pro-environmental movement of the industry by manufacturing bio-based products, which require less water and generate less carbon than conventional yarns and are made from non-edible ingredients. 4) Spreading a pro-environment culture within the company In 2021, Hyosung TNC’s main office in Mapo-gu launched a campaign to reduce the use of disposable products that are indiscriminately used and thrown away in the office. This campaign involved the participation of all executives and employees working at the main office. Today, employees use their own personal tumblers (slightly less handy but longer lasting) rather than the disposable paper cups. By using personal tumblers as a substitute for easy-to-discard paper cups, the company anticipates that this will translate into a greenhouse gas emission rate reduction of around two tons per year, while costs can be saved for roughly 190,000 paper cups that were used in the main office each year. Another notable campaign is the ‘Internal campaign to reuse regen’ launched in 2022. For this campaign, which is now in its second year of operation, special bins have been installed in the company’s main office building in Mapo-gu to collect discarded PET bottles, which are then recycled and used as a material for making environment-friendly fashion items for distributing to employees. The PET bottles discarded in the office are also collected and recycled as Hyosung TNC’s environmentally-friendly regen® polyester yarn, which is used to make bags and t-shirts for the employees. In 2022, 8,831 PET bottles were collected - an effect equivalent to 37 pine trees absorbing carbon dioxide for thirty years. The campaign is continuously improving the brand awareness of regen®, the company’s flagship environmental brand, as well as cultivating a positive mindset among employees regarding their personal participation in the recycling of resources. Hyosung TNC also organizes an annual ideas contest with the aim of finding novel ways to reduce energy consumption and greenhouse gas emissions, in the hopes that increased awareness of the issue among employees could lead to deeper cuts in the company’s carbon dioxide emission rates. This ideas contest has produced some tangible results. For example, Hyosung TNC’s Nylon Polymerization Team at the Ulsan factory proposed the innovative idea of raising the production density of thickeners in the recovery process to reduce the use of energy. If this idea is realized, greenhouse gas emissions could be reduced by up to 8 tons in a single year, which is a big motivator for Hyosung TNC to review this idea in earnest. We live in an era of rapidly changing times and trends which inevitably lead to the production of huge amounts of disposable items, trash, and fast fashion (SPA). The resulting pollution poses a threat to the health not only of everyone now living on Earth but also to future generations of mankind. As if the pollution of land is not enough, the plastic waste that seeps into the oceans is creating huge offshore islands, and as the plastic exposed to sunlight cools, it discharges greenhouse gases. These greenhouse gases then reflect the sunlight back to the surface of the earth, making our world even hotter. After floating on the seas for a long time, waste materials eventually disintegrate into tiny pieces, which are then eaten by sea creatures who mistake them for food, with often disastrous consequences. Ultimately, these waste materials pass through the food chain and end up in the bodies of humans. This is a major problem that cannot be resolved through the efforts of one person or one organization alone. The problem requires the interest of the wider international community and commitment and efforts from all of us. This is why Hyosung TNC, as the world’s top producer of spandex, seeks to play an active role in tackling the problem with a sense of responsibility. In tune with its reputation as a global top player, Hyosung TNC will design a sustainable future for all generations based on its environment-oriented business, so that everyone can welcome a future in which they can live safely in a clean environment. At every moment, Hyosung TNC considers sustainable progress for all generations, present and future. indeed, the choices we make as a business will always place "togetherness" in our pursuit of valuable customers like you who yearn for a brighter future.

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How Wind Turbine Blades Work to Produce Energy

We celebrate Global Wind Day on June 15 to highlight the power and possibilities that wind energy can provide to better protect our environment. People often take wind for granted, but wind has the potential to provide us with endless energy. How wind turbine works The RE100 campaign (Renewable Electricity 100%) aims to convert all electricity sources of company to 100% renewable energy by 2050, while wind, solar, and water sources receive attention. Many companies are particularly paying attention to wind power for its great potentials. Did you know if Hyosung Heavy Industries is one of them? The workings of wind power turbines are the first thing we need to understand before diving into Hyosung’s wind power business. Wind turbines are composed of blades, tower and nacelle. A nacelle consist of a gear box and generator. The gear box accelerates the blades from low speed to high speed. Generator convert mechanical energy into electric energy. To put it simply, once wind energy comes into contact with the blade, it starts to rotate and the rotational kinetic energy created by the gear box is conversed into electric energy which is transferred to substations to reach consumers. Hyosung makes a difference even when it comes to wind power In 2006, Hyosung Heavy Industries developed Korea's first 750kW wind turbine, and in 2009, it developed a 2MW turbine. In 2014, a 5.5MW offshore wind turbine was installed and is currently in operation at the Jeju Gimnyeong National Wind Test Site. In 2015, this turbine received international certification from the DEWI-OCC Group of Germany. Based on its proprietary technology, Hyosung is the first Korean company to acquire international certification for geared wind power plants. The key to wind power is organic collaboration among different parties. Hyosung is uniquely positioned to compete in this area with its competitive gearboxes and generators. In addition to core technologies, Hyosung is a leader in various parts used in wind power turbines. 90% of the parts are manufactured locally. Hyosung leads the future of green energy With the national carbon zero policy and subsequent efforts have made renewable energy such as wind power essential for reducing carbon emissions because it does not use fossil fuels. Hyosung plans to invest 1 trillion KRW in Jeollanam-do, Korea, for its wind power-based green hydrogen production. Using water electrolysis, wind turbines will be built offshore of Sinan to produce green hydrogen. A wind power plant complex to be built with a capacity of 25GW encompassing offshore Younggwang, Sinan and Yeosu. This scale would match 25 nuclear power plants by facility volume. Hyosung Heavy Industries is working on a joint venture with a global leader in offshore wind turbine manufacturing. Currently, Hyosung Heavy Industries is working on acquiring KS certification for a 10MW wind turbine which will produce energy domestically. Hyosung has also been working on building a 10MW water electrolysis facility, which will be the largest in Korea. From offshore wind power turbines, Hyosung plans to produce up to 200,000 tons of green hydrogen. As there are many areas that would require green energy in the future, green hydrogen will facilitate a green energy of the future. In the Energy Storage System (ESS), for instance, batteries would be replaced by the P2G (Power to Gas) technology that stores green hydrogen as gas. The hydrogen fuel cell would have a higher energy density per weight than the ESS, and would require less energy to recharge. Lithium battery in ESS have less energy density per weight than hydrogen and larger energy loss. Hydrogen would have larger energy density per weight than that of the ESS and less energy loss and limitations in recharging frequency. The use of green hydrogen as an energy source would enable us to save large amounts of electricity while reducing losses. Green wind power plant led by Hyosung Heavy Industries Wind power holds limitless potential. Wind power as part of solar power energy is limitless in supply and tapped into for energy permanently. Unlike fossil fuel, wind power energy does not emit toxic pollutants such as greenhouse gas into air. It only requires investment in early stages but otherwise operational cost would be minimal. Wind power is in its nascent period in terms of development and thus promises a great potential of growth. Hyosung is leading that development effort. It is in our hands as to how to use this energy of limitless supply in a smart and efficient manner.

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Carbon Fiber in Everyday Life (III)

‘Top Gun: Maverick’ has become the second highest-grossing international release in 2022, surpassing ‘Frozen’ in terms of ticket sales. Its scenes depicting fighter pilots’ passion and comradery on the 5th generation fighters not only brought joy to the eyes of movie-goers but also attention to the life of pilots in general. Especially the scene where Tom Cruise’s fictional character in the movie takes the supersonic Darkstar aircraft on an unauthorized test flight, pushing it to reach a speed of Mach 10, takes the movie to another level of excitement. One might wonder how the aircraft depicted in the scene could have withstood such heat buildup in that situation. What is it made of that makes it so strong and fast? Maybe something like carbon fiber can be used to build such a plane? Carbon fiber-reinforced materials could make fighter jets lighter, stronger, fly faster and its acceleration performance better. Because they are lighter in weight, it means they can carry more missiles than the conventional material-reinforced fighters. Thanks to its heat-resistance, these fighters can withstand the frictional heat generated during the flight because carbon fibers are heat-treated at over 1,000°C. Building planes to fly faster and longer As carbon fibers undergo the tanning process during the course of manufacturing, they show better tensile strength, heat-resistance and durability while weighing only one-fourth that of steel. That is why out of all the new materials applied to jets that epitomize most advanced technologies, carbon fibers stand out the most. When applied to airplanes, carbon fiber helps to improve energy efficiency and reduce fuel consumption which will in turn contribute to sustainability. Korea’s first carbon fiber TANSOME® developed by Hyosung Advanced Materials is a new material of dreams that will help us build a future of light-weight and safety. Space exploration on carbon fiber Carbon fiber has emerged as one of the most promising materials in the aerospace field. After all, aerospace is where the material was first introduced a long time ago with space shuttles and satellites. Carbon fiber is actually a by-product of the space competition between the US and Soviet Union that started off in the wake of the World War II. The two powers in the Cold War era locked horns with each other to develop carbon fibers. Since then, the material has long been applied in various industry for the development of jets nowadays often using carbon fiber alongside aluminum and titanium. Fly lighter on carbon fiber Carbon fiber is particularly widely applied in the aerospace industry. Aircrafts made of carbon-fiber composite airframes boast more durability and lighter in weight which means better energy efficiency, less fuel consumption and larger cargo volume. Boeing and Airbus are using carbon-fiber composite airframes for their B787 and A350 and plan to expand its application. Boeing 787 initially used only 10 percent of its materials made of carbon fiber but now around 50 percent of its materials are carbon fiber-reinforced ones. Its airframes are also made of carbon-fiber composite. In turn, B787 has seen its fuel efficiency improve by 20 percent. Airbus A380 aircraft also uses carbon fiber-reinforced materials for its key parts with 30 percent of its airframes on carbon fiber. In addition, with the US aiming to commercialize the Urban Air Mobility by 2024, urban transport vehicles to ship passengers and freight are also expected to use carbon fiber for lightweight and smaller sized wings of the vehicle. This would reduce fluid resistance. Many multinational companies have their eyes on developing solar-powered drones which can be used in various sectors such as reconnaissance, media broadcasting and meteorology. Carbon fibers are also used in solar drones. Korea’s homegrown space rocket Nuri that successfully reached orbit in 2022 also incorporated carbon fibers. An ultra-high-strength carbon fiber that is 14 times stronger than steel Hyosung Advanced Materials’ TANSOME® is known for its lightweight, tensile strength, thermal expansion, and exceptional durability. It also has excellent corrosion resistance and electrical conductivity while being safe to the human body. By any measure, it is a fiber that features unparall eled strength in the history of humanity. Hyosung Advanced Materials is not complacent. It has continued to further develop carbon fiber and has succeeded in developing an H3065 (T-1000 class) ultra-high-strength carbon fiber with a tensile strength of 6.4 GPa or higher and an elastic modulus of 295 GPa or higher in October 2022. It is 14 times stronger than steel, which is even stronger than the company’s existing TANSOME which is already 10 times the strength of that of steel. A T-1000 class carbon fiber of the same class comes in handy in various fields, such as the latest aircraft fuselages and parts made by Boeing and space launch vehicles including satellites. This is because compared to aluminum which had been widely used in the space launch projectiles, it can withstand loads and boost propulsion while reducing the weight of a projectile as much as possible. We at Hyosung believe our T-1000 class carbon fiber is going to be used more extensively in the future. Hyosung Advanced Materials is also actively engaging in research and development designed to expand the application of the T-1000 class carbon fiber, which we believe will only facilitate the days when it is applied to various aerospace products such as space shuttles and next-generation rockets. Hyosung’s ultra-high-strength carbon fiber reaches closer into space Manufacturers around the world are working hard to make vehicles including airplanes and cars that help us travel faster and safer. This is why it is imperative that the manufactures opt for carbon fibers that help build lighter and stronger body frames to improve fuel and energy efficiency, and reduce greenhouse gas emission. Particularly, carbon fiber is inseparable from the aerospace industry given its features and characteristics. Clearly its application in the industry is only to grow as the industrial technologies advance. After all, the aerospace industry epitomizes advanced technologies and Hyosung Advanced Materials T-1000 class carbon fiber stands ready to play a key role in the area to help the humanity move closer into space. Hyosung Advanced Materials sees a great potential in carbon fiber as a solution to decarbonization that will be a must to protect our planet Earth for our future generations, not to mention convenience and safety it brings to our current life. There are no other materials on earth that are stronger and lighter, and have better tensile strength and durability, and yet eco-friendlier than carbon fiber. Hyosung continues to work on its technology development because we at Hyosung believe it holds the key to a future of better life for us and generations down the road. This irreplaceable new material is going to further advance at the hands of Hyosung Advanced Materials.

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Carbon Fiber in Everyday Life (II).

Netflix’s popular series ‘Formula 1: Drive to Survive’ will soon release its fifth season. The documentary-like series has gained traction across the world as soon as it hit the screen. The series gives a behind-the-scenes look at Formula 1 drivers and their teams who are competing for the fastest race speed. Of course, the scenes offer captivating glimpses of the world's most prestigious motor racing competition but what has drawn people to this show must also have to do with a series of supercars it features. Formula 1 racing cars are the epitome of cutting-edge technology and science with all the investments made for one thousandth of a second that literally makes or breaks the outcome of a race on the racing circuit. Various materials are applied in manufacturing the racing cars for the strength and super lightweight. But above all, carbon fiber is one material that you need to pay extra attention to. Carbon fiber with over 92 percent carbon, it is ten times stronger and four times lighter in weight than steel. Hyosung Advanced Materials has developed and has been mass producing Korea’s first carbon fiber brand TANSOME® which has been rapidly gaining traction worldwide. Previously carbon fiber was applied mainly to aeronautical and space areas when it was first developed, but it is now widely used in various areas such as high-pressure tanks for hydrogen and CNG, vessels, wind turbines, construction beams, laptop cases and medical devices. Automobile industry and sports are areas where general consumers would meet carbon fiber in everyday life. Lighter in weight but safer for drivers and passengers In the early 1980s when carbon fiber application was confined to aeronautical and space areas, F1 racing cars started to adopt carbon fiber in their monocoque cell design and this was the very beginning of carbon-fiber race cars. The monocoque is a construction of external skin of racing cars except for tires and frames. Carbon fiber-reinforced monocoque is lighter in weight but is much stronger, which helps to better protect the driver. It works as a shield that protects the driver at the possible moment of collision or crash taking place while the car races at a speed of over 200km. Before carbon fiber was brought in, 20 racing car drivers were killed on the racing circuit over the period of two decades. Upon carbon fiber’s emergence, however, the number drastically declined to 3 over thirty years of time. The number speaks for itself, doesn’t it? That’s not the end of the story. When braking in Formula 1 the discs' temperature can actually reach peaks of over 1,000 degrees centigrade and this is where carbon fiber comes in very handy. Recently, various parts are also increasingly being reinforced with carbon fiber including car platform, muffler, center fascia, bonnet and handle. TANSOME® in luxury cars Luxury cars as well are increasingly adopting carbon fiber. Advanced technology which has not yet been applied to mass-produced vehicles is opted for luxury cars. This is where egos of car makers butt heads against each other. For this reason, we often see a new technology adopted in the F1 almost immediately adopted by luxury cars too. Many familiar luxury car brands are using Hyosung TANSOME® for their structure and intermediate materials like prepreg and drawing. Of course, carbon fiber is not the preserve of F1 or luxury cars. It has been increasingly used in ‘everyday’ cars too. A global automobile brand has adopted carbon fiber-reinforced monocoque cell for two of its passenger vehicles and found around 39% reduction in the vehicle weight compared to the ones with traditional steel panels. Carbon fiber in sports and leisure industry This lighter and stronger material is also welcomed in sports and leisure industry. Fabrics incorporating carbon fiber are lightweight and highly elastic and thus provide comfort and help improve performance. Carbon fiber fabrics naturally come in black twill weave patterns either glossy or matte and these signature patterns of carbon fiber add a high-end and sporty look to sportswear products. In turn, sports wears and products made of carbon fiber offer very practical yet stylish looks thanks to the timeless and trendy color of black and the twill weave patterns. This style has received rave reviews from younger generations who enjoy sports. Carbon fiber to boost up performance Did you know that tennis and surfing, both of which are gaining popularity among Gen Z have a thing or two with carbon fibers as well: tennis rackets and surfing boards are made of carbon fiber? Paddle shafts, bicycles, yachts, snowboards, golf clubs, hockey sticks, and bow guns also have carbon fibers. Take tennis rackets for instance. Carbon fiber tennis rackets are lighter, allowing players to hit the ball faster while also offering a firmer grip. They also come in longer handle length and wider racket width which offer more maneuverability and control. Carbon fiber bikes are much lighter than other material equivalents and they gave the feeling of effortless climbing a steep hill or sharp turns. The superb strength-to-weight ratio can be a key to reducing the speed record. Carbon golf shafts are lighter to cause less resistance and more flexure, resulting in faster and more consistent ball speed. Its unique features like increased levels of tensile strength, water/wind resistance, and thermal conductivity variation against temperature make carbon fiber the best material for water sports as well as winter sports such as skiing and snowboarding that require high-performance equipment. Carbon fiber, now an everyday thing Hyosung concluded a sponsorship agreement with the Korea Bobsleigh and Skeleton Federation that performed pretty well at the 2018 Pyeongchang Winter Olympics for the 2017-2018 season and the 2018-2019 season to provide extensive support including funding and technology. This also included the company’s offering of TANSOME® and aramid fiber for the development of gear and equipment. Once being confined to aerospace or racing cars, carbon fiber has now become almost an everyday thing to be found in areas encompassing automobiles, and sports gear and equipment. With its properties of ultimate tensile strength, lightweight and high modulus property, carbon fiber is gaining more prominence in our everyday life. We have reached a point where we can’t go back to days without carbon fiber in our lives. Hyosung Advanced Materials that has developed Korea’s first carbon fiber and succeeded in commercialization is now growing itself into a global leading player on the back of its production capacity and technological advancement. With its unwavering commitment to expanding carbon fiber’s application in our everyday lives, Hyosung Advanced Materials is to take the life of humanity as a whole to the next level by bringing more comfort, convenience and safety. Please stay tuned for updates on Hyosung Advanced Materials’ progress as we continue to further broaden our carbon fiber horizon.

