US Immigration Raid Leaves "Deep Scar" on US-South Korea Economic Ties

The U.S. immigration raid that led to the detention of hundreds of South Korean workers in Georgia has left a deep scar on the country's economic ties with South Korea, heightening uncertainties for foreign investment in the U.S. The raid, which targeted workers at a Hyundai Motor Group-LG Energy Solution joint venture, has prompted concerns over the alliance and rattled many South Korean companies that operate production facilities in the U.S. or are planning investments there. Industry experts warn that the incident may undermine South Korean firms' large-scale U.S. investment plans, including a $350 billion package pledged under a trade deal in July.

Key Takeaways:

• The U.S. immigration raid detained 475 workers, including around 300 South Koreans, at a Georgia construction site for an electric vehicle (EV) battery plant being built by a Hyundai Motor Group-LG Energy Solution joint venture.
• The raid has left a "deep scar" on the US-South Korea economic ties, heightening uncertainties for foreign investment in the U.S.
• Industry experts warn that the incident may undermine South Korean firms' large-scale U.S. investment plans, including a $350 billion package pledged under a trade deal in July.
• The raid has prompted concerns over the alliance and rattled many South Korean companies that operate production facilities in the U.S. or are planning investments there.
• The incident may also deter participation in the Seoul-led initiative dubbed "Make American Shipbuilding Great Again" (MASGA), aimed at revitalizing the U.S. shipbuilding sector.
• Hyundai Motor Group has abided by U.S. immigration laws in local hiring and will strengthen supervision across supply networks to ensure partner firms and subcontractors comply with the rules.
• The incident is expected to prompt Seoul and Washington to step up consultations on improving immigration and visa policies for companies investing in the U.S.
• Many experts believe the incident will not lead to an immediate reduction or withdrawal of investments in the U.S. by South Korean companies, largely because of high tariffs imposed by the Trump administration on imports.

Statistics:

• 475 workers were detained in the U.S. immigration raid.
• 300 of those detained were South Korean workers.
• The Hyundai Motor Group-LG Energy Solution joint venture battery plant is expected to be completed next year.
• $4.3 billion is the original investment for the Hyundai Motor Group-LG Energy Solution joint battery plant.
• $350 billion is the pledge under a trade deal in July for South Korean firms' large-scale U.S. investment plans.

Sources:

• Yonhap News Agency, 11 Sep 2025
• Interviews with experts, including Kim Pil-soo, Kwon Yong-joo, and Kim Tae-nyen.