South Korean companies will be very hesitant about investing in the US following a massive immigration raid at a Hyundai plant in the state of Georgia last week, President Lee Jae-myung has said.
More than 300 South Koreans who were arrested in the raid are due to return home on Friday. Their departure had been delayed due to circumstances on the US side, officials said.
The situation is extremely bewildering, said Lee, noting it is common practice for Korean firms to send workers to help set up overseas 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.
Last week, US officials detained 475 people - more than 300 of them South Korean nationals - who they said were working illegally at the battery facility, one of the largest foreign investment projects in the state.
Lee, who was speaking at a press conference to mark the first 100 days of his presidency, said Seoul is negotiating with Washington on 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, he said.
LG Energy Solution, which operates the plant with Hyundai, stated that many of its employees who were arrested had various types of visas or were under a visa waiver programme.
During a separate incident, a worker at the plant revealed the panic and confusion during the raid, indicating that most detained workers were mechanics installing production lines, and were employed by a contractor.
South Korea, a close US ally in Asia, has pledged to invest tens of billions of dollars in America, partly to offset tariffs.
Media outlets in the country have described the raid as a shock, warning it could have a chilling effect on the activities of our businesses in the United States.
Concerns have been raised about the timing of the raid while both countries are engaged in sensitive trade talks.
The US government has defended the raid, asserting it will not deter foreign investment, with President Trump stressing that the government would make it quickly and legally possible for foreign firms to bring workers into the country if they comply with immigration laws.
