South Korea’s President Warns U.S. Immigration Raid Could Deter Korean Investment
South Korean President Lee Jae-myung warned on Friday that the recent U.S. immigration raid at Hyundai and LG's $7.6 billion battery plant in Georgia could discourage Korean companies from expanding their investments in the United States.
Speaking at a cabinet meeting in Seoul on September 12, Lee said that firms which had "taken bold steps to invest in the world's largest market" were now facing "serious uncertainty." Unless Washington provides stronger guarantees of stability, he cautioned, companies may hold back on new projects or delay expansion plans.
Earlier this month, U.S. Immigration and Customs Enforcement (ICE) officers raided the construction site of the Hyundai-LG "Metaplant" near Savannah, detaining or sending home roughly 300 Korean engineers. Reports that some held valid visas have fueled public anger in South Korea, with critics calling the raid heavy-handed and damaging to bilateral trust.
In Washington, opinions on the raid have not been uniform. Lawmakers representing Georgia and other states with large Korean manufacturing sites warned that sudden enforcement actions risk undermining investor confidence. Business groups in the Southeast added that the Metaplant is tied directly to thousands of local jobs and long-term tax revenues for their communities.
By contrast, labor advocates and immigration hardliners pushed back, saying that gaps in the current visa system let firms bring in foreign specialists while American workers are left out. For them, talk of a new visa category looks like a way of bending the rules in favor of big corporations.
In South Korea, industry associations warned that the uncertainty could slow global supply chain projects tied to clean energy. "Korean firms have been among the most active investors in U.S. battery and semiconductor plants. If their engineers face constant legal risks, the momentum will fade," said an official at the Korea Chamber of Commerce.
Public sentiment has also turned sharply critical. Images of Korean engineers in detention circulated widely on Korean media, sparking calls for the government to provide stronger protection for overseas workers. Some commentators suggested that Seoul should leverage its trade and security ties with Washington to secure clearer visa frameworks.
Analysts in both Seoul and New York say the raid has created a risk premium around Korean-led projects. Equity research firms noted that construction delays could set back U.S. electric vehicle supply chains just as automakers are racing to meet Inflation Reduction Act (IRA) requirements.
Still, some investors remain cautiously optimistic. "If the two governments move quickly to establish clear visa rules, this episode could become a one-off setback rather than a long-term deterrent," said a portfolio manager at a U.S.-based investment fund. "But if nothing changes, we may see companies quietly shift future projects to more predictable jurisdictions."
The incident has become more than an immigration dispute. It is now seen as a test of how the United States manages foreign investment while enforcing labor laws. For South Korea, it is also a question of whether its global champions-Hyundai, LG, and others-can rely on consistent rules when they pour billions into U.S. factories.
As President Lee warned, the answer could determine not only the future of Korean investment in America but also the credibility of U.S. industrial policy as a magnet for global capital.