The advancement of the artificial intelligence (AI) industry has generated new power demands. As AI data centers emerge globally, from the U.S. to Europe to China, the demand for power lines and power grids has surged to meet electricity supply needs. According to the International Energy Agency (IEA), data center electricity consumption is expected to double by 2026, and global power demand is projected to increase by an average of 3.4% per year. Coupled with factors such as extreme weather, the expansion of renewable energy generation facilities, the aging of transmission and distribution infrastructure, and the growing adoption of electric vehicles, investments in power infrastructure are set to rise significantly. Experts predict that the global power equipment market will enter a massive boom period known as the " Super-cycle" over the next decade. The True Value of K-Transformers Shining in the Super-cycle The power Super-cycle refers to a trend in the power industry characterized by long-term increases in demand and expanded investments. This trend is driving up the demand for highly efficient transformers, which are key equipment ensuring the stability and efficiency of power grids. Transformers play a crucial role in regulating voltage as electrical energy travels from power plants to consumers. Market research firm Market.us forecasts that the global transformer market, valued at USD 68 billion in 2023, will grow at an average annual rate of 6.2%, reaching USD 123 billion by 2033. ▲ Market research firm Market.us forecasts that the global transformer market Source: Market.us (January 2023) As the super-cycle takes hold, transformers from South Korea have become a significant export success. According to the Korea International Trade Association, transformer exports increased by 81.8% year-on-year in the first quarter of 2024, following an 84.1% growth rate in 2022. By July 2024, cumulative transformer exports are expected to reach approximately KRW 1.3786 trillion, which is already 87% of last year's export total. This growth trend is anticipated to continue, with expectations for record-high performance this year. Hyosung Heavy Industries is at the forefront of these achievements. Why Hyosung Heavy Industries' Power Solutions are in Demand Worldwide What makes Hyosung Heavy Industries recognized in the power market? Its outstanding technological capabilities, combined with extensive experience in global projects and sustainable solutions, contribute to this recognition. Currently, transformer trends emphasize sustainability, low noise, and low losses. In these areas, HYOSUNG’s high-efficiency ultra-high voltage transformers and power solutions are among the best in the world. ▲ A new type of transformer insulated with biodegradable plant oil or sustainable synthetic oil (Learn more) Since developing Korea's first 154kV ultra-high voltage transformer in 1969, Hyosung Heavy Industries has led the field by introducing 345kV and 765kV transformers as the first in the industry. Furthermore, it is one of the few transformer manufacturers globally capable of supplying specialized transformers requiring advanced technology, such as plant oil-insulated transformers for enhanced eco-friendliness and phase-shifting transformers for interconnecting grids between countries. As a result, HYOSUNG’s ultra-high voltage transformers are recognized for their performance and capabilities in over 70 countries. The customized solutions, designed, manufactured, and tested to meet the specific regional, industrial, and application needs of each country, have received positive feedback. Since beginning transformer exports in the 1970s, HYOSUNG has participated in large-scale power infrastructure projects in major markets such as the U.S., Europe, and Australia, demonstrating their capabilities even in challenging environments like deserts and saline areas with tailored designs. ▲ Hyosung Heavy Industries' ultra-high voltage transformer factory, 'HYOSUNG HICO,' in the United States. At the Changwon plant alone, more than 7,500 ultra-high voltage transformers have been produced, and the company has expanded its production network by establishing local manufacturing bases in Tennessee, USA, and Jiangsu, China, which is expected to further contribute to the development of the global power grid. Hyosung Heavy Industries is advancing beyond transformer technology into cutting-edge solutions that incorporate Energy Storage Systems (ESS) and High Voltage Direct Current (HVDC) technology, supporting the spread of renewable energy and future-oriented power management. HVDC is a key technology for the next-generation power transmission and distribution market that is set to change the landscape of electricity. In July 2024, the company developed a 200MW voltage-source HVDC, marking the first domestic independent development and becoming the fifth globally to achieve local production of this technology. The power equipment asset management solutions, which combine internet-based information technology and operational technology, ‘ARMOUR’ and ‘ARPS,’ are also gaining attention as sustainable future power systems. ▲ HVDC demonstration facility where Hyosung Heavy Industries is cultivating advanced power technology Hyosung Heavy Industries' Leadership in the Global Power Grid The United States is a major import market for domestic transformers, accounting for 40% of total exports. To improve the aging power grid, the U.S. government announced a large-scale investment plan. Under the Infrastructure Investment and Jobs Act (IIJA), effective from 2021, the government plans to invest USD 1.2 trillion in social infrastructure, including railways, roads, water supply, and power networks, over the next ten years. Hyosung Heavy Industries established a U.S. subsidiary in Pittsburgh in 2001 and has positioned itself as a leading transformer supplier by selling ultra-high voltage transformers. Seizing the opportunity presented by high demand in the U.S., the company secured a production base for ultra-high voltage transformers in Memphis, Tennessee, in 2020. Hyosung Heavy Industries plans to double its production capacity by adding new testing and manufacturing facilities. ▲ Transformer Import Status in the U.S. (based on HS Code 8504.21) Source: Global Trade Atlas (June 2024) Hyosung Heavy Industries' flagship product, transformers rated at 100 MVA and above, are classified as Large Power Transformers (LPT) in the United States, where they account for 90% of local transmission and distribution power. Currently, 70% of the installed LPTs in the U.S. are over 25 years old, which is notable considering that the typical lifespan of a large transformer is around 30 to 40 years. As such, HYOSUNG is devising strategies to target the reinforcement of the power grid and new expansions. India is also the third-largest electricity consumer in the world and suffers from a power supply-demand imbalance. According to the International Energy Agency's "Electricity 2024" annual report, electricity demand is expected to increase by more than 6% per year until 2026. HYOSUNG is positioning India as a strategic hub for the Asian market, expanding its production facilities and establishing a stable supply chain. In 2015, the company set up a manufacturing subsidiary in Pune, Maharashtra, and built a high-voltage circuit breaker GIS factory the following year. This facility was the first circuit breaker plant constructed by Hyosung Heavy Industries overseas, becoming a key base for power infrastructure in India, South Asia, and the Middle East. ▲ In July 2024, Hyosung Heavy Industries became a key supplier for Australia’s renewable energy transmission infrastructure project with a transformer supply contract worth KRW 35 billion. Meanwhile, the company is also strengthening its presence in Europe, Australia, and Africa with notable achievements. In 2010, HYOSUNG was selected as the primary supplier of high-voltage transformers for the UK Power Networks, making its entry into the local market, and has gradually expanded its market share in Europe. Recently, the company won a contract for a large-scale phase-shifting transformer project with the UK’s National Grid, demonstrating its prowess in the specialized transformer sector. Since entering Norway in 2020, Hyosung Heavy Industries succeeded in securing a contract for high-voltage transformers from the state-owned transmission company Statnett in July 2024, marking its largest order yet. The company’s market share in Norway's high-voltage transformer market has reached 80%. Additionally, the company has established an R&D center for sustainable power equipment in Europe to lead technology development. Hyosung Heavy Industries plans to significantly increase its high-voltage transformer production capacity by investing KRW 100 billion in both South Korea and Memphis, USA. Such bold investment is essential to reliably supply the long-term orders already secured and to respond to the super-cycle expected to last over ten years. As a top-class supplier, Hyosung Heavy Industries is unhesitant to take on challenges in order to provide sustainable, high-quality products. At the center of the power super-cycle, Hyosung Heavy Industries' transformers are responsible for the backbone networks of many countries. With a proactive approach, the company has swiftly modernized the global power grid in response to soaring electricity demand. The company's efforts to develop next-generation markets is now bearing fruit as the company enters this super-cycle. This is why Hyosung Heavy Industries is anticipated to solidify its position as a leader in power solutions while ushering in new waves across the globe.

