Ex-Shinhan executive brings credibility as biggest IR asset at battery materials maker

Yu Sung-hun,former Shinhan Financial Group executive and chief financial officer (CFO) at L&F, a battery materials maker / Courtesy of Yu Sung-hun

Yu Sung-hun, a former executive at Shinhan Financial Group, finds credibility as the biggest asset that he brings to L&F, a battery materials maker where he was scouted as the chief financial officer (CFO) in September.

Yu, 58, spent 18 years in investor relations (IR) business at the banking group, responsible for providing investors with accurate accounts of company affairs.

He is in charge of IR at L&F, a promising, tech-heavy Kosdaq-listed manufacturer that reported record annual sales of 3.88 trillion won ($2.89 billion) in 2022.

A Daegu-based manufacturer, L&F nevertheless is struggling with a decline in profitability due to currency volatility and losses on lithium inventory valuation.

For instance, its operating profit slid for three consecutive quarters throughout the second quarter this year ― from 53.3 billion won to 40.4 billion won and then to 3 billion won.

“Even under such circumstances, being transparent, trustworthy and frank is what matters, and these are the values that I put into practice persistently as I communicated with the market at Shinhan Financial Group,” Yu told The Korea Times this week.

“A company is tempted to not disclose financial weakness that can work against it in drawing investment while highlighting, and even glamorizing its strengths,” he said, adding, “And I would say I prioritized openness as a key criterion during my 18 years in the IR business.”

Yu implicitly hinted at his credibility throughout the market by pointing out that his customers remain largely unchanged even after his career turned from finance to manufacturing.

He was a founding member of the IR unit at Shinhan Financial Group when it was launched in 2001, faithfully building expertise as on both working and senior levels, before being promoted to CFO of Shinhan Asset Management, a group subsidiary in 2020.

He served as the CFO for three years thereafter, before moving to L&F.

Yu’s expertise in the IR business is apparently self-explanatory considering he was ranked top in Asia twice ― in 2011 and 2015 ― in an IR poll conducted by Institutional Investor magazine.

Throughout the year, Institutional Investor publishes global research rankings in the field of finance that serve as industry benchmarks.

Yu humbly attributed the honors he received to Shinhan Financial Group’s corporate culture, saying, “The principle of trust perhaps could not last if corporate culture was not supportive of such a principle.”

He said he is hopeful that L&F has a similar corporate culture as his former workplace, saying, “I joined L&F because it is very open, dynamic and forward-looking.”