The United States’ immigration raid on the Hyundai-LG electric-car battery plant construction site in Ellabell, Georgia, has left South Korea stunned. On Thursday, U.S. officials detained 475 workers, mostly South Korean nationals, for working unlawfully or overstaying visas. Many of the workers were subcontractors assisting in building the plant jointly owned by Hyundai and LG Energy Solution.
The raid comes at a sensitive moment in U.S.-South Korea trade relations. While the U.S. has long encouraged South Korean companies to invest billions in American industry, recent visa restrictions and high tariffs have complicated their operations. This contradictory approach has left businesses anxious about the implications of U.S. immigration policies on large-scale projects.
Impact on South Korean Businesses and Government Reaction
Following the arrests, South Korea’s Foreign Ministry issued a rare statement expressing “concern and regrets” over the treatment of South Korean investors. Foreign Minister Cho Hyun emphasized the government’s readiness to engage with Washington directly if necessary. Newspapers like Dong-A Ilbo called the raid a “shock” and warned of a chilling effect on South Korean investments in the U.S.
Hyundai confirmed that none of its employees were among those detained, while LG reported 47 employees were affected. These employees were on business trips or working under visa waivers, providing technical guidance for the plant’s construction. Others were subcontracted workers hired by third-party companies.
U.S. Officials’ Statement
Steven Schrank, Special Agent in Charge of Homeland Security Investigations for Georgia, said the detained individuals were either illegally present or violating their visa terms. “There was a network of subcontractors and subcontractors for the subcontractors on the site,” he added.
Corporate Response
Both Hyundai and LG have launched internal investigations into subcontractor practices while prioritizing worker safety. LG has instructed its U.S.-based employees to remain in their accommodations or return home if possible and has limited new business travel to the U.S. to essential client meetings.
Significance for U.S.-South Korea Relations
The Hyundai-LG plant, set to begin operations next year, represents the type of major investment the U.S. sought from South Korea. During President Lee Jae-myung’s recent visit to Washington, South Korean companies pledged billions in investments. The raid raises concerns about the stability of ongoing trade negotiations and the future of South Korean industrial expansion in the United States.