South Korea’s President Warns of US Investment Hesitancy Following Recent Raid
South Korean companies are expressing significant concerns about future investments in the United States following a large-scale immigration raid at a Hyundai plant in Georgia. President Lee Jae-myung highlighted the impact of the raid, which resulted in the arrest of over 300 South Korean nationals. As these workers prepare to return home, Lee emphasized that the incident could deter Korean firms from establishing manufacturing facilities in the U.S., complicating their operations and investment strategies.
Impact of the Immigration Raid
Last week, U.S. officials detained 475 individuals, including more than 300 South Koreans, at a battery facility that represents one of the largest foreign investments in Georgia. The raid has left many in South Korea bewildered, as it is common for Korean companies to send workers abroad to assist in setting up factories. President Lee expressed that if such practices are no longer feasible, it could lead to a reevaluation of the benefits of investing in the U.S. market. He stated, “If that’s no longer allowed, establishing manufacturing facilities in the U.S. will only become more difficult,” indicating a potential shift in investment strategies.
The departure of the detained workers has faced delays, attributed to instructions from the White House. Lee mentioned that the order reportedly came from President Trump, who suggested that the workers should have the option to remain in the U.S. if they wished. This situation has raised questions about the U.S. immigration policies affecting foreign workers, particularly those involved in significant investment projects.
Negotiations for Visa Options
In light of the raid, President Lee announced that South Korea is in discussions with the U.S. government regarding visa options for its workers. The aim is to secure higher quotas or potentially create new visa categories to facilitate the movement of South Korean employees to the U.S. Lee expressed optimism, stating, “I think the U.S. will address this if they see it as a practical necessity.” This negotiation is crucial for maintaining the flow of skilled labor necessary for ongoing projects, especially in the context of sensitive trade discussions between the two nations.
LG Energy Solution, which operates the Hyundai plant, noted that many of the arrested employees held various types of visas or were part of a visa waiver program. A worker from the plant described the atmosphere during the raid as one of panic and confusion, emphasizing that most of those detained were mechanics working on production lines and were employed by a contractor. This incident has raised alarms about the treatment of foreign workers in the U.S. and the implications for international business relations.
Reactions from South Korean Media and Government
The immigration raid has been characterized as a “shock” by South Korean media, with the Dong-A Ilbo newspaper warning of a potential chilling effect on business activities in the U.S. The Yonhap News Agency published an editorial urging both countries to collaborate in repairing any damage to their alliance. The timing of the raid, coinciding with ongoing trade negotiations, has heightened concerns in Seoul about the future of U.S.-South Korea relations.
Despite these concerns, the White House has defended the operation at the Hyundai plant, asserting that it will not deter foreign investment. President Trump addressed the situation in a social media post, encouraging foreign companies to hire American workers while also stating that the U.S. government would facilitate the legal entry of foreign workers who comply with immigration laws. This stance reflects the administration’s commitment to balancing immigration enforcement with the needs of foreign investment in the U.S. economy.
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