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Carbon Fiber in Everyday Life (I)

Hydrogen cars, golf clubs, smartphones, elevator belts, sneaker soles, satellites, wind power generators, ships, and power cables. These are all products widely used in their respective industries. One might think they are not related to each other. But take a closer look. You will find one common denominator here: They are all made of carbon fiber, a special material with over 92 percent of carbon. One might wonder. “How come these products where the most important requirement should be strength and durability are made of fibers? Wait, that doesn’t sound right.” But once you know more about carbon fiber, you will soon realize that there is no material that is more suitable. The new material that cannot be replaced Carbon fiber is ten times stronger yet 4 times lighter than steel. With its superior properties, carbon fiber has been gaining traction in various industries as a newly emerging material of great promise. Excellent strength and elasticity, high heat-resistance, low thermal expansion, excellent tensile strength and thermal conductivity, and high corrosion resistance. The list goes on and on. Hyosung Advanced Materials succeeded in developing carbon fiber using its proprietary technology in 2011 after embarking on the development in 2008. TANSOME® is the first high-performance carbon fiber developed in South Korea and has been put into mass production since 2013. Last year, Hyosung has taken it to a next level by developing ultra-high-performance carbon fiber. Confined only to special areas? Sometimes people assume that carbon fiber is applied only to advanced technologies for its high-performance. But that is not the case. Carbon fiber is extensively applied to various areas encompassing automobile, sports, space, construction and maritime. It is also playing a key role in areas where sustainability is critical such as hydrogen and renewable energy. The list keeps going and it has started to replace steel and aluminum in areas where lightweight and strength are required for materials. As markets evolve, its application stands only to grow. So what are the areas where we can easily see carbon fiber in everyday life? Carbon fiber in everyday life You will be surprised to know how easily one can bump into carbon fiber in everyday life. It is actually in the body of premium laptops and smartphone cases. Carbon fiber plate embedded in the sole of running shoes works as a spring for better energy return and support and thus can give a performance boost in a race. Carbon fiber has long been used to make golf clubs, fishing rods, premium bikes, and tennis rockets. Carbon fiber is used for the core of electric cables for better power transmission. Carbon fiber-reinforced materials are very transparent to X-rays and pose no harm to the human body and thus have been widely used in various medical products. It is also used to make heating benches and carbon mats for its enhanced thermal conductivity. It can be seen on exterior and interior car design, insulator in solar panels, exterior and interior of commercial airplanes, and satellites. It doesn’t stop there. You will be also surprised to see carbon fiber reinforced materials in frames and masts of vessels and yachts for their lightweight which helps the vessels to save fuels and cost, resulting in contributing to the protection of our planet – not to mention its strength and stability it adds to the vessel in the face of strong winds and currents. A must-have when it comes to pressure tanks Hyosung’s carbon fiber stands strong in many areas but more so when it comes to hydrogen, an industry that’s gaining much traction as the next growth engine. Despite its eco-friendliness and lightweight, hydrogen needs to be compressed to be stored and used due to its low density. That is why hydrogen fuel tanks that store hydrogen gas for storage and transport need to be different from ordinary ones. The tanks as such need to be strong and safe to endure pressure that can easily rise hundreds of times greater than the normal air can withstand. Additionally, the tanks need to be light enough for fuel efficiency and have high tensile strength for safety. The only viable and available material that fits all the aforementioned requirements is carbon fiber. Hydrogen cars are emerging as the best alternative to cars running on fossil fuel that have been blamed for the main source of global warming. Hyosung’s TANSOME® is an indispensable part of the hydrogen car as it is used to make the hydrogen tanks, a critical linkage between hydrogen as an energy source and its storage and transport. Before we realized it, TANSOME® has indeed solidified its position as a key pillar of the hydrogen industry. Wind turbine blades made of carbon fiber Hyosung’s carbon fiber is also used in renewable energy sector. Carbon fiber reinforced materials are used in spar caps, the main load bearing structure of a wind turbine blade to reduce weight of the wind turbine structure and improve power generation efficiency. A turbine with longer blades will be able to capture more of the available wind than shorter blades. As such, carbon fiber that is lighter than and 7 times more elastic than steel is the most optimal material for the blades. Wind blades containing carbon fiber prevent the blades longer than 60 centimeters from bending due to wind. Now longer and lighter wind blades are easy to be made thanks to carbon fiber. Construction reinforcement : stronger and easier to apply Carbon fiber-reinforced concrete beams are increasingly replacing conventional concrete beams as they are much lighter than traditional steel beams and easy to apply in construction which definitely helps to cut down on the construction period. They can also be made much thinner than steel beams, which is also a plus. Carbon fibers are at the moment applied in bridge maintenance panels and construction beams. As they don’t need any welding or assembly on site, and are lighter and easier to transport, carbon fiber reinforced concrete beams greatly contribute to improving efficiency by cutting down on the work hour on site. It is also used for repairing old concrete. The Stuttgart Stadtbahn bridge in Germany is the world's first network arch bridge that hangs entirely on tension elements made of carbon fiber. From a new material of dreams to an everyday thing After emerging as a new material of dreams, carbon fibers have now become almost an everyday element in our lives. With the expanding application, the size of the global market for carbon fiber has been growing accordingly. According to the Fuji Research Institute, the market size of the pan-based carbon fibers mainly produced by Hyosung has reached 85,790 tons as of 2021 and is expected to continue to grow around 10 percent per annum. It is also estimated to reach 327,430 tons of market size globally by 2035. Soon we will live in a world where our everyday lives are going to be surrounded by carbon fiber-based products and a day will not go by without using a product made of carbon fibers. And at the very center of it lies Hyosung Advanced Materials. With its strenuous efforts in research and development, in 2022 Hyosung Advanced Materials has become the third company in the world that unveiled an ultra-high-tensile carbon fiber that is T-1000 class and has tensile strength 4 times greater than existing ones. As such, Hyosung’s technology in carbon fibers is one of the most important driving forces behind the global carbon fiber market. Until the day when no one is surprised to see carbon fiber in their everyday life, we at Hyosung Advanced Materials will continue to work on expanding the application and thus contribute to eco-friendly lifestyle of modern days. From what we see, there are limitless potentials for carbon fibers

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A Product of 10 Years of Work, Poketone™

Creating something from nothing requires painstaking efforts. But it is not only writers who have to suffer such pain to create their work. Similarly, creating a new chemical material requires much time and energy. POKETONE™, the world’s first commercialized polyketone is a good example. POKETONE™ is an environmentally friendly polymer that was developed by Hyosung for the first time in the world. It is known as the next-generation material for its superior properties. Its name may sound foreign to many but it has been widely used in our everyday goods such as toys, portion plates, automobile and electronic goods. This globally recognized non-toxic polymer made of carbon dioxide has been captivating companies and brands that prioritize sustainability across the world. Since the invention of nylon, POKETONE™ is the only material that has emerged as the next-generation material. And this is how it was invented. A plastic material of dreams POKETONE™ is the world’s first and only material of its kind, known as the plastic of dreams. Countries known for their highly advanced chemical technology and innovation like the US and Japan had embarked on development of such a material as early as the 1980s but all had failed to reach commercialization. With the commitment to better the life of humanity as a whole through new technologies and materials, Hyosung pursued the R&D of polyketone-related technologies. Hyosung’s management continued to encourage and provide support to its research team to create a new material that did not exist. Hyosung Chemical R&D team strenuously worked on the development while experimenting with different research environments (i.e. varying temperatures and catalysts). It was seemingly an endless journey with no sign of a breakthrough. Since 2004 when the research begun, around 50 billion won of investment has been made over the period of ten years. There was even an interesting incident of when the R&D team tried a superstitious ritual in which food is offered to the spirits of the ancestors to bring good results. This shows just how the entire R&D process had been a long and difficult journey. In November 2013, Hyosung Chemical finally succeeded in developing the new material, polyketone. But after the short-lived joy came another round of painstaking efforts to commercialize this new polymer. It was also followed by a thorough market study to look into applicable areas, usage and customer demand for a rapid commercialization of the new material. All of this has contributed to a successful and stable supply of the new polymer in the engineering plastic market. In 2015, Hyosung’s establishment of the new POKETONE™ production site with an annual capacity of 5 million tons elevated the entire engineering plastic industry to a whole new level of technology and opportunities. Eco-friendly engineering plastic, POKETONE™ POKETONE™ is made of carbon dioxide and olefin (a class of chemicals that include ethylene, propylene) and emits less greenhouse gas in the process of manufacturing. This new polymer exhibits superior properties than existing engineering plastics and has emerged as the next-generation material that will play a key role in the manufacturing parts industry. It is all thanks to its superior properties such as impact resistance, abrasion resistance, chemical resistance, fuel resistance and nontoxicity. The more we produce POKETONE™, the more we use, and thus reduce carbon dioxide. As such, it will serve as the key material toward a more sustainable future. Stronger and safer material applied in our everyday life With its superior abrasion resistance, Hyosung’s polyketone is nontoxic and safe for the human body. It is approved by the European Parliament’s regulations on the substance of very high concern (SVHC) for all of the 224 types as well as secured ‘Free’ status by the US FDA for its VOC (Volatile Organic Compounds) classification on harmful materials such as phthalates and formaldehyde. It is approved for the use of conveyer belt parts for water cooler and food processing, medical device parts, and mold for contact lens manufacturing for its safety. It is even safe for children to use. As children tend to explore with their mouths, toys and suction plates made of Hyosung polyketone are safe to use. Ushering into a future of the next-generation engineering plastic Hyosung POKETONE™ exhibits 2.3 times stronger impact resistance and 30 percent higher chemical resistance than that of nylon. When it comes to abrasion resistance, it is 14 times stronger than that of polyacetal. As such, it has great potentials in eco-friendly vehicles and next-generation industrial materials. Particularly, it will be useful in areas that require special materials such as automobile (i.e. fuel line, exterior/interior materials, electric and electronic parts). The engineering plastic market requires a detail-oriented customization process in order to develop products befitting different customer needs which is not expected for conventional plastic products. This is why the production cycle takes up to a couple of years from product planning to manufacturing. This is where the role of a solution provider comes in handy in order to be able to identify a product’s technical characteristics while understanding demands from engineering resins and customer’s application. Hyosung Chemical understands polyketone better than any other players in the market – not to mention the fact that it developed and commercialized it as the world’s first and only manufacturer to date. As such, the company is best positioned to play the role of a solution provider that offers the technology and product line-ups needed to produce customized products. A green future shaped by POKETONE™ The global engineering plastic market has been growing 7.2 percent per annum from 66.2 billion dollars of 2016 to be expected to reach 132.8 billion dollars by 2026. Global sales volume of polyketone has also been a steep rise from 912 tons of 2016, 8,542 tons of 2020, to more than 200% increase to 18,220 tons of 2021. It exhibits excellent toughness, abrasion resistance, tensile strength and elasticity with superior impact resistance and chemical resistance too. With this excellent properties, polyketone has emerged as the best alternative material to existing engineering plastics. Hyosung POKETONE™ is leading the ever expanding engineering plastic market. With no intention to be complacent, Hyosung Chemical has been putting a lot of thought into how to capture carbon dioxide from power plant emission to produce POKETONE™, in order to enhance the eco-friendliness of production. As such, POKETONE™ is preparing a transition into a greener way of manufacturing by using the pollutant as raw material and recycling resources. In doing so, Hyosung Chemical POKETONE™ is to grow into a global leading brand in the engineering plastic market in the world.

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TANSOME®, a Special Fiber That Gets Stronger as It Burns

Would you believe if someone tells you a thread of fabric can lift up a 700kg vehicle? This apparently impossible mission turns into a mission possible when carbon fiber comes into the picture. Carbon fiber is less than 1/5 the weight of steel but is 10 times stronger. It may look no different than ordinary threads of yarn but it surely is not the same. There is reason why this fabric with 92% carbon content is known as the “new material of dreams.” The first carbon fiber developed in Korea and fourth of its kind in the world This is how carbon fiber is manufactured at Hyosung Advanced Materials: It is produced by heat-treating acrylonitrile with pressure to turn it into macromolecule which then is converted into a thread of fabric. This then is oxidized in an oxidation furnace of up to 1,200°C to produce carbon fiber. This whole process is called “tanning processing” which is known for its stringent requirements for a highly sophisticated manufacturing system. A single carbon fiber of 7μm diameter is only one-tenth the diameter of a human hair. However, when combined together in large numbers as many as several thousand, it is reinforced to withstand any pressure. A very thin layer of carbon fiber of 1㎟ cross sectional area in turn can lift up a 700kg vehicle. Committed to technology innovation and the environment, Hyosung Advanced Materials has begun its endeavor of developing carbon fiber since 2008. It has developed Korea’s first high-performance carbon fiber TANSOME® in 2011 to succeed in mass production in 2013. TANSOME® actually is an acronym of two words: “Tanning” and “Something Special” which carries the meaning of creating added values with the very special material in a way that has never been seen before. With promise of limitless potentials Carbon fiber is extensively applied to a wide range of areas. Space, automobile, wind power, high-pressure container, electric wire layers, engineering and construction, other industrial purposes and sports and leisure. With technological advances, more and more sectors require lighter, stronger, more sophisticated composites. There is nothing better that suits this profile than Hyosung’s carbon fiber. Carbon fiber has long been part of the production of space shuttles. Airplane manufacturing makers such as Boeing and Airbus have been increasingly adopting carbon fiber composites in the airplane manufacturing process (e.g., B787 and A380) in order to lower the overall airplane weight and enhance energy efficiency. The automobile industry, especially race cars that require lightweight and high motor fuel efficiency is also no exception. Oil transport pipelines which require chemical and corrosion resistance also use carbon fiber. Frames of yacht and vessels, high-pressure containers such as CNC and hydrogen tanks, bridge panels and beams for civil engineering and construction, and medical equipment. The list goes on. In sports and leisure industry, carbon fiber is extensively used in areas such as golf club, bikes, hockey stick, tennis racket, fishing rod, and snowboard. Cable core made of carbon fiber exhibits greater elasticity and strength than that of steel core, rendering a wider row spacing of transmission towers to save up costs. The indispensable part of hydrogen value chain That’s not the end of the story. Carbon fiber shines the most in hydrogen industry. Having recognized limitless potentials of hydrogen, Hyosung has actively engaged in related industries. The company is running the largest number of hydrogen filling stations in Korea while providing core parts in high-temperature tanks for safe storage and transportation of hydrogen. It has also been leading the distribution of green hydrogen produced using renewable electricity such as wind and solar power. Hyosung is building the world's largest liquid hydrogen plant for storage and utilization of green hydrogen. It is also developing coal and carbon capture and utilization (CCCU) technologies which will be critical in the production of blue hydrogen. The indispensable part of Hyosung’s hydrogen value chain is TANSOME®. Liquefied hydrogen in filling stations that are the key infrastructure of hydrogen mobility is compressed in high pressure for the sake of easier transport and storage. It requires high-strength tanks and this is where TANSOME® comes in handy. High-pressure tanks and containers made of TANSOME® are significantly lighter than existing materials, boosting fuel efficiency and reducing greenhouse gas emission. Hyosung, committed to both of hydrogen and carbon fiber With its proprietary technology of carbon fiber, Hyosung Advanced Materials has committed itself to sustainability. It plans to gradually expand its TANSOME® production capacity to 9,000 tons/year by 2023 and the world’s largest capacity of 24,000 tons/year by 2028. Hyosung is also to build a carbon industry cluster and further expand the adoption of the eco-friendly carbon fiber. A future where we can meet carbon fiber in everyday life seems not far away.

