Korea Questioning the Trustworthiness of the U.S. as an Economic Partner

Does U.S. Really Want Investment From Korea?

U.S. immigration authorities raided the sprawling site where Hyundai manufactures electric vehicles in southeast Georgia, conducting a search that shut down construction on an adjacent factory being built to produce EV batteries, on Sept. 4, 2025.

Agents from Immigration and Customs Enforcement (ICE) as well as Homeland Security Investigations and other federal agencies were involved in the operation on Sept. 4, which an ICE spokesperson said was conducted in connection with an investigation into “unlawful employment practices and other serious federal crimes.”

Homeland Security Investigations agent told that the alleged unlawful practices were taking place at the “multi-hundred acre” construction site where South Korean companies Hyundai and LG Energy Solution are jointly building a new battery plant next to their manufacturing facility for electric vehicles.

The facility in the town of Ellabell, about 28 miles west of the city of Savannah, employs about 1,400 people. It is considered one of Georgia’s largest and most high-profile manufacturing sites.

The ICE spokesperson said, “This investigation is focused on ensuring accountability for those who violate the law and upholding the rule of law. Complex cases like this require strong collaboration and extensive investigative efforts.” Hundreds of federal agents descended on a sprawling site where Hyundai manufactures electric vehicles in Georgia and detained 475 people, most of them South Korean nationals.

This is the latest in a long line of workplace raids conducted as part of the Trump administration’s mass deportation agenda. But the one is especially distinct because of its large size and the fact that it targeted a manufacturing site state officials have long called Georgia’s largest economic development project.

The detainment of South Korean nationals also sets it apart, as they are rarely caught up in immigration enforcement compared to other nationalities.

The diplomatic fallout from the ICE raid on Hyundai’s Georgia plant has been swift and serious, especially between the U.S. and South Korea, two key allies.

The raid occurred at a particularly sensitive time, shortly after a summit between the leaders of the two countries where South Korea pledged significant investments in the U.S. The incident has therefore been seen as a potential setback to the bilateral relationship, with some critics in South Korea questioning the trustworthiness of the U.S. as an economic partner.

The South Korean Foreign Ministry called the incident “excessive and humiliating,” particularly because many of the detainees were not criminals but engineers and technical workers involved in the EV battery plant’s construction.

The Trump administration has increased the use of raids and other enforcement actions conducted by U.S. Immigration and Customs Enforcement (“ICE”). The administration has promised to make the arrest and deportation of undocumented individuals a top priority.

Video released by U.S. Immigration and Customs Enforcement showed a caravan of vehicles driving up to the site and then federal agents directing workers to line up outside. Some detainees were ordered to put their hands up against a bus as they were frisked and then shackled around their hands, ankles and waist. Others had plastic ties around their wrists as they boarded a Georgia inmate-transfer bus.

South Korea’s Foreign Minister Cho Hyun said, more than 300 South Koreans were among the 475 people detained. Some of them worked for the battery plant operated by HL-GA Battery Co., a joint venture by Hyundai and LG Energy Solution that is scheduled to open next year, while others were employed by contractors and subcontractors at the construction site, according to Homeland Security Investigations official.

He said that some of the detained workers had illegally crossed the U.S. border, while others had entered the country legally but had expired visas or had entered on a visa waiver that prohibited them from working.

But an immigration attorney representing two of the detained workers said his clients arrived from South Korea under a visa waiver program that enables them to travel for tourism or business for stays of 90 days or less without obtaining a visa.

Korea has responded after hundreds of workers were detained during an immigration raid at Hyundai’s battery plant in Georgia on Sept. 4.

“The economic activities of Korean investment companies and the rights and interests of Korean citizens must not be unfairly infringed upon during U.S. law enforcement operations,” the South Korean Foreign Ministry said in a statement.

Minister Cho Hyun said, “We are actively responding to this incident by dispatching the Consul General of the U.S. Embassy in Seoul and the Consulate General in Atlanta to the site and instructing the formation of an on-site response team centered around the local embassy.” He added: “In Seoul, we also conveyed our concerns and regrets today through the U.S. Embassy in Korea and urged them to exercise extreme caution to ensure that the legitimate rights and interests of Korean citizens are not infringed upon.”

