South Korea Warns US Investments at Risk After Hyundai Plant Raid

South Korea Warns US Investments at Risk After Hyundai Plant Raid South Korea Warns US Investments at Risk After Hyundai Plant Raid

South Korea’s president has warned that companies from his country may think twice about investing in the United States after a sweeping immigration raid at a Hyundai plant in Georgia last week.

Speaking at a press conference marking his first 100 days in office, President Lee Jae Myung said South Korean firms would be “very hesitant” about putting more money into the US after the incident, which saw more than 300 South Korean workers detained.

The workers, who were held for more than a day longer than expected, are set to return home Friday. President Lee said the delay came after the White House intervened at the request of Donald Trump, who wanted to check if any were willing to remain in the US to continue working and training Americans, according to South Korea’s foreign ministry.

Lee called the situation “extremely bewildering,” pointing out that it is standard practice for South Korean companies to send workers overseas to help set up factories. “If that’s no longer allowed, establishing manufacturing facilities in the US will only become more difficult… making companies question whether it’s worth doing at all,” he said.

Seoul is now in talks with Washington about expanding visa options for South Korean workers. “Whether that means securing higher quotas or creating new visa categories, I think the US will address this if they see it as a practical necessity,” Lee added.

The raid, carried out by US immigration officials, targeted 475 people at the Hyundai battery facility, one of the biggest foreign investment projects in Georgia. More than 300 were South Korean nationals. LG Energy Solution, which runs the plant with Hyundai, said many of those detained had valid visas or were traveling under a visa waiver program.

One worker told the BBC the raid created “panic and confusion,” saying most of those detained were mechanics installing production lines and were employed by a contractor.

South Korea, a key US ally in Asia, has pledged tens of billions of dollars in American investments in part to ease tariff disputes. The raid, however, has triggered alarm in Seoul, with local media warning it could cast a “chilling effect” on Korean businesses in the US.

The Dong-A Ilbo newspaper called the operation a “shock,” while Yonhap News Agency urged both governments to work together to “repair cracks in their alliance.” The timing has also drawn attention, as the two countries are locked in sensitive trade talks.

The White House defended the raid, saying it would not harm foreign investment. Over the weekend, Trump posted on social media calling on foreign firms to hire Americans and promising that the government would make it “quickly and legally possible” to bring in foreign workers if immigration rules are followed.