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Waste Fishing Nets, the Troublemaker of the Ocean, Turns into Raw Materials

Deep under the ocean, there lives the adorable Nemo, in colorful coral reefs. Unfortunately, however, we may never be able to see Nemo again, forever. Nemo, a clownfish, was listed as one of the ten species at high risk of extinction by the International Union for Conservation of Nature in 2009. This is because coral reefs, the habitat of clownfish, are being destroyed. Waste fishing nets are the main culprit of coral reef destruction. Last June, 800kg of abandoned fishing nets covering the coral reefs were removed in the Gulf of Thailand. The coral reefs were bleached and broken by the ghost nets and marine creatures living in coral reefs, such as sea anemones and sea urchins, were also smashed and entangled in the nets. Globally, around 64 tons of fishing nets end up being abandoned in the ocean annually. But what if we could use such discarded nets to make our everyday apparel and bags? This could actually happen in the near future. Hyosung TNC is the world’s first to produce regen® ocean nylon, recycled from waste fishing nets. The Creation of Exceptional, Recycled Yarn When waste fishing nets are exposed to sea water and UV rays for a long period of time, they contain vast amounts of salt and impurities. Recycling such nets into high-quality yarn requires complex processing procedures. More human resources and time are needed compared to making regular non-recycled nylon yarn. And what’s more, there was no such thing as yarn made of wasted fishing nets when Hyosung TNC concentrated on developing it. There was lower demand for eco-friendly products, as consumers and corporates in general were less environmentally conscious at the time. It was unclear whether Hyosung TNC could generate profit even if the recycled product development was successful. Hyosung TNC, however, has chosen the path of protecting the environment so that the future generation could live in a safe, clean and sustainable world, rather than focusing on profitability. Hyosung TNC, as the first mover, started by building a value chain for a stable supply of waste fishing nets. Hyosung TNC went through challenging times from the very beginning, with difficulties securing waste fishing nets. Only fishing nets made of nylon can be recycled, but most of what we acquired was polypropylene or polyester mixed, making it difficult to separate nylon from other. Even in times of frustration, the project leaders in the company traveled all the way to the opposite side of the world in order to find a supplier, with unwavering determination to secure usable nylon fishing nets. Yet, the samples received from the supplier were made of polyester, which could not be recycled. Despite the challenges, Hyosung TNC was not let down. After securing countless numbers of discarded fishing nets from all around the world, they were analyzed and conducted thorough quality inspections. With its continuous R&D efforts, Hyosung TNC finally launched regen® ocean nylon, world’s first nylon yarn made of waste fishing nets. Since its launch, regen® ocean nylon has garnered a lot of attention from many environmentally conscious brands. A number of brands that were conducting research on responsible production and the use of eco-friendly material did not hesitate to seek regen® ocean nylon. In particular, global outdoor brands from the US and Europe partnered with Hyosung TNC to manufacture eco-friendly climbing jackets, pants and bags using our regen® ocean nylon. The Remarkable Transformation of Troublesome Waste Fishing Nets Let’s find out about how rough, diverse fishing nets are reborn as regen® ocean nylon. First, waste fishing nets are unfolded and cut into small pieces to remove impurities. The pieces are put in water and rotated so that impurities floating in the water can be removed. This is the purification process of sorting ropes, nets, and leads by their relative densities and eliminating impurities like anchovies, shrimps, and salt that are stuck to the net. The fishing nets that have gone through the first round of purification are then dissolved and passed through a catalytic filter for the second round of purification. The dissolved fishing nets turn into a transparent liquid. It is then re-purified, using ultrasonic equipment to remove any residual impurities. The liquefied fishing nets, after three rounds of purification, go through a de-polymerization process of breaking polymeric bonds to recover caprolactam, a basic building block for nylon. The caprolactam is then re-polymerized, converted into nylon 6 and spun into regen® ocean nylon yarn, which are used to manufacture apparel and bags by brands that seek sustainable solutions for the environment. Hyosung TNC – Faster than Others, Distinct from Others Nylon 6, the typical non-recycled type of nylon, is produced by using caprolactam, which is made of high-purity, petroleum benzene. And vast amounts of carbon are released when refining crude oil to produce benzene. In contrast, regen® ocean nylon does not require such a refining process and is produced from recycled waste fishing nets, making it eco-friendly. The process of recycling fishing nets into nylon is very complicated and requires advanced technologies. Hyosung TNC was preemptively aware of the need to make its business sustainable and eco-friendly, and was the first mover to begin producing nylon from recycled fishing nets. It has been offering recycled, high-quality nylon with its 15 years of know-how and technological capabilities. Hyosung TNC also offers recycled fiber other than regen® ocean nylon. There is also regen® polyester and regen® ocean polyester made from recycled PET bottles and regen® spandex made from 100% reclaimed waste. There will be more to come. Hyosung TNC will continue to take the lead in producing and supplying eco-friendlier products. Our everyday lives become more sustainable when we have more regen® products available around us. We hope that regen® will contribute to making our lifestyles more convenient and sustainable. Perhaps we have already been contributing to saving the environment through regen®-incorporated apparel. Hyosung TNC will continue to take the lead in creating a sustainable environment by filling our surroundings with eco-friendly products, until our everyday lives become sustainable.

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Where the Smart Grid Technology Stands Today

Let’s check what we know about ‘smart grid’ Now one might have heard of “Smart Grid” which is known as the next-generation power grid that will help us address global warming issues by cutting down on greenhouse gas emissions. One might also wonder then how exactly the smart grid system can help us address climate change. To understand the smart grid, one needs to under stand what it stands for. The smart grid is literally about getting smart about our electricity power grid. By applying ICT technologies to the existing power grid, we create a two-way system where power suppliers and users trade electricity production and consumption in real time so that there is no waste of power energy. Our life quality can be lifted too with the smart grid Smart grids enable a two-way flow of energy which makes it possible for households to sell backup electricity to production facilities and also enjoy dynamic pricings based on real-time demand. Thus, one can see when the electricity usage is likely to peak and then avoid the peak hours to cut down on electricity bills. Existing power grids have been flowing only one way from power generation to consumption and in turn are designed to produce extra 15% backup power of expected demand. This system creates certain amounts of power waste and thus leads to lower energy efficiency. With smart grids, however, one should be able to reduce unnecessary usage of fossil fuel for power generation, which in turn cuts down on carbon emissions to contribute to saving the planet Earth. On top of this, by using renewable energy sources such as wind and solar power, areas or regions that have not been part of the existing electricity grid would be able to get sufficient power supply. As such, smart grids are truly a forward-looking power distribution network that maximize and optimize high-quality electricity services and energy efficiency. There is a company that has been leading the world by example when it comes to the smart grid: Hyosung Heavy Industries has been trailblazing the path for a future with the smart grid with its ESS solution. ESS, a gigantic battery that saves electricity for future use An ESS (Energy Storage System) is a set of methods and technologies used to store energy when energy demand is low for future usage and known as one of the most promising systems under the smart grid. Energy consumption usually peaks in summer and winter, and also in the afternoon during the day. The system saves energy produced using renewable energy sources during the day and stores in the ESS, and then taps into the stored energy during the night times. In a way, it is similar to a mega sized battery which saves up energy while it can and then taps into them whenever needed. The ESS is categorized into Power Conditioning System (PCS), Power Management System (PMS) and Battery and Battery Management System (BMS). Below are snapshots of what they are. ■ PCS: This system is responsible for converting the power from AC to DC and vice versa. When it’s converted from AC to DC, electricity power is stored in the battery while the saved power is distributed when the conversion takes place from DC to AC. ■ PMS: PMS identifies data and information received from the PCS or battery to monitor and control the overall ESS status. ■ Battery: It stores electricity in the form of direct current or works as an output unit. ■ BMS: This system measures currents, voltage and temperature to control recharging and discharging of electric currents. Hyosung Heavy Industries’ ESS solution offers ES PCS with high efficiency and reliability, PMS with various applications and Battery with optimal storage and capacity, meeting global standards. Hyosung offers various ESS solutions connected with renewable energy source, frequency regulation, peak reduction and independent microgrids to meet different customer needs. In addition, it provides customized ESS consulting services alongside a one-stop service that brings together all and everything when it comes to the ESS solutions – from system building to post-management. Hyosung Heavy Industries’ ESS is expanding globally Hyosung Heavy Industries first entered the ESS industry back in 2009 as part a government project. But ever since then, the company has taken great strides. Hyosung has provided ESS solutions worth 250kW/500kWh to Guri Agriculture and Fisheries Corporate in 2012, 4MW/8MWh to Chocheon in Jeju in 2013, 500kW/300kWh to Hong Kong Electric and 900kW/20MWh to Mozambique Africa in 2014, 2MW/3MWh to Gapa Island in Jeju in 2016, and recently 6MW/18MWh to Pyeongchang Wind Power. A series of such stellar track records are testaments to Hyosung Heavy Industries’ outstanding energy solution and ESS management capacity home and abroad. Hyosung’s ESS in Britain As a total energy solution leader in the global market, Hyosung Heavy Industries has been actively engaging markets when it comes to ESS projects. It secured an ESS contract with Downing, one of Britain’s largest investment and asset managers, to provide a 50MW ESS capacity to South Hampton in the UK. With the deal, Hyosung Heavy Industries is to offer a one-stop ESS solution for the southern part of the UK to be responsible for overall ESS system design, establishment and post-management of up to 10 years. Hyosung to usher in an era of smart grids Once the smart grid system is fully embedded in our daily life, it surely will have a positive ripple effect on our life and environment. Energy efficiency will improve as we will be able to distribute energy consumption throughout the day and regardless of seasons. All the while, energy consumers will come forth to cut down on energy consumption under the differential pricing scheme applied for different times and days. We should be able to save up energy as there will be no need of backup power to be stashed away for contingency. Not only that, a stable power supply means more opportunities for renewable energy sources to be tapped into. Hyosung Heavy Industries is leading global efforts to bring in such changes. The company is also taking part in the Jeju Smart Grid Demonstration Project initiated by the Korean government to test related products and develop new business models. As such, Hyosung Heavy Industries has been working hard to bring the smart grid one step closer to the public who are not yet accustomed to the concept. With its continued efforts to boost its renewable businesses and win big deals overseas, Hyosung Heavy Industries is investing where its low-carbon green values are and growing as the global smart-grid leader.

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As Small as They Might Be, Plastic Chips Are Not Only Essentials to Our Daily Life But Also to Buil

“Every morning, I wake up to make a cup of coffee and a piece of toast for myself. With a functional T-shirt on, I would drive to work. After work, I get home to drink a cup of water from the water purifier and get a quick dinner from a retort pouch. Then I search my phone to get my nephew a toy while TV is on. Over the weekend, I would go for a bike ride with my helmet on and get a hot shower afterwards to release the stress and tension.” This may be similar to your everyday life. But do you notice the one thing that underlies and connects every movement here? Chips. Not the potato chips we munch on but plastic chips that are used as materials for manufacturing daily products. Excessive use of them could threaten our environment but in fact they are essential to our daily life. Plastic chips are extensively applied in our everyday products thanks to materials such as Polypropylene (PP) and Engineering Plastic (ENPLA) that are highly functional without emitting environmental hormone. Let’s take a look at a bigger and more convenient world built on plastic chips led by the global chemical name Hyosung. Hyosung, global innovator and leader in the future chemical industry, has developed and produced a variety of materials such as PP, and nylon and polyketone ENPLA. Engineering Plastic, the plastic beyond plastic Engineering Plastic or ENPLA is a type of high-performance plastic that can even serve as an alternative to metal and ceramic. They are known for excellent yield strength, resilience and heat resistance of up to over 100 degrees. Unlike conventional plastics, ENPLA is custom manufactured to cater to the various needs of global customers across different industries. It has excellent mechanical strength, chemical resistance, weather resistance, thermal resistance, fire retardant, and insulation resistance and has been applied to industrial products such as automobiles, electronic parts and goods, and architecture. Thanks to the superb properties and machinability, the ENPLA market has been growing around the world. It reached $66.2billion in 2016, and is continuing to grow, estimated to reach the market size of $132.8billion by 2026. Hyosung’s ENPLA products are polyketone, the world’s first and only material developed by Hyosung Chemical, and nylon chips. Three key plastic chips offered by Hyosung ENPLA besides, Hyosung offers various plastic products that are widely used through our daily life. To name a few, there are three types of plastic chips Hyosung offers. ENPLA Polyketone, the world’s first and only commercial plastic chip of its kind, nylon chips that boast the world’s best quality and technology, and polypropylene chips that are extensively applied in our daily life. 1) Hyosung’s Polypropylene (PP) Hyosung Chemical’s polypropylene (PP) is the output of the company’s high-molecule polymerization technology and various catalyst application skills. It is applied not only in everyday goods such as helmets, car seats and furniture but also in various applications including different packaging materials (i.e. automobile manufacturing and food), textiles for clothing and diapers, and medical devices (i.e. syringe and fluid packages). Manufactured through the combined process of HYPOL method and UNIPOL method, the polyprolylene comes in various forms such as Homo-polymer, Block co-polymer, and Random co-polymer. It is applied to numerous sectors for general use while some are specially designed for high temperature and thermal resistance, high stiffness, high impact resistance and transparency to meet the different needs of global customers. Especially, the R200P is a global leading polypropylene brand specially developed for hot and cold water supply pipes and fittings as well as radiator connecting pipes. This material is also well known for the high quality when it comes to retort films and protective films. Other products incorporating the PP have received excellent reviews from customers for their excellent machining characteristics and properties. To secure a stable supply of the main material for polypropylene production, Hyosung Chemical obtains high-purity propylene from the propane dehydrogenation (DH) process where it has adapted cutting-edge manufacturing technology. With this Hyosung Chemical has successfully established vertical integration of its supply chain from raw materials to the finished products. 2) POKETONE™ POKETONE™ is Hyosung’ Chemical’s brand name for the world's first commercialized polyketone, a non-toxic and biocompatible polymer that is FDA (Food and Drugs Administration) and NSF (National Science Foundation) approved. It exhibits outstanding chemical resistance, toughness and abrasion resistance. It is made of CO2, one of the key air pollutants and olefins which is a raw material for petroleum. It emits less CO2 during the manufacturing process, thus cutting down on carbon footprint. Its application includes automobile parts, water meters, water purifier parts, conveyers, toys, medical parts and pipes. Thanks to Hyosung’s continued efforts in R&D, its application has been expanding to high-tech industries such as films and airplane parts. This eco-friendly and safe polymer material has been increasingly adopted in the toy industry for its safety and flexible properties. Thanks to its non-toxic characteristics, it also has been applied in products that are related to water and food such as water purifiers. 3) Nylon chips Nylon chips are widely used for general industrial use as well as for nylon yarns for clothing. Hyosung TNC is a global leader in nylon yarn manufacturing with over 50 years of track records in supplying the top quality and high performance nylon yarns to various customers around the world. Hyosung’s nylon chips are extensively used in various areas such as automobile parts, electric and electronic devices, cable ties, various films and fishing nets. More recently, it has been adopted in hydrogen storage and transport container liners that require high resistance to pressure. Hyosung TNC has been actively engaging with customers at home and abroad to develop hydrogen tank liners built with its nylon chips. With plastics increasingly being held responsible for environmental degradation, Hyosung TNC has put a lot of efforts into developing products and techniques to recycle waste. Hyosung’s world-first fishing net recycled nylon yarn, the regen® Ocean Nylon, is not only eco-friendly but also offers the same quality to that of conventional nylon yarn. Hyosung TNC has conducted a life cycle assessment on nylon chips as part of its efforts to protect the environment. To offer various high-performance chips to help humanity Hyosung is the only Korean name that develops and sells both high-quality PP and nylon chips. By engaging in theR&D and sales of both products, it has created unparalleled synergy effects in the two materials. On top of it, Hyosung has also developed the world’s first polyketone material, emerging as the world’s largest supplier of varying plastic materials, offering more options to customers. Hyosung Chemical and Hyosung TNC have participated in the world’s largest plastic exhibition, ‘K-Fair 2022’ held in Düsseldorf Germany in October ’22 to showcase their PP, nylon chips and polyketone. Hyosung has been striving to work together with other players by offering multiple options and catered solutions to global customers. Hyosung is committed to growing into a global plastic chip leader that offers high-quality customized chips to meet various needs of customers, by continuing its R&D efforts and maintaining agility in the ever-changing global market. Hyosung will continue to strive to usher in a new era of plastic materials.

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Hyosung Advanced Materials’ Secrets to Success Unveiled

There are various types of cars out there. Passenger vehicles, trucks, buses, and gasoline/electric vehicles as well as hybrid electric vehicles, just to name a few. One in two of these vehicles on the road today share one thing in common. That is, they use tire reinforcements manufactured by Hyosung Advanced Materials. The Global No.1 tire reinforcement name Hyosung Advanced Materials is the indisputable number one name in the world of tire reinforcements. Nearly half of the passenger vehicles around the world are using Hyosung’s tire reinforcements. In addition, the company accounts for over 50% of the global market share when it comes to polyester tire cords, the most widely used tire reinforcement material in the world. What is behind Hyosung’s success story? Tire reinforcements are made of textile and steel and are responsible for the performance, safety and durability of tires. Since its corporate inception in 1996 when Tongyang Nylon was established, Hyosung has had its eyes on tirecords as the company’s growth engine and strenuously worked on developing high-quality, safe tirecords. Thanks to such efforts, it succeeded in manufacturing Korea’s first ever home-grown nylon cords in just two years of its inception in 1968. Since then it has continued to grow into a global name and 10 years later in 1978 Hyosung has finally succeeded in developing polyester cords for tires. Building on its textile and steel tirecords, Hyosung has emerged as a leading player in the tirecord market. It expanded its portfolio in 1987 to include steel cord and bead wire to stand strong as an extensive tire reinforcement maker that offers almost all of key reinforcement materials. Recipe for success Hyosung Advanced Materials is one of the world’s largest tire reinforcement maker with batch production system. Let’s take a look at what the secrets are behind Hyosung’s success story. First, a systemic and thorough manufacturing and quality control system. Hyosung produces tirecord through the process of spinning, cabling, weaving and dipping in a thorough and systemic manner. In so doing, Hyosung makes sure each step undergoes a thorough quality control of only letting materials with over A grade pass and move to the next level of manufacturing. Only materials that pass this stringent quality control system can be qualified for the final step of being customized for different customers. Second, globally located manufacturing plants. This global network of manufacturing plants established in strategic locations works as a hub that identifies and adapts to changing trends and demand in order to offer the right products in a timely and stable manner. Hyosung Advanced Materials’ manufacturing plant in Vietnam especially is known as the world’s largest and the only plant with integrated portfolio covering all key reinforcement materials such as tirecord, steel cord and bead wire. Upgraded next generation tire reinforcements Thirdly, its technology and eco-friendly manufacturing focus. Hyosung has been pioneering high-strength tirecord as part of its efforts to improve fuel economy by developing lightweight and high-strength materials. As such, it offers eco-friendly premium products including high-strength tirecord with lighter and thinner yet stronger cord materials with eyes on the transition to green mobility built on electric or hydrogen vehicles. It has released high-strength tirecords with intensity of 10-20% higher than regular tirecords to lower cord thickness and thus to cut down on rubber usage. Building further on this, Hyosung has also completed the development of ‘UT’ or ‘Ultra Tensile Strength’ technology. Even reinforcements can be greener The innovation story does not stop there. Hyosung Advanced Materials has also been working on the development of materials that can contribute to reducing greenhouse gas and energy consumption. Hyosung produces polyester tirecord recycled from waste PET bottles, bio-polyester tirecord on plant-derived materials, lyocell tirecord made from cellulose derived from woods that has cut down on greenhouse gas emission significantly from existing nylon tirecords. Hyosung Advanced Materials also uses steel scraps generated as by-products during the process of steel product manufacturing for its bead wire and steel cord. By cutting down on steel waste and ultimately leading to lowering the need for steel production, Hyosung is contributing to energy conservation and greenhouse gas reduction. Hyosung has been working on commercialization of its proprietary tirecord heat treatment ‘Dip Recipe’ designed to improve heat-resistance of tires at the last leg of the manufacturing process. Many continuous green innovation R&D are also in progress. Your trusted everyday partner on the road Tires are essential for not only the performance of your car but also your safety. As such, it is critical that tire materials are produced by a credible and trusted name. Hyosung Advanced Materials has been leading the global tire reinforcement market with its continued R&D efforts and unparalleled, eco-friendly products. Tire reinforcements are bones and muscle for tires, which roll on science. Hyosung Advanced Materials makes it safer and all the more dependable.

