[Edaily Reporter Kong Chi-Yu ] As domestic exporters are actively pursuing refunds for U.S. reciprocal tariffs, earnings are expected to improve by at least 100 billion won as early as the second quarter of this year. In particular, the home appliance and battery industries, which had been heavily burdened by tariffs, are raising expectations for securing cash liquidity.

According to industry sources on the 1st, domestic companies are currently filing applications for refunds of reciprocal tariffs under the U.S. government’s International Emergency Economic Powers Act (IEEPA). This follows the U.S. Supreme Court’s ruling last February that the reciprocal tariffs were unlawful, and refund applications began in April.

Previously, the Donald Trump administration had imposed 10% reciprocal tariffs starting in April of last year and had announced plans to raise them to 25%. Following negotiations with the U.S., South Korea was subject to a 15% reciprocal tariff starting August 7 of last year. With the ruling that the imposition of these tariffs was unlawful, refunds are now possible for items subject to reciprocal tariffs that cleared U.S. customs after April 5 of last year. Items eligible for refunds include home appliances, batteries, and automotive parts.

Among South Korean home appliance manufacturers, LGELECTRONICS is currently proceeding with the refund process. During its first-quarter earnings conference call, LGELECTRONICS stated, “We are proceeding with the relevant procedures (for tariff refunds) in accordance with U.S. government guidelines.” LGELECTRONICS incurred 6000억 won in additional costs last year alone due to U.S. tariffs; it is expected to recover most of the amount paid in reciprocal tariffs, excluding tariffs imposed on products with high steel content. Analysts estimate that LGELECTRONICS will receive a refund of approximately 3000억 won during the second quarter of this year. Choi Bo-young, an analyst at KYOBOSECURITIESCO.,LTD., said, “It appears that LGELECTRONICS will receive a refund for a significant portion of the import duties it applied for.”

Within the battery industry, LG Energy Solution was the first to file a refund application and is reported to have received 100 billion won out of the 300 billion won it applied for. A portion of this 100 billion won is expected to be reflected in the second-quarter earnings. SAMSUNG SDI CO.,LTD. has also filed a refund application, while SK On is currently reviewing the refund process.

There is growing optimism within the industry that these refunds, which will be fully reflected starting in the second quarter, will have a positive impact on earnings. According to financial information provider FnGuide Inc., the consensus estimates (average of securities analysts’ forecasts) for LGELECTRONICS’ second-quarter revenue and operating profit this year are 22조5354억원 and 1조184억원, respectively, representing year-over-year increases of 8.7% and 59.3%.

In particular, analysts note that this cash inflow—amounting to hundreds of billions of won—could be a “godsend” for the three battery companies (LG Energy Solution, SAMSUNG SDI CO.,LTD., and SK On), which all posted losses in the first quarter of this year. An industry official stated, “It’s positive in that it brings in immediate cash by allowing them to recover at least a portion of the tariffs they’ve paid so far.”