Hyosung Heavy Industries participated in the Korea Electric Industry Exhibition (Seoul International Electric Fair, SIEF), the largest energy and power generation exhibition in South Korea. Held at COEX A and B halls in Samseong-dong, Gangnam-gu, Seoul from October 18 to 20, SIEF 2023 marked its 27th year as an energy-related exhibition. This year, under the slogan "Energy Solution Leader for Tomorrow," Hyosung Heavy Industries showcased its power-related equipment, asset management systems and ESG strategies. ▲ The entrance of SIEF 2023 exhibition hall Upon entering the Hyosung Heavy Industries exhibition hall, the first thing that caught the eye was a huge media facade set up in the middle of the venue. At SIEF 2023, Hyosung Heavy Industries actively used this media facade to widely promote its ESG brand "RE:GEN NEW ENERGY". ▲ Hyosung Heavy Industries Exhibition Hall's Central Media Facade Draws Attention with 3D Representation of Marine Life The media facade of Hyosung Heavy Industries' exhibition hall showcased various energy solutions that have attracted great attention in the industrial sector. The most captivating was the video related to Hyosung Heavy Industries' ESG brand 'RE:GEN NEW ENERGY'. Especially the 3D animation with turtles and dolphins attracted the admiration and attention of many visitors at the event. ARMOUR Solution: Understanding and protecting power equipment Another highlight of the exhibition was the ARMOUR (Asset Remote Management System for Operational Utility's Reliability) display, which showcased the pinnacle of Hyosung Heavy Industries' technological expertise. ARMOUR is an asset management system developed by Hyosung Heavy Industries for power plants and substations. Its ultimate goal is to assess the current operating status of power equipment, predict its lifetime, and maintain it for accident-free operation. ARMOUR provides customers with accurate equipment life model curves based on an AI solution built from over 20,000 types of diverse data collected through inspection and maintenance of power plant and substation systems since 1982. ARMOUR can objectively assess and diagnose the condition of equipment more accurately than experienced engineers. As a result, it not only supports maintenance, but also extends equipment life and reduces costs. ▲ Visitors learn about ARMOUR solution Hyosung Heavy Industries is currently developing an integrated power equipment monitoring system that combines ARMOUR with a preventive diagnostics system. Expected to be completed in 2024, this system is expected to become the bible of integrated power equipment monitoring and maintenance systems worldwide, leading the global market. Digital substation: Converting diverse signals into digital form To take full advantage of the ARMOUR solution, status data from various parts of the plant is required. This data helps to identify abnormal signals or early symptoms of problems. After introducing the ARMOUR solution in the Hyosung Heavy Industries exhibition hall, the next section introduced the Digital Substation system, which is capable of detecting and transmitting abnormal signals from various parts of the equipment. Digital Substation equipment is a monitoring/protection device that can be used in indoor and outdoor power plants or substations. Installed in various substation equipment such as GIS (Gas Insulated Switchgear), transformers, and circuit breakers, Digital Substation collects data generated from each piece of equipment, detects any abnormalities, and notifies the customer. Based on this data, customers can determine the aging status and anomalies of their equipment, ensuring the protection of substation assets and personnel. ▲ Digital substation transmits operational monitoring signals in digital form Digital substation equipment is divided into Low Power Instrument Transfer (LPIT) and Merging Units. LPIT converts all analog/digital signals generated by the equipment into a digital format for transmission to the analyzer. The merging unit then takes the data from the LPIT and transfers it to predictive diagnostic/asset management systems such as ARMOUR. The heart of high-capacity power transmission: HVDC In addition, visitors to the Hyosung Heavy Industries exhibition were able to explore the core technology of HVDC (High Voltage Direct Current) that Hyosung Heavy Industries possesses. Most power plants, except for certain special cases such as solar power generation, produce alternating current (AC) electricity. When AC power is transmitted externally, it is converted to high-voltage direct current (DC) to minimize power loss. DC transmission also has the advantage of being easier to maintain. The system that converts AC electricity generated in power plants into high-voltage DC for transmission is known as HVDC. Systems that transmit over 100 kV are called HVDC, those with DC voltages between 10-20 kV to below 100 kV are called MVDC, and those below 10 kV are called LVDC. ▲ Hyosung Heavy Industries' HVDC MMC Module In HVDC, stable power conversion devices are critical. Connecting multiple Modular Multilevel Converter (MMC) modules in series to convert and transmit high-voltage DC is known for its adaptability and efficiency. Hyosung Heavy Industries' MMC is known for its exceptional stability. A recent application was a 200 MV substation in Yangju, Gyeonggi Province, where approximately 1,200 Hyosung Heavy Industries MMC modules were used. In addition, Hyosung Heavy Industries will provide HVDC solutions for the West Coast Backbone Project, part of the HVDC backbone network project initiated by Korea Electric Power Corporation to meet future power system needs. Improving power quality and stability with STATCOM Hyosung Heavy Industries' STATCOM (STATic synchronous COMpensator) was another highlight of the exhibition that attracted great attention from visitors. STATCOM is a device that maximizes the transmission capacity of lines while maintaining the safety and utility of power systems. It is used in conjunction with power companies to compensate for reactive power, ensure system stability and increase transmission capacity. In renewable power plants, especially wind farms, STATCOM is used to comply with fault ride through regulations and to provide reactive power capacity. It is also used in industrial facilities to balance the current in electrical loads with momentary high power, such as large motor loads at startup, and to improve the power factor in factories. ▲ Miniature of Hyosung Heavy Industries STATCOM equipment Known for its excellent stability and durability, Hyosung Heavy Industries' STATCOM, like its HVDC equipment, utilizes MMC technology for easy scalability to large capacities. Currently, Hyosung Heavy Industries' STATCOM can be installed with a single capacity of up to ±500Mva. Experience Hyosung Heavy Industries' technological expertise through various media objects The Hyosung Heavy Industries exhibition hall also featured a miniature display of underground substation equipment installed near subway stations. Installing substation equipment underground not only saves space above ground, but is also convenient for areas where power lines are being buried. ▲ An underground substation equipped with Hyosung Heavy Industries equipment The miniature depicted an underground substation equipped with Hyosung Heavy Industries' technology, including an 800kV 50kA 8,000A 2-break GIS and a 765kV single-phase 667MVA ultrahigh-voltage transformer. Above the substation, people were depicted going about their daily lives, illustrating the real impact of Hyosung Heavy Industries' technology on our lives. ▲ Miniature representing Hyosung Group's RE:GEN renewable energy ecosystem In addition, there were displays of Hyosung Heavy Industries' environmentally friendly power generation equipment, such as the industry-leading Flow Battery stationary energy storage system and PV PCS equipment that enhances the stability of wind and solar power plants. Visitors could also explore corners that showcased the blueprints of Hyosung Heavy Industries' ESG development. Becoming the world's No.1 through hard work and public interest SIEF 2023 was a remarkable event, with a record 600 exhibition booths showcasing the current state of power and generation technologies and the keen interest in related industries. In particular, the Hyosung Heavy Industries exhibition attracted a lot of attention. Visitors ranged from industry professionals, including executives from companies such as LG Electric, to students from vocational high schools such as Sudo Electric Industrial High School, covering a wide range of ages and career stages. With a wide range of exhibits and heartfelt explanations, visitors were able to learn and experience more about Hyosung Heavy Industries. ▲ A Table summarizing the core essence of the Hyosung Heavy Industries brand In the power industry, Hyosung Heavy Industries is expanding its customer infrastructure and gaining extensive experience in medium and large-scale projects. Through these efforts, Hyosung Heavy Industries is steadily building a diversified portfolio that can compete with the world's top brands in the power industry. It won't be long before Hyosung Heavy Industries' presence can be seen in power plants around the world. This was evident at SIEF 2023, where Hyosung Heavy Industries showcased its leap to becoming the world's No. 1 power industry solutions company.

On November 17, 2022, the visit of Saudi Arabia's Crown Prince Mohammed bin Salman caused a stir in the South Korean industrial sector. This was due to the announcement of the construction of a smart city called "NEOM City" in Saudi Arabia, with an estimated project cost of about 500 billion won. The NEOM City project is part of Crown Prince Mohammed bin Salman's plan to transform Saudi Arabia's oil-centered economy into a smart city-based economy. The project consists of three parts: "The Line," a self-sufficient linear city that stretches 170 km; "Opagan," an advanced industrial complex floating on the sea; and "Treasure Nature," an eco-friendly tourism resort. The Crown Prince's visit to South Korea was to establish investment and business agreements with South Korean companies for this project, and it was natural for Hyosung Heavy Industries to be involved in such a mega-project. Through these discussions, Hyosung Heavy Industries has decided to pursue the establishment of a local Saudi Arabian power equipment manufacturer and a local circuit breaker manufacturer with Alfanar, a local Saudi Arabian manufacturer. This decision was made not just because Hyosung Heavy Industries is a South Korean company but because of its proven track record and expertise in the field. Today, let us delve into the world-class capabilities that Hyosung Heavy Industries has demonstrated. Preserving precious energy: 'ESS' ESS stands for Energy Storage System, which refers to a system that stores energy. The electricity we use is generated through power plants. Instead of sending the electricity to us as soon as it is produced, it is stored via ESS, ensuring that we never experience a shortage of essential electricity in our daily lives. This enhances safety and improves energy efficiency. For renewable energy sources like solar and wind power, which can be challenging to produce on-demand, ESS technology is crucial for storing energy in advance and using it only when needed. As environmental pollution and resource depletion make renewable energy increasingly important, the value of ESS technology continues to grow. So, what accomplishments have Hyosung Heavy Industries' ESS technology achieved worldwide? Surmounting Europe's high barriers with Hyosung Heavy Industries' technical prowess Customers must refrain from entrusting a crucial business like ESS, which relies heavily on technology, to anyone. Especially in the European ESS market, which European companies dominate, it is challenging to enter without high-quality products and advanced technical capabilities. However, Hyosung Heavy Industries secured a contract in 2021 to supply a 50 MW capacity ESS in the Southampton region in collaboration with Downing, the UK's most prominent investment developer. How did they manage this challenging feat? The secret lies in Hyosung Heavy Industries' technical expertise, system design capabilities, operations, and continuous provision of solutions. The Southampton contract in the UK marked a significant milestone, further establishing Hyosung Heavy Industries' name globally. Triumphing over the world's top companies in a South African contract! It is well known that the South African power authority is extremely demanding. In June 2022, Hyosung Heavy Industries secured a large-scale project worth 190 billion won, which had to satisfy the exacting South African power authority. Moreover, they faced competition from 18 rival companies, including Tesla. Following rigorous technical evaluations and competition, Hyosung Heavy Industries ultimately won two of the five packages. This was the first time a South Korean company took on a large-scale overseas project involving ESS installation and infrastructure construction. Hyosung Heavy Industries' technical prowess was acknowledged even in faraway Africa, opening up opportunities for various business expansions in a region just beginning to explore renewable energy projects like solar power and ESS—a veritable blue ocean. Building energy infrastructure: Hyosung Heavy Industries The power grid refers to the infrastructure that connects electricity generation at power plants to our usage points. It encompasses power plants that generate electricity, substations that transform electricity into desired voltages or currents, and distribution networks that ultimately supply electricity. In simple terms, it is a system related to everything from electricity generation to its consumption, and this is precisely what Hyosung Heavy Industries does. Ethiopia's NEW energy road! Famed for its coffee, Ethiopia, especially its southern region (Southern Nations, Nationalities, and Peoples' Region), required a new power grid. Hyosung Heavy Industries signed a contract with the Ethiopian national power authority to build four new substations, expand two existing substations, and install a 480 km transmission line, totaling a project worth 235.7 billion won. This contract was secured through proactive pre-sales proposals by Hyosung Heavy Industries, which successfully negotiated the change from AIS substations to more environmentally friendly, compact, and reliable GIS substations for the first time in Ethiopia through active communication. As a result, Hyosung Heavy Industries secured a foundation for entering various markets. Here too? There too? Hyosung Heavy Industries has successfully won the first-ever digital substation contract in Iceland, a country famous for its auroras. Hyosung Heavy Industries supplied the largest-capacity transformers to Java in Indonesia and even undertook a substation project in Kuwait. Additionally, Hyosung Heavy Industries secured a STATCOM project with Company S, one of the top 5 U.S. utility companies. STATCOM is a device that controls and maintains a constant voltage, enabling the efficient supply of renewable energy. It allows for adjusting production and supply based on electricity usage, making it an essential component alongside ESS for storing power generated from renewable energy sources. In fact, Hyosung Heavy Industries did not have any supply record previously with Company S, which disadvantaged them in winning the bid. However, through active sales activities and information sharing, they were able to build trust with the client and ultimately be selected as the final bidder. This is the first STATCOM project to be installed in the Company S group, and future additional projects and related business expansions for Hyosung Heavy Industries are anticipated. The world is still boundless As the saying goes, "the world is vast, and there's yet more to do." Hyosung Heavy Industries also has a lot to accomplish in the vast world. In 2022, they recorded 509.5 billion won in new orders in Q1, and 942.6 billion won in Q2, thanks to ultra-high voltage transformer contracts centered in Europe, including the UK, Norway, and Finland, as well as orders from Saudi Arabia and South Africa. As the world continues to focus on renewable energy, the demand for Hyosung Heavy Industries' ESS and STATCOM will continue to grow. Hyosung Heavy Industries plans to solidify its presence in Europe through branches in the UK, Spain, Italy, and Germany, and expand its business in the Middle East through branches in the United Arab Emirates, Kuwait, and Saudi Arabia. Furthermore, through global production bases in Changwon, as well as the United States and China, they will support the decarbonization and energy transition efforts of various countries by meeting their global power grid investment and sophistication needs. With continuous investments, they are vigorously preparing to stir the incoming waters. Hyosung Heavy Industries plans to expand its overseas orders by expanding its transformer plant in Memphis, Tennessee, aiming for an annual target of $100 million (approximately 120 billion won). Recognized in the field of medium-voltage equipment, which is considered to be the core of energy, Hyosung Heavy Industries is leading the era of low-carbon green life worldwide.

