LG Energy Solution (373220.KS), one of the world's largest EV-battery makers and the battery arm of Korea's LG Group, confirmed on June 7 that it has filed to recover tariffs it paid in the United States under IEEPA (the US International Emergency Economic Powers Act). The company expects to reclaim several hundred billion won — equivalent to hundreds of millions of dollars — according to Korea's Electronic Times (etnews), Yonhap and Maeil Business Newspaper (MK), all of which reported the company acknowledged the filing. The final amount hinges on verification by US Customs and Border Protection (CBP) and company-by-company entry reconciliation, so it is not yet locked in.
How material is it?
For a fund manager, the first question is sizing. A recovery in the several-hundred-billion-won range is a one-off cash item, not a change in the earnings run-rate. Against LG Energy Solution's 2025 consolidated revenue of ₩23.7 trillion ($17.3 billion) it is a low-single-digit-percent line, but it lands more visibly against profit: the company posted ₩1.3 trillion ($949 million) in 2025 operating profit, up 133.9% year-on-year, so a refund of this size would equal a meaningful share of a full year's operating income (LG Energy Solution 2025 results, Jan. 2026). Whether it is recognized as a lump sum or spread across reporting periods will shape how it reads in a single quarter. The company carries a market capitalization of roughly $62 billion as of early June 2026 (companiesmarketcap.com).
Why the money is owed
The refund traces to a US Supreme Court decision on Feb. 20, 2026. In the consolidated cases Learning Resources, Inc. v. Trump and Trump v. V.O.S. Selections, Inc., the Court ruled 6-3 that IEEPA does not authorize the president to impose tariffs, holding that tariffs are "a branch of the taxing power" reserved to Congress (Learning Resources, Inc. v. Trump, Feb. 20, 2026; Holland & Knight analysis). The ruling voided the reciprocal duties applied to imports between April 2025 and February 2026 — a window during which Korea faced a 25% rate before it fell to 10% under a separate Section 122 authority. The tariffs LG Energy Solution paid as importer of record on goods shipped into the US over that period are what it is now seeking back.
The Court said the collected duties are "in principle, subject to reimbursement," but added that "the mechanics are unresolved" (Holland & Knight). CBP opened its CAPE (Consolidated Administration and Processing of Entries) portal for refund claims on April 20, 2026; of roughly $166 billion in IEEPA duties collected from importers, some $127 billion including interest was flagged eligible in the first phase, with valid claims targeted for payment within 60 to 90 days of acceptance (tariffstool.com, citing CBP data).
The catch on timing
The 60-to-90-day target assumes a clean acceptance, and the path to cash has historically been longer than the headline suggests. After the 2020 HMTX Industries v. United States challenge to Section 301 China tariffs, roughly 3,500 importers — including Ford, Home Depot, Target and Tesla — filed protective refund claims; six years on, the litigation is still winding through appeals at the Federal Circuit without refunds disbursed (Supply Chain Dive). The US administration has likewise signaled it may contest IEEPA reimbursements, a process that could stretch the timeline (Holland & Knight). LG Energy Solution's filing secures its place in line; it does not guarantee when, or exactly how much, money arrives.
The concrete data point to watch is LG Energy Solution's next quarterly results, where any recognized refund — and management's guidance on the expected amount — would first appear, alongside the July 24, 2026 expiry of the interim 10% Section 122 rate that currently governs Korean imports.
This article is for informational purposes only and does not constitute investment advice. Figures are based on company disclosures and cited reporting as of June 7, 2026; currency conversions use an approximate rate of 1 USD = 1,370 KRW.
