Talent Management : HYOSUNG ADVANCED MATERIALS

Fair and Open Recruiting

Hyosung Advanced Materials offers a variety of employment opportunities, including regular and occasional employment. All applicants have equal opportunities in the recruitment process and are not discriminated against by nationality, age, academic background, gender, or religion. To ensure fair interviews, all interviewers are trained in advance on how to conduct interviews and guidelines for questions. In addition, we are operating a preferential employment policy for the socially vulnerable group, such as the veterans and the disabled and planning the recruitment goals and hire to enhance our employees’ diversity, including the expansion of the female recruitment ratio.

Preferential Employment Policy

Fair and Open Recruiting
Category	2022 Performance	2023 Goals
Veteran	20	21
Disabled Person	26	30
Female	98	105

Hyosung Advanced Materials’
Preferential Employment Policy

Effective Assignment

We operate in-house on-boarding programs by job type and position for the new entry level to support their stable and timely adaptation to help them demonstrate their capabilities.

Program to Support New Entrants' Soft-landing

In order to help new employees well-adapt to the organization, we operate an in-house adaptation program that guides through company's core values, organizational systems, and other various systems for new employees from entry-level to experienced and executives level. In the case of newly scouted executives, we provide guidance on the management status, organizational system, and system through a 1:1 session. Through the group’s introductory training of new employees, new employees are provided with the basic competencies necessary for company life by improving the understanding of company's philosophy & business, future tasks, products, customers, and markets. New employees take part in 1:1 on-the-job-training programs for three months upon joining their team and the senior team member selected as a mentor provides practical job training to help new employees adapt quickly to the team.

Respect for Diversity

Hyosung Advanced Materials recognize human resources as the most important assets to the company and does not discriminate on the grounds of age, disability, gender, gender identity, race, ethnicity, nationality, religion, political views, marital status, and social status and do not ask for favors to have an unfair effect on other employees. As a global company, we respect the characteristics of each region's culture, strive to recruit local talent and continue to provide training and support by level to help locally recruited employees to grow into managers.

Talent Development Strategy

Hyosung Advanced Materials systematically nurtures talents through a variety of curriculum, including job training directly related to work competency, leadership training, and sustainability awareness training for all employees.

Reinforcing Job-specific Capabilities

Hyosung Advanced Materials provides continuous and systematic education and training on the knowledge and skills necessary to strengthen the professionalism of employees. Basic competency is cultivated through common job training, such as accounting, problem solving, and communication, which all employees are required to take regardless of their job type. Job-specific training is carried out through skill-up training programs and OJT. For example, salespeople, regardless of the position/ranking, are required to learn market trends, customers, and sales strategies at all times so that they can effectively implement the latest business trends. In order to strengthen product quality, production jobs(including hourly workers) are provided with frequent training so that they can properly learn the necessary skills, such as quality index, work standard, and safety. In addition, Hyosung Advanced Materials provides about 250 online job-specific training courses, and supports training necessary to acquire certifications required for job performance such as foreign language and certification for engineers for hazardous substances

Management of Training Effectiveness

HAMC evaluates the effectiveness of education and continuously improves areas that require enhancement. We ensure that the knowledge and skills acquired by employees are applied to their work to improve performance. This involves assessing the understanding of learning materials, application in job tasks, and the generation of results. In particular, we specifically measure and manage training effectiveness using Donald L. Kirkpatrick's four-level evaluation theory.

Social and Environmental Responsibility Training

In order to strengthen corporate social and environmental responsibilities, Hyosung Advanced Materials has intensified its sustainability training courses since 2019 to raise employee awareness. From 2020, we have expanded the scope of training targets to overseas and diversified training topics to environment including climate change, chemical management, safety & health, human rights(prevention of discrimination and harassment), ethics(anti-corruption and fair trade), information security, and ESG awareness. In Korea, trainings on prevention of sexual harassment, discrimination and harassment in the workplace, improving awareness of the disabled persons are mandatory. We are also expanding training content support for business partners to fulfill their social and environmental responsibilities.

Performance Evaluation and Compensation

Hyosung Advanced Materials has established a performance evaluation model suitable for the rapidly changing business environment. Employees create their yearly objectives at the beginning of the year and utilize an internal intranet-based evaluation system, incorporating continuous feedback during progressing their tasks to enhance and refine their performance. These evaluations are conducted regularly, at least twice a year. Based on 15 criteria related to work attitude and multi-source feedback (e.g., feedback from team members), we provide feedback reports, allowing self-assessment. We also provide explanations for the evaluation results, reinforcing transparency and fairness in the performance evaluation process. Beyond evaluation criteria, we emphasize the importance of collaboration in the compensation system, fostering an agile organizational culture. We inspire employees' willingness to work through recognition and compensation for performance. Each business site presents awards in the name of the plant manager to employees who have contributed to the company's performance, and an company-wide awards ceremony is held every December. This year's Hyosung Advanced Materials Awards presents not only outstanding performers by job category, but also teams that have created results through collaboration, and awards are presented in domestic and overseas sectors. Regarding the creation of outstanding results, it is recommended as a nomination for the proud Hyosung Person of the Year Award at the group level.

Category	Unit	2020	2021	2022
Annual total compensation for top executives	KRW Mil.	525	643	599
Median employee compensation (excluding top executives)	KRW Mil.	64	68	73
Ratio of executive compensation to employee compensation	Times	9.8	9.4	9.8

Living Wage Policy to Ensure Basic Living of Employees

1. The living wage of HAMC is defined as the appropriate level of wages necessary for workers and their families to maintain a basic living, and is managed for all workers employed at all global sites.
2. HAMC’ living wage policy is committed to ensuring the basic living of workers and improving their quality of life. It also strives to continuously improve the living wage policy to create an environment where workers can work happily.

HYOSUNG ADVANCED MATERIALS Sustainability

Framework

Earth

Human

Society

Fundamentals

Report