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Hyosung to transform into holding company Feb.22, 2018

Hyosung is converting into a holding company structure.

Hyosung Corporation held a Board of Directors Meeting on the January 3rd and decided to convert itself into a holding company and to separate its business into four operating subsidiaries.

Therefore, Hyosung Corporation will be separated into a holding company in charge of equity and four operating subsidiaries - Hyosung TNC, Hyosung Heavy Industries, Hyosung Advanced Materials, and Hyosung Chemical.

Under the new structure, the holding company, Hyosung Corporation, will be in charge of managing equity and investment and the four operating subsidiaries will manage the business sectors: Hyosung TNC (textile and trading), Hyosung Heavy Industries (heavy industries and construction), Hyosung Advanced Materials (industrial materials), and Hyosung Chemical (chemical products). The shares of domestic and overseas subsidiaries that are closely related to the business of the newly-established companies will be succeeded to the relevant companies and the rest will remain in Hyosung Corporation.

Hyosung has grown as a global company by securing competitiveness in each business sector, such as textile, industrial materials and heavy industries over the course of 20 years since four major companies, including Hyosung T&C, Hyosung Corporation, Hyosung Life Industry, and Hyosung Heavy Industries were merged under the IMF program in 1998.

With this spin-off, the surviving company Hyosung Corporation will play a role of the holding company to improve transparency of corporate governance and maximize shareholder value.

The newly-established companies will continue to operate their business and supply products to clients without interruption as they have already secured the leading global competitiveness in each sector. It is expected that corporate value and shareholder value will ultimately be raised as the evaluation of appropriate corporate value will be possible once the independent management system is established. In particular, management efficiency will be further reinforced as the decision-making structure that suits expertise and purpose in each business sector will be created.

Hyosung will hold an Extraordinary General Meeting of Shareholders on April 27th to determine whether to approve the spin-off, and if passed, the company will split up as of June 1st. New shares for the newly-established companies are expected to be listed on July 13th.

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