In January 2017, during his inauguration ceremony, Hyosung's Chairman Cho Hyun-Joon declared his determination to transform Hyosung into a market-driven enterprise that listens, takes pride in its technology, and consistently triumphs. As part of this mission, Hyosung is committed to becoming a listening enterprise by practicing the VOC (Voice of Customer) management approach, which Chairman Cho consistently emphasizes, with the belief that the customer holds all the answers. Hyosung places particular emphasis on VOC management, diligently uncovering customer needs and focusing its management capabilities on resolving these concerns. The company not only pays attention to its direct customers but also heeds the voices of its customers' customers (VOCC: Voice of Customer's Customer) and competitors (VOCO: Voice of Competitor), emphasizing a unified, strategic direction for enhancing customer value. Since its establishment in 1962, Hyosung Heavy Industries has been a leading power equipment company that has grown in tandem with the development of domestic power grids. With world-class technical prowess that is recognized both domestically and internationally, the company has been concentrating on VOC management and attentively listening to customers. As a result, it has evolved into a global enterprise that plays a pivotal role as a core partner for power companies worldwide, boasting cutting-edge technology of the highest caliber. Additionally, Hyosung Heavy Industries has continuously invested in and pursued the development of sustainable technologies, even when environmental concerns were not widely recognized. As eco-friendliness has become a megatrend, the company has established itself as a pioneering enterprise by presenting sustainable technologies and solutions that align with environmental concerns. Hyosung Heavy Industries has progressed alongside the development of domestic power grids, and is now making efforts in various fields to prepare for the future, respond to the impending climate crisis, and lead the era of low-carbon green lifestyles that reflect the megatrend of sustainability. Hyosung Heavy Industries as a Global Leader with Tailored Solutions for Clients Hyosung Heavy Industries has become a leading domestic power equipment company through its 60-year history, walking alongside the development of the domestic power grid. Its commitment to VOC management has made it a pioneering enterprise on the global market. Hyosung has tailored solutions to the needs of domestic and international clients by heeding their voices. Over the past half-century, Hyosung has been at the forefront of the domestic power transmission and distribution equipment industry by supplying essential products such as transformers, circuit breakers, and electrical equipment. The company has devoted its effort to developing ultra-high-voltage transformers and the world's first two-break 800kV GIS (gas-insulated switchgear). Thanks to Hyosung Heavy Industries’ commitment to the development of the nation's power infrastructure, the company has accumulated extensive know-how and now possesses the world's top technical prowess in the medium-voltage sector, a core component of industrial energy. Hyosung does not rest on its laurels of possessing the world's finest technical capabilities. The company also incorporates VOC management by listening to its customers' voices. Since developing the nation's first ultra-high-voltage transformer, Hyosung has been committed to providing custom solutions for each country that conform to domestic technical standards as well as international standards such as IEC, ANSI, IEEE, NEMA, BS, JIS, and JEC. With products that cater to customers’ preferences for indoor and outdoor designs, capacity, and country-specific technical standards, the company offers individualized solutions to more than 80 countries. Moreover, leveraging its world-class technical expertise in the medium-voltage sector, which is a core component of industrial energy, Hyosung Heavy Industries has established itself as a global leader that offers tailored solutions alongside its cutting-edge technology. The company’s excellence in manufacturing extends to a variety of its products, including transformers, circuit breakers, motors, generators, gears, and industrial pumps, which have all received recognition for their exceptional quality. Hyosung Heavy Industries' Technology Perfectly Aligns with Eco-friendly Megatrends As environmental concerns continue to rise, eco-friendliness has become a major trend. Renewable energy sources have gained attention due to the climate crisis, and the global trend of energy transition and the development of eco-friendly equipment to address environmental issues have become common challenges in the medium-voltage sector. The power market is now being restructured around renewable energy. Hyosung, having long prepared for changes in the power industry and the eco-friendly energy market, already possesses the core technologies necessary for building next-generation power grid systems, such as energy storage systems (ESS), STATCOM, and Smart Grid. These core technologies are essential for ensuring stable and sustainable supply and demand of eco-friendly energy, especially for promoting and commercializing renewable and hydrogen energy sources. STATCOM is a solution that controls reactive power in transmission lines, enhancing the safety and quality of the power system. By offering tailored designs and after-sales management, STATCOM boasts advantages in capacity, cost-effectiveness, and eco-friendliness for various customers. Hyosung Heavy Industries holds the world record for the largest capacity for a single substation with its state-of-the-art, high-efficiency MMC (Modular Multilevel Converter) technology. Additionally, the company was the first in Korea to successfully develop a voltage-sourced HVDC (High Voltage Direct Current transmission) system using this technology. This allows for easy expansion of the system’s capacity and voltage levels, enabling customized designs to reflect customers' diverse needs. It also reduces maintenance costs, requires a small area for converter installation, and can be linked with metropolitan areas or offshore wind power systems that require limited land. During renewable energy generation, instability due to weather conditions can hinder effective power usage. However, STATCOM enhances the stability of power transmission and resolves the instability caused by unavoidable weather conditions during renewable energy generation, such as wind and solar power. Energy storage systems (ESS) are essential solutions for renewable energy-based power systems, as they increase the flexibility of the power grid by storing electricity with high volatility. In addition, direct current transmission systems such as MVDC and HVDC are known to quickly connect renewable energy to the power grid and ensure high efficiency and stability. All these technologies are the result of Hyosung's attentive consideration of customers' needs. As society moves towards an electric era based on clean energy, Hyosung Heavy Industries' ability to build stable power grids will continue to attract even more attention. Hyosung Heavy Industries Recognized as a Company Implementing Low-Carbon, Green Growth Hyosung Heavy Industries was awarded the prestigious Carbon Management Honors, which is given to companies that achieve the highest ratings in the CDP (Carbon Disclosure Project) assessment. The company received an A- rating from CDP, a global organization for carbon information disclosure, signifying the company’s commitment to implementing low-carbon green growth. The Carbon Management Honors award is a testament to Hyosung Heavy Industries' proactive approach in preparing for the low-carbon era and its dedication to core values such as Voice of Customer (VOC) and ESG management in the pursuit of sustainable development. Hyosung Heavy Industries is at the forefront of the hydrogen economy, with the plans to construct a hydrogen plant in Ulsan, Yongyeon in 2021, establish a liquid hydrogen plant in 2023, and expand hydrogen refueling stations. Additionally, the company aims to produce green hydrogen through the construction of offshore wind power plants. However, the company's focus is not limited to hydrogen; it is also investing in the development of eco-friendly products in the power sector, such as energy storage systems (ESS), eco-friendly transformers, and eco-friendly circuit breakers, in preparation for the low-carbon era. Hyosung Heavy Industries has signed an MOU with Korea East-West Power Co. to jointly develop and demonstrate a distributed zero-carbon power generation system that integrates the advantages of solar power generation, hydrogen engine generation, ESS, and water electrolysis equipment. Through this process, the company aims to secure flexible resources that can contribute to power system safety by complementing the output volatility of renewable energy with a hydrogen engine generator. Hyosung Heavy Industries has been growing alongside the domestic power grid for over half a century and has gained global recognition for the technical expertise it has accumulated in the development of power grids. Building on this expertise, the company focuses on renewable and eco-friendly energy sources, with sustainable development as its goal. To achieve this, Hyosung Heavy Industries is dedicated to listening to customers' needs, providing customized solutions, and constantly innovating through technology development that considers eco-friendliness and sustainability, with VOC and ESG management as its core values. In response to the global economic and energy crises brought about by COVID-19 and the Russia-Ukraine conflict, as well as the climate crisis, Hyosung Heavy Industries is actively investing in research to achieve decarbonization and power grid innovation, which it considers its mission. The company aims to become a leader in global power grid innovation by anticipating customers' needs and providing them with a satisfying experience.

