US Factory Raid Sparks Diplomatic Crisis with South Korea as 300 Workers Detained in Handcuffs

Deep News
Sep 08

US immigration authorities conducted surprise raids on electric vehicle battery factories in Georgia operated by two Korean companies, sending shockwaves through Seoul's political establishment. The incident occurred less than two weeks after South Korean President Lee Jae-myung met with Trump at the White House, where Korean companies had just committed to investing hundreds of billions of dollars in the United States.

Kang Hoon-sik, Chief of Staff at the Korean Presidential Office, stated during a meeting between the ruling Democratic Party and government officials that Korean authorities worked continuously over the weekend to secure the release of 300 citizens detained at construction sites operated by Hyundai Motor Company and LG Energy Solution's joint venture.

According to Yonhap News Agency, Korean Consul General in Georgia Cho Ki-joong revealed that these workers may return home by charter flight around Wednesday. It remains unclear what type of visas the workers held or whether they possessed proper construction permits.

The enforcement action came at a delicate moment—just after Lee Jae-myung and Trump concluded a summit showcasing their alliance and cementing new trade agreements. The deal included a $350 billion fund to support Korean companies' US expansion, with $150 billion specifically allocated for the shipbuilding industry and private enterprises committing an additional $150 billion in direct investment.

The raid has placed Lee Jae-myung's administration under domestic pressure and threatens to become a major diplomatic flashpoint between Washington and one of its closest allies. Last Saturday, most Korean daily newspapers featured the incident as front-page news, with images of workers being loaded onto buses with handcuffs around their wrists, waists, and ankles sparking nationwide outrage.

The Chosun Ilbo, Korea's largest circulation newspaper, published photos showing detainees with their hands pressed against buses and images reportedly from Georgia detention facilities, describing them as "mold-infested places with conditions worse than prisons."

"This feels like a stab in the back," said Kim Tae-Hyung, professor and department head of political science at Seoul's Songseok University, commenting on the operation. He stated that "most Koreans inevitably feel angry," and Korean companies will "inevitably" have concerns about their US investment plans.

The raid has cast a shadow over Korea's investment plans in America. Companies may view the detention of workers related to this flagship project as a signal that political and compliance risks of building factories in the US exceed expectations.

Hyundai Motor committed last month to increasing its US investment from $21 billion announced in March to $26 billion by 2028, expanding automotive, steel, and robotics production. Its stock has risen only 3.8% this year, far below the Korean Composite Stock Price Index's 34% gain. During the same period, LG Energy Solution's stock fell 1.4%.

Last Sunday, a Korean ruling party lawmakers' group stated that if the US genuinely wants to win Korean corporate investment, mass detention of citizens should not occur. They emphasized that before Korean companies expand US investment, Seoul must urge Washington to ensure citizen safety and improve visa policies for investment-related visitors.

A cartoon published in the Maeil Business Newspaper showed Trump wielding a club while someone handed over a box of funds for investing in US factories, but puzzlingly, dozens of Korean employees traveling to the US on business were instead being detained.

The Georgia factory was a concrete symbol of Seoul's commitment to boosting US manufacturing. Chang Sang-sik, director of the International Trade Business Research Center at the Korea International Trade Association, noted that if US authorities don't address long-term visa issues while continuing strict immigration law enforcement, Korean companies will face more challenges building and operating factories in America.

According to local media reports, many Korean companies are forced to use the Electronic System for Travel Authorization (ESTA) visa-free program for short-term business travel within 90 days when urgently dispatching employees.

"The US demands Korean investment but requires us to only hire Americans to build factories. In reality, this is impossible—we need local technical personnel during construction," Chang stated.

US officials called this the largest single-site enforcement operation in Department of Homeland Security history, detaining 475 workers total. Although they insist the operation resulted from months-long illegal employment investigations rather than political motives, the visual impact is undeniable. The incident creates direct conflict between the Trump administration's aggressive immigration enforcement policy core principles and another priority of attracting foreign investment and bringing manufacturing back to America.

South Korea is America's sixth-largest trading partner, with its companies playing crucial roles in the global electric vehicle battery supply chain. Washington has explicitly encouraged their factory investments in the US. Crackdowns on such projects could complicate trade relations.

The raid has produced immediate consequences: Georgia factory construction has temporarily halted, potentially creating ripple effects for Hyundai Motor's broader electric vehicle production plans in America. The industrial complex is designed to produce 500,000 hybrid and electric vehicles annually and is expected to employ 12,500 workers by the early 2030s.

This isn't the first time Hyundai Motor—which has become one of America's most prominent foreign manufacturing investors—has been involved in US employment-related legal disputes. In 2022, the US Department of Labor discovered child labor violations at Alabama suppliers serving the Korean automotive brand.

Hyundai Motor stated it is closely monitoring developments in Georgia and working to understand specific circumstances, emphasizing that no official company employees were among the detainees.

LG Energy Solution said it has suspended employee business travel to the US and advised American-based employees to return to Korea. LG reported that 47 of its employees (46 Koreans and 1 Indonesian) were among the detainees. The remaining detained Koreans were reportedly subcontractor employees.

Trump Says Georgia Raid Shows Necessity of Training American Workers

Trump stated that after the immigration raid at Korean-owned electric vehicle battery factories in Georgia, he hopes to find ways to bring in experts to train American workers.

"America lacks people who understand battery technology," Trump told reporters while returning to Washington after watching the US Open finals last Sunday. "Perhaps we should provide assistance and allow some professionals to enter the country to train our workers."

"We must develop programs to bring in experts to train our domestic workers to master autonomous production capabilities," Trump emphasized. He later posted on Truth Social calling for foreign companies to comply with US immigration law while promising his team will "quickly and legally" pave the way for companies to bring in foreign workers—provided companies commit to hiring and training American workers.

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