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The Future of Banking and Retail Technology Presented by Hyosung TNS

Through the COVID-19 pandemic, all of us have experienced a dramatic change in the way we go about our daily lives. Growing trends in digital transactions driven by online shopping, as well as an increase in contactless communications such as virtual meetings and remote work are just a few of these changes. This dramatic shift in our lifestyles and behaviors, along with the new ways they will continue to change, requires mention of an important name: Hyosung TNS; a company that sits at the center of next generation financial solutions, retail services, and new age of innovation. A Global ATM Leader Driven by Financial Innovation The title ‘TNS’ is an acronym for ‘Technology and Solution’ which represents our strong commitment to innovations in financial automation. The history of Hyosung TNS goes back to 1979 when the company started off as the PC business department of the greater Hyosung Group. Over the past four decades, Hyosung TNS has expanded to offer a variety of services built on hardware knowhow and our technological edge in software as a means to put user convenience first. For instance, we cannot talk about financial services without mentioning the automatic teller machine (ATM), which has brought widespread convenience to people by saving trips to a bank or by eliminating meetings with a teller to withdraw or deposit money into accounts. Hyosung TNS exports ATMs to over 40 countries around the world which has led it to become the number three ATM supplier globally, alongside a market leader position in several countries such as the US, Russia, and Korea. With its continued efforts in innovative financial solutions, Hyosung TNS strives to expand and do more in the hopes of eventually leading the global market in a variety of financial services. Total Contactless Banking, All at Once! The Hyosung Digital Desk is one of the most innovative financial solutions and is designed to offer contactless banking experiences to customers who visit a bank branch. The Digital Desk is the first of its kind in the world, and allows for a contactless alternative to conventional banking services, all while providing heightened convenience and privacy. It can also be utilized as a next generation bank branch model that allows one-on-one virtual consultation with a teller which supports services such as opening an account, setting up time-deposits, and loan consultations. This solution is helping the world brace for an era where banks are cutting down on the number of branches and the demand for online and mobile banking is growing. The Digital Desk is a so-called ‘phygital’ solution that brings together the strength of both online and offline to offer totally new experiences and reliability. It not only offers innovation to the digitally savvy generations, but is also intuitively designed for older generations who might find it difficult to use online banking services. From a bank’s perspectives, it enables the automation of routine tasks and more efficient manpower management, which in turn allows tellers to invest more of their time engaging with customers on-site and offering customized products and services to them which leads to enhanced customer loyalty. This will facilitate more efficient branch operations and render a win-win proposition for both customers and banks. The Hyosung Digital Desk will act as a milestone for the future of financial solutions offered by banks. Innovative Self-Service Solutions Beyond Banking Building on its track record of providing systems, solutions, hardware, and software products and services since 1979, Hyosung has been trailblazing a new era of innovation by encompassing various retail solutions and data-driven platform businesses to go beyond its traditional financial automation solutions. What will stores look like in the future? Retail solutions provided by Hyosung TNS are offering top notch convenience and efficiency to both customers and store owners alike. An AI Fridge, unmanned ordering kiosks, self-check-out counters, and robot cafes will enable efficient store management to drive sales while improving customer experiences with a seamless purchasing process. The Hyosung AI Fridge is a smart fresh produce market platform that enables a grab & go shopping experience powered by AI technology which allows customers to simply tap their card and grab the products of their choice. This is all possible thanks to Hyosung’s high-tech solutions that come with AI cameras embedded in the fridge that automatically identify and recognize products for the subsequent payment. Have you ever seen Hyosung TNS’ unmanned ordering kiosk? It is a self-ordering system where customers can easily order and pay for products all at once. The air touch screen offers hygienic processes where customers do not have to touch the device to order and pay. It also enables more efficient store management and space reduction as it requires less on-site staff. A self-check-out machine saves a lot of time for customers by reducing the time spent standing in line just to pay. By simply swiping bar codes, customers can more quickly and easily pay. It also offers a variety of ordering options to meet different customer needs. Hyosung TNS is also leading innovation in the retail industry with its robot cafes where the autonomous device receives beverage orders via an app or kiosk and then prepares them. In addition, Hyosung also offers POS solutions that enable advanced and sophisticated store management services. This is not the end of the story. Hyosung TNS is set to launch a data platform business to go beyond its traditional businesses of ATM and retail services. This platform will launch by the end of 2022 and will act as a portal where one can easily search for NFT related information and content. Hyosung TNS has built up the capability for software production and extensive data network operation and management through its years in the ATM business. Based on this, it has been pursuing a data platform business for the sake of future innovation and now is poised to launch this NFT portal, which will later likely be followed by ventures in the metaverse and virtual currency. In the Not So Distant Future How do you like the blueprint of future financial and retail services that Hyosung TNS has laid out for us? Actually, these services are not a far-fetched imagination, but something we should be able to see and use in the very near future since Hyosung has already completed the development phase of these products. Hyosung TNS has been exploring various technological advances for a better financial and retail future by providing customers with a wider variety of more colorful and enjoyable experiences. In doing so, Hyosung TNS would like to offer some inspiration to customers with the aim to grow into a global technology leader that “builds totally different and new experiences for all humanity.” Indeed, Hyosung TNS is ready to usher customers into a new era of banking and retail technology.

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Hyosung TNC Has All the Plans Laid Out When It Comes to Saving Our Planet

Can you imagine a life where all clothes are made only of cotton or wool, where there is no functional fabrics available for sports wears (e.g., swimsuits made of stretchy spandex fabric and running suits that absorb sweat)? Hyosung TNC has continued to innovate the textile industry with a variety of products, including the world’s No. 1 market share spandex name creora® spandex as well as nylon and polyester, all of which have contributed to improving everyday lifestyle by brining comfort, convenience and ease. If textiles were the main driving force behind the second Industrial Revolution, eco-friendly textiles will be driving the Fourth Industrial Revolution. Leading the textile industry with an aim to enhance the quality of life, Hyosung TNC began its development journey of sustainable, green fiber 20 years ago. The company has long put a lot of thought into operate its production lines sustainably to co-exist and protect our planet Earth. The company manages all of its production sites in line with the ISO 14001, the international standard for environmental management system in order to monitor and control greenhouse gas emission and energy consumption. Fiber it produces are made of eco-friendly materials or recycled consumer waste. Envisioning a virtuous cycle of sustainability, Hyosung is taking the lead in green textile industry. Here are some snapshots. Saving the planet Earth begins with eco-friendly manufacturing Hyosung TNC actively pursues the use of renewable energy sources in a bid to reduce greenhouse gas emission by recycling at its production sites. Hyosung uses the waste heat supplied by neighboring municipal landfill incineration facilities, and biogas produced in its factories are used as an energy source for the boilers located in the production sites. Using such waste resources as energy source aims to contribute to sustainability and thus benefit everyone involved. Waste energy sellers can monetize energy sources that could be otherwise disposed while the buyers can purchase this recycled energy at more affordable and rational prices. Isn’t it amazing to see that greenhouse gas, a threat to our environment, can be recycled to help cut down on carbon emission? A global leader in eco-friendly textile, Hyosung TNC Hyosung TNC produces eco-friendly textiles made from sustainable fiber. regen® spandex, the first 100% recycled spandex, and creora® bio-based spandex, the world’s first spandex made from industrial field corn, are made from reclaimed waste and bio-based raw materials, respectively. In particular, creora® bio-based is considered an enormous success. Corn fiber has already been extensively applied to areas such as packaging paper, cosmetics and liquid detergent. Due to technological limitations, however, it could not be applied to high performance textiles which require stretch, flexibility and resilience. Despite much doubts and questions, Hyosung TNC set out to develop high-stretch corn-based spandex fiber, continuing to invest in its R&D for over two years. Based on its technological edge and know-how as the global No.1 spandex name, Hyosung TNC became the world’s first company to commercialize a high-performance spandex made of plant-based materials. Hyosung also developed fiber made of reclaimed waste. Good examples are regen® ocean nylon made of recycled fishing nets and 100% recycled polyester yarn from post-consumer PET bottles. regen® ocean nylon is made from post-consumer recycled (PCR) nylon, first developed by Hyosung in 2007. PCR products refer to material made from consumer waste. regen® ocean nylon is made from recycled waste fishing nets that are collected from the ocean and cleaned for special proprietary processing. regen® polyester is made from discarded PET bottles. These PCR products help reduce waste that are thrown away indiscriminately. They also help Hyosung TNC reduce its carbon footprint during the manufacturing stage. regen® polyester and creora® regen respectively has 60% and 66.8% of carbon reduction impact. Hyosung TNC continues to invest in research and development in sustainable textiles. Eco-friendly management begins at work Member of the company also try to play their part. Hyosung TNC employees are using tumblers and cups at work under the campaign “No disposable items at work’ while the company pays for the reusable personal cups. Hyosung TNC has launched regen® Seoul and regen® Jeju, 100% recycled polyester made from discarded PET bottles from Seoul and Jeju Island. These eco-friendly fiber were made into jerseys, jackets and pants in collaboration with global apparel brands. Hyosung TNC also has turned the recycled plastic bottles collected within the company into eco-friendly bags made from regen® polyester which later were given to the employees as gift. Its employees and management have also launched ‘plogging’ campaigns to join hands to jog and pick up trash while supporting NGOs working on collecting ocean-bound waste. Play by examples in ESG management As such, Hyosung TNC seeks to reflect its Green Management Vision 2030 in everything it does as part of its efforts to fight the climate change. It tries to cut down on greenhouse gas emissions as much as possible during the manufacturing process while continuing to invest in R&D to develop sustainable products such as functional fiber, material made from industrial waste and PCR fiber. It has also been actively engaging in various environmental campaigns as part of its corporate culture. With its long-held vision of co-existing in harmony with nature, Hyosung TNC will continue to strive to build trust as an eco-friendly global brand with customers, vendors and consumers around the world. As a global textile name, it will also continue to lead by examples in ESG and green management.

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Would You Drive a Car Without an Airbag?

A Russia's state-owned car company released a vehicle with no airbags in June. It comes with a surprisingly affordable price tag. But let’s take a moment here. Is it really safe to drive a car that comes without airbags? Just because you don’t see it, doesn’t mean it’s not important Hyosung Advanced Materials is the leading and the only global name responsible for the whole value chain of airbags from fabric to cushion manufacturing. Tucked in hidden corners of vehicles, Hyosung’s airbags always stand ready to protect the life of passengers across the world. However, sometimes one could overlook the importance of something, just because it is not visible to the eye. Various airbags are installed in an automobile which are scientifically designed to protect different parts of our body. Especially, the one positioned in the driver’s seat alongside the seatbelt is to protect the driver. Seat belts prevent your body from collision with the steering wheel but it is not designed to protect your head. That’s where airbags come into play. The one positioned in the steering wheel protect the neck and head, reducing the possibility of cranial nerves and traumatic spinal cord injuries in an accident. A journey to the global No.1 name When we think of an airbag, we might imagine an airbag that is fully inflated. Airbags are directly related to our lives so they need to be manufactured with precise laser technology and specifications. When airbags detect an accident, they are inflated within 0.03 – 0.05 seconds. Airbag fabrics are thus required to withstand rapid expansion pressure. As airbags are directly related to safety, they require utmost quality and high standards. They require endurance to high temperatures as the inflation process is triggered by gunpowder explosion. They also need to absorb shocks extremely well. Not only that, they need to sustain various temperatures and humidity as they are tucked away in vehicles. Hyosung Advanced Materials has developed a fabric material called nylon 66 for the first time in Korea in order to meet such requirements. The company also succeeded in developing polyester fabric for airbags to meet the demand from global customers. Hyosung is the only company in the world that supplies both nylon 66 and polyester fabrics. Back in 2011, Hyosung acquired the number 1 airbag fabric manufacturer Global Safety Textiles (GST) to become the only company that achieves vertical integration of the whole manufacturing process from fabrics to cushion. GST’s one-piece woven (OPW) airbag has become Hyosung’s main product name. OPW is a product made with special weaving technology that makes it possible to bypass the sewing process. Unlike conventional airbags that shrink soon after the deployment, OPW can maintain the inflated state longer than sewn airbags. It plays a key role in protecting the passengers especially in the event of a vehicle rollover. 3D technology for airbags OPW airbags continue to evolve based on Hyosung Advanced Materials’ technology. Previously woven in a two-layered fabric, OPW airbags have been used as side curtain airbags, but now thanks to Hyosung’s proprietary technology of three-layered fabrics different variations can be made. The three-layered structure can come in various design combinations while also allowing a variety of airbag structures. Moreover, it can occupy a 3D shape that can bend or overarch to offer extra protection to various parts of the passenger’s body. Instead of inflating the whole airbag cushion, bending it to a certain form is more efficient in terms of cost, weight and space. Hyosung is also working on developing ‘omni SAB (Side Airbag)’ technology built on its three-layered OPW airbags. Side airbags protect the passenger’s upper body by deploying like a curtain to the side of a seat. If the ‘omni SAB’ is successfully developed based on the three-layered OPW technology, the protection coverage would be much wider. The innovative three-layered OPW technology has been gaining traction in the automobile industry. It made the finalist for the Automotive News PACEpilot Award in 2021, an award given to innovative automotive products every year. Hope we never need them Hyosung Advanced Materials hopes we will never have to use airbags. But if we do, Hyosung’s airbags built on top of technology and quality are going to save lives. As they are critical in the safety of passengers, Hyosung Advanced Materials puts utmost efforts to provide high-quality airbags manufactured with sophisticated technologies and thorough tests. May the road drop you smoothly to your destination. Enjoy your journey while we take care you.

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Hyosung Sends Out a Colorful Message for ESG: Make Your Color!