Hyosung is committed to promoting genuine ESG management through its brand RE:GEN. Hyosung strives to contribute to the advancing a circular economy, reducing global carbon emissions, providing sustainable and eco-friendly energy, and preventing resource depletion. Hyosung’s brand adheres to its core values of RECYCLE, UPCYCLE, ZERO, NEW ENERGY, and SAVE, diligently implementing them across all its subsidiaries to strive for tangible management. Under the ESG brand RE:GEN, Hyosung has established five thematic foundations for each subsidiary: RE:GEN NEW ENERGY (Hyosung Heavy Industries), RE:GEN SMART IT (Hyosung TNS), RE:GEN ECO LIFESTYLE (Hyosung TNC), RE:GEN FUTURE MATERIALS (Hyosung Advanced Materials), and RE:GEN NEW CHEMISTRY (Hyosung Chemical). In this series, we will spotlight Hyosung Heavy Industries, a pioneering enterprise for energy solutions dedicated to future generations, under the theme RE:GEN NEW ENERGY. Hyosung Heavy Industries is a prominent and influential player in the essential energy sector, powering our daily lives. As a leader in sustainable energy solutions, the has significantly invested in research and development. Hyosung Heavy Industries is committed to implementing environmentally friendly management practices that foster a harmonious relationship between humanity and nature. Hyosung Heavy Industries aims to become the 'Total Energy Solution Leader for Tomorrow', by developing eco-friendly alternatives to conventional energy sources. It also builds a hydrogen value chain to pave the way for future generations. As part of the company’s commitment to environmental protection and fulfilling social responsibilities, Hyosung Heavy Industries the company reaches the maximum potential of its capabilities to meet the needs of its customers. As a company committed to driving innovation and contributing to sustainable development, Hyosung Heavy Industries presents the energy technology of tomorrow. Energy for Tomorrow, Clean Energy Countries worldwide have been promoting the use of renewable energy sources such as solar and wind power to combat the climate crisis by reducing coal-fired power generation. However, they have recently started exploring natural gas as a backup option due to the unstable supply of eco-friendly energy caused by extreme weather conditions. The popularity of natural gas as a cleaner alternative to fossil fuels has spiked. Unfortunately, energy supply instability has resulted in an energy crisis due to the issues like the COVID-19 pandemic and conflicts such as the Russo-Ukrainian war. This energy crisis, expected to deliver a significant economic blow globally, is one of the pressing issues we are currently facing. The world is expected to experience a major energy transition through this crisis, underscoring the need to be prepared and proactive. In anticipation of the future energy transition, Hyosung Heavy Industries invests in eco-friendly energy storage and supply technology. Hyosung Heavy Industries is also exploring hydrogen as an alternative energy source, recognizing its prevalence as a clean energy source in our daily lives. Total Energy Solution Leader for Tomorrow Every day, we rely on a vast array of energies that enable us to engage with our smartphones, computers, televisions, and other electronic devices. These energies also provide us with the convenience of air conditioning and efficient transportation, enhancing our quality of life. We owe this remarkable level of comfort and accessibility to the presence of electricity, which has revolutionized our daily existence. Hyosung Heavy Industries has been a leading pioneer in the heavy electrical equipment industry, growing in parallel with the evolution of our nation's power grid. The company acknowledges the unsustainable practice of burning fossil fuels for energy production. It is committed to developing technologies that provide a consistent supply of green energy is a precious gift from nature. Hyosung Heavy Industries is committed to developing an advanced, flexible power grid that can harness natural energy to generate electricity without harming the environment. The goal is to facilitate the provision and consumption of clean energy by pioneering innovative power solutions for the future. Hyosung Heavy Industries strives to replace fossil fuels by being at the forefront of the commercializing hydrogen and renewable energy. Hyosung Heavy Industries' Endeavor for the Purification of Power Solutions With a history spanning over half a century, Hyosung Heavy Industries has grown alongside the domestic power grid, establishing itself as a paradigm company in the industry. As a leading enterprise in power solutions within domestic market, Hyosung Heavy Industries holds a substantial market share in transformers, circuit breakers, and distribution panels, renowned for its superior technological expertise. Hyosung Heavy Industries is dedicated to surpassing its position as a prominent industry leader in the medium-voltage equipment sector. The company strives to meet all stakeholders' diverse needs and expectations, including customers, partners, employees, and shareholders. While pursuing excellence in its products and services, Hyosung Heavy Industries is equally committed to fulfilling its environmental and societal obligations. Hyosung Heavy Industries prioritizes environmental sustainability as well as technological advancements. They constantly strive to develop solutions to ensure safe electricity usage, an essential part of daily life. Hyosung Heavy Industries is committed to developing clean power for a sustainable future. By using eco-friendly materials in transformers, circuit breakers, and distribution panels, and continuously improving electric power equipment efficiency, they are leading the industry in decarbonizing the power grid. Hyosung Heavy Industries is making significant strides towards environmental sustainability by replacing the mineral oil commonly used in traditional transformers with biodegradable, eco-friendly insulating oil. In addition, they are developing transformer with synthetic ester oil that are both environmentally friendly and fire-safe. By proactively transitioning the insulating materials of power and industrial devices to eco-friendly alternatives, improving efficiency, and leading in the development and supply of environmentally friendly products, Hyosung Heavy Industries is demonstrating its commitment to promoting cleaner and more sustainable power solutions. Hyosung Heavy Industries Pioneering the Commercialization of Hydrogen Energy Hyosung Heavy Industries is leading the industry in commercializing hydrogen energy to achieve the shared goal of carbon neutrality. The company is dedicated to building a hydrogen value chain, which includes production, storage, transport, and supply, to support this shift towards sustainable energy. By 2023, Hyosung Heavy Industries plans to complete the construction of a liquid hydrogen plant at the Ulsan Yongyeon factory. After completion, Hyosung Heavy Industries plans to set up a fueling infrastructure to distribute the liquid hydrogen produced at the plant. Hyosung Heavy Industries has been at the forefront of the national hydrogen fueling station market since 2000, leveraging its accumulated expertise in heavy industries such as generators and compressors. Having supplied nationwide natural gas compression systems and hydrogen gas compression systems for over half a century, the company has gained a competitive edge and knowledge with over half a century of experience. The completion of Seoul's first commercial hydrogen fueling station at the National Assembly in 2019 was just the beginning. Since then, Hyosung Heavy Industries has installed hydrogen fueling stations at 18 locations, including the Government Complex Sejong. The company plans to establish 50 more liquid hydrogen fueling stations nationwide, expanding the hydrogen infrastructure to over 120 locations. Hyosung Heavy Industries Renewable Energy for the Great Energy Transition Hyosung Heavy Industries is deploying diverse strategies to prepare for the global energy transition. Commercializing and expanding renewable energy sources is one way to achieve sustainable energy systems. A transition to renewable energy involves replacing fossil fuels with solar and wind power. This is one of kind Hyosung Heavy Industries prepares for the future and managing the energy transition. Currently, Hyosung Heavy Industries is implementing solar power generation systems by utilizing its photovoltaic EPC and inverter technology, not only in various domestic buildings but also in overseas subsidiaries. Furthermore, the company ensures the integration of solar systems in the buildings and facilities it constructs. In addition to solar, Hyosung Heavy Industries also manufactures essential parts for wind turbines such as gearboxes, generators, controllers, and towers. Hyosung Heavy Industries has partnered with SE Wind, a subsidiary of the Shanghai Electric Group, to develop an 8MW wind turbine project in response to the increasing demand for larger offshore wind turbines. Recognizing the increasing importance of wind power, a renewable energy source unrestricted by site use, the company plans to successfully commence construction on various projects. Three major offshore wind projects are in the works: the 2.4GW Southwest wind farm, the 4.1GW Shinan wind farm, and the 4.5GW Ulsan floating wind farm. The aim is to finish these projects by 2030 to reach the goal of carbon neutrality. Hyosung Heavy Industries: At the Forefront of 'Energy Transition' for Environmental and Human Wellbeing In 2022, Hyosung Heavy Industries was awarded the Carbon Management Honors, a distinction conferred upon businesses that achieve the highest rating in the Carbon Disclosure Project (CDP) assessment. Earning a grade of A- in this evaluation, the company was recognized as a corporate leader implementing low-carbon, green growth by the CDP, a global carbon information disclosure agency. The accolade was earned due to Hyosung Heavy Industries' various initiatives to develop and commercialize new low-carbon energies, shifting away from traditional energy operations that deplete Earth's resources and emit carbon. Hyosung Heavy Industries’ commitment to providing energy solutions for a sustainable tomorrow was instrumental in earning recognition as a driver of low-carbon green growth. The world is now at a turning point where a swift shift from a fossil fuel-dependent society to a carbon-neutral society is urgently needed. As a result of the current global energy crisis, there are many challenges that must be addressed to successfully commercialize renewable and hydrogen energy and prepare for the upcoming era of energy transition. To lead and respond effectively to the transformation towards cleaner energy, Hyosung Heavy Industries is making consistent efforts to use hydrogen energy, purify electric energy, and develop stable renewable energy sources. Hyosung Heavy Industries offers a range of sustainable energy solutions that prioritize environmental protection and social responsibility. As we enter the era of energy transition, the company is dedicated to promoting the use of clean energy and maximizing power efficiency. By doing so, we aim to secure a comfortable life and a sustainable planet for future generations. Reply to Every Generation's Future, Reply to Every Generation’s Future RE:GEN NEW ENERGY

