Several industry insiders have acknowledged that South Korean companies are using inappropriate visas for workers dispatched to advance their multi-billion-dollar advanced manufacturing projects in the United States. The analysis pointed out that in order to ensure that projects receiving government subsidies could be completed on time, the U.S. government had previously "turned a blind eye" to Korean companies' practice of bringing in workers. But now, tough enforcement at the federal level has completely broken this tacit understanding.
After raiding South Korea's Hyundai battery factory, Trump issued a clear warning to all multinational companies investing in the United States: Investments are welcome, but must "respect" U.S. immigration laws.
According to the Financial Times, last week, U.S. Immigration and Customs Enforcement (ICE) arrested 475 workers, most of whom were Korean citizens, at the construction site of a Hyundai electric vehicle battery factory in Georgia. The operation was ICE's largest single-site enforcement raid to date and marked a dramatic escalation in U.S. efforts to curb illegal immigration.
The raid immediately raised concerns about the U.S. investment climate, with markets worried that the Trump administration's immigration crackdown could scare off foreign investors. In response, Trump posted on the social media Truth Social. On the one hand, he called on foreign companies to abide by the law. On the other hand, he also promised to "quickly and legally" provide a way for those "smart talents with outstanding technical talents" to come to the United States.
Trump told reporters that ICE was doing "the right thing because those people were here illegally." But he also acknowledged that the United States lacks expertise in specific areas and said "we really need to find ways to bring in experts so they can train our people."
The largest raid in history
The enforcement action targeted the construction site of a joint venture project in Georgia between Hyundai Motor and its partner, battery manufacturer LG New Energy.
Hundreds of federal and state law enforcement officers were reportedly involved in the operation. Subsequent videos released by ICE showed that South Korean workers wearing yellow vests were handcuffed at the ankles, wrists and waists during the raid, and helicopters and armored vehicles were also used at the scene.
The image sparked outrage in South Korea. After the incident, South Korean officials chartered a plane to repatriate the detained workers after negotiating with the United States to release them. Hyundai Motor has informed employees to postpone all non-essential business travel to the United States.
The report quoted people familiar with the matter as saying that this incident has made other Korean companies investing in the United States very worried. "We are very worried that ICE will target other Korean facilities because they have the same operations and similar problems," said an executive from a major South Korean industry group.
Trump: Investment is welcome but must abide by the law
Faced with external concerns about the deterioration of the investment environment, Trump tried to convey a complex message of "soft and hard tactics."
He wrote on Truth Social:
"Your investment is welcome, and we encourage you to legally bring your very smart, technically brilliant people to build world-class products."
However, in comments to reporters, he clearly supported ICE's actions. At the same time, he also acknowledged that there are skills gaps in some areas of the U.S. manufacturing industry. He gave an example:
"When they're making batteries, if there's no one in this country right now who understands batteries, maybe we should help them and have some people come in and train our people to do complex things, whether it's battery manufacturing, computer manufacturing or chip manufacturing."
Although the raid caused a diplomatic uproar, Trump insisted that it did not damage U.S.-South Korean relations. "The relationship with South Korea is very good, really good," he said.
Visa dilemmas and ‘open secrets’
According to reports, several Seoul executives and industry groups have admitted that South Korean companies are generally using inappropriate visas for employees dispatched to advance their multi-billion-dollar advanced manufacturing projects in the United States.
According to people familiar with company operations, because the issuance of short-term work visas takes weeks, some Korean companies use the B-1 business visa or ESTA visa exemption program to send employees to the United States to help install new equipment and supervise construction.
One industry executive said it was almost an "open secret" that South Korea's business community, government and diplomats had "always been well aware of the problem."
The root of the problem is that although the United States and South Korea have signed a free trade agreement since 2012, unlike other free trade partners such as Singapore, Canada and Australia, South Korea does not have a targeted work visa program.
A senior South Korean official told the Financial Times that South Korea has raised this issue many times over the past two decades, but has been rejected by successive US governments. With the introduction of policies such as the "Inflation Reduction Act" during the Biden administration, a large number of Korean companies have promised to invest and build factories in the United States, and visa issues have become more prominent.
The tug-of-war between investment and law enforcement
South Korea is one of the largest foreign investors in the United States, committing $22 billion last year. Especially in Georgia, a large number of Korean companies have invested and built factories here due to years of investment promotion by local governments and federal subsidies.
The report quoted a senior South Korean official as saying that companies were placed in an "impossible position": on the one hand, successive U.S. administrations urged them to invest billions of dollars to revive American industry; on the other hand, they were denied visa facilities for short-term skilled workers needed to ensure that projects were completed on time.
Chang Sang-sik, head of research at the Korea International Trade Association, said bluntly:
"The U.S. government is double-dealing. It demands more Korean investment in the U.S. while treating Korean workers like criminals, even though it knows full well that these projects cannot move forward without them."
Jonathan Cleave, Korea managing director of consulting firm Intralink, pointed out that in order to ensure that projects receiving government subsidies could be completed on time and avoid fines, local governments such as Georgia had previously "turned a blind eye" to the introduction of workers by Korean companies. But now, tough enforcement at the federal level has completely broken this tacit understanding.
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