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02 Sustainability Our sustainability principles are the backbone of the way we design and manufacture products Quality Assurance Hyosung strives for excellence. We believe excellence can only be achieved through absolute quality and value for customers. In order to create quality products, we believe that all of the actions of every single employee must be focused in the highest level of quality. In order to achieve such levels, we have implemented a quality assurance policy and programs that make our philosophy into a reality. Our Quality Assurance Policy was founded based on the management policy of the president and meets the demands of ISO 9001. As a globally active company, we are committed to comprehensive and quality management through three quality strategies: quality management system, customer-focused management system, and concentration on core competencies. The comprehensive quality management system ensures that we completely comply with all compliances and applicable legislation, codes, and standards in addition to implementing efficient operation of our management resources to eliminate unnecessary waste. Our customer-focused management system clarifies and simplifies our first priority which is customer satisfaction. All of our work is aimed to exceed customer needs and provide exceptional value through quality standards, flexibility, and innovation. Finally, we concentrate on our core competencies for strict quality control and continual improvement which provides quality products and cost-saving to our clients via advancement in technical capacity and technological innovation. We implement our policy via a Quality Management Team manages research laboratories, including the Measurement Standard Laboratory, the Chemical Analysis Laboratory and the Material Analysis Laboratory to maintain a strict control over quality. Environment Protection Policy Hyosung understands the impact of Hyosung��s activities in the environment and works to protect the environment from pollution, manages the environmental impacts of Hyosung��s products and technologies, and prevents future pollution and harmful effects in the environment by investing in environmentally-friendly products and solutions. Based on this eco-philosophy of shared responsibility, Hyosung has implemented a comprehensive environmental protection program that aims to minimize our impact on the environment and conserve resources. Our environmental policy fulfils all requirements of the ISO 14001. 03 R&D Inspiring innovation, creation and expertise Hyosung R&D Center identifies innovation, creation, and expertise as core value, and concentrates on world class R&D activities in the 21st century with a philosophy aspiring after customer satisfaction, quality priority, and performance orientation. Hyosung pursues to be the world��s best company in the field of heavy electrical machinery, industrial & electrical electronics engineering, and energy system. Ever since establishment in 1978, R&D Center had led the development of domestic technology. Along with the Anyang and Changwon labs, the group has endeavored to produce core technology and world-class products in the areas of heavy electrical machinery, energy system, electrical electronics engineering, and industrial automation system. Research Areas Hyosung R&D Center engages in the activities in the field of energy system, solution & service, applied electrical and electronic technology, basic core technology, technology of improved reliability, core components, and new materials. Energy System Basic Core Technology ? Renewable energy ? Fortified technology in structural dynamics, (wind system, wind turbine, wind PCS, solar system, PV PCS, electromagnetics, heat transfer analysis, etc. fuel cell, co-generation) ? Skills for system simulation, analysis and evaluation ? Electric Vehicle (EV charger, EV motor) ? Business support technology Solution & Service Technology with Improved Reliability ? Power facility diagnosis algorithm and system ? Test data analysis and testing facility ? Power facility lifecycle evaluation system ? Analysis of lifecycle and cause of error ? Service solution for remote diagnosis for prevention ? Reliability assessment (environment-friendliness, durability, long-term degradation, and more) Applied Electrical & Electronic Technology ? Power conversion system Core Components and New Materials ? Flexible AC transmission system and high voltage direct current ? Organic and inorganic insulation materials ? Power quality solution ? Silicon forming technology ? Intelligent sensor (facility diagnosis, CT, PT, VT, LA, and more)

STATCOM Energy Efficiency and Voltage Stability FACTS & Power Quality solution of HYOSUNG maximize voltage stability and transmission power efficiency, and prevents a power quality degradation in industrial site. And it suggests a new way to solve various problems happened in power system. Using semiconductor switching devices based on power electronics that overcome the limitations of conventional mechanical control devices, reduces the effect of reactive power and contributes to stability improvement. FACTS solution is high-speed, precise controllable and high-capacity power contributes technology. It can be expected to increase stability improvement, transfer capability, power quality and the transmission cost saving in power system. It has various functions that compensate for the voltage fluctuations caused by long-distance transmission, power distribution (wind power), and steel industry. I 04 05 STATCOM STATic Synchronous COMpensator

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