Hyosung demonstrates its commitment to preserving the environment through a research and development investment of 104.3 billion won and the registration of 3,310 patents. Why does Hyosung prioritize environmental concerns to such a great extent? In South Korea, the period with the heaviest rainfall during the year is commonly referred to as the ‘monsoon' season. However, due to the rapidly changing climate, there has been speculation about the potential obsolescence of the term 'monsoon.' This is caused by the fact that the weather patterns during the supposed 'monsoon' season have become more and more unpredictable. As a result, people have been making comments such as 'it doesn't feel like a monsoon' or 'this doesn't seem like the monsoon season.' This phenomenon is not exclusive to Korea; it is observed globally as the world grapples with the consequences of rapid climate change. ESG management has gained significant attention as an alternative as a consequence. ESG management encompasses the belief in taking into account environmental responsibility, social accountability, and governance improvement in order to achieve sustainable progress. The importance of environmental considerations is increasing rapidly. Hyosung is committed to conducting research and development efforts that benefit future generations. We are actively promoting eco-friendly initiatives and projects that specifically target the issue of climate change. Three Efforts to Save the Earth Hyosung's businesses are committed to environmental efforts, with a strong emphasis on extensive, continuous, and systematic approaches. This involves the development of materials that safeguard biodiversity and the envisioning of a society with low carbon emissions in the future. 1) Wide-Ranging and Focused Efforts (RE:GEN GUARDIAN) Hyosung is currently implementing a seagrass conservation project with the goal of reducing carbon emissions. Seagrass is a marine organism that plays a crucial role in the absorption of carbon by the world's oceans and coastal ecosystems. It is considered a significant contributor to the concept of blue carbon, which plays a great role in reducing greenhouse gas emissions. Hyosung, along with our subsidiaries Hyosung TNC and Hyosung Heavy Industries, has been actively engaged in seagrass conservation efforts. We have successfully established seagrass forests and have been effectively managing them for a period of one year. Additionally, we have continued our commitment to seagrass conservation for a total of three years. The seagrass conservation project has yielded significant results, as evidenced by a 2.5-fold increase in the number of benthic animal specimens since the establishment of the seagrass forest. The number of species has increased by 1.5 times, and the diversity index of organisms has increased by 1.2 times. Hyosung Chemical is also preserving biodiversity through a collaboration with the Cheongju Zoo's Animal Behavior Enrichment Program for endangered species. The Animal Behavior Enrichment program offers captive animals that have lost their natural instincts due to captivity opportunities to engage in active feeding and abundant movement. This activity improves the physical and mental health of non-habitat protected species and positively influences their reproduction. It is anticipated that the Animal Behavior Enrichment program will contribute to the preservation of various animals on Earth. We are actively involved in projects aimed at promoting plant diversity. Hyosung Advanced Materials is currently undertaking initiatives to restore the habitat of Dysophylla yatabeana Makino and conduct cleanup efforts on pet beaches. As part of our ecosystem preservation and restoration project, we have established a planting site for the endangered Class II Dysophylla yatabeana Makino and donated 2,000 seeds. Additionally, through the 'One Company, One River' program, we are dedicated to preserving plant diversity by eliminating harmful plants during pet beach cleanup activities. 2) Sustained Efforts: Creating a Hydrogen Ecosystem Hyosung firmly believes that it is absolutely crucial to continue making efforts to protect the Earth's environment. It is crucial for our society to shift away from relying on fossil fuels, as they are a major contributor to the rise in carbon emissions. Instead, we should focus on adopting sustainable energy sources that not only address our current needs but also hold promise for the future. That is why Hyosung is currently involved in the design of a hydrogen society. Hyosung Chemical and Hyosung Heavy Industries are on the verge of completing the world's largest LIQUID hydrogen plant. Creating a hydrogen ecosystem is one effort to address climate change by reducing carbon emissions. We are partnering with The Linde Group, a global gas company, to construct a remarkable plant with the capacity to produce 13,000 tons of LIQUID hydrogen annually. This plant has the potential to greatly enhance the hydrogen ecosystem. In addition, the LIQUID hydrogen produced at this facility will be supplied to the hydrogen refueling stations supported by Hyosung Heavy Industries to expedite the commercialization of hydrogen-powered vehicles. 3) Meticulous and Systematic Efforts: regen, PET Tirecord, and POKETONE Hyosung TNC, a leading chemical fiber company in Korea, is introducing environmentally friendly fibers under the name regen. Since the pioneering development of eco-friendly recycled Polyester fibers in 2008, Hyosung TNC has successfully expanded its production to include eco-friendly fibers for all three major chemical fibers: polyester, nylon, and spandex. For the first time in Korea, regen Polyester, a material made from 100% recycled plastic bottles, can reduce carbon dioxide emissions by 40-50% compared to conventional yarns. In nylon, regen Ocean Nylon, the world's first recycled fiber developed in 2007, can reduce carbon dioxide emissions by 73%, fossil fuel use by 75.7%, and water consumption by 98.6% compared to conventional nylon. In addition, regen Bio-Based, the world's first bio-spandex processed from natural raw materials derived from corn instead of coal, can reduce water use by 39% and carbon dioxide emissions by 23% compared to conventional spandex. What's more, every ton of regen Bio-Based used saves as much carbon as 378 pine trees absorb in a year. Hyosung Advanced Materials has successfully obtained the world's first ISCC PLUS certification for its eco-friendly PET tire cords. This certification is internationally recognized and signifies its dedication to producing environmentally friendly materials. The high-strength Recycled-PET yarn, which is made from recycled PET bottles, has also been certified by international eco-friendly certification organizations with the Global Recycled Standard (GRS) certification. Furthermore, we have successfully created industrial Bio-PET yarn by extracting Bio-EG from plant-based materials. This innovative yarn is then used in the manufacturing and distribution of tirecords and car mats. Lyocell tirecords are made from cellulose extracted from wood and can be used as a substitute for rayon tirecords, which are commonly used as reinforcement material in high-speed tires. The utilization of Lyocell tirecords helps prevent air and water pollution since no harmful substances are produced during the manufacturing process. This contributes to the preservation of the environment. TANSOME®, a remarkable super fiber, has garnered attention for its practical applications due to its exceptional strength, which surpasses that of steel by over ten times, while weighing only a quarter as much. Carbon fiber is a lightweight material that is widely used in various industries, including aircraft manufacturing, space vehicles, and wind turbine blades. It is often referred to as a super fiber due to its strength and heat-resistant properties. Additionally, it is utilized in the manufacturing of fuel tanks for environmentally friendly hydrogen cars and high-pressure containers for natural gas, thereby making a valuable contribution to the eco-friendly energy sector. Hyosung Chemical has introduced a new eco-friendly polymer material called polyketone, world’s first of its kind to be commercialized. It is composed of carbon monoxide and olefins (ethylene, propylene), which are major contributors to air pollution. POKETONE is the brand name of Hyosung Chemical's eco-friendly engineering plastic polyketone. Polyketone is a new material that can replace plastics and has the effect of reducing carbon dioxide generation just by using it. This is because each ton of polyketone produced reduces carbon monoxide by about 0.5 tons. In particular, it is harmless to the human body and does not produce any harmful substances, so it can be applied to food containers and children's and infant products. It can also be used in various other fields such as automobiles and electronics, industrial pipes, LEDs, cable ties, tirecords, and industrial ropes and hoses. Prioritizing eco-friendliness has become essential for becoming a premium brand in the global market and ensuring the well-being of future generations. Hyosung's eco-friendly and climate change response businesses are not merely additional ventures for ESG management; instead, they serve as the driving force behind Hyosung's new growth and form the core of its innovation. Hyosung is actively taking practical and tangible steps to tackle climate change. We have implemented comprehensive and targeted initiatives across all our business units, and are dedicated to maintaining and expanding these efforts in the future. Hyosung's ESG brand, RE:GEN (Reply to Every Generation's Future), represents Hyosung's commitment to addressing the needs of every generation. It combines a vision and mission that envisions a happier and more sustainable future for all generations, utilizing Hyosung's strengths. This future is intended for those living in the present as well as future generations. Its goal is to leverage all ideas and knowledge in order to create a future that is both happier and more sustainable for everyone. Our company is dedicated to earning the trust of our customers through the use of cutting-edge technology and our commitment to creating a sustainable future for all. Hyosung's ESG is committed to becoming a company that prioritizes technology solutions for the benefit of customers, the planet, and future generations. We will strive to create a brighter future for everyone.

