Despite Trump's Efforts to Defuse 'Shocking Detention Incident,' Korean Business Leaders Say "Investment Difficult Without Visas"

Trump Stresses "Very Good Relationship" with Korea
Softer Tone Compared to Initial Hardline Remarks
Clash Between U.S. Push for Manufacturing Expansion and Tougher Immigration Enforcement
Korean Business Circles Warn of Investment Halt

U.S. President Donald Trump has sought to defuse tensions following the detention of more than 300 Korean workers during an immigration raid at the Hyundai Motor Group and LG Energy Solution joint battery plant in Georgia, emphasizing that "we have a good relationship with Korea." However, as contradictions in policy regarding the use of skilled labor and visa issues have come to light, concerns are growing that not only Korea-U.S. relations but also the future of large-scale investments in the United States are at a critical juncture. Korean business leaders have made it clear that if worker safety is threatened and visa guarantees are not provided, it will be difficult to sustain investments in the U.S. There is a growing consensus that investments in the U.S. have reached a turning point.

On September 7 (local time), after attending the U.S. Open men's tennis final, President Trump returned to Joint Base Andrews near Washington, D.C. and told reporters, in response to a question about whether this incident would strain Korea-U.S. relations, "No, it will not. We have a very good relationship with Korea." He added, "It's truly a good relationship. We just signed a trade agreement." This response was notably softer than his initial hardline remarks immediately after the raid, when he stated, "They were illegal immigrants, and ICE was just doing its job." U.S. media outlet Axios assessed that this raid illustrates the conflict between the Trump administration's push for 'expanding U.S. manufacturing' and its intensified immigration enforcement. The inconsistency in policy-attracting foreign capital and technology while restricting the issuance of work visas-has now become a reality.

Previously, on September 4, U.S. immigration authorities conducted a raid at the Hyundai Motor Group and LG Energy Solution joint battery plant construction site in Ellabell, Georgia, detaining 475 people, including more than 300 Koreans. The issue was that they possessed visas, such as tourist visas, that did not match the purpose of their visit, instead of professional work visas.

Regarding this, President Trump cited the shortage of skilled workers in the U.S. battery industry, stating, "We need to bring in skilled personnel in this field, have them stay for a certain period, and train our workforce so that we can manufacture directly." He continued, "If there are no people with expertise in batteries, we should help by bringing in some personnel and training Americans to learn complex tasks such as battery and computer manufacturing or shipbuilding," adding, "We will review the entire situation." He also said, "We need to develop a plan to bring in experts to train our people so they can do it themselves."

Employees of affiliated companies waiting for interviews at the detention facility. Photo by Yonhap News

However, these remarks are at odds with the reality that, while the U.S. seeks to attract large-scale foreign investment, it does not sufficiently guarantee the issuance of work and labor visas. On his social media platform, Truth Social, President Trump reiterated his firm stance on illegal employment and undocumented residency, writing, "I urge all foreign companies investing in the United States to respect our nation's immigration laws."

Within the U.S., there has been criticism that the Trump administration's contradictory approach of welcoming large-scale investment while simultaneously intensifying immigration enforcement could ultimately undermine the investment environment. Tom Homan, the "border czar" overseeing border and immigration policy, stated in a CNN interview, "We will conduct more on-site enforcement activities," expressing the administration's intention to expand raids.

Korean business leaders view the threat to worker safety as a grave emergency that cannot be overlooked. There is a widespread sense of crisis that if the visa issue is not resolved, investments in the U.S. could be suspended. An executive from a major corporation said, "The employees detained this time may be unable to re-enter the U.S. in the future," adding, "Even in Korea, there is a limited pool of personnel who are well-versed in facilities and production, so building a new plant without them is virtually impossible."

Industry insiders warn that if stricter H-1B visa screening and crackdowns on illegal employment occur simultaneously, investments in the U.S. could shrink, potentially bringing business operations to a complete halt.

Kim Taehwang, a professor of international trade at Myongji University, said, "For now, it is necessary to negotiate with the U.S. to either repatriate the detained workers or secure their release locally," warning, "From a corporate perspective, the sudden raid and the resulting stigma of the Hyundai Motor Group and LG Energy Solution plant as a hotbed of illegal employment is a significant burden." He added, "This action can also be seen as a signal that the U.S. intends to secure leverage in future investment negotiations."

On September 8, the government held an emergency meeting with U.S.-investing companies such as Hyundai Motor Group and LG Energy Solution at FKI Tower in Yeouido, Seoul, together with the Korea Enterprises Federation, to gather suggestions for improving the visa system.