On a sunny autumn day, Hyosung held the Sevit ESG Color Festival to make our own color for eco-friendliness. Sevit Island of Banpo Hangang Park, a landmark of Seoul, was full of vibrant colors. Let’s find out more. Promoting Eco-Friendly Activities, Make Your Color! Sevit ESG Color Festival was first held in October 2022, with the aim of promoting harmony with the environment through vibrant, eco-friendly activities. Under the slogan of “Make Your Color,” the festival had seven themes with seven different colors and various eco-conscious programs were carried out: participants wore regen® T-shirts, walked around, watched performances and engaged in eco-friendly activities. Anyone interested in living an eco-friendly life attended the festival to experience diverse activities and had a wonderful time. So, let’s explore the vivid scenes of the event. WHITE: Reply to Every Generation’s Future, RE:GEN Hyosung Group vigorously carries out environmental activities with its eco-friendly brand slogan: Re:GEN, Reply to Every Generation’s Future. Hyosung Group, through its ESG brand RE:GEN, is responding to the request from our future generations to keep the Earth that we temporarily borrowed from our children clean and return it to them. The regen® zone delivered stories of Hyosung Group and Hyosung TNC brands: RE:GEN, a brand that represents eco-friendliness and regen®, Hyosung’s eco-friendly recycled fiber brand. In line with the theme “eco-friendliness” of the festival, the booth structure of Hyosung regen® Zone was made of recycled, reusable paper panels. Hyosung TNC conveyed the story of how regen® came to life as a recycled polyester brand that promotes circular economy. Branding stories of regen® Seoul, recycled polyester made from discarded PET bottles in Seoul, and regen® ocean nylon, the nylon fiber recycled from waste fishing nets, were also delivered in the zone. There were also shoes, clothes, ties, and bags made by regen® polyester in the zone for people to see and touch. Visitors were so impressed, saying it’s fascinating that the products are made of used plastic bottles. We encouraged the separate disposal of transparent PET bottles and handed out reusable tarpaulin bags to visitors. Furthermore, diverse activities were prepared for visitors to participate, such as playing basketball with PET bottles, or soccer with plastic bottle caps. regen® Zone was shining brightly with many people making memories full of joy as they visited Han River on this sunny day. TANSOME®, a carbon fiber brand of Hyosung Advanced Materials, also joined the Eco-friendly Brand Zone of the festival. Carbon fiber, stronger but lighter than steel, is a key material in the hydrogen industry, which is a clean energy industry. Various products were presented in the carbon fiber brand zone, from hydrogen fuel tanks, musical instruments, golf clubs, luggage, prosthetic legs, to a heating bench, all made of TANSOME® carbon fiber. You won’t know how much lighter and stronger carbon fiber is until you feel the weight yourself. So, there was a place for the visitors to lift the same volume of steel and carbon fiber and compare the difference in weight. Isn’t it marvelous that merely 2.5kg of carbon fiber can replace 11.7kg of steel, with even better strength? Hyosung Advanced Materials is working on a collaboration project with artists and musicians with TANSOME® as its central theme. The company is also partnering with Meta Galaxia, an NFT platform company. An interesting even was held at the booth regarding the NFT project: using AirDrop to download an NFT of ‘Make Your Color’, the ESG soundtrack recorded by Korea’s legendary rock band, No Brain and instruments made of carbon fiber. So, anyone who visited the booth could keep the NFT soundtrack as a unique virtual asset. YELLOW: Meeting Eco-friendly Brands of Our Everyday Lives, Eco-Friendly Brand Zone How much are you aware of eco-friendly brands that contribute to protecting the environment in our everyday lives? We organized booths in the Eco-Friendly Brand Zone where visitors could meet and experience eco-conscious brands that are with us in our daily lives. TOPTEN, a Korean SPA brand, joined the Eco-Friendly Brand zone. The brand signed an MOU with Hyosung TNC for eco-friendly collaboration, and it showcased various clothing made from sustainable material. Its booth was bustling with visitors through the festival coming to join a balance contest in which people had to complete missions such as jumping rope, Korean Jegi kicking, and hula hooping. Samdasoo, a bottled water brand, also joined the zone. The brand belongs to the Jeju Province Development Co. which also signed an MOU with Hyosung TNC for the regen® Jeju project. An Eco-Boongboong truck was brought to the zone all the way from Jeju Island and many programs, including a true-or-false quiz on carbon neutrality, eco-friendly tattoos, were carried out to convey eco-friendly messages to the visitors. Many other brands also made their presence felt in the zone from Donggubat, which makes eco-friendly products such as soap and shampoo bars with intellectually and developmentally challenged people, Cueclyp, which produces fashion goods using eco-friendly materials, Rewind, which manufactures compostable, biodegradable packaging, Wright Brothers, a secondhand bicycle trading platform, to the Seoul Green Purchase Support Center which works on promoting green activities in our daily lives. These brands offered various activities for everyone to enjoy, such as making organic soap and upcycling keychains, planting byproducts of coffee beans, and playing true-or-false quizzes. BLUE&GREEN: Caring Health and Environment at Once, Sevit regen® Walk, Sevit regen® Plogging Everyone is wearing the same shirt and walking together. So where are they heading to? They are on their way to join the Sevit regen® Walk, and Sevit regen® Plogging to protect both their health and the environment. The eco-friendly t-shirts they were wearing were made of regen® Seoul, Hyosung’s eco-friendly polyester fiber produced by using wasted PET bottles in collaboration with TOPTEN. Participants from both programs joined an environmental cleanup activity on Sevit island by collecting trash. Sevit regen® Plogging was carried out in collaboration with ReDi, an organization for marine environment protection, sponsored by Hyosung TNC. Participants were able to contributing to a cleaner marine environment, preventing waste from making their way into the river and ocean by picking up the waste around the Han River. Citizens had a meaningful time with their family, friends, and loved ones under the clean blue sky, picking up trash with a plogging kit made of regen® of Hyosung TNC. ORANGE: Caring Sustainability of Our Mind and Body, Sevit Han River Yoga Class The health of our mind and body comes first before we care about the health of the Earth. In the Sevit ESG Festival, a Sevit Han River Yoga Class was held to help people care for their minds and bodies and enjoy a relaxing moment in their daily lives. Sunday Namaste, which runs online and offline yoga classes, offered three different yoga programs in the peaceful urban environment, with Sevit island and Han River in the background. Through the three programs, participants were able to gain awareness of their inner circulation, feel a sense of balance and connection to nature, and sustainably build muscles of their mind and body. Overall, it was a time to think about sustainability, and a moment to get away from busy everday lives while looking back on oneself in front of the peaceful Han River. PURPLE: Sevit Music Concert After completing the Sevit regen® Walk, Sevit Plogging, and yoga classes, it is time to dance to music. Let’s look at the Sevit Music Concert that involved exciting performances on the stage of the Sevit island. The concert was in full swing with performances by rock bands like No Brain, Monni and Zitten, exciting EDM DJ performances as well as a wonderful jazz performance by Get All Right. The ESG soundtrack of Hyosung, Make Your Color, was first introduced during the performance by No Brain. Many people who were taking a walk in the park stopped by and enjoyed the music. PINK: Eco-friendly Future doesn’t Happen Overnight, Tree Planting in Hyosung Sharing Forest in Seoul In the World Cup Park in Seoul, there is a forest called Hyosung Sharing Forest in Seoul which Hyosung Group employees have continued to take care of for the last decade. On October 22nd, a follow-up event was held in the forest to plant trees with volunteers who attended the festival. Sevit ESG Color Festival came to a successful end with voluntary practices for making the forest greener. Through the Sevit ESG Festival of Hyosung, the city of Seoul full of gray buildings was shining with vibrant and dynamic colors through the colorful programs that joyfully revealed Hyosung’s earnest wishes for a greener environment. Hyosung is dreaming of and will work toward making our city and the Earth brighter and more colorful. Hyosung will continue to strive to make your everyday life colorful, full of eco-friendly products. [Epilogue] MAKE YOUR COLOR! Shining the Gray City with Our Color Busy Days Passing by, Cities Left with Gray Buildings, Blue Skies Gone Our sky, losing its color, must be a clean blue sky, and our city must be vibrant full of color. Hyosung’s passion for the environment is bearing fruit. It has created recycled materials and explored new energy sources, imbuing the world with vibrant color. Hyosung will continue to dream of and move forward to making our cities and earth brighter with our color. RE:GEN, Reply to Every Generation’s Future

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Like BTS, Hyosung’s Homegrown ‘Bulletproof’ Brand ALKEX® to Go Global

BTS, the K-pop icon group that grew into a global pop icon of the century, has topped global music charts including the US Billboard, UK Official Chart, and Japan’s Oricon. The artist has recorded the No.1 in global music sales. BTS which stands for “Bulletproof Boy Scouts” is actually about making a statement: To be resistant to ‘bullets’ of hardships, stereotypes, and pressure the younger generations around the world are suffering. As BTS protects the youth with its music, Hyosung Advanced Materials’ aramid brand, ALKEX® helps assure people’s safety as it is a key material in bulletproof jackets, helmets and vehicles. Hyosung’s aramid brand ALKEX® that ensures everyone’s safety The super fiber aramid is polyamide with over 85% of amide bond (-CONH-) formation, which makes it bullet resistant. It is five times stronger than steel and 19 times more flexible than nylon. Boasting fire-retardant quality and the same tensile strength as that of nylon, it can sustain extremely high temperatures as high as 500°C. Aramid comes in two forms: meta-aramid and para-aramid. Hyosung Advanced Materials produces meta-aramids that account for the majority of the global market. Hyosung has developed aramid yarn back in 2003 based on its proprietary technology and succeeded in commercialization in 2009. ALKEX® is a combined word of an ancient Greek word ‘ALKE’ (the strength that protects you) and the English word ‘X’ representing words like ‘extreme,’ ‘expert’ and ‘extraordinary.’ The name itself represents Hyosung’s commitment to providing high-quality products that go beyond expectations of customers. Hyosung Advanced Materials is a total solution provider, offering various products that cater to a wide range of customer needs based on new technology and know-how from its business lines. The company engages in production and sales of industrial materials ranging from aramids to various tire reinforcement materials to the carbon fiber TANSOME®. A ‘good’ fiber not only stops bullets but also cares for the environment Of course, mankind’s safety and comfort through technology always comes first in everything we do at Hyosung. But we also care for the environment and our next generation. Hyosung runs a pre-chemical treatment facility for wastewater treatment to process up to 2,000 tons of high strength wastewater every day. The wastewater undergoes the pre-treatment process of storage tank, neutralization tank, oxidation tank, reaction tank and sedimentation tank before entering wastewater treatment facility. Aramid in everyday life What are the areas this super fiber is applied to? It is mainly applied in areas designed to protect human and objects such as bulletproof materials, reinforcement materials for vehicles, hose, belts and tires, fiber optic cables and rope reinforcements, and safety gloves. For its outstanding bulletproof functionality, aramid materials are used as core materials for bulletproof jackets, vests, helmets and vehicles. It is no exaggeration to say the history of bulletproof jackets has begun with the development of aramid. As such, its standing in the bulletproof industry is unparalleled. It is also used for anti-blade and anti-spike purposes to protect the body from sharp objects, for example aramid gloves. Being light and fatigue resistant, it shines when applied to mechanical rubber goods, or MRG, which require heat resistance and durability (e.g., reinforcement for tire, hose, belts). Its application is continuing to expand with recent increasing adoption in fiber optic cables, which has been growing in demand due to the expansion of 5G technology. Hyosung aramid going global Hyosung has continued to invest in advanced materials as the company’s future growth engine. As part of such efforts, it has expanded its aramid production facility in 2021 to scale up supply of the fiber. Hyosung Advanced Materials has stepped up its output of aramids from 1,200 tons/year to 3,700 tons/year in a bid to increase its global market share. Hyosung Advanced Materials participated in Milipol Paris 2021, an international defense industry exhibition to showcase ALKEX®’s super stab-resistance and bulletproof functionality as well as lightweight bulletproof jackets and helmets built on newly developed high tenacity yarns. As such, Hyosung has put strenuous efforts to meet the needs of global customers with its unparalleled products to grow into a global leader in aramid material.

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Efforts to Curb Temperature Rise Below 1.5 Degrees, the Danger Line for Global Warming

Leaders from across the world gathered in Paris in December 2015. Their nationalities and cultures differed, but they had a single goal in mind: To curb temperature rise caused by global warming. There had been numerous meetings of the Conference of the Parties to the United Nations Framework Convention on Climate Change before this one, but they all had ended without any resolution due to conflicting interests. However, this time was different, because everyone at the table knew what was at stake: the imminent and urgent necessity of addressing climate change. With the Paris agreement adopted, the world is pulling together to curb down the temperature rise to below 1.5 °C. Hyosung as a global citizen is also playing its part. It is envisioning a carbon neutral future by promoting hydrogen, a clean energy source. By 2025, Hyosung plans to secure hydrogen production technologies driven by blue and green hydrogen that emits lower or zero greenhouse gas in a bid to build a clean hydrogen ecosystem. Based on such technologies, development and demonstration of carbon-reduction technologies will be pursued accordingly. By 2030, a total of 1 trillion Won (equivalent to 1 billion USD) will be invested to achieve technological self-sufficiency when it comes to development and utilization of hydrogen energy. This is also expected to help Korea reduce carbon emission by 10%. To this end, key affiliates of Hyosung Group are putting efforts to build the hydrogen value chain of production, storage, distribution, supply and consumption. Why is holding global warming to 1.5 °C such a big deal? 1.5 Degrees, the Danger Line for Global Warming According to the ‘Special Report on Global Warming of 1.5 °C’ released by Intergovernmental Panel on Climate Change (IPCC) in 2018, a 1.5°C global warming above pre-industrial levels will put the humanity as a whole and our home planet Earth in grave danger. Can you imagine the North Pole without ice? A 1.5°C average temperature rise would increase the probability of an iceless summer to every 100 years. A 2°C rise would mean the probability increase to once every ten years. An iceless Arctic Ocean will absorb a larger proportion of sunlight and in turn further accelerate global warming. This will mean higher temperature, more frequent heavy rain and flooding. If an iceless North Pole meets with heavy rain, it will lead to sea level rise to inundation of coastal residential areas. Marine ecosystems will be no exception. Especially, habitat-forming species such as coral reefs compared to their mobile counterparts will take the hardest hit. A 1.5°C rise in temperature could wipe out as much as up to 90% of coral reefs in the world. Without coral reefs, maritime biodiversity will be significantly destroyed which will then affect the world’s fish ecosystem. It is expected the global overall fish catch will decline 150,000 tons per annum. Remember the dire heat waves and droughts that hit around the globe last summer? A 1.5°C rise is estimated to bring such deadly heat waves to 14% of the global population at least once every five years. While we hesitate, the global temperature is fast approaching a 1.5°C rise. If we do not take action now, what was taken for granted will disappear very quickly, and there will only be regrets when the nature and ecosystem are destroyed. Let’s take a look at how Hyosung is partaking in building a carbon-neutral future driven by hydrogen. Hyosung, a Hydrogen Superhero Affiliated companies of Hyosung have been pulling together to commercialize hydrogen to replace fossil fuel, in order to build the hydrogen value chain of production, storage, distribution, supply and consumption. Liquid hydrogen is at the front line of Hyosung’s such efforts. As one of the largest industrial conglomerates in Korea, Hyosung has partnered with a global gas name Linde to jointly build Hyosung Hydrogen and Linde Hydrogen Energy. Linde Hydrogen Energy which will be responsible for production of hydrogen is to build the world’s largest liquid hydrogen facility with an annual capacity of 13,000 tons with an aim to kick off in May 2023. This facility will process enough hydrogen to fuel 100,000 cars. Hyosung Hydrogen will be leading the global expansion and distribution of the hydrogen production with an aim to expand its liquid hydrogen refueling stations up to 30 by the time the facility is built. The main driver of the entire hydrogen businesses pursued at the conglomerate is Hyosung Heavy Industries. Based on its experience of building a nation-wide network of CNG filling stations since 1999, the company has been the leading player in domestic hydrogen refueling stations. As of today, it has built 25 hydrogen gas stations across major cities in the country with 16 more in pipeline. Hyosung Heavy Industries is also a leader in wind power turbine and ESS. Its 50MW capacity ESSs require top notch technology as they are often directly connected to important facilities such as national grid and large-scale factories. Hyosung Heavy Industries supplies ESS to major electricity names from England and South Africa. Hyosung Chemical is responsible for production of hydrogen gas. It sells 12,000 tons of hydrogen gas extracted during the process of propylene, the key material for plastic production. Starting from next year, Hyosung Chemical is to supply liquid hydrogen jointly with Linde. When liquefied, hydrogen gas volume is reduced to 1/800, making storage easier and storage capacity larger. In turn, liquid hydrogen refueling stations require only 30% of the space required for hydrogen gas stations. All in all, supply of this by-product hydrogen with price competitiveness is expected to facilitate a hydrogen economy. Hyosung TNC and Hyosung Advanced Materials supply materials required for hydrogen storage tanks. Nylon for tank liners from Hyosung TNC and carbon fiber for tank structure from Hyosung Advanced Materials are critical for safe hydrogen transportation. Carbon fiber is also used in fuel tanks in hydrogen vehicles. Time to get used to charging, not refueling A future where we fill our cars not with gasoline or diesel but with hydrogen at gas stations is just around the corner. It will not end there. Electricity supplied to homes and buildings will be based on hydrogen, while fossil fuel power stations will be replaced with hydrogen fuel cell power plants. This will significantly cut down emission of air pollutants into the air. Steel mills will also be able to produce steels on carbon-free hydrogen energy. We already have witnessed how changes can bring about positive results amid the pandemic. Border lockdowns led to economy contraction but ironically the pandemic improved our environmental situations. Less vehicle travels and lower industrial production meant lower emission of greenhouse gas, carbon dioxide and air pollutants. According to the World Meteorological Organization, since the pandemic PM2.5 (fine particular matters) have declined as much as 40% in Africa, South Americas and South Asia. Hyosung hopes the clean blue sky we enjoyed during the pandemic is here to stay. In the face of the villain greenhouse gas that is inflicting the world, our superhero Hyosung continues on its fight to prevent global warming from reaching a 1.5 °C rise.

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Liquid Hydrogen to Take Renewable Energy to a Whole New Level

The water that makes Earth a majestic blue marble An image of Earth taken from a distance in space resembles a blue marble thanks to water that accounts for 75% of earth’s surface. Water is the most essential element for life on earth which has not been found in any other planets in the solar system. Without water, there is no life on earth and a drop of water holds a renewable energy source that could make or break the future of humanity: Hydrogen. Hydrogen, a green energy source that will replace fossil fuels Many scientists believe ever since humanity started to use fossil fuels greenhouse gas concentration in the atmosphere has increased which in turn has pushed up overall temperature of earth. What can be done for a sustainable future of our planet Earth? Of course, most of all we need to reduce greenhouse gas emissions. Unfortunately, the traditional energy consumption methods that heavily rely on fossil fuels make it challenging to achieve net-zero emissions. That is where hydrogen comes in. The renewable energy source does not emit carbon dioxide when it is put to produce energy. Hyosung has been taking the lead in building an energy ecosystem built on hydrogen. Green energy source, liquid hydrogen Hyosung has long been paying attention to hydrogen as an alternative to fossil fuels. Hydrogen contains three times the energy of gasoline and it is easy to store and transport with ensured safety and convenience, as its raw material is water. When it’s burned it produces no harmful emissions; its only byproducts are nitrogen and water. In a bid to enhance efficiency in hydrogen distribution, Hyosung has been involved in turning gaseous hydrogen into liquid one. Hydrogen stays in the liquid form at a temperature of minus 253 degrees in Celsius which can be easily stored and transported as its volume is just 1/800 that of gaseous hydrogen, and also offers better energy efficacy. Liquid hydrogen refueling stations require less space than that of gaseous ones, saving costs for construction. They also require less operational costs thanks to high-efficient low electricity pumps and also offer higher energy density. Hyosung to expand hydrogen distribution with liquid hydrogen Hyosung is to increase its liquid hydrogen production and distribution. As our economy transitions into hydrogen economy, there will be more hydrogen fuel cell vehicles and commercial hydrogen cars such as hydrogen buses and trucks on the roads. Thus building an efficient liquid hydrogen supply system of storage and transport is a must. Hyosung is to build a liquid hydrogen plant in the near future. To build a world’s largest liquid hydrogen plant Built on its 20-year long technology in gas plants, Hyosung has secured the number one position in hydrogen charging stations in Korea. It has recently joined hands with Linde Group, a global industrial gas name, to build the world’s largest liquid hydrogen factory on a 30,000m2 site in its Ulsan Yongyeon factory with daily capacity of 30 tons. The plant will kick off its operation in May 2023 to start supplying liquid hydrogen from the second half of the year. This plant will produce up to 13,000 tons of liquid hydrogen per year, enough to fuel 100,000 hydrogen vehicles for a year. It aims to increase production capacity to 90 tons/day and 39,000 tons/annum by 2030. Bringing hydrogen close to everyday life Four liquid hydrogen charging stations are currently being built in Geoje, Ulsan, Gyeongsan and Gwangyang with an aim to expand the national network of charging stations up to 30 by the time the plant in Yongyeon is completed in construction. At recharging stations, liquid hydrogen allows much faster refills ― it takes far shorter time for the liquid to be pumped out than for the gas to be compressed. Liquid hydrogen recharging stations require less upfront investment and maintenance costs. At a time of contingency, they can be readily fixed through the national maintenance system. Aims to grow global with its hydrogen roadmap Hyosung has been emerging as a leading player in the global hydrogen industry backed by technology built in Hyosung Heavy Industries and Hyosung Chemical, and experience and knowhow acquired through joint ventures with global names. Hyosung aims to expand hydrogen’s use in transportation is evolving in all areas of mobility spanning passenger vehicles, buses, trucks, heavy machinery, airplanes, drones as well as vessels and submarines. It also plans to build a strong hydrogen value chain of production, storage, transport, supply and consumption with its green and blue hydrogen production. Please stay with Hyosung as it continuously works on its hydrogen roadmap to grow into a world’s leading hydrogen provider.

