L&F

The company filed its amended 2025 Corporate Governance Report, reporting compliance with 9 of 15 (60%) core governance indicators. Notable improvements include appointing an independent director (Park Ki-sun) as Board Chair in April 2026 and adopting cumulative voting at the 26th AGM. The 8-member board is 62.5% independent (5 outside directors) and operates six committees, with all but one committee member being outside directors. Consolidated 2025 results showed revenue of KRW 2,154.9bn (up from KRW 1,907.5bn) but a widened net loss of KRW 534.7bn amid ongoing weakness in the cathode materials business. Key gaps remain in CEO succession planning, 4-week AGM notice, and independent internal audit department.

Seronics Co., Ltd., the largest shareholder of L&F, filed an amended major shareholding report due to an extension of an existing stock-collateralized loan. The total number of shares held remained unchanged at 8,989,835 shares, but the ownership ratio decreased slightly from 22.29% to 22.22% due to an increase in total outstanding shares (from 40,325,085 to 40,455,487). Shares pledged under major contracts also remained at 2,887,053 shares, with the ratio adjusting from 7.16% to 7.14%. The filing is administrative in nature, reflecting a refinancing event rather than any change in actual ownership or management control intent.

The company has decided to lend KRW 30 billion to its affiliate L&F Plus Co., Ltd. to fund facility investment, with the loan executed on May 29, 2026. The loan represents 4.43% of equity (KRW 676.8B as of end-2025 consolidated audit) and carries an interest rate of 4.811%, maturing December 30, 2026. L&F Plus was newly established in August 2025 and posted a net loss of KRW 212 million in 2025 with no revenue yet, indicating it is still in an early build-out phase. The board approved the decision on May 27, 2026, with 4 of 5 outside directors attending. Investors should note this is intra-group capital support for an early-stage affiliate, which may pressure standalone cash flow but supports group-level capacity expansion.

The company filed its Q1 2026 quarterly report (27th fiscal year) covering January 1 to March 31, 2026, with 3 unlisted consolidated subsidiaries unchanged from the prior period. Business remains 100% focused on cathode active materials for secondary batteries. Notable governance changes include the December 2025 CEO transition back to Heo Je-hong (replacing Choi Soo-an who resigned) and the March 2026 AGM appointment of Yoo Seung-heon as an inside director, while inside director Heo Je-hyun resigned. Recent credit ratings show some volatility, with KPD rating BB+ as of November 2025, down from BBB- in October 2024.

National Pension Service (NPS) reported a change in its holdings, with its stake declining from 10.02% to 9.99% as of May 13, 2026. The net change was a decrease of 860 shares through active intraday trading between May 7 and May 13, bringing total holdings to 4,042,185 shares. The crossing of the 10% threshold triggered this disclosure obligation, and NPS is now classified as holding less than 10%. Trading prices ranged from approximately KRW 186,000 to KRW 218,000 across the reporting period, reflecting significant share price volatility.

The National Pension Service (NPS) has filed an initial report disclosing a 10.02% stake in L&F, comprising 4,043,045 common shares as of May 6, 2026. This filing was triggered by NPS crossing the 5%/10% major shareholder threshold, requiring formal disclosure to regulators. During the reporting period, NPS net-acquired 35,205 shares (53,094 bought on-market at ₩202,178 and 17,889 sold at ₩201,783), pushing its holdings above the 10% level. As Korea's largest institutional investor, NPS's accumulation signals continued long-term confidence in L&F, a major cathode materials supplier, and the new major-shareholder status will subject future trades to stricter disclosure rules.