South Korea’s President Warns: US Raids Could Deter Firms from Investing

South Korean companies are feeling uneasy about investing in the U.S. after a significant immigration raid at a Hyundai plant in Georgia. This raid led to the arrest of over 300 South Korean workers, who were set to return home soon, though their departure was delayed by U.S. authorities.

President Lee Jae Myung expressed confusion over this situation, stressing that it’s common for Korean firms to send workers abroad for factory setups. He warned that if such practices are restricted, it will become much harder for companies to invest in U.S. manufacturing.

In a press conference marking his first 100 days in office, Lee mentioned that South Korea is in talks with the U.S. about visa options for its workers. He’s hopeful that the U.S. will see the necessity of addressing these issues pragmatically.

Last week’s raid, which saw U.S. officials detaining almost 475 individuals—most of whom were South Korean—was part of a crackdown on illegal employment. The plant, a significant investment in Georgia, became a focal point of controversy.

Interestingly, LG Energy Solution, which partners with Hyundai at the plant, stated that many arrested workers had valid visas or were part of a visa waiver program. An employee who experienced the raid described the chaos and fear that ensued, noting that most detained workers were mechanics contracted for the installation of production lines.

Reports from South Korea suggest that this raid has sent shockwaves through the business community, with concerns about its impact on investment relations. The Dong-A Ilbo newspaper called the event alarming, fearing it might hinder business operations in the U.S.

The ongoing trade talks between the two nations add another layer of complexity to the situation. The White House has defended the raid, asserting it won’t deter foreign investment. U.S. President Donald Trump, in a recent social media post, encouraged foreign companies to prioritize hiring Americans while also promising that adhering to immigration laws would streamline the process for foreign firms to bring in workers.

This incident reflects a broader concern over immigration policies and their impact on labor markets. According to a recent survey by the National Federation of Independent Business, about 45% of small businesses reported finding it challenging to fill job openings, highlighting the need for a balanced approach to immigration that supports workforce needs while enforcing legal standards.

In summary, the recent immigration raid at the Hyundai plant has created uncertainty for South Korean investment in the U.S. and raised important questions about immigration policy and its implications on business collaboration between the two countries.



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