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The Hidden Story Behind Power Transformers: Hyosung’s Commitment to the Environment

It is nearly impossible to imagine a life without electricity, as most people cannot live without electronic devices such as mobile phones, laptops, and refrigerators. What if the power went out on a hot summer day? It will be tough for anyone to survive even a single day. No one would deny that electricity is one of the most essential parts of our lives. But not many people would know the role of the power transformer in bringing this indispensable electricity to our lives. Yes, we know what power plants are. But what are power transformers? Transformers are for transforming electrical power from one voltage to another. They also come in the form of voltage converters we see daily in our homes, such as 110V/220V converters and utility pole transformers. Power transformers in power plants or substations, the ones we do not usually bump into, transform voltages in the hundreds of thousands of volts range. As such, they are very crucial to our lives but, in a way, being taken for granted. Indeed, not many of us appreciate that there is a ‘hidden’ green technology in transformers designed to protect the environment: Insulating oil. Ester filled Transformer The oil in transformers acts as an insulant to prevent arcing between parts of the transformer. Committed to sustainable development and environment protection, Hyosung Heavy Industries has developed ester oil transformers to minimize environmental impact and prevent fires and explosions, which are risks transformers filled with mineral oil often carry. Hyosung has supplied over 180 ester oil transformers to countries in Europe and the Middle East, contributing to environmental protection. This eco-friendly ester oil is less toxic, slower in soil penetration, and faster in biodegradability compared to traditional mineral oil. All of which means a lower risk of fire or explosion. The ester oil transformers can be extensively used, ranging from offshore wind farms and substations to underground substations in cities and renewable power plants without much concern for environmental impact. The fire point of ester oil is above 300°C, much higher than that of mineral oil, ensuring fire resistance. As such, ester oil transformers do not require extra space for installation of fire protection facilities, or allowances of safety distances and thus fewer costs. Additionally, their life cycles are much longer than that of conventional transformers. Hyosung Heavy Industries has signed long-term ester-filled power transformers supply contracts with the British Transmission Operator. The UK is a leading country in insulating oil applications. Furthermore, Hyosung, being widely recognized for its technology and safety, has contracted to supply the eco-friendly transformers in sophisticated markets, including France. Hyosung Heavy Industries, a leader in the transformer market in Korea Hyosung Heavy Industries developed the 154kV transformer for the first time in Korea in 1969 and the 765kV extra-high-voltage transformer in 1992, the sixth of its kind in the world and the first in Korea. As a global leader, Hyosung Heavy Industries supplies a wide range of transformers up to 765kV and 1,500MVA, and with both core form and shell form technology, it offers a wide range of solutions to customers. Going beyond international technical specification requirements Hyosung Heavy Industries designs, manufactures and tests its transformers in line with international technical specifications such as IEC, ANSI, IEEE, NEMA, BS, JIS, and JEC, and Hyosung supplies them to over 85 countries. As a total power solution provider, Hyosung has produced over 6,000 units of power transformers in its Changwon production facility. With its dust-proof clean room facilities, Hyosung’s transformer manufacturing process ensures temperature and humidity control and thus supreme quality control. Its highly trained process operators and technicians conduct additional tests to ensure stable production, an extra layer of process that befits Hyosung’s standing as a leading transformer provider worldwide. Transformers are indispensable for changing voltage in power lines for everyday usage in average households. And behind them lies Hyosung’s technology and commitment to the environment. As such, Hyosung’s dedication to the environment continues behind the scenes.

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Don’t Judge a Tire by Its Maker!

The growing semiconductor chip shortage has directly translated into a lack of new vehicles. Customers who are tired of waiting increasingly turn to used cars. When buying a used car, one of the first things one might do is to change tires, as they are easily disposable. Choosing the right tire is critical to safety and drivability. Of course, the tire brand name would be one of the critical criteria in selecting the right tires, but one also needs to look further into what they are made of. Did you know that Hyosung’s technology is embedded in tires indispensable to our daily lives? Embedded in the tire - reinforcement materials One might think that tires are made of rubber but that’s not the case. There are a lot of reinforcement materials inside tires that ensure better safety, lifespan and drivability. Here are some of them: ① Tread: the rubber on the circumference that makes contact with the road ② Carcass: the inner layer of the tire which helps in absorbing load and shock ③ Belt: located between tread and carcass, belts resist punctures and help treads and carcasses to stay safe when driving. ④ Cap ply: Cap ply helps tires hold shape and keep them stable at high speed. ⑤ Bead: the reinforced section that comes in contact with the rim and prevents air leakage from within the tire There are so many reinforcement materials in tires. The carcass has polyester tirecords, belts have nylon tirecords and steel cords, and the bead has bead wire as reinforcement materials. Hyosung Advanced Materials manufactures all of these materials with its unparalleled technology and production capacity. Tirecords built on green materials Hyosung’s polyester tirecords (PET) enjoy nearly 50% of market share in the world and Hyosung Advanced Materials has long maintained its number one position in the global market for over 20 years. As the leading player, Hyosung continues to put efforts and investment into green product development. Hyosung Advanced Materials has begun the development of recycled PET products using waste plastic bottles since 2020, and has now completed its commercialization. This product can contribute to reducing environmental degradation by cutting down on landfill volume and carbon emissions. Compared to conventional tirecords, it emits 44% less greenhouse gas. Hyosung has also developed bio-PET yarn from ethylene glycol extracted from sugar canes or corns. This contributes to a 16% cut in greenhouse gas emission compared to existing polyester tirecords. Hyosung’s commitment to a net-zero society is also manifested in its lyocell tirecords made from wood. Hyosung Advanced Materials has succeeded in the development and production of lyocell tirecords extracted from wood in a bid to replace rayon tirecords optimized for high speeds under which durability is the key. It uses raw materials extracted from wood and thus when put into production it does not emit carbon bisulfide or sulfureted hydrogen. In turn it does not require water treatment for processing the harmful materials, meaning less water contamination caused by the production process. For these reasons, global tire makers around working on carbon emission cut are turning to lyocell tirecords that promise a 30% cut in greenhouse gas emission. Hyosung Advanced Materials continues on its journey to sustainability on the steady rolling tires The Company’s journey does not end there. Hyosung Advanced Materials has been leading the world in carbon neutral green management by investing in R&D on high strength and lightweight products. The aim is to contribute to cutting greenhouse gas emission and energy consumption while further enhancing the durability of tires. As a reliable supplier of the materials to the world’s top tire makers, Hyosung Advanced Materials will continue on its efforts in R&D and technology development.

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Meet regen® - A Cornerstone to the Circular Economy for Plastics

Eco-Friendly Trend in the Fashion Market Fashion is one of the most expressive ways to identify oneself. Although there are considerations when buying clothes, such as design, color, practicality, and comfort, young people use fashion to reflect their thoughts, values, and personal preferences. Recently, environmentally friendly products have gained interest globally and become a trend in the fashion industry, especially among Generation Z. Due to the emerging eco-friendly fashion trends in textiles, the consumer have begun to pay attention to eco-friendly fiber. Such fiber reduces carbon emissions to protect the global environment by limiting fossil fuel consumption throughout the cycle of production, distribution, and purchase. regen®, Hyosung’s eco-friendly fiber brand is 100% recycled fibers, and is recently leading this trend. regen® Sources its Raw Materials from 100% Used PET Bottles The ‘OECD's Global Plastics Outlook’ states that plastic waste will triple from 353 billion tons in 2019 to 1.14 billion in 2060. Are there any contingency plans to reduce the amount of plastic waste? The answer could be discovered in the plastic waste itself. Hyosung TNC launched its textile business in the 1960s and has contemplated resolutions to reduce plastic waste by recycling them. The company found a clue from polyethylene terephthalate (PET) plastic bottles, a standard waste product. PET bottles are created from polyester, thus, they can be recycled into polyester yarn, one of the synthetic fibers produced by Hyosung TNC. In 2008, Hyosung TNC became the first and foremost recycled polyester fiber provider in Korea, successfully presenting their recycled polyester fiber after five years of R&D. It is called “regen®,” which abbreviates the word regeneration. regen® recycles products that have been used and discarded, to create an entirely new product. Transformation of post-consumer waste PET bottles into regen® starts from collecting and thoroughly cleaning used bottles. Then, the cleaned bottles are crushed and melted into plastic chips, the size of a small rice grain. These chips are then melted and extruded at high temperature, transforming the waste plastic bottles into regen®, a 100% recycled polyester yarn. Since recycled yarns use waste bottles as the raw material, maintaining the same quality as existing virgin product is highly challenging. However, Hyosung TNC made a breakthrough with their superior technology. regen® demonstrates quality at par with existing standard polyester yarn, featuring an even, luxurious appearance; it also maintains vivid colors when dyed. regen® minimizes not only microplastic waste but also reduces plastic waste in landfills, reducing additional carbon dioxide emissions which could have come from burning used bottles. One ton of regen® yarn requires about 66,000 500ml plastic bottles; hence, it is one of the most representative types of eco-friendly yarn technology. regen® Ocean, regen® Seoul, and regen® Jeju: Named after the Origin of Used PET bottles Hyosung TNC strives to reduce plastic waste in the ocean. Hyosung TNC reinforces its recycling technology for post-consumer PET bottles, launching regen® Polyester and regen® Ocean Polyester. As for the regen® Ocean Polyester, it is strictly sourced from discarded waste bottles collected from the seashore within 200 meters or 10 km from the coastline, where there is no waste collection facility nearby. In other words, it either utilizes the floating waste PET bottles collected in the ocean or submerged waste – ocean waste that cannot be reached from the facility on the shore. In collaboration with Yeosu Gwangyang Port Authority, regen® Ocean Polyester was developed from recycled PET bottles and yarns discharged from vessels near the port area. The regen® Ocean Polyester has been accredited the Ocean Bound Plastic (OBP) certification for the first time in Korea from the Control Union, a prestigious eco certification body in the Netherlands. Hyosung TNC also introduced regional editions that specify the regions where the waste PET bottles were collected. Since 2020, the company has been producing regen® Seoul and regen® Jeju, utilizing recycled PET bottles collected from the city of Seoul and Jeju, respectively. regen® Ocean Nylon Protects the Marine Environment by Recycling Discarded Fishing Nets One of Hyosung TNC's recycled yarns, regen® Ocean Nylon, is “the world's first technology of its kind.” This eco-friendly yarn from waste fishing nets is a recycled fiber that requires more advanced technology compared to regen® Polyester. Hyosung TNC is profoundly interested in the aquatic ecosystem, recognizing that 46% of discarded garbage into the sea is waste fishing gear, such as fishing nets and lines. Abandoned fishing nets do not decompose well in the sea and endanger sea creatures. To help save the sea creatures, Hyosung TNC developed regen® Ocean Nylon, the world's first post-consumer recycled nylon fiber made by recycling waste fishing nets collected from the ocean. Hyosung TNC plans to facilitate marine environment protection by increasing regen® Ocean Nylon sales and introducing recycled yarns in more diverse fields. Contributing to Creating a Virtuous Cycle for Plastic – Regen Has It Covered Hyosung TNC’s regen® products are examples of post-consumer recycled (PCR) products used by end-users and recycled into entirely new products. These products of Hyosung are currently leading the economic cycle of the textile industry. As a sustainable fiber that contributes to reducing waste, the regen® products directly practice circular economy by recycling used resources. regen®, pursuing both environmental protection and high-quality performance, is used in various fields, from outdoor to fashion brands to the automobile industry, through collaboration with leading global brands. regen® is the cornerstone of circular economy for plastics that contribute to creating a healthy environment. For consumers who value eco-friendliness and sustainability, please remember regen® when shopping.

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Hyosung’s Commitment to Green Management: The Numbers Speak for Themselves

The uprising trend for future-oriented business: ESG Concerns about climate change, global warming, and depleting resources have brought the idea of a new growth paradigm to the fore. Once foreign to many, the word ‘sustainable growth’ has become the uprising trend for future-oriented businesses. ESG, the acronym for Environmental, Social, and Governance, now has become a critical business milestone in their business direction. At the same time, it is also true that some businesses conveniently chose to jump on the bandwagon to claim that they have adopted ESG management just because sustainability is in fashion. Here we have a company that has advanced our life for humanity; its business mission leading in various activities designed for environmental protection and carbon neutrality. That is no other than Hyosung, a leader in technology. To minimize its corporate footprint, Hyosung has been dedicated to sustainable growth by developing products and technology designed to facilitate the hydrogen economy and develop resource recycling technology and eco-friendly materials. And we at Hyosung stand by our numbers. Our environmental research and development investments are estimated to be over KRW104.3 billion (USD75 million), and our registered patents are over 3,310. Hyosung’s mission to sustainable management, ‘Green Management Vision 2030' The most notable eco-friendly activities pursued by Hyosung include its initiative called ‘Green Management Vision 2030.’ The initiative has four targeted goals of greenhouse gas reduction, development of eco-friendly technology and expansion of subsequent markets, building a green company culture, and enhancing stakeholder trust. Hyosung has pursued subsequent strategies alongside its company-level climate change strategy for sustainable management. 1) Greenhouse gas reduction In line with the nationally determined contribution target set forth by the ROK government in 2021, Hyosung has renewed its commitment to greenhouse gas reduction from a 20.5% cut in 2017 to a 14.5% cut in 2018 under its Green Management Vision 2030. As such, the company has established a mid-and-long term reduction plan across the whole business encompassing planning, research, and production. On top of this, the risk management process on climate change is now in place to identify risks and opportunities that climate change brings and to update risk management status annually for the sake of ESG management. 2) Development of eco-friendly technology and expansion of subsequent markets Based on the goal of developing eco-friendly technology and expanding subsequent markets under Vision 2030, Hyosung has put the utmost effort into R&D in technology and product development to secure new growth engines and accomplish sustainable growth. Let’s take a look at some of those examples. ■ A key renewable energy technology, energy storage system or ESS that enables storage of electricity for future use Energy storage system or ESS, which helps save electricity for future use, is emerging as one of the most important facilities for the energy industry and electricity of the future as renewable energy power generation is growing in share. Hyosung offers a whole life-cycle service on ESS encompassing customized consulting, system building, and post-management. Our technology has received rave reviews from electricity powerhouses in Europe. Hyosung Heavy Industries signed a contract in 2021 to supply 50-megawatt energy storage systems to U.K. energy infrastructure investment company Downing LLP. With this deal, Hyosung is providing a total ESS solution to the UK that will involve designing, supplying, and a 10-year maintenance service. It is noticeable that the ROK company’s proprietary technology has been recognized by the UK, a country that has been leading the world’s efforts in carbon neutrality and a transition to renewable energy. ■ Insulating materials such as transformer and gas insulated switchgear replaced with green products Hyosung Heavy Industries, a leading provider of electric equipment such as transformers and gas-insulated switchgear that are key to the electrical grid, has led the efforts to develop and commercialize green insulating materials. Hyosung has developed an eco-friendly transformer using ester oil as alternative insulation, reducing environmental impact, and enhancing safety against fire. Hyosung has been supplying this eco-friendly transformer to overseas markets such as Europe and the Middle East. The company also developed 170kV Gas Insulated switchgear utilizing Novec gas blending in 2021 and plans to adopt it to newly built power transmission plants and projects designed to replace outworn facilities to reduce greenhouse gas emissions in electric power systems. ■ To build a large-scale liquefied hydrogen plant to expand the hydrogen business Committed to carbon neutrality, Hyosung Chemical and Hyosung Heavy Industries have been proactively pursuing the hydrogen business. With an existing hydrogen charging system, Hyosung supplies a charging system for passenger and commercial vehicles and plans to provide dedicated charging stations for heavy machinery in line with the hydrogen fuelization efforts for excavators and forklift trucks. In addition, Hyosung is constructing the world’s largest liquefied hydrogen plant designed to improve the efficiency of hydrogen storage and transportation. Liquefied hydrogen offers much better efficiency in storage and transportation thanks to its higher density than that stored in the air. Hyosung plans to contribute to facilitating hydrogen mobility by proactively producing liquefied hydrogen. In response to the growing trend in sustainable mobility and transition to the hydrogen economy, Hyosung joined hands with the world’s leading gas name Linde Group to build a 13,000-ton liquefied hydrogen plant by 2023 with an estimated investment of KRW300 billion (USD215 million). It will be built on the site of Hyosung Chemical’s Yongyeon factory. ■ TANSOME®, lighter but stronger than steel Hyosung Advanced Materials developed TANSOME®, carbon fiber 10 times stronger than steel. It is one of the essential materials for producing fuel tanks for hydrogen vehicles. The carbon fiber-based high-pressure tanks are much lighter while promising better fuel efficiency. Hyosung sees a future where its TANSOME will be critical in green energy and the automobile industry where weight reduction is imperative. ■ Low carbon lyocell tire cords Hyosung Advanced Materials has developed lyocell tire cords derived from woods used for high-speed vehicles for its durability. Using materials with minimum pollution impacts, unlike conventional materials such as rayon and nylon tire cords which generate pollutants including carbon bisulfide and sulfureted hydrogen, lyocell tire cords offer 30 percent lower greenhouse gas emissions. ■ Eco-friendly engineering plastic material, polyketone Based on its proprietary technologies developed in 2013, Hyosung Chemical produces engineering plastic POKETONE™. Made of carbon monoxide (a leading cause of air pollution), Hyosung’s polyketone uses 0.5 tons of carbon monoxide for 1 kg of Poketone production. The material is approved by the US FDA for its non-toxic characteristics and thus has been widely used for kids’ toys, food processing conveyors, and cosmetic packaging. It is now being adopted in new sectors such as automobiles, electric and electronic gear, and drilling pipes. Especially, Polyketone is safe and durable for its impact and abrasion resistance, and ductility. It is a semi-permanent material that doesn’t require the replacement of components and thus offers higher sustainability than general or disposable plastic materials. As a leading eco-friendly plastic material, Polyketone also offers lower global warming potential (GWP) compared to other engineering plastics and is proven through LCA or life cycle assessment and other external reviews to be effective in reducing CO2 emission. Hyosung Chemical has expanded its application to broader areas such as building materials, automobiles, household items, and leisure goods. ■ Recycled polyester yarn created from post-consumer PET bottles, regen® With plastic waste emerging as a global issue, Hyosung TNC developed 100 percent recycled polyester yarn from discarded PET bottles ‘regen® polyester’ back in 2008. The textile powerhouse Hyosung TNC’s regen® polyester offers the same level of quality and performance as conventional polyester materials. It is loved by leading fashion names worldwide for its outstanding quality and stable supply thanks to Hyosung’s extensive global network. It also offers 60 percent less CO2 emissions than other polyester products. Hyosung TNC has been producing ‘regen® ocean nylon’ since 2007, a recycled nylon yarn from fishing net waste that accounts for a large percent of ocean waste. These eco-friendly yarns, regen® polyester and regen® ocean nylon, contribute to sustainability and circular economy by dramatically reducing landfill waste and CO2 emissions. As a leader in the circular economy for the textile industry, Hyosung offers global best practices in quality and stable supply. ■ Bio-based spandex The global number one spandex provider Hyosung TNC learned from the Life Cycle Assessment that materials before they are put into the manufacturing process, have the biggest environmental impact. To address this, the company has developed bio-based spandex to supply them for global leading fashion brands. It is currently working on biodegradable polyester yarn development as part of its effort to diversify its bio yarn portfolio. 3) Sustainable corporate culture In 2021, Hyosung ran an internal idea competition for energy saving and greenhouse gas reduction. Out of the 211 ideas submitted, ranging from energy consumption saving in business sites to product development, 10 passed the thorough deliberation process, and the selected ones have all been implemented to reduce greenhouse gas emissions. Assembly lines at Hyosung TNC are all in the process of transitioning to low carbon energy consumption. It uses waste supplied from incineration facilities nearby as a renewable energy source while using biogas produced from an anaerobic digestion system installed in its factories. Hyosung also ran an internal campaign last year to do away with disposable goods in the workplace. Since 2021, paper cups for water coolers in the company have been removed, and instead, it supported employees’ purchase of tumblers. In 2020 alone, it is estimated that around 190,000 paper cups were used at the headquarters of Hyosung TNC. Thus, we believe that by simply cutting down on our use of paper cups daily, we can reduce our CO2 emissions by up to 2 tons per annum. 4) Enhancing stakeholder trust Hyosung has shown an outstanding performance in the CDP (Carbon Disclosure Project) scores, the most trusted assessment of businesses’ climate change response. In the 2020 CDP Climate Change Awards, Hyosung Advanced Materials was awarded Carbon Management Honors Club, an award for the top five performers, and Carbon Management Sector Honors for the top-notch CDP scorers in respective sectors. CDP is a not-for-profit organization based in London, UK, that discloses environmental impact information such as climate change strategy, CO2 emission, and carbon management of major listed businesses in 91 countries. What we have here is just part of a much larger story regarding Hyosung’s commitment to sustainable management. We at Hyosung believe the future for a fully sustainable Hyosung is just around the corner, with all members of the Hyosung family being committed to a better life for humanity. Hyosung continues to trailblaze daily to honor its carbon reduction commitment to identify sustainable new growth engines and protect our environment.

