HYOSUNG CHEMICAL

To foster a culture of fair trade and shared growth with its partners, Hyosung signs annual shared growth agreements with its excellent partners through self-evaluation, compliance with fair trade laws, and support for win-win cooperation, such as cash payments. We make sure that our partners receive payment for goods three times per month and improve their cash flow by making cash payments within ten days of tax invoice issuance.

Hyosung awards special plaques and cash prizes for "Proud Hyosung Person of the Year" to excellent partners among its partner companies, and encourages them to sympathize with and be inspired by the company's mission of shared growth.

To assist partners in saving energy and reducing GHG emissions, Hyosung, together with the Korea Energy Agency, signed business agreements for shared growth with large enterprises and SMEs. We offer our partners energy diagnosis and consulting services. Through a diagnosis of process and workplace environments, energy managers of partners can receive information on factors such as energy saving and GHG emission reduction factors, analysis of problems and economic feasibility, and improvement themes. We endeavor to help our partners receive support for energy-saving facilities where necessary.

By diagnosing partners' facilities, identifying ways to reduce energy loss or consumption, and promoting support projects to replace facilities with high-efficiency ones, Hyosung assists our partners in lowering energy costs and GHG emissions.

Through specialized consulting, Hyosung carries out a project that provides education on ESG-related topics, such as human rights, ethics, supply chain, environment, safety, and climate action, in order to increase understanding of partners' ESG activities and facilitate their application to management activities. We have provided ESG management manuals to our partners so that they can respond to the growing demand for sustainability management. In addition, we employ an incentive system which awards additional points in supply chain evaluation for businesses that strive to implement an ESG management system.

To practice shared growth with its partners, Hyosung participates in purchase counseling sessions and visits partners in person to learn about their challenges and suggestions. Partners are open to report unreasonable demands or regulatory violations in transactions via online and offline channels such as hotline and Sinmungo (online reporting system). In addition, we maintain constant communication with our partners in order to foster a relationship of trust, and we operate a number of support programs in conjunction with institutional reorganization to ensure that all partners have equal access to various opportunities.

To enhance the productivity of partners, Hyosung participates actively in the government's SME support projects, including the performance sharing system, Industrial Innovation Movement, innovation partnership and investment finance project, and management doctor program.