2022 marked the 30th anniversary of diplomatic relations between Korea and Vietnam. Over this significant period, the official names used to address each other changed from "South Chosun" and "North Vietnam" to "Republic of Korea" and "Vietnam," reflecting the progress made in bilateral relations. Since the establishment of diplomatic ties in 1992, the trade between the two countries has increased by 175 times. South Korea has become Vietnam's largest investor, and the number of Koreans living in Vietnam has reached 170,000, while there are 230,000 Vietnamese nationals residing in Korea, indicating the close relationship between the two countries. On the 30th anniversary of diplomatic relations, the two countries upgraded each other to a "comprehensive strategic partnership." In 2023, 205 economic envoys visited Vietnam with the president to hold a "Korea-Vietnam Business Forum." The population of Vietnam is approximately 100 million, with an average age of only 32 years. It is regarded as a country with high growth potential in the future. With low labor costs, it is gaining attention as a country that can play a role as the 'world's factory,' following China. As a result, South Korea has become the top foreign direct investor (FDI) in Vietnam. Many countries, companies, and businesspeople are paying attention to Vietnam as the 'POST CHINA' and making efforts to invest. However, the partnership between Hyosung and Vietnam began much earlier, under Hyosung's global investment leadership. Anticipating the Post China, Vietnam Over the years, Hyosung has been at the forefront of relentless global investments. In the 1990s, anticipating the growth of China, we proposed the establishment of a local production and sales system in China. As a result, Hyosung's first overseas branch and the leading player in the textile industry, Hyosung Spandex, established its iconic factory in Jilin City, China. When everyone recognized China's potential and ventured into it, Hyosung sought a new stage. The place that caught their attention was Vietnam. Many expressed concerns about Hyosung's swift movements, but their determination could not be deterred. After investing significant time and effort in understanding the local situation in Vietnam, reviewing factory sites, and assessing the local conditions and market, Hyosung ultimately concluded that Vietnam has sufficient potential to become the next POST CHINA destination. In 2007, Vietnam became the 150th member country of the World Trade Organization (WTO), a time when it was accelerating its reforms and opening up to the world. During this period, Hyosung established its first subsidiary in southern Vietnam's industrial complex. Hyosung's ambitious vision for a greater leap on the global stage aligned with Vietnam's growth, and the two became a reality. Hyosung's expectations were right. Vietnam has transformed into a globally integrated production base for Hyosung's core products, including textiles, industrial materials, chemicals, and heavy industries. With overseas facilities in 90 locations across 28 countries worldwide, including Europe, South America, and North America, Vietnam is becoming an increasingly important front-line base for Hyosung's global market expansion and a crucial partner. Unprecedented Success Hyosung in Vietnam Dong Nai Province Industrial Complex, located one hour away by car from Ho Chi Minh City, was once predominantly covered with rubber tree plantations as recently as 2007. The area was practically barren, with the most residents making a living through farming. Hyosung constructed a factory in 2007, measuring over 90 football fields and 1.2 million square meters total. This scale was astonishing for other companies that had entered and the Vietnamese government itself. As a result, Hyosung achieved profits for ten consecutive years since the year following the establishment of its first Vietnamese subsidiary. And in 2014, the company recorded sales up 2000 percent compared to its first year. Following its first subsidiary in Vietnam, Hyosung established Dong Nai Corporation in 2015, expanding and sustaining its investment in Vietnam. This demonstrates Hyosung's resolute investment approach, which anticipates global investment trends and the future. Dong Nai Industrial Complex has transformed into the largest industrial zone in Vietnam, with over 5,000 employees. In 2012, Hyosung was recognized as an "Excellent Job Creation Company" by Dong Nai Province and received an appreciation plaque. The establishment and investment of Hyosung Corporation in Vietnam have been steadily expanding since 2007. - Established Dongnai Corporation in 2015 as a global production base, with the largest capacity for producing Spandex tire cords in a single factory. - Established a $1.4 billion investment and polypropylene production plant for the southern Kaemap Cai mep Industrial Complex in 2018. - Established tire reinforcement and automotive airbag production factories in Tam Thang IP, Vietnam - Constructed an ATM manufacturing plant in the northern Yenphong Industrial Complex in Vietnam in 2020. - Established an industrial motor production corporation in the Nhơn Trạch 5 Industrial Complex in 2022. - Planned additional facilities for a nylon factory in 2024. - Planned establishment of a Hyosung Advanced Materials carbon fiber factory in Thai Binh Province, Vietnam. As such, Hyosung Group's state-of-the-art production facilities have been fully integrated across Vietnam. As of 2022, Hyosung's cumulative investment in Vietnam amounts to 3.9 billion dollars, making it the third-largest domestic group to enter Vietnam. It has recorded sales of 3.2 billion dollars and is expected to surpass 4 trillion won in sales this year. Hyosung's sales account for 1% of Vietnam's total exports, creating a partnership that grows together. The Power of Local Vietnam in Achieving First Place "Vietnam" and "World's Number One" have become inseparable words. The Vietnamese and Dongnai corporations boast the highest production capacity as a single factory among Hyosung's global production bases, and all Hyosung products, which remain the No. 1 in the world market, are produced in Vietnam. Spandex, developed with Hyosung's proprietary technology, has become the global market leader just 10 years after its launch. Starting as a latecomer, Hyosung has achieved the top position globally as a tire essential reinforcement material, supplying uniform products that match the world's top brands domestically and in overseas factories. This reputation extends to tire cords and yarns for automotive safety belts and airbags. Hyosung established a local-centric operating policy in the early stages of its entry into Vietnam, which has led to such achievements. Hyosung has been transferring its expertise in production, quality management, sales, and other business stages to the local people while developing and supporting educational programs to enable Vietnamese workers to grow as managers. This makes Hyosung products the world's number one by allowing them to excel. The number of employees hired by Hyosung in Vietnam has increased from 190 in the first year to over 10,000. Hyosung is now the most popular workplace in Vietnam, known for producing top-quality products. With its pride in producing the best products, high wages, and welfare benefits, young talents in Vietnam aspire to work for Hyosung. Hyosung's Social Contribution Impressed the Vietnamese Community Good companies are more than just evaluated based on job creation or revenue alone. Hyosung Chairman Hyun-Joon Cho has long emphasized that “Vietnam is home to Hyosung's largest global production corporation, and Hyosung can also be said to be a member of the Vietnamese community." According to Hyosung's management policy, which emphasizes corporate social responsibility, Hyosung continues to positively influence on the local community in Vietnam even now. Hyosung's overseas medical volunteer group, "Miso Expedition," has provided free medical services in Ho Chi Minh City and Dong Nai Province since 2011. Up to now, 15,000 local residents have benefited from their services. We have also continued our efforts by donating to COVID-19 response, providing education and support for unmarried mothers and marginalized groups, and sponsoring underprivileged children in low-income areas. In 2018, during a donation ceremony for Hyosung Vietnam's COVID-19 response fund, the Chairman of the Central Committee of the Vietnam Fatherland Front at that time, Do Van Chien, expressed his gratitude to Hyosung Vietnam for their contribution of 10 billion dong (440,000 dollars). He stated, "Hyosung Vietnam has been supporting vulnerable groups through various social contribution projects nationwide" and also thanked Hyosung for their participation in the government's COVID-19 response efforts. In addition, Hyosung is making efforts in Vietnam to engage in ESG management activities, ranging from environmentally friendly smart base construction that utilizes sustainable materials to the producing spandex, tire cords, and ATMs. Hyosung's CSR, or corporate social responsibility, is highly regarded in Vietnamese society and has become an exemplary model for overseas companies. - In 2012: Dong Nai Province received an award for 'Outstanding Employment Creation Enterprise.' - In 2015: Award for Best Social Responsibility for Activities - In 2021: Selected as an excellent cultural heritage social advocacy company. - In 2022 & 2023: Received commendation for being selected as a leading sustainable company for two consecutive years. Companion, More Than a Business Partner- Vietnam It has been 16 years since Hyosung entered Vietnam. During this time, Hyosung and Vietnam have cooperated and grown together, becoming important and special partners beyond mere cooperation. Vietnam has become a global outpost for Hyosung's second leap, while Hyosung has contributed to the country's economic and community development in Vietnam. Young talents who have graduated from the top universities in Vietnam perceive Hyosung as a desirable global company to work for. Moreover, Hyosung has established itself as a trusted brand representing Korea and leading the future lifestyle, especially among Vietnamese citizens who love the Korean wave. All future Hyosung factories in Vietnam will be equipped with smart factory systems. This will be a catalyze manufacturing innovation by integrating IT technologies such as big data into core manufacturing processes. Additionally, it will lead to the establishment of a global standard manufacturing environment that addresses carbon neutrality and the climate crisis. Hyosung has grown together with Vietnam and aims to become a key and reliable partner for future growth. To achieve this, Hyosung promises continuous investment and commits to running together for global sustainable growth. We look forward to a long-term enduring partnership between Hyosung and Vietnam.

