Kim Hong-Ji/Pool/AP

South Korea Issues Business Warning About Trump’s US

Thomas Smith
4 Min Read

South Korea’s president has expressed concern that a U.S. immigration raid and the detention of hundreds of workers at a Hyundai Motor project in Georgia could influence Korean companies’ willingness to invest in the United States.

Why It Matters

The detained workers—more than 300 of whom were South Korean—were linked to one of the largest Korean investments in the U.S.: a Hyundai Motor Group and LG Energy Solution battery joint venture promoted by U.S. officials and state leaders as a major job-creation project.

The arrests temporarily halted construction and raised questions about staffing multinational investments amid tighter visa rules and stricter immigration enforcement. Meanwhile, the Trump administration has encouraged foreign-based companies to move operations to the U.S., hoping such investments will boost jobs and respond to his tariff policies.

South Korea remains one of the U.S.’s most steadfast partners in Asia, with a decades-long alliance critical to the U.S. military presence in the region, which includes more than 28,000 American troops stationed in the country.

South Korea Warns on U.S. Investment

South Korean President Lee Jae Myung spoke at a news conference marking his first 100 days in office in Seoul. He warned that the Georgia raid could make companies from Asia’s fourth-largest economy “very hesitant” about direct investment in the U.S., according to Yonhap News Agency.

For businesses, it “could be disadvantageous or difficult to set up a factory there, so they can’t but agonize over it,” Lee said.

The raid came about a week after U.S. President Donald Trump met with Lee and following South Korea’s pledge to invest $350 billion in the U.S. as part of a July agreement aimed at averting higher tariffs.

On September 4, U.S. Immigration and Customs Enforcement agents detained 475 people at the Ellabell, Georgia plant—the largest operation in the agency’s history.

More than 300 of those detained were South Korean nationals, and images of them being led away in chains sparked outrage in Seoul. Lee said the detained workers were being released early Thursday, U.S. time.

A chartered plane carrying 316 South Koreans and 14 foreign nationals is scheduled to depart early Friday, arriving in Seoul later that day, Yonhap reported.

Reactions

Sean King, senior vice president at Park Strategies, told Newsweek that the incident “will give foreign companies fits and cause for real concern as their governments try to meet President Trump’s demands for overseas investment in the United States.”

U.S. President Donald Trump wrote on Truth Social on Sunday: “Your Investments are welcome, and we encourage you to LEGALLY bring your very smart people, with great technical talent, to build world class products, and we will make it quickly and legally possible for you to do so. What we ask in return is that you hire and train American workers.”

What Happens Next

The South Korean workers are expected home Friday afternoon. Their accounts of the experience could draw intense scrutiny, and any reports of mistreatment may fuel public outrage while heightening corporate apprehension about U.S. investments.

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