“The business activities of our investors and the rights of our nationals must not be unjustly infringed in the process of U.S. law enforcement,” South Korean Foreign Ministry spokesperson.

South Korea had expressed “concern and regret” to the U.S. Embassy over an immigration raid on a Hyundai facility in Georgia during which it said “many” South Korean nationals had been detained.

“The economic activities of our companies investing in the U.S. and the rights and interests of our nationals must not be unfairly violated,” said the foreign ministry spokesman.

South Korea, the world’s 10th-largest economy, is a major automotive and electronics manufacturer whose companies have multiple plants in the United States. In July, Seoul pledged USD350 billion in U.S. investment in an effort to lower President Donald Trump’s threatened tariffs on its products, which he ended up setting at 15%.

In March, Hyundai said it would invest USD21 billion in U.S. onshoring from 2025 to 2028, a number it said last month had increased to USD26 billion.

It said the initiatives involved in the investment — including a new USD5.8 billion steel plant in Louisiana, expanded U.S. auto production capacity and a state-of-the-art robotics facility — were expected to create about 25,000 new direct jobs in the U.S. over the next four years.

The raid has strained relations between the U.S. and South Korea. This operation, described by officials as the largest single-site enforcement action in the history of Homeland Security Investigations, has caused significant diplomatic tension between the U.S. and South Korea. The incident has caused shock, confusion, and a sense of betrayal in South Korea, particularly given the recent emphasis on economic cooperation and major South Korean investments in the U.S.

The South Korean government reacted with alarm and demanded the protection of its citizens’ rights. The South Korean government expressed “concern and regret” and sent diplomats to the U.S. to negotiate the release of its citizens. President Lee Jae Myung ordered “all-out efforts” to support the arrested South Koreans. South Korean diplomats were immediately dispatched to Georgia to assess the situation and enter into negotiations with U.S. officials. A deal was reached to release the detained workers, with plans for a chartered flight to bring them home once administrative procedures are complete.

After a few days of intense diplomatic activity, South Korea announced that it had reached an agreement with the U.S. to release the detained workers. A chartered flight is being arranged to repatriate them once administrative procedures are complete.

The South Korean public and media have expressed outrage, with some newspapers accusing the U.S. of a “double-dealing behavior.” The release of footage showing workers being shackled has further fueled anger and a sense of betrayal.

U.S. officials, including Homeland Security Secretary Kristi Noem, have defended the raid as a necessary enforcement of U.S. immigration laws. They have stated that the operation was the result of a months-long investigation into illegal hiring practices and was not a random roundup.

While U.S. officials have expressed confidence that the raid will not deter foreign investment, South Korean politicians and analysts have warned that such actions could create “great confusion” for companies and undermine U.S. interests. The incident has highlighted the disconnect between the U.S.’s push for foreign investment and its strict immigration enforcement policies.

Construction on the Hyundai-LG battery plant has been suspended indefinitely. This raises concerns about potential project delays and increased costs for what is one of the largest economic development deals in Georgia’s history.

The raid has been framed by some as a reflection of the Trump administration’s tightened immigration enforcement and is seen as potentially chilling foreign investment in the U.S., particularly from South Korean companies with large-scale projects underwater.

The South Korean business community has reportedly begun re-evaluating risk assessments for new investments in the U.S., particularly those involving Korean expatriates or rotational workers.

The ICE raid on Hyundai’s Georgia plant is a major stress test for U.S.–South Korea economic ties, especially in the high-stakes areas of EVs, semiconductors, batteries, and critical supply chains.

Major Korean companies like Hyundai, LG, SK, Samsung may now view the regulatory environment in the U.S. as more unpredictable – especially under shifting political leadership. There’s growing concern in Korea that U.S. domestic politics could override the spirit of economic cooperation, especially if enforcement is seen as politically motivated. Some firms may diversify investment away from the U.S. toward friendlier jurisdictions (e.g. Canada, Vietnam, Mexico) to hedge against these risks. After the raid, LG reportedly paused non-essential travel to U.S. sites and is reviewing its deployment of Korean nationals across U.S. joint ventures.

There’s a chance Korea could recalibrate its long-term economic pivot toward the U.S.

Semiconductor investments that were once bound for Arizona or Texas could be shifted to India or Southeast Asia. And battery partnerships may rely more on EU or Canadian plants.