Atlanta: The U.S. immigration raid that led to the detention of hundreds of South Korean workers in Georgia may have not only humiliated a close ally of the United States but also left a "deep scar" on the countries' economic ties, heightening uncertainties for foreign investment in the U.S., industry observers said Thursday.
According to Yonhap News Agency, U.S. immigration officials arrested about 475 workers, including around 300 South Koreans, during a raid last week at a Georgia construction site for an electric vehicle (EV) battery plant being built by a Hyundai Motor Group-LG Energy Solution joint venture, citing alleged unlawful employment practices. The South Korean workers are expected to return home Friday via a chartered Korean Air flight from Atlanta.
The rare, if not unprecedented, raid on workers from an allied nation came just 10 days after a summit between South Korean President Lee Jae Myung and U.S. President Donald Trump, prompting great concerns over the alliance and also rattling many South Korean companies that operate production facilities in the U.S. or are planning investments there, industry watchers noted. They say the incident may undermine South Korean firms' large-scale U.S. investment plans, including a US$350 billion package pledged under a trade deal in July. Many believe it may also deter participation in the Seoul-led initiative dubbed "Make American Shipbuilding Great Again" (MASGA), aimed at revitalizing the U.S. shipbuilding sector.
"This was not just about detaining some 300 people -- it was an insult," Kim Pil-soo, an automotive engineering professor at Daelim University, said. "Inevitably, U.S. investment will have to be reconsidered or delayed." "Unless thorough safeguards are put in place, such as special programs tied to MASGA, South Korean investments in the U.S. will inevitably be reconsidered or delayed," he argued.
Kwon Yong-joo, a professor at Seoul's Kookmin University, agreed that the raid will likely force Korean firms, including Hyundai Motor, to reevaluate or even reconsider their U.S. investment plans. "The raid at the Hyundai-LG plant site will likely have a major impact on the Korean auto industry, forcing Hyundai Motor Group to reorganize its EV strategy, which is largely focused on the U.S. market," Kwon said, also highlighting that any delay in the construction of the battery plant may disrupt production at Hyundai Motor Group Metaplant America (HMGMA), which is also located in Georgia.
The experts note that many Korean companies have relied on Korean workers and subcontractors for construction and engineering, but they have faced visa delays and strict quotas for skilled professionals. Amid the turmoil, South Korea's business community has stepped up calls for greater clarity and improvement regarding U.S. visa rules.
At an investment roundtable hosted this week by the Ministry of Trade, Industry and Energy, major firms asked the government to seek assurances from Washington that B-1 business visa holders would not face enforcement actions when performing duties such as equipment installation or on-site training. The B-1 visa allows foreign employees to install and test machinery purchased abroad or train local staff, according to the U.S. State Department's Foreign Affairs Manual.
Hyundai said it has abided by U.S. immigration laws in local hiring and will strengthen supervision across supply networks to ensure partner firms and subcontractors comply with the rules. The incident is expected to prompt Seoul and Washington to step up consultations on improving immigration and visa policies for companies investing in the U.S.
Foreign Minister Cho Hyun said at a meeting this week with representatives of Korean firms in Washington that the government asked for U.S. cooperation in addressing visa issues, adding that it will make active efforts to ensure Korean investors can carry out their activities smoothly. Trump has also hinted that Washington is willing to consider allowing foreign manufacturing experts into the country to help train U.S. workers.
Still, many experts believe the incident will not lead to an immediate reduction or withdrawal of investments in the U.S. by South Korean companies, largely because of high tariffs imposed by the Trump administration on imports. Others, however, believe it will inevitably lead to significant delays in ongoing and planned investment projects, not only by South Korean companies but also those from other countries, at least until they regain confidence that their workers will be treated fairly in the U.S.
Already, many South Korean companies, including LG Energy Solution, have suspended all their business trips to the U.S. Many global firms are following suit, according to earlier reports.