South Korea's president warned that a recent U.S. immigration raid at a Hyundai battery plant in Georgia could make Korean companies "very hesitant" to invest in the United States, after more than 300 South Korean nationals were detained in the operation.
President Lee Jae‑myung said the detentions, part of a broader enforcement action that U.S. officials said last week apprehended 475 people, risked undermining longstanding practices in which Korean firms send specialized teams to set up overseas factories. "If that's no longer allowed, establishing manufacturing facilities in the U.S. will only become more difficult... making companies question whether it's worth doing at all," Lee said.
U.S. authorities said the sweep targeted alleged illegal employment at the battery facility, one of the largest foreign investment projects in the state of Georgia. Officials said the majority of those detained were believed to be working illegally. South Korean officials said more than 300 of their nationals were among those taken into custody and that their departure back to South Korea, initially expected on Friday, had been delayed "due to circumstances on the U.S. side."
A worker at the plant described panic and confusion during the raid, telling reporters that most of those detained were mechanics installing production lines for the project and were employed through a contractor. The account echoed concerns raised in Seoul about how multinational firms manage specialized labor assignments during large-scale facility startups.
The incident has added friction to economic ties between the allies at a sensitive moment. South Korea, a close U.S. ally in Asia, has pledged to invest tens of billions of dollars in the United States in part to offset tariffs and to deepen industrial cooperation. The timing of the raid amid ongoing trade and investment talks prompted concern in Seoul about the potential chilling effect on future projects.
The White House defended the enforcement action, saying the operation was lawful and necessary, and dismissed suggestions that it would deter foreign direct investment. U.S. President Donald Trump referenced the raid in a social media post, urging foreign companies to hire American workers and saying the U.S. government would make it "quickly and legally possible" for foreign firms to bring workers into the country if they respected immigration laws.
The enforcement action and the ensuing diplomatic exchanges highlight the tension between immigration enforcement and economic policy, particularly for industries that rely on skilled foreign workers during plant construction and commissioning. South Korean executives have historically deployed specialized teams to ensure that complex manufacturing lines are properly installed and operated during the early stages of production.
U.S. and South Korean officials did not provide a public timetable for the processing or release of the detainees beyond the officials' statement about a delayed departure. Both governments have sought to manage the fallout publicly: Seoul by urging clarity on the treatment and repatriation of its citizens, and Washington by emphasizing compliance with immigration laws while assuring foreign investors of predictable procedures for lawful worker mobility.
Industry and trade analysts say the case will likely prompt companies to reassess how they staff overseas start‑ups, how they use contractors, and how they document the legal status of workers. Any shift in those practices could affect the pace and structure of future foreign direct investment, particularly in advanced manufacturing and battery supply chains where South Korean firms play a major role.
For now, officials in both capitals have emphasized the need to resolve outstanding administrative and diplomatic issues. The developments will be closely watched by investors and government negotiators as both sides continue talks on trade, investment, and industrial cooperation.