On September 6, 2025, U.S. immigration authorities released photos on their official website showing the enforcement operation conducted on September 4 (local time) at the construction site of the Hyundai Motor Group–LG Energy Solution joint battery plant in Georgia, targeting undocumented workers and illegal employment. ( Image courtesy of ICE)
SEOUL, Sept. 12 (Korea Bizwire) — South Korea’s corporate sector is bracing for a slowdown in U.S. investment following the detention of more than 300 Korean nationals in an immigration raid, a crisis that has already disrupted battery factory construction and cast doubt over high-profile bilateral projects.
The most immediate impact has fallen on HL-GA, a joint venture between Hyundai Motor and LG Energy Solution, where mass arrests of skilled Korean workers have left the nearly finished Georgia battery plant in limbo.
While exterior work is complete, installation of internal systems and production equipment has been indefinitely delayed. Other factories under construction by LG and SK On face similar setbacks, heightening concern across the electric vehicle supply chain.
The episode comes just months after Seoul and Washington pledged a $350 billion investment package in strategic sectors such as shipbuilding and semiconductors, alongside another $150 billion in announced corporate projects.
Business leaders now fear that visa uncertainty and heightened scrutiny could slow execution of those commitments.
Strategic Projects in Question
Industry officials warn that the chill may extend beyond batteries to shipbuilding and advanced manufacturing.
The Biden administration has emphasized training American workers in partnership with Korean firms, particularly in sectors like shipbuilding, but executives note that recent arrests included employees on short-term business visas, raising the risk of similar disruption.
“Even if President Trump says he will allow our specialists to enter, nobody knows which visas would apply,” said one shipbuilding executive, pointing out the near-impossibility of securing H-1B visas and the lack of clarity around alternatives.
Chung Kisun, Executive Vice Chairman of HD Hyundai, poses for a commemorative photo after signing a Memorandum of Understanding (MOU) to establish a Korea–U.S. joint investment program in the shipbuilding industry at the InterContinental The Willard Hotel in Washington, D.C., on the 25th (local time). (Image courtesy of HD Hyundai)
Semiconductor giants are also on alert. Samsung Electronics, which has operated in Texas for nearly three decades, instructed staff to carry passports at all times and ensure visa compliance at immigration checks.
SK hynix, preparing to build a $4 billion advanced packaging plant in Indiana, is weighing contingency plans amid uncertainty over U.S. visa and labor policies.
Calls for Government Action
Executives and academics say the episode underscores the need to modernize long-standing informal labor practices and secure clear visa pathways for Korean professionals.
Industry groups are pressing for an expanded E-4 visa quota for skilled workers and higher approval rates for E-2 visas tied to foreign direct investment.
President Lee Jae-myung acknowledged corporate unease in a press conference marking his first 100 days in office. “At this rate, companies will inevitably hesitate to expand in the U.S.,” he said, adding that Seoul is negotiating with Washington to stabilize visa issuance and create new categories if necessary.
Despite the turbulence, experts stress that South Korean firms cannot abandon the world’s largest market. “Even amid this turmoil, companies must continue investing in the U.S.,” said Kim Dae-jong, a business professor at Sejong University. “The government must work aggressively with Washington to resolve visa issues and protect corporate interests.”
M. H. Lee (mhlee@koreabizwire.com)
