Home appliance industry expects demand for air conditioners and others due to supplementary budget benefits.

Expectations for additional budget benefits in the home appliance industry

The government is promoting the stabilization of people's livelihoods and the recovery of domestic demand through the supplementary budget in June 2025. The Ministry of Trade, Industry and Energy is restarting the rebate policy for energy-efficient home appliances, providing new opportunities for the home appliance industry. In particular, an increase in demand for key appliances during the summer season, including air conditioners, is anticipated.

Refund policy objectives

This measure is designed not just to stimulate consumption, but to promote environmentally friendly and efficient energy use. Given that refund policies in the past have successfully achieved both actual consumption stimulation and energy savings, this supplementary budget is expected to positively impact both industry and consumers.

Details of the supplementary budget

Among the supplementary budget announced in June 2025, approximately 326.1 billion won will be allocated to the Ministry of Trade, Industry and Energy to be used for the high-efficiency home appliances rebate program. This program targets products with an energy consumption efficiency rating of grade 1 and operates by providing a rebate of 10% of the purchase amount. Consumers can receive rebates of up to 300,000 won per person, thereby reducing the barriers to purchasing high-priced appliances.

Refund Eligible Items Information

The eligible refund items include a total of 11 products such as refrigerators, air conditioners, washing machines, electric rice cookers, and dishwashers, and are limited to products that have received high efficiency certification. The policy goal considers not only simple consumption promotion but also long-term directions such as energy conservation and environmental protection.

Successful case studies from the past

In 2020, during the Moon Jae-in administration, a similar program called the "Top Efficiency Home Appliance Refund Project" was implemented, with a total of 2.21 million participants, resulting in approximately 2.2 times the sales increase compared to the previous year. At the same time, it achieved an annual power savings of 111 GWh, proving its practical effectiveness.

The Importance of Air Conditioning

One of the biggest beneficiaries of the high-efficiency appliance rebate program is air conditioners. Especially with summer approaching, air conditioners, which consume a significant amount of power, are highlighted as a very important purchasing consideration in terms of energy efficiency, and the rebate program encourages consumers to make purchasing decisions more quickly.

New Products and Demand Shifts

Samsung Electronics and LG Electronics have launched numerous new products equipped with high efficiency and AI features since the beginning of this year. Most of these products are eligible for refunds, with rebate amounts reaching up to 300,000 won, leading to an expected acceleration in the shift of demand towards used products.

Sales Surge

In March 2025, Samsung Electronics' sales of home air conditioners increased by over 60% compared to the same period last year, with stand-alone air conditioners recording a growth rate nearing 80%. This indicates that consumer demand for product replacements and interest in high-end products have already risen significantly.

High-priced products and purchasing psychology

The home appliance industry expects that the government's refund policy will contribute to inventory reduction in the short term and expand the demand base centered on high-efficiency products in the long term. In particular, for high-priced premium products, the refund benefits lower the effective price, acting as a factor that can stimulate purchasing sentiment.

Consumer Benefits

This system offers consumers the opportunity to simultaneously enjoy energy savings and economic benefits. This encourages voluntary consumption of high-efficiency products and aligns with the direction that can serve as the foundation for energy transition policies in the long term.

Changes in Demand for Multifunctional Home Appliances

Meanwhile, some experts are mentioning the potential for demand dispersion for multifunctional home appliances such as dehumidifiers and air purifiers. This reflects the growing tendency of consumers to prefer products that combine various functions over traditional single-function products. Consequently, companies are also pursuing product line strategies that respond to diverse consumer patterns.

Complex Effects of Policies

The recent supplementary budget's home appliance rebate policy is being evaluated as a multifaceted approach that stimulates domestic demand by promoting the purchase of home appliances while also seeking energy-saving effects focused on high-efficiency products. This is attracting attention as a model where the government's energy policy and industrial policy are organically linked.

Innovative Response of the Home Appliance Industry

The home appliances industry is leveraging these opportunities to accelerate the development of products that incorporate innovative technology and design, actively responding to the rapid changes in the market. Consumers are also showing signs of being fully aware of the policy benefits and are hastening their purchasing decisions.

Mutual benefit structure

As a result, this supplementary budget policy has a structure in which industry, consumers, and the government all share mutual benefits, and it is providing a foundation that can contribute to the short-term performance of the home appliance industry as well as the transition to an eco-friendly and high-efficiency society.