LG Energy Solution to recoup over 100 billion won in US tariff refunds

By Seo Ji-yeon, The Herald Business

LG Energy Solution has begun reclaiming tariffs paid under the United States' reciprocal tariff regime after a court struck down the measures as unlawful.

According to industry sources Sunday, LG Energy Solution filed a refund application with US Customs and Border Protection in April following the court ruling that invalidated the tariff measures.

The company applied for refunds totaling more than 300 billion won ($194 million). Industry estimates put the amount likely to be returned at around 100 billion won, though that figure could rise as the refund process works toward completion.

The refund procedure follows a February ruling by the US Supreme Court that found the Trump administration's reciprocal tariffs unlawful.

The court determined that the tariffs, which the Trump administration imposed under the International Emergency Economic Powers Act, exceeded the legal authority granted by that statute. US Customs and Border Protection began accepting refund applications in April.

An estimated 6,000 South Korean companies are eligible for refunds.

LG Energy Solution had been paying substantial tariffs on imports of key battery materials and components as it expanded its US production operations.

A successful refund would provide a meaningful boost to the company's earnings at a time when battery makers have been struggling to protect margins amid slowing electric vehicle demand and policy uncertainty in the United States.

"Tariff refunds are a one-time factor, but the cash inflow effect is significant for companies," an industry official said. "It could also help battery makers improve their profitability."

Hyundai Motor, Samsung SDI and SK On are also among the major South Korean companies reported to be reviewing refund applications or related procedures.

Industry watchers expect refund filings by South Korean companies to accelerate in the wake of the court ruling. Manufacturers that rely heavily on US exports are seen as standing to recover particularly large sums.