President Donald Trump has called on all foreign companies operating in the U.S. to “hire and train American workers,” following a significant immigration raid at Hyundai and LG battery plants in Georgia that saw nearly 500 employees detained.
The raid on September 4th, described by Homeland Security as the largest single-site enforcement action ever, resulted in the arrest of over 300 South Koreans, including engineers and trainers, along with nearly 200 Latinx workers.
Images of bound workers being escorted by buses spread widely in Seoul, leading to political outcry and heightened anxiety among investors in South Korea.
In a statement on social media, Trump said, “After the immigration operation at the Hyundai Battery Factory, I urge all foreign firms investing in the U.S. to adhere to our immigration laws.” He emphasized that while investments are welcome, companies should bring in skilled workers legally to create top-quality products swiftly.
During a press conference, Stephen Schrank, the special agent overseeing the investigation in Georgia, mentioned that the operation had been in the works for months.
Abigail Jackson, a spokesperson for the White House, highlighted the significance of the U.S. as a destination for large investments and reiterated the importance of compliance with appropriate work permits for foreign workers.
South Korea confirmed that the 300 detained nationals would be released and returned home via chartered flights after an agreement with the Trump administration.
Kang Hoon Sik, a senior aide to President Lee Jae Myung, stated that only administrative steps remained before the workers’ return.
The South Korean trade minister, Yeo Han-Koo, acknowledged the concerns raised by the raid and promised to work with the Foreign Ministry to explore improvements to the existing system.
The aftermath has been felt acutely, with companies like LG Energy postponing EV battery production launches, while Hyundai has restricted staff travel to the U.S.
Samsung Electronics has also tightened travel protocols and advised employees to limit trips under the ESTA program.
This crackdown followed a meeting between President Lee and Trump just weeks prior, where they promoted a trade agreement that included a substantial U.S. investment fund for South Korea.
With pledges of direct spending by Korean companies totaling $150 billion, the new developments only intensify the stakes.
LG Energy’s battery production, initially set for this year, has now been pushed to 2026, which could have a knock-on effect for Hyundai and its partner Kia, which depend on the Georgia plant for battery supplies.
A spokesperson for LG Energy confirmed that production schedules had already shifted and remarked that it was premature to gauge the full impacts of the recent raid.
Representatives from both Hyundai and KIA echoed this sentiment, stating it was too early to evaluate the broader business implications.
Kang Daekwun, chief investment officer at Life Asset Management, suggested the incident underscores the growing challenges for Korean firms operating in the U.S., including inflation and scrutiny of new immigrant workers.
Investor reactions in Seoul remained mixed, with LG Energy shares seeing a small increase, while Hyundai’s stock dipped slightly. Analysts suggested that such delays were already anticipated.
As companies face extended wait times for U.S. visas, there’s a heightened risk for those reliant on subcontractors and temporary labor.
Chey Tae-Won, chairman of the SK Group, called on the government to negotiate for more U.S. visa allocations to prevent future issues.
Lee expressed concern over the political dynamics at play after the raid, highlighting the need to enhance “people power” through U.S.-Japan connections.
Foreign Minister Cho Hyun departed for Washington, advocating for the release of the detained Koreans and confirming that arrangements for voluntary flights home were being organized.
The Georgia facility plays a crucial role in U.S. efforts to develop domestic EV supply chains, a key element of Trump’s industrial policy, thus adding uncertainty to production timelines.
Analyst Anna Lee from Yuanta Securities warned that large-scale battery production by 2026 might now be unrealistic, anticipating a year of delays due to the need for diplomatic solutions regarding worker visas.
Despite this, she also mentioned that LG Energy’s prior production plans should limit the revenue impact.
As Samsung, Hyundai, LG, Kia, and SK commit to expanding their U.S. operations, the challenges posed by strict visa quotas and rising labor costs could hinder profitability.
This article did not receive comments from the State Department, South Korean government, or the major corporations involved.