Summer is getting hotter and hotter every year. Environmental pollution has caused drastic consequences, such as rising sea levels, leading to a climate crisis. The climate crisis has brought various changes: heatwaves, heavy rainfall, and typhoons. Not only governments and business organizations but also the public have begun to directly experience environmental issues. Moreover, as public awareness increased, environmentally friendly started getting attention. This trend toward an environmentally friendly society has sparked a boom in ESG(Environmental, Social, and Governance) management among businesses. ESG management refers to a company's management approach that incorporates long-term environmental values, social responsibility, and improvements in governance. It serves as a key element for transparency in corporate management and ensures the sustainability of businesses. Consumers perceive This ESG management strategy very positively, and it has naturally become part of companies' marketing efforts. ESG activities, however, can end up as a mere sham if they are solely focused on marketing strategies to project a positive image for the company and consumers. Claiming to do ESG activities without actions called 'ESG washing,' can deceive consumers and cause great damage to investors. Hyosung strives to implement ESG management by actively engaging in practical and substantial initiatives. Hyosung does not engage in deceptive practices or claim to have done things it hasn't accomplished. Hyosung's ESG Management, Different Yet Significant Chairman Cho Hyun-Joon of Hyosung Group has been recognized as a prominent leader by receiving both the "Korea Management Grand Prize" and the "Korea CEO Grand Prize," the most prestigious awards in the Korean business field, consecutively in 2022 and 2023. Kim Jae-gu, the President of the Korean Academy of Management, described Chairman Cho Hyun-Joon as a model for the role of the top executive in South Korean companies, showcasing the managerial philosophy and activities that individual companies should pursue in the global business environment of the 21st century. We are living in an era of innovation and great transition. The various innovations brought by the "digital" transformation and the shift to "contactless" interactions triggered by COVID-19 fundamentally change how we live. And the value of "sustainability," considering environmental friendliness, has become a social norm and requirement, leading to a transformation in companies' missions and business practices. In this rapidly changing landscape, there is a driving force behind Chairman Cho Hyun-Joon, the youngest recipient of the Korea CEO Grand Prize, being recognized as a leading figure in South Korean business management. This is the unique and exceptional ESG management of Hyosung. Before the “ESG” In 2008, Hyosung TNC succeeded by becoming the first company in Korea to produce polyester yarn made from recycled PET bottles. This environmentally friendly technology enables a reduction in carbon emissions equivalent to the amount absorbed by 136 trees over 50 years for every ton of yarn produced. This was when Hyosung's ESG brand, 'RE:GEN,' was established. Furthermore, Hyosung TNC obtained the world's first certification for the 'GRS' (Global Recycled Standard), a global standard for recycled fibers. Hyosung TNC initiated research and development on eco-friendly yarn using discarded fishing nets and PET bottles as early as the early 2000s, well ahead of the current focus on ESG management for domestic and international companies. The term 'ESG' was first used and officially recognized in international society, including the United Nations in 2006. Hyosung had been focusing on environmental sustainability, corporate social responsibility, and symbiotic management before the concept of 'ESG' and 'ESG management' became firmly established in the international community. Hyosung has been proactive in reading the trends of the times and making substantial and practical investments. Hyosung’s Unique Technological DNA in Its ESG Larry Fink, the Chairman of BlackRock, the world's leading asset management company, quoted a response from 63% of millennial workers in 2019, stating, "The primary purpose of a corporation is to improve society's qualitative aspects rather than just generating profits." For the public, who are both workers and consumers, it is important for companies to prioritize environmental considerations over the technologies or products they develop. In response to this, Hyosung Group's Chairman Cho Hyun-Joon stated, "We will not approach ESG merely as declarations, philosophy, or ethics." In the current situation where innovative actions are urgently needed for the progress of humanity and a better tomorrow, he boldly decided to change everything, including the company's goals, vision, and culture. Hyosung's ESG management, as Chairman Cho Hyun-Joon advocates, differs from other companies in that it is applied across all business areas. The goal is to make corporate social responsibility an integral part of the company's operations rather than a separate activity, serving as a driving force for innovation and a distinctive competitive advantage within the group. This approach is made possible by Hyosung's commitment to technological development, evident from the establishment of its technology research institute as the first among private Korean companies in the early 1970s. Hyosung's technological DNA, developed as a latecomer, led to the independent development of tire cords and spandex, ultimately securing the top market share worldwide. This DNA has continued to evolve through consecutive eco-friendly technological advancements in areas such as fibers, wind power, carbon fibers, and hydrogen businesses during the 2000s. Hyosung's technological DNA, spanning over half a century, has become a tangible ESG asset, already accumulated within each company of Hyosung Group. RE:GEN , Reply to Every Generations Chairman Cho Hyun-Joon stated about ESG management, "Hyosung's ESG management is a completely different approach, with entirely different goals and methods, creating a completely different future from what companies have pursued in the past. We will participate in that future with a unique imagination, ideas, and entirely different technologies." In 2023, Hyosung established ESG brand and clearly defined the company's ESG goals for the entire company. The newly established an ESG brand, 'RE:GEN,' embodies the meaning of "Response to Every Generation." It signifies the continuous innovation and efforts in corporate activities to respond to the sustainability of all generations, including the current and future generations. The management activities encompass integrating substantial technologies with innovations and efforts for environmental and social improvements, creating a virtuous cycle between society and the company throughout the process, including the results and achievements. Starting as an eco-friendly fiber brand and evolving into a premium global brand, the ESG brand 'Reply to Every Generation's Future, RE:GEN' will become the identity of Hyosung. RE:GEN represents technology, products, and the innovation that Hyosung strives for. From Partner Companies to Global Corporations, an ESG Accelerator Chairman Cho Hyun-Joon stated, "RE:GEN is not just a brand for Hyosung. It will be a practical alliance and companionship for all generations, where more companies collaborate and coexist to create a better future together." He actively promotes support programs for enhancing ESG management not only within Hyosung but also among partner companies. Hyosung's ESG management is influencing not only domestic companies but also global corporations. "regen Project," which started in 2008 to produce discarded waste fishing nets and waste plastics as recycled fibers, has established itself as an exemplary standard business in the domestic eco-friendly textile market. Keep an eye on the regen Project, an example of other companies, can influence the world beyond the textile market. We also hope that Hyosung's ESG brand RE:GEN will become an ESG Accelerator as it grows with its partners. Starting from 2025, South Korea has mandated ESG information disclosure for listed companies with over 2 trillion KRW on the KOSPI. From 2030, it will be mandatory for all listed companies. This will serve as an effective mechanism to enforce corporate obligations and social roles regarding the environment, as well as increase transparency in corporate governance. Therefore, companies that have previously used ESG management as a mere marketing tool are now required to actively practice substantial ESG management. Under the leadership of Chairman Cho Hyun-Joon, Hyosung Group is committed to ESG activities that elicit positive responses from consumers and not only generate profits for the company but also lead the way in institutional trends. It will continue to evolve as a company that other businesses aspire to follow by implementing tangible ESG initiatives.

The global supply chain crisis caused by a pandemic and war that paralyzed the world has brought various business challenges. Consequently, the ability to swiftly restructure systems and adapt to the situation, known as “agility,” has emerged as a key competitive advantage for companies in ensuring business continuity. The ability to be agile is being emphasized as a crucial factor for companies to adapt and thrive in the dynamic business environment. This agility enables them to make swift and significant investments, reconsider their mid- and long-term strategies, and redefine their approaches to stakeholder communication. Agile Management: Rapidly Adapting to a Changing Environment Domestic group companies’ traditional business operating methods have been successful for a long time. Due to their large size, rigid culture, and centralized system, they have difficulty adapting quickly to rapidly changing industry environments, causing them to lack creativity and flexibility. As a result, a new management called Agile management emerged. The term "Agile'' is an adjective that means "quick" or "nimble." Particularly in business operations, it refers to a strategy that enables swift responses to changes. This phrase has been around since 1957, but widespread adoption began in 2001 when software developers published the "Agile Manifesto." This manifesto outlined a philosophy that distinguished them from traditional development methodologies.. However, to utilize this efficiently, it should not be applied through the overall operations of a company or a single business task. Rather, it should be applied by adopting new industries or project-centered approaches such as task forces (TF). To implement Agile management, Hyosung Group has established Smart Factory Task Forces (TFT) in each business units and introduced new technologies into its systems. The company collects and analyzes data on product status and equipment conditions, from raw material imports to production, shipment, and control processes. Hyosung Group also collects customer voice (VOC) data from its 62 global trade corporations and offices in countries such as China, Vietnam, Turkey, and Brazil and across 32 other production corporations. This information is then stored in a database and utilized for business purposes. Additionally, the company has partnered with MetaGalaxia, a blockchain expert, to develop a curated NFT platform based on blockchain technology in partnership with ST Telemedia Global Data Center. Hyosung Group is developing a digital-based Agile management system through all these efforts. Agile management is about more than just quick responses. It can also be characterized by proactive communication and the utilization of technology, particularly among the millennial generation. Hyosung Group utilizes the metaverse platform “Gather Town” to overcome the limitations of remote education and foster a sense of community and camaraderie among new employees. They conduct onboarding training by creating virtual spaces that resemble offline settings such as the company headquarters, auditoriums, and factories. New employees explore these virtual spaces using avatars, gaining insights into job-related information and company culture. Hyosung Group's transformation goes beyond that. A transition towards independent management has been made by each affiliate to ensure streamlined operations. They are led by professionals with expertise in their areas. We aim to foster a new corporate value system based on agile decision-making based on our deep knowledge of each product and industry. Therefore, Hyosung corporate value system is key to shaping the perception of sound management among employees and the general public. Hyosung's Agile Management Combines with 'Hyosung Way' to Create a New Philosophy. Hyosung Way: Embodies Hyosung’s Value Hyosung’s new brand concept called 'Agile Promise,' embodies the meaning of "an agile commitment towards customer engagement." Based on this concept, they have set their brand mission as “being the first to deliver innovation to customers and a sustainable future." Hyosung Way is the value structure for delivering the capabilities and mindset needed for all Hyosung employees to achieve new goals. It serves as a global company that leads innovation through Agile Promise values. In the modern era, the public evaluates companies based on their products and their production processes, such as ESG management. Departing from the traditional focus on outcomes, there is a growing recognition of the significance of role-based values in actively contributing to the "process" of societal change and success. In light of this, Hyosung introduces "excellence," "innovation," "responsibility," and "trust" as the core values for meeting the needs of customers, adapting to evolving times, and fostering collaboration with social organizations. 1. The highest value recognized by global customers - “Global Excellence for Customers” With a global mindset, technology, and expertise, we listen to our customers’ voices and provide the best values. 2. The value of pursuing constant change and innovation - “Striving for Innovation” Beyond management innovation, we continuously and rapidly pursue new opportunities to generate added value and ensure competitiveness. 3. The value of taking responsibility for the future society - “Responsibility for the Future” To build a sustainable future, every member will be held accountable for upholding our commitment to change and innovation through self-directed leadership that goes beyond authority and roles. 4. The value of trust for fostering flexible synergy. - “Trust for Synergy” We will build a dynamic, collaborative ecosystem by generating capabilities within and outside the organization based on mutual trust, respect, and cooperation. We will distribute resources to enable synergy and adapt quickly, fostering a culture of agile collaboration. Through Hyosung Way, we aim to become a pioneering company fulfilling its promises to customers. We strive to be a global innovative solutions provider, leading the way in this transition era. Moreover, we aspire to be a company that turns imagination into reality and deeply impacts the lives of our customers. Employees’ promise to practice Hyosung Way, Hyosung Credo Hyosung Group recognized the need for a structured system of activities with specific expressions to ensure consistency of Hyosung Way across employees and marketing channels. Additionally, they identified that the existing Hyosung Way lacked the ability to effectively communicate the company's value system. Therefore, they reinterpreted Hyosung Way as an employee action concept and implemented the Credo method, which emphasizes core principles, to help customers better understand Hyosung's values. By translating Hyosung Way into actionable behavior, Credo represents employees' commitment to embody Hyosung Way. Global Excellence for Customers: An agile attitude to adapt and change quickly to provide the best value to customers. 1. We prioritize the voice of the customer above all else. 2. We pledge to consistently deliver valuable products and services as a top priority. 3. We make every effort to earn recognition as the best from the customer's point of view. 4. We aim to achieve worldwide competitiveness with a global perspective. Striving for Innovation: Courage to face new challenges without fear 1. We will constantly strive to learn and develop new competencies to create opportunities. 2. We will fearlessly implement changes more effectively by responding quickly and decisively. 3. We will be at the forefront of innovation with a positive mindset 4. We will embrace challenges as opportunities for innovation rather than being afraid of them. Responsibility for the Future: Leveraging business influence for customers and society. 1. We will take charge of our responsibilities with a sense of ownership as experts in our field 2. We will always uphold our promises to our customers with a strong sense of accountability, 3. We will be mindful of our technology’s impact on society and the environment. 4. We will prioritize the value of human life and never compromise on safety. Trust for Synergy: Communication and growth through flexible team culture. 1. We will work together towards a common goal by fostering teamwork. 2. We will create a culture that embraces and supports personal growth for everyone. 3. We will aim for clearer, more transparent, and more extensive communication. 4 We will cooperatively work with stakeholders based on mutual respect and trust. Hyosung Group Chairman Hyun-joon Cho states, "In times of change, companies must transform themselves through agile management based on speed and efficiency to survive and create opportunities for success." He also stated, "We need to make the company's constitution strong and solid, and through nimble collaboration between departments, we must be able to quickly, flexibly, and efficiently embrace technology and trends." Changing markets can bring opportunities for some, and crises can present crises for others. By following Hyosung Way through Agile management, Hyosung will continue to grow.

