The largest immigration raid in U.S. history at a Hyundai-LG Energy Solution battery plant in Georgia has sent shockwaves through diplomatic and business circles, casting a shadow over U.S.-South Korea relations and raising tough questions about the future of foreign investment in America. The operation, which unfolded on September 4, 2025, saw U.S. officials detain 475 workers—including more than 300 South Korean nationals—on allegations of improper work authorization, according to the BBC and multiple South Korean outlets.
The raid came at a delicate moment, just weeks after South Korean President Lee Jae Myung met with President Donald Trump at the White House, where Korean conglomerates pledged hundreds of billions in U.S. investments, including Hyundai’s $26 billion commitment through 2028. South Korea is a key U.S. ally and has been a major investor, with its companies expected to generate around 40,000 jobs in Georgia alone, as reported by SAN and Bloomberg.
But the events of that Thursday morning upended the spirit of cooperation. According to the Department of Homeland Security (DHS), the detained workers lacked proper employment status. The agency described the operation as the largest single-site enforcement in its history. Most detainees were held at an Immigration and Customs Enforcement (ICE) facility in Folkston, Georgia, while a group of ten women were transferred to another site 200 miles away. The White House stated that ICE acted because workers were not using proper work authorizations, though a leaked ICE document obtained by The Guardian revealed at least one detainee had a valid work visa and was still required to agree to removal.
South Korean President Lee Jae Myung did not hide his dismay. At a press conference marking his first 100 days in office, Lee called the situation "extremely bewildering" and added, "If that's no longer allowed, establishing manufacturing facilities in the U.S. will only become more difficult... making companies question whether it's worth doing at all," as quoted by the BBC. He attributed the raid in part to "cultural differences," explaining, "In South Korea, American nationals teaching English while on a tourist visa was not seen as a serious issue." Lee emphasized that it is common for Korean firms to send skilled technicians abroad to install equipment and train local staff, especially when such expertise is unavailable locally. "Someone has to install the machinery, and the necessary workforce simply doesn't exist locally in the U.S.," he told AFP.
The images of South Korean workers in handcuffs quickly circulated online, fueling public outrage at home. Local media described the detention facilities as "worse than prisons," and the episode has cast a pall over Lee’s young presidency. The Dong-A Ilbo newspaper warned of a "chilling effect on the activities of our businesses in the United States," while Yonhap News Agency urged both countries to "cooperate to repair cracks in their alliance."
As the days passed, the fate of the detained workers became a point of contention. Their return to South Korea, originally scheduled for the morning of September 10, was delayed by over a day due to what South Korean officials described as "circumstances on the U.S. side." President Trump had ordered a pause on their departure to determine whether any of the workers would remain in the U.S. to continue working and training Americans, according to a South Korean foreign ministry official and the BBC. South Korea chartered a plane for repatriation, but disagreements arose over whether detainees would be handcuffed during transport to the airport. Seoul insisted the workers had chosen to "voluntarily depart" in hopes of retaining the option to return for future work, but DHS Secretary Kristi Noem stated that all would be "deported," making legal reentry impossible.
Amid the diplomatic wrangling, business ramifications quickly surfaced. Hyundai Motors instructed employees to delay U.S. business trips unless "indispensable," and LG Energy Solution suspended U.S. travel after 47 of its workers were detained. The incident has already prompted South Korean firms to rethink their investment strategies, with President Lee warning, "Korean companies will have little choice but to hesitate about making direct investments in the U.S." Industry experts echoed his concern. Giovanni Peri, an economist at the University of California at Davis, told The Washington Post, "Episodes like this are going to make many companies way more cautious before investing here."
The broader context is fraught with tension. The raid comes on the heels of a July deal that maintained a 15% tariff on most Korean imports and amid ongoing disputes over a $350 billion U.S. investment pledge from Seoul. Industry sources told AFP that it has been common practice for South Korean companies to use visa workarounds to bring in skilled labor for project development, a necessity when local expertise is lacking. Yet, as Lee pointed out, "even that basic request is being rejected" under current U.S. immigration enforcement priorities.
President Trump, for his part, defended the operation. In a post on Truth Social, he called for foreign companies to "hire Americans" and stated that the U.S. would "make it quickly and legally possible" for firms to bring in foreign workers if they respect immigration laws. "The US government would make it 'quickly and legally possible' for foreign firms to bring workers into the country if they respected its immigration laws," Trump said, according to the BBC.
The diplomatic fallout has been immediate. South Korea’s Foreign Minister Cho Hyun was set to meet U.S. Secretary of State Marco Rubio to address the crisis, but the meeting was postponed due to scheduling conflicts. Meanwhile, Seoul is negotiating with Washington for more flexible visa options, including higher quotas or new categories for investment-related purposes. "I think the US will address this if they see it as a practical necessity," Lee said, holding out hope for a resolution.
As the repatriation process moved forward, South Korean officials remained adamant about the dignity of their workers. Lee announced, "the workers were scheduled to depart the detention facility at 3 pm Seoul time... and would be brought home on a chartered flight, expected to arrive on Friday." South Korea also negotiated to ensure the workers would not be handcuffed again during their return journey.
The episode has laid bare the complex interplay between immigration enforcement, economic strategy, and international diplomacy. While the U.S. seeks to balance the need for skilled labor with domestic job creation and legal compliance, its closest allies are left weighing the risks of further investment. As Professor Kim Dae-jong of Sejong University noted, "Logically, the two sides' workers should be allowed to work together, not be hindered from doing so." Yet the reality, at least for now, is far more complicated.
The fallout from the Georgia raid will likely reverberate for months, if not years, influencing trade talks, investment decisions, and the tone of the U.S.-South Korea alliance. For the workers caught in the middle, the ordeal has been a sobering reminder of the unpredictable intersection of global business and national policy.