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Without Packaging, Delicious Deliveries Are Not Possible

Not all plastic is the same! Hyosung Chemical manufactures plastic films that are used in packing instant foods we often purchase. However, can the same packaging be used for all foods? No, it cannot. Different plastic films may need to be used, considering the types and characteristics of the food and its cooking methods. What packaging materials should be used to keep food safe for a long time? Hyosung Chemical, which leads the plastic film industry, will give you the right answer. The COVID-19 pandemic in 2020 led to lockdown in many regions where people had to prepare all meals at home. As the pandemic continued, people became tired of cooking their meals every time and started to look for a convenient way to enjoy their food, such as ready-to-eat or pre-cooked products. As a result, savory, suitable home meal replacement (HMR) products have been in high demand even in the third consecutive year of the pandemic. Grand View Research, a global research firm, reported the size of the packaged food market as 14.386 trillion dollars in 2021, predicting an annual growth of 5.1% on average from 2022 to 2030. There are various criteria for selecting pre-cooked food products. Packaging is one of the essential elements for selection because the freshness of food depends on it. Packaging methods vary depending on the type of food, such as sweets, soup, pre-cooked curry or rice, and sandwiches. It is common to utilize plastic films for packaging pre-cooked products. Hyosung Chemical's Film PU produces and supplies PET and nylon films under the Filmore brand. Let’s take a close look at the types of plastic films Hyosung Chemical manufactures. Remember, not all food packaging is the same! Packaging Materials vary by Foods Films are primarily divided into nylon and PET films as packaging materials. In the food industry, nylon films are commonly used for frozen and refrigerated foods, retort foods, easy adhesion, and pharmaceutical packaging; PET films are for general packaging, including food packaging. Hyosung Chemical produces both of these films. Hyosung Chemical’s nylon films can be produced in different thicknesses for different uses, depending on the needs of individual clients. These films also have excellent oxygen barrier properties, making them suitable for packaging food and pharmaceutical products that need long-term storage. Hyosung Chemical's nylon films have been accredited as non-toxic in Korea, the United States, and Japan, assuring consumers of the safety of use. Nylon films for general packaging are used for packaging frozen foods, manufactured meat (ex. ham), and the lid of instant rice products. These films are suitable for maintaining the freshness of the food for a long time since they boast excellent oxygen and gas blockage. In addition, the outstanding printability and durability make these films effective for products prone to tearing or breakages, such as ice, seafood, and frozen foods. Nylon films are used for packaging retort food because of their high-temperature, high-pressure resistance. Retort food is a product that can be heated and eaten in a packaged state, such as instant curry or sauce. Thus, the nylon films used to package retort food protect the product and its contents from deformation with excellent resistance against heat and pressure. Hyosung Chemical's nylon films can protect retort food from oxygen and gas with its impressive thickness, superior adhesion strength, and outstanding durability. The easily adhesive nylon films used for the packaging of instant rice, fresh noodles, and capsules are coated on one side to improve their printability and packaging adhesion compared to other films. Hyosung Chemical, the only domestic supplier of easily adhesive nylon films, manufactures products with enhanced adhesion and gas barrier properties. These films are typically used for general food packaging, instant rice or tofu packaging lids, and spout pouches or bottoms for pouch packaging. Pharmaceutical nylon films are mainly used for packaging capsules or pills. You may have experienced taking out a medicine by pressing the convex part from the plastic package. The package is called blister packaging or packs, made of pharmaceutical nylon films. These films feature excellent durability and moldability. Hyosung Chemical, which produces such high-quality nylon films, is leading the industry in the domestic nylon market and the global market. With their excellent gas and moisture barrier, Hyosung Chemical's PET films are widely used in general packaging, including foods, snacks, retort food, instant coffee packets, and packaged sauce. These films have outstanding adhesion, making them suitable for products that need to be boiled or sterilized at high temperatures using hot water or a microwave. Hyosung Chemical's PET films for general packaging have good printability and adhesion with uniform thickness and heat resistance. Also, these films' versatility makes them valuable in a wide range of foods (confectionery, coffee mix, or retort food packaging that should withstand high temperature and pressure) and non-food packing (detergent refill pouches, cosmetic packaging, etc.). Hyosung Chemical - an R&D Leader of Exceptional Films for Optics and Windows, as well as Food and Daily Necessities PET films strongly reflect light and resist long-term heat, making them useful in various fields. PET films are suitable for optical films in electronic devices such as smartphones, desktops, and computer screens that we use all the time. Optical films are thicker than other films, which blocks harmful substances from electronic devices and increases resistance to external scratches. These films are also crucial in adequately adjusting screens' contrast ratio. PET films for vehicle windows and buildings provide thermal insulation and UV protection. High-gloss sheets for decorative sheets applied to home appliances like refrigerators and washing machines prevent scratches from daily use. Hyosung Chemical also produces PET films for lamination, advertisements, and general usage. Hyosung Chemical produces industrial, optical, and nylon PET films for general packaging at four different locations (domestic and overseas), establishing a research institute for consistent R&D. Even in the food sector, Hyosung Chemical has never stopped its research and development in unique film functions such as antibacterial and antioxidant films as well as films to keep food fresh. Hyosung Chemical has also laid a foothold for growth and increased customer satisfaction by its foray into film fields such as optical, process release, and window applications. Hyosung Chemical uses eco-friendly materials and never stops developing new technologies. This is what makes Hyosung Chemical recognized as the leader in the global film market and a future thriving firm. If you plan to buy a pre-cooked food product today, look closely at the packaging description. If you can recognize the type of film or the raw materials used to package your food, you will be able to enjoy your dinner with a new perspective of the world of packaging.

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Rise High, creora®

The unparalleled global leader in spandex Recent muggy summer weather has pushed many people to turn to outdoor activities or a dip into the pool. More people are thus opting for ‘athleisure’ clothing. Hyosung’s creora® is the main driver behind the casual clothing trend. The spandex brand has continued in the number one market share position for ten years. You might be surprised to discover that creora® is at the core of almost all major sportswear products we use daily. From latecomer to forerunner: Early investment in assembly lines for high-performance products and locally customized marketing paid off Hyosung was the first Korean company to develop this spandex technology back in 1992. Known as the ‘memory chip of textile,’ spandex can stretch up to five to eight times longer than its original length without any change to its original form. Its everyday application ranges from sportswear and underwear to socks and even masks. Though it was a latecomer in the global market, Hyosung dreamed big to create “the world’s best spandex that ushers in a creative 21C’ and named it ‘creora®’ – a combination of two words: ‘creative’ and ‘ora'. And 20 years later, the rest is history. As early as the late 1990s, Hyosung recognized the importance of having an extensive global reach and establishing assembly lines in countries such as China, Vietnam, Turkey, and Brazil. The goal was clear: A stable supply of various products that meet the needs of different customers in different markets at the time they want. Having these production lines ready early and focusing on developing high-performance products has paid off in distinguished stretch, recovery and comfort. It joins with textile businesses and global apparel names to identify market trends and build longer-run business partnerships. In warmer weather, Hyosung proposed products made of yarns with anti-bacterial and UV cut properties. In places like Brazil, known for its love for vivid colors, the company’s customized marketing strategy provides textiles with excellent dyeing properties. Fabric that fits like your own skin Various products are available under the creora® brand that comes in varying characteristics and meet different needs. creora® Power-Fit is a spandex with high power and excellent heat resistance, maintaining its fabric power even at high temperatures or re-dyeing. This offers outstanding deeper color and better fastness dyed with dispersed dyestuff, with excellent stretch recovery. Additionally, it fits like your own skin offering comfort in daily activities and sports. creoa® highly prevents spandex degradation by chlorine elements often used for swimming pool sterilization. It offers higher chlorine resistance than that of general spandex, and thus is applied to swimwear to improve fabric durability. creora® Fresh is a spandex product that possesses excellent deodorizing and durability attributes. Because it effectively removes odors caused by post-exercise sweat, creora® Fresh is always pleasant to wear and leaves you with a refreshing feeling. Additionally, creora® Color+ with the unique color fastness and creora® Black with a deep and exclusive black color also make the color of fabrics deeper and offer comfortable support for the body movements. creora®, rise high with the wings of sustainability As an unparalleled market leader for over 10 years, creora® continues to fulfill its commitment to sustainability through its ESG management. creora® eco-soft enables heat setting at a low temperature compared to common spandex and requires minimal energy consumption when producing yarns, thus reducing carbon dioxide emissions. A production of 10,000 T-shirts with 250g/yd (4% spandex) can cut at least 120kg worth of CO2. regen® spandex, a 100% recycled spandex is made from reclaimed industrial waste. It contributes to preserving our environment while offering a similar level of functionality to new spandex despite being produced from recycled material. creora®’s commitment to preserving environments geared toward sustainable yarns will only grow with time. Shortly, it plans to develop a detailed vision for developing bio-based yarns and reducing oil consumption. At the same time, it aims to further consolidate its position as the number one spandex by expanding its market share to 34% by 2026. creora® will only continue to rise higher.

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The Charm of Circular Economy Captivated the World, Turning Waste into Treasure

Abnormal weather conditions that hit the world last summer are a cause for concern. The United Kingdom, known for its cool summer, suffered heat waves as high as 40 degrees in Celsius, so much so that its schools had to close. Greenland lost 18 billion tons of ice in just over three days. The US suffered the most severe heat wave in 90 years, where 28 states out the 50 went around with excessive heat warnings. With these widespread abnormal weather conditions, awareness of the environment has been raised. As such, attention to a circular economy about protecting the environment against climate change has grown accordingly. The circular economy is a must for carbon neutrality The circular economy is a model adopted by Europe designed to avoid the existing linear model where raw materials are mined for production and used products are thrown away after use. In a circular economy, we reuse the used raw materials in every possible way. A successful transition into this renewable energy-based economy is the key to achieving carbon neutrality. Production and disposal of product waste are responsible for 45% of greenhouse gas emissions. In a circular economy, we should be able to cut greenhouse gas emissions significantly and thus able to achieve net zero. We have a long way to go. According to the OECD, out of the 15% of plastic waste collected for recycling, only 9% was recycled in 2019. Half of the plastic waste ended up in landfills, nearly 1/5 incinerated. We desperately need an economic model that enables upcycling. Global efforts to build a circular economy We are witnessing international efforts being placed forth for a circular economy. The EU announced the New Circular Economy Action Plan in March 2020, making all plastic packaging recyclable or reusable. The Fifth session of the United Nations Environment Assembly (UNEA-5) also agreed to develop an international agreement on plastic pollution prevention by 2024. Korea is no exception: It is pursuing legislation requiring over 30% of PET bottles to be made of recycled materials by 2030 under the K-Circular Economy Implementation Plan for Net Zero, announced in December last year. Biden administration has pledged to succeed President Obama’s renewable energy and energy efficiency policy and promoted the Green New Deal alongside implementation plans for a carbon tax and Carbon Border Adjustment Mechanism. The US is now back to the Paris Agreement as of January 20th, 2021, and is set to achieve net zero across the whole economy by 2050 with its Clean Energy and Infrastructure Plan. Multinational companies are also playing their role, and here are some of the examples of those corporates that are pursuing a circular economy as well as environmental protection. The American recycling company TerraCycle introduced LOOP in 2019, a circular platform built on recyclable packaging materials. LOOP offers normal goods such as shampoo, detergents, toothpaste, and food such as ice cream and chocolate in stainless containers and glass or aluminum bottles. Customers returned the containers after they consumed the products for recycling, similar to milk delivery services when used milk bottles were collected and returned for reuse. The platform, designed to reduce plastic container waste, is currently available in the US, Canada, and the UK. In France, known as smoker’s haven, a start-up, Cy-Clope, has launched a cigarette butt recycling service based on circular economy. A single cigarette butt can pollute 500 liters of water, taking as long as 12 years to decompose. The French start-up collects cigarette butts from the streets and recycles them, and its collecting container can hold up to 10,000 cigarette butts, eventually recycling 100%. Cigarette filters are recycled as plastic materials, while the rest are used for compost. Hyosung, a leader in circular economy with its post-consumer PET bottle-based fiber ‘regen®’ A company has been there at least a decade earlier than TerraCycle and Cy-Clope. Hyosung TNC, a chemical fiber affiliate of Hyosung Group, introduced the first Korean recycled polyester fiber regen® in 2008. The yarn is created from post-consumer PET bottles, not existing petrochemical materials. 50 plastic bottles of 500ml are used for one kilogram of regen. As it doesn’t consume petrochemical materials, it also contributes to saving up our limited resources from the earth. International fashion names are using regen® to produce eco-friendly clothing and bags. Since its inception in 1966, when its mother company Tongyang Nylon was established, Hyosung has led new material development R&D efforts in Korea over the past 60 years. Hyosung regen® has acquired Control Union’s Global Recycle Standard (GRS) certification in 2009 and Eco-Mark from the Japan Environment Association for its contribution to sustainability in the textile industry. Hyosung’s 100% recycled polyester fiber leading ocean protection With its dedication to protecting the ocean, a vital buffer against climate change's impacts, Hyosung noted that 80% of ocean waste is plastic. At the same time, 1/3 of them are generated from vessels. Marine debris is collected and disposed of via incineration, creating another layer of environmental degradation. Hyosung’s solution to this problem is ‘regen ocean polyester’ recycled from marine waste. It has acquired the Ocean Bound Plastic certification, the first of its kind for a Korean company. Ocean-bound plastic is abandoned plastic waste recovered from areas up to 50km inland from waterways or 200meters from rivers and thus often not subject to inland waste or recycling system. Hyosung’s regen ocean polyester is made from PET bottles found in the ocean and waterways, fully meeting the strict standards of the OBP. Thus, Hyosung truly fulfills the spirit of “recycling” by collecting those pollutants from the ocean and ‘recycling’ them. The company has developed a thorough process for the recycling process and specification management for quality control. Hyosung TNC takes sustainability and circular economy seriously and has made its regen products one of the key growth engines for the company’s future. World’s first recycled nylon from fishing net waste Building on its advanced nylon technology, Hyosung TNC has introduced a recycled nylon fiber from ocean waste to contribute to building a new circular economy model. Nearly out of the 8 million tons of plastic waste being dumped into the ocean, 640,000 tons are from fishing net waste. Hyosung’s regen ocean nylon, launched in 2007, is the world’s first recycled nylon fiber made from fishing net waste. Turning discarded fishing net waste into high-quality yarns is quite challenging because the marine debris, after being soaked in the salty waters, often comes with many impurities and thus making it tricky to extract caprolactam, a key material for nylon yarns. So much so that there are only two companies in the world with their proprietary technology of nylon recycling. Hyosung TNC was the first company to introduce recycled nylon worldwide based on its decades-old technology and R&D efforts. The company has signed MOUs with Korean local governments such as Busan City and South Jeolla Province in 2021 to expand its regen ocean nylon to increase the capacity to 150 tons per month. We at Hyosung spare no effort in resource sustainability and environmental protection Hyosung offers other recycled fibers such as regen® spandex, recycled spandex from reclaimed waste. regen® spandex is the only commercially available recycled spandex that can be applied for various use and is naturally in high demand. It is made with pre-consumer waste from the company’s virgin creora® spandex yarn manufacturing process. Hyosung’s unparalleled commitment to a circular economy is proven by its decades-long focus on research and technology since the 1960s when it opened its first research center. With its entire portfolio of regen polyester recycled from PET bottles, regen ocean polyester made with PET bottles found in waterways, regen ocean nylon made from fishing net waste, and regen® spandex from reclaimed textile waste, Hyosung continues its commitment to sustainability and environmental protection for the sake of a better life for humanity.