In 2009, a global consulting firm raised serious concerns about Hyosung Heavy Industries' ESS (Energy Storage System), leading them to recommend its discontinuation. However, Hyosung Heavy Industries shocked the world by triumphantly securing a substantial package deal for the providing, installing, and constructing comprehensive ESS products abroad in 2022. Hyosung Heavy Industries accomplishment not only set the company apart as the first domestic company to achieve such an accomplishment but also necessitated outdoing 18 global companies, including Tesla. The ESS (Energy Storage System), a vital component for storing renewable energy, has undeniably become an essential device. Hyosung's exceptional competitiveness astonished the world in business arenas that even prestigious global consulting firms thought challenging. What is the key to our remarkable success? Hyosung’s success is derived from its unwavering commitment to 'Customer-centric Management.' Hyosung has succeeded by prioritizing customer satisfaction as our core business objective. Hyosung’s relentless dedication to understanding and meeting customer needs has enabled us to achieve success. However, the current downturn in the global economy calls for a broader perspective. Hyosung acknowledges that more than focusing solely on customer satisfaction is required. The crisis is becoming increasingly frequent as the world undergoes rapid transformations due to climate change, viral pandemics, and declining birth rates. Hyosung is taking its management policy to the next level by listening not only to the voice of the customer (VOC), which they've always emphasized but also to the voice of the customer's customer (VOCC). The key to Hyosung's own competitiveness is improving its customers' competitiveness. Listening to the Voice of Customers' Customers VOCC (Voice of Customer's Customer), a management approach that encompasses listening to the voice of customers' customers, has emerged with the primary objective of delivering the utmost level of customer satisfaction. By identifying what customers' customers desire and proposing solutions that meet their needs, it paves the way for superior outcomes. Hyosung practices VOCC management by utilizing a big data platform through its IT subsidiary, Hyosung ITX. Leveraging big data technology, it categorizes and analyzes consulting customers in real time based on keywords extracted from their discussions. Hyosung has experienced remarkable improvements in its consulting services by integrating big data technology. Thanks to big data technology, we were able to respond quickly and resolve complaints, thereby improving our counseling services. By diligently listening to the voice of the end customers and ensuring that feedback is easily and swiftly understood, Hyosung's efforts ultimately culminate in the highest levels of satisfaction, benefiting both our valued customers and their own clientele. In this manner, Hyosung strives wholeheartedly to meet not only the current needs of customers but also the unpredictable future demands, placing customer value enhancement at the forefront of all management activities, ranging from strategic planning and management systems to organizational culture and leadership. As the first company in the domestic industry to declare customer-centricity and customer-centric management, Hyosung is dedicated to satisfying customers' ever-evolving needs. Striving for the integration of businesses and customers, Hyosung endeavors to achieve growth as a global leader by fostering customer happiness and pursuing exceptional Customer Experiences. Moving beyond VOC to VOCC, Hyosung Practices Customer-centric Management To achieve all of this, keeping a close eye on customers' current situations and aspirations is crucial. Hyosung establishes strategies throughout the production cycles of its subsidiaries to secure customer competitiveness and strives to provide meaningful products and services that enhance customers' lives and businesses. The customer-centric management policy prioritizes products and services that satisfy customers over immediate profits. Despite challenging economic conditions, Hyosung continues to invest in facilities across all its subsidiaries, such as Hyosung TNC, Hyosung Chemical, and Hyosung Advanced Materials, to predict the timing of economic recovery and provide the products and services that customers desire. Firstly, Hyosung TNC's CREORA® Spandex has maintained its position as the global leader with a market share of over 30% for the past 12 years. It is a high-value-added functional fiber known as the "semiconductor of textiles." In 2023, Hyosung TNC introduced a comprehensive high-performance fiber-integrated brand named 'CREORA,' which includes not only spandex but also functional nylon and polyester materials. Hyosung TNC demonstrates its commitment to VOCC by investing in eco-friendly materials. In an era where social demands for sustainability are on the rise, ESG (Environmental, Social, Governance) management strategies have a profoundly impact corporate competitiveness. ESG management encompasses the pursuit of sustainable development through environmentally friendly practices, social responsibility, and transparent governance from a long-term perspective. Recognizing the growing demand for eco-friendly materials, Hyosung TNC proactively anticipates, invests in, develops, and commercializes in this field. Our dedication to these endeavors remains unwavering as we strive to make progress continuously. One of Hyosung TNC's prominent environmentally friendly material brands is 'regen.' Recently, we succeeded in the developing and commercializing "regen Bio-Based Spandex," making Hyosung TNC the world's first to do so. This spandex is produced by processing corn-derived raw materials. Starting with domestic production, we plan to expand production quantities by extending to our global production base in Vietnam. Hyosung TNC conducts personalized one-on-one consultations with customer businesses on an annually as part of its customer-centric management approach. This includes sharing insights on global fashion trends, industry developments and even conveying the voice of end customers that customers may not be aware of. Based on these consultations, Hyosung TNC also suggests new product ideas. Moreover, Hyosung's endeavors to proactively anticipate and invest in the future demands of customers, particularly in the realm of hydrogen, serve as a remarkable testament to its customer-centric management approach. Hyosung's commitment extends beyond mere facility investments, considering ESG management and future value considerations. By embracing sustainability and gaining a deep understanding of the aspirations of both customers and their clients, Hyosung is dedicated to green management and customer-centric practices within its hydrogen business. Led by Hyosung Heavy Industries, which holds the top market share in the domestic market with a total of 28 hydrogen refueling stations established through its hydrogen refueling station business, Hyosung Group has been actively building a value chain that extends from Hyosung Chemical (raw materials) to Hyosung Advanced Materials and Hyosung TNC (internal tank materials for hydrogen tanks and carbon fibers used in hydrogen electric vehicles). This value chain aims to strengthen the business in both hydrogen production and distribution and storage and utilization. Hyosung TNS exemplifies customer-centric management by prioritizing the convenience and satisfaction of its main customers, major financial institutions, and the end customers who utilize its services. Rather than offering generic ATMs and kiosks universally, Hyosung TNS goes the extra mile by designing and supplying products tailored to meet the specific requirements of each country's clientele. The company has recently developed solutions to ensure financial services are accessible to rural populations and elderly individuals in Spain. Despite operating as a B2B enterprise, Hyosung's global success can be attributed to its proactive approach of actively addressing the concerns faced by its customers and fostering trust through effective communication. By continuously considering the evolving needs of its customers and engaging in meaningful dialogue, Hyosung has cemented its position as a trusted global leader. Hyosung is committed to the concrete implementation of customer-centric management through the following five innovative declarations: First, proactively identify the root causes of customer issues. This includes not only meeting with direct customers but also understanding the needs of customers' clients, end consumers and the general public. Second, consider customer complaints as sources of ideas and inspiration. By doing so, it becomes possible to create enhanced customer experiences and value. Third, prioritize customers throughout all stages, from product planning to R&D and production operations. This requires internal process innovation. Fourth, empower all frontline employees with expertise and corresponding authority to represent Hyosung. They are encouraged to challenge existing procedures, technologies, quality standards, and company practices while exploring new possibilities. In this process, failures should be willingly accepted, turning them into opportunities for learning and growth within the organizational culture. Fifth, establish a smart monitoring and IT infrastructure system that enables real-time responsiveness to customer demands. Hyosung is not just a product supplier but a solution provider that closely communicates with customers, shares the vision, and resolves challenges. When the company goes beyond meeting customers' expected delivery and quality satisfaction levels to fulfill unforeseen future value, it enables an innovation where the enterprise and customers integrate, leading to growth as a global leading company. This belief is firmly entrenched within Hyosung, and it is a shared management value among all Hyosung employees. There is no doubt that we are living in an era where discerning customers are taking the lead. Therefore, Hyosung strives to comprehensively and multidimensionally understand its customers, staying ahead in identifying their future needs. Development and investments aimed at not only satisfying customers but also providing them with happiness are geared toward the next generation and all generations to come. This is the driving force that compels customers to choose Hyosung first, and it is the unique keyword that transforms challenges into opportunities—Hyosung's special approach of "customer-centric management.