There is growing anxiety among Korean companies operating in the United States following reports that numerous Korean workers were arrested during an immigration raid at the construction site of a joint battery plant between Hyundai Motor Group and LG Energy Solution.

Companies that decided to invest in the U.S. in response to demands from the Trump administration are particularly concerned that such incidents could significantly curtail their future business activities in the country.

The Hyundai Motor building in Yangjae-dong, Gangnam-gu, Seoul. Yonhap News. 

According to foreign media and industry sources on the 5th, U.S. Immigration and Customs Enforcement (ICE) and Homeland Security Investigations (HSI) conducted a large-scale operation at the construction site of the joint venture battery plant (HL-GA Battery Company) between Hyundai Motor Group and LG Energy Solution in Savannah, Georgia. Approximately 450 individuals were arrested in the operation, including over 30 employees sent from Korea, along with staff from partner companies.

It is speculated that the Korean employees may have been arrested because they traveled to the U.S. on ESTA (Electronic System for Travel Authorization), a visa-waiver program for short stays, instead of B1/B2 visas for business purposes.

LG Energy Solution stated, "We are currently assessing the specific situation," and added, "We are actively cooperating with the Korean government and relevant authorities to ensure the safety and swift release of our employees and those from our partner companies, and we are taking all necessary measures, including providing interpretation and legal support."

A Hyundai Motor official commented, "As far as we have confirmed to date, no Hyundai Motor employees are among those detained," and stated, "We are investigating the specific circumstances and will do our best to take necessary measures for the safety of the personnel working at the site."

Beyond this plant, Hyundai Motor has other construction projects scheduled in the U.S., raising concerns about further disruptions.

Current projects include the establishment of a new robot plant with a capacity of 30,000 units and the construction of an electric arc furnace steel mill with a capacity of 2.7 million tons in Louisiana.

The production capacity of Hyundai Motor Group Metaplant America (HMGMA) in Georgia is also planned to be expanded from 300,000 to 500,000 units.

The LG Twin Towers logo in Yeouido, Seoul. Yonhap News. 

Other Korean companies are closely monitoring the situation, as the exact details and nature of the charges remain unclear.

This concern stems from the possibility of recurrence, given that major companies in sectors such as semiconductors, batteries, and automobiles have established operations in the U.S.

However, most companies believe there are no immediate concerns, as they have either already completed their factories or have been meticulously managing related matters for decades since their entry into the U.S.

Many have already revised their guidelines in response to the intensified crackdowns on undocumented immigrants and stricter entry screenings under a potential second Trump administration.

Recently, Samsung Electronics issued a notice stating, "There have been frequent cases of entry cancellations for business trips to the U.S. using ESTA," and advised, "For U.S. business trips using ESTA, the maximum duration per trip should be within two weeks. For trips exceeding two weeks, please contact the overseas personnel representative of your department."

A corporate official commented, "Companies that have already completed factory construction will likely not face significant issues as they do not require a large on-site workforce," and added, "As far as I know, there have been no other crackdowns besides this incident."

Another corporate official explained, "Companies that have been operating in the U.S. for a long time thoroughly manage visa issues," and stated, "While other problems might arise, this specific incident does not necessitate additional measures."

Nonetheless, concerns are mounting over the increasingly challenging business environment in the U.S., where companies already face growing uncertainty due to tariff policies and supply chain realignments centered on the U.S., and now must also worry about immigration issues.

In March, Hyundai Motor announced plans to invest a total of $21 billion over four years in the U.S., and last month, during a summit with South Korea's president, increased this investment to $26 billion.

U.S. President Donald Trump at the time praised Hyundai Motor as a "great company" and stated they would not have to pay tariffs, but instead, the result was a large-scale immigration crackdown.

While reciprocal tariffs on South Korea were set at 25%, the exact implementation date has not been determined, and announcements regarding tariffs on semiconductors and pharmaceuticals have been repeatedly postponed.

A corporate official expressed concern, saying, "We are worried as a company. We invest in the U.S. at their request, so what should we do if this is how they respond?" and added, "It's already difficult to find affordable labor in the U.S., and the future looks even more concerning."

Yonhap News