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‘H2 MEET 2022’ Offers a Glimpse Into the Future of Hydrogen

Did you know that Korea was the first country to commercialize hydrogen trucks? The H2 MEET 2022, the largest hydrogen exhibition in Korea, was held in Ilsan from 31 Aug – 3 Sept. The exhibition drew international attention with a wide range of participation spanning multinational companies and governments. The global hydrogen leader Hyosung was one of them, which ran a booth under the slogan of ‘Creating Togetherness through New Energy Infrastructure’ to introduce its extensive hydrogen solutions: Here are some of the highlights from the H2 MEET 2022. ‘Touch’ the screen for an answer Hyosung’s booth showcased various user-interactive activities. For example, at the center of its booth, there were four gigantic cubes, each showing the process of production, storage, distribution, and R&D. Also, at the center, the display screen can be activated to introduce the area in question. Park Il-jun, Korea’s 2nd Vice Minister for Trade, Industry, and Energy paid a visit to Hyosung’s booth during the exhibition to be briefed on where Hyosung was in its efforts to facilitate the hydrogen ecosystem. Visitors were also able to get a quick introduction to Hyosung’s hydrogen business portfolio ranging from liquid hydrogen, charging stations, blue and green hydrogen and distribution by simply touching the screens at the booth. Visitors particularly loved this experience where they can get a quick and easy-to-understand introduction to Hyosung’s hydrogen value-chain. Liquid hydrogen brings a green future closer Liquid hydrogen was the buzz word this year on the Hyosung’s exhibition booth. Liquid hydrogen is known as an essential resource expected to overcome gaseous hydrogen to bring hydrogen commercialization earlier than expected. By joining hands with the global gas name Linde, Hyosung has established two joint ventures, Hyosung Hydrogen and Linde Hydrogen, to build hydrogen value chain. Its liquid hydrogen plant in Ulsan which is scheduled to kick off in operation in May 2023 is set to expand annual capacity up to 39,000 tons. Compared to its gaseous counterpart, liquid hydrogen can store more volume of hydrogen and also doesn’t need to be kept under high-pressure. Thus commercialization of liquid hydrogen means a wider application in mobility and industries and less carbon emissions. Visitors were also able to learn about areas of application once commercialization is achieved. For instance, shorter charging time for hydrogen vehicles and high-power density can be achieved for UAM (Urban Air Mobility), drones, trams, trucks, forklifts, excavators and vessels. Hydrogen can be also applied to power generation and steel industry. Electricity once produced can be stored in the form of liquid hydrogen and fuel cell power plants and generators can be placed in wherever they need to be, ensuring high energy efficiency. If hydrogen is applied to steel making process, steel industry will be able to meet their net-zero aims. Mr Jung Sang-yul, senior director from Hyosung Heavy Industries, who has been leading the company hydrogen business said, “Hydrogen will be applied first to commercial vehicles. In order to usher in a green fuel era with zero carbon emissions, we need to change our way of thinking to put environment first to everything else.” From A to Z: Hyosung’s hydrogen portfolio To facilitate a fast transition to a hydrogen society, Hyosung has been focusing on distribution and charging infrastructure additionally to production when it comes to hydrogen. Alongside its plan to kick off the Ulsan liquid hydrogen plant, Hyosung aims to build a 30-strong charging station network across the country. It is also planning to build a supply network to link charging stations across Korea. At the exhibition booth, visitors were also able to touch and feel Hyosung TNC’s nylon liner materials and Hyosung Advance Materials’ carbon fiber. The two are essential elements for hydrogen containers and tanks. Mr Eun Kang-jun, director from Hyosung TNC, said “Nylon liner materials can hold off gaseous hydrogen, are extremely light in weight and offer high temperature tolerance. It is actually the first material Korea has seen to satisfy the strictest specification requirements.” Mr Ban Jung-tae, assistant director from Hyosung Advanced Materials was quoted as saying, “Our TANSOME® is called the ‘material of dream’ for its tensile strength. It has particularly enjoyed strong demand from high pressure container market. For a net-zero earth built on hydrogen Hyosung Group has focused on two of the four pillars of the ESG reporting criteria (circular economy, net-zero, new energy infrastructure, and harmful elements/resource saving): Net-zero and new energy infrastructure. It has spared no efforts in investment in hydrogen ecosystem for the sake of a net-zero future. On top of the liquid hydrogen plant and charging stations currently under construction, the company has been taking the lead in renewable technology development for green and blue hydrogen. What it offered at the H2 MEET 2022 was just a beginning. You can look forward to seeing how Hyosung will shape and lead a hydrogen ecosystem in the coming years.

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Did You Know the World’s First Hydrogen Law Was Introduced in Korea?

Everything you need to know about hydrogen, as seen through Hyosung’s hydrogen business Did you know that the Republic of Korea was the first country to legislate a hydrogen law in the world? Yes, the Korean government promulgated the Hydrogen Economy Promotion and Hydrogen Safety Management Act or the “Hydrogen Act.” Yet Korea is not alone. The world is spotlighting hydrogen energy; an energy source recently sought after the most in the world. The U.S. Department of Energy has also announced the Hydrogen Program Plan, while U.S. President Biden promised a $9.5 billion fund to cut clean hydrogen costs and facilitate commercialization. The EU also has revealed the EU Hydrogen Strategy and launched the European Clean Hydrogen Alliance (or ECHA) as part of its efforts to transition to the hydrogen economy. China aims to meet a target of 1 million hydrogen vehicles by 2030. What is it about hydrogen that makes it so much in demand? More energy efficiency, lower greenhouse gas emission The answer lies in its eco-friendly and economic characteristics. With the growing call for doing away with fossil fuel usage to save our ailing earth from greenhouse gas, demand for electricity as an alternative to fossil fuels soared. Electricity can be generated by clean energy sources such as solar and wind power. However, they require huge installation space and are susceptible to climate conditions. That is where hydrogen comes in. Unlike underground resources, hydrogen can be artificially produced with technology. It is the most abundant element in the universe, accounting for about 75 percent of its mass. It is a clean energy source that makes water when mixed with oxygen. It has the highest energy density of all known substances, promising excellent energy efficiency. One might wonder. How come it takes so long for humanity to start utilizing it despite all the merits it offers? Re-emerging as a promising energy resource Humanity has long known about the possibility of hydrogen as an energy resource. When Apollo 11 made the first landing on the moon, it housed three hydrogen fuel cells. Hydrogen emerged as a promising energy resource in 1973 when the oil crisis hit the world. With the shale oil boom, however, hydrogen was put on the back burner. While humanity was preoccupied with the low-price and fast development of energy resources without considering environmental consequences, the earth’s ecosystem has been collapsing rapidly. It has come to the point where the development of alternative energy resources for the sake of the environment and humanity can no longer be put on the back burner. Thus, hydrogen is rapidly gaining ground. Now efforts are being put forth to find ways to use hydrogen in a more efficient and eco-friendly manner before the world transitions into a hydrogen economy. Hyosung’s hydrogen business will provide the most idealistic way of utilizing the promising energy resource that could be a definitive answer to humanity’s present and future. Hyosung is committed to hydrogen The biggest stumbling block to the commercialization of hydrogen is the lack of charging infrastructure. No matter how efficient and eco-friendly it is, not many people will be ready to opt for the energy resource. In other words, they are going through a great deal of inconvenience due to the lack of supporting infrastructure, such as charging stations. As such, Hyosung has been taking the lead in establishing a charging station network nationwide to facilitate our national paradigm shift into hydrogen. Starting from CNG and LCNG charging facility businesses in 2000, Hyosung has built its gas compression and charging technology and experiences over the past two decades. Building on this, Hyosung introduced the nation’s first hydrogen charging station in 2009; it is a leading supplier of hydrogen charging stations in Korea, with 25 operating in major cities and 16 in the pipeline. When it comes to nylon liner resins and carbon fibers, the essential materials for hydrogen storage containers, Hyosung is the main supplier. Storage of hydrogen requires high-pressure and ultra-light containers. Hyosung TNC has developed and supplied Nylon liner resin for the first time in Korea. Hyosung Advanced Material’s proprietary carbon fibers, the fourth of their kind in the world weigh a mere 1/4 of that of heavy steel and 10 times the strength, suitable for hydrogen storage containers. Carbon fibers are also used for tanks for hydrogen vessels. Hyosung is to invest KRW1 trillion by 2028 to build an annual capacity of 24,000 tons to meet the growing demand for hydrogen cars. The future of hydrogen will run alongside Hyosung’s hydrogen business As with anything in life, there is always room for improvement. Hydrogen is no exception. It is a gas. When it is in gas form, its volume is huge, and it has to be stored at high pressure for efficiency’s sake. To store the high-pressure hydrogen gas stably, specially designed containers are required. Should the volume and weight of the gas increase, transportation costs and establishing charging stations would inevitably become challenging. However, when it is cooled down to minus 253 degrees, it becomes liquid, called liquid hydrogen. Its volume is 1/800 that of gaseous hydrogen, which in turn requires less landmass for charging stations and lower costs for related facilities and transportation. It is also stored at atmospheric pressure with higher stability. On top of this, charging is more convenient and easier as it doesn’t ascertain levels of pressure during charging – the same way as you would fuel a gasoline vehicle in a gas station. As such, liquid hydrogen is the key to a rapid transition to hydrogen energy. Hyosung has partnered with a global gas leader Linde Gas to build a liquid hydrogen plant to equip it with the liquid hydrogen production and charging network enabling large-scale storage and transportation. The plant, once built, is expected to kick off its operation by May 2023 in Ulsan, Korea, with a capacity of over 13,000 tons of liquid hydrogen. Upon launching the facility, Hyosung plans to invest KRW 1 trillion over five years to expand it to a capacity of 39,000 tons per annum. Once the distribution of liquid hydrogen grows, it will naturally be followed by a rapid establishment of related infrastructure. As the cost of building charging stations gets cut, the saved-up funds can be funneled to build more stations. Hyosung is to establish a 30 liquid hydrogen charging station nationwide with the planned launch of the liquid hydrogen plant. A greener hydrogen eco-system It would be difficult to call hydrogen a true clean energy resource if its production process had entailed carbon dioxide emissions. Hyosung strives to develop the CCUS (Carbon Capture Utilization Storage) technology that captures carbon dioxide emissions at production. The company is also leading the influx of the green hydrogen supply, produced by an electrolyzer based on renewable energy. It does not emit any carbon dioxide during the production process, and thus it is called the ‘ultimate green hydrogen.’ As the first Korean company to develop a 750kw wind turbine, Hyosung is also planning to build an 8MW wind farm. When it comes to new and renewable energy, storage of produced energy is critical as it is vulnerable to surrounding environments such as climate. Hyosung is also a leading player in ESS or Energy Storage System in Korea. A new era ushered in by hydrogen The Hydrogen Council, a global initiative of leading companies, estimates up to 546 million tons of global hydrogen consumption by 2050, which will replace 13.26 billion barrels of crude oil and account for nearly 20 percent of the global energy demand. Hydrogen stands to determine the future of humanity and the environment, and Hyosung has played and will continue to play a key role in our transition to a hydrogen society. As a holistic supplier responsible for the whole value chain encompassing production, transportation, and charging, Hyosung has been trailblazing the global industry. Please stay tuned with us while we at Hyosung continue to march into a new era of hydrogen!

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Hyosung’s Leading Action to Climate Change

Hyosung Group expanded its ESG Management Committee in April 2021 and has long committed to research and development efforts and prompt sustainability decision-making. As part of this, it has also announced ‘Green Management Vision 2030’, designed to lead a better life for humanity. One might wonder what has driven Hyosung’s commitment to the issue of climate change. Last July, the oldest glacier in Switzerland, Rhone Glacier, was covered with blankets. The glacier has lost around 40 meters in ice thickness in the past decade due to climate change, and thus Swiss authorities decided to halt the ice melt by covering the glacier with white blankets. Switzerland is not the only country to suffer from climate change. It has affected every bit of the world. The US has been afflicted by heat waves, flooding, and bushfires, while Europe has witnessed the frequency of heat waves jumping 3 to 4 times over the past 42 years. The UN Secretary-General Antonio Guterres warns that humanity is facing ‘collective suicide’ without prompt action on climate change. Corporates with a global footprint should take the lead Since the Industrial Revolution, corporates have seen their production volume grow exponentially while humanity, in turn, can purchase things whenever in need. However, we have not paid enough attention to carbon dioxide emissions in the manufacturing, shipping, and development process, being indifferent. Situations have changed, governments worldwide are scrambling to strengthen environmental regulations, and consumers are more conscious of the carbon footprint of the products they purchase. Multinational companies are thus faced with this imminent challenge of shifting their technology focus from convenience to the survival of humanity and the environment. Hyosung’s response to climate change: Green Management Vision 2030 Hyosung’s Green Management Vision 2030 has four objectives: greenhouse gas cut, development of green technology and expanding the subsequent market, building green corporate culture, and enhancing stakeholder trust. The following plans for each objective are established respectively to pursue and implement climate change strategies at the corporate level. Hyosung aims to reduce its carbon emission by 14.5% compared to 2018 by 2030. To achieve this goal, the company has been transitioning to green fuels. Hyosung TNC, for example, has been implementing a low-carbon energy policy for its assembly lines. It uses heat waste from nearby incineration plants and taps into biogas from anaerobic digesters within its assembly lines. Each factory sets up its annual environment investment plan, making efforts toward saving energy. Hyosung has also been pouring efforts into building a green corporate culture. Green procurement practices and in-house chemical management systems are pursued, and air and water pollutant management system have been advanced to minimize carbon footprint. Also, working closely with its vendors and partners, Hyosung supports its energy-saving efforts, mutually benefiting through growth and development. Hyosung has been forthcoming in disclosing related information as part of its efforts to enhance stakeholder trust. In line with the Task Force on Climate-related Financial Disclosures (TCFD) created by the Financial Stability Board, Hyosung issues sustainability reports annually and has been building a green management system by obtaining green certifications across its production sites. Hyosung Advanced Materials has acquired the ISO 50001 certification for the energy management system, while Hyosung Chemical’s Yongyeon Plant has obtained ISO 14001 certification for its environmental management system. A green society built on our green portfolio As a responsible global corporate, Hyosung has been making tangible contributions to building a green environment with its products while continuing to develop related technologies to transition itself into a truly green business. Hyosung TNC offers the fiber ‘regen polyester’ made from recycled PET bottles and ‘regen ocean nylon’ on recycled fishing nets from the ocean. In the meantime, Hyosung Advanced Materials pursues green management on three pillars zero emission, zero waste, and zero impact. Its tire cord product is made with lyocell extracted from wood, emitting 30% less carbon dioxide than existing rayon and nylon-based tire cords. It also supplies ‘TANSOME®,’ the carbon fiber used for green energy sectors such as hydrogen and car light-weighting. Hyosung Heavy Industries has pursued various renewable energy businesses, including hydrogen stations, liquefied hydrogen, wind turbine, and energy storage system. It has also been very active in research and development on transitioning existing products, including transformers, into greener products. Additionally, it has adopted green construction technologies while obtaining green construction certifications and sustainable landscape design. Hyosung Chemical has continued R&D efforts to expand its green business portfolio. Based on proprietary technologies developed in 2013, it has acquired the green engineering plastic Polyketone, which is widely applied to various sectors such as automobiles and everyday goods. Hyosung continues its research efforts to use the material across our daily lives broadly. Sustainability creates business opportunities Our collective understanding of the environment has increased going through the pandemic and climate change. Multinational companies have a new homework to solve since consumer preferences have changed, ‘Greensumers’ who prefer eco-friendly products that consider the environment is increasing. With these changes, Hyosung has been agile in exploring and creating business opportunities in green markets and fulfilling its corporate responsibility. Hyosung will relentlessly make efforts to make a better planet, from its manufacturing processes to finished goods, across its entire business value chain. By advancing the green management system, developing green products, and actively communicating with stakeholders, Hyosung will continue focusing on creating a society where humanity, our business partners, nature, and the environment can harmoniously coexist and prosper altogether.

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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.

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