On September 4, 2025, a massive immigration raid at an under-construction electric vehicle battery plant in Georgia sent shockwaves through both the United States and South Korea, straining a crucial alliance and raising difficult questions about the intersection of immigration enforcement and foreign investment. The factory, a joint venture between South Korean industrial giants Hyundai and LG, was poised to be a symbol of deepening economic ties, with Hyundai alone planning to invest $26 billion in U.S. auto and battery plants. But within hours, the site became the focus of the largest single-location immigration raid since President Donald Trump renewed his crackdown on illegal migrants earlier this year.
According to BBC, U.S. Immigration and Customs Enforcement (ICE) officials descended on the Georgia plant, arresting approximately 475 workers—most of them South Korean nationals. ICE asserted that these workers had either overstayed their visas or were not authorized to work in the United States. Eyewitnesses described a chaotic and frightening scene as federal agents led people away in chains, sparking panic and confusion among those present.
More than 300 South Korean workers were detained for about a week before being repatriated to South Korea on September 12. The South Korean government responded swiftly, with officials chartering a plane to retrieve their citizens. The incident provoked national outrage in South Korea, where images of the detained workers and their emotional reunions at Incheon International Airport were widely shared. Trade unions in South Korea quickly called on President Trump to issue an official apology, while President Lee Jae Myung described the situation as "bewildering." He warned that such actions could discourage future investment in the U.S., noting that it is common practice for Korean companies to send workers abroad to help set up new factories.
The diplomatic fallout was immediate and intense. South Korea's presidential spokesperson announced that the government would investigate "potential human rights violations or other issues" related to the raid and detention. During a press briefing, the spokesperson emphasized that South Korea had expressed "strong regret" to the United States and had officially requested that its citizens' rights and interests not be infringed during law enforcement proceedings. The investigation is expected to include close cooperation with the relevant companies, ensuring that any abuses are thoroughly examined.
For the U.S., the timing could hardly have been worse. The raid came just months after South Korea pledged major investments in the U.S. as part of a trade deal designed to avoid steep American tariffs. The agreement, which calls for hundreds of billions of dollars in investments—including efforts to revitalize the U.S. shipbuilding industry—was seen as a cornerstone of the bilateral economic relationship. But as Axios reported, the blowback from the arrests threatened to rupture one of the most important U.S. alliances in Asia and put those investment pledges at risk.
Commerce Secretary Howard Lutnick, speaking to "The Axios Show" on September 14, laid blame for the situation at Hyundai's feet, stating that the company should have ensured its workers had the proper visas and that he could have helped had they reached out. Meanwhile, Deputy Secretary of State Christopher Landau visited South Korea and "conveyed his deep regrets" for the arrests, according to South Korean media. Despite these diplomatic overtures, tensions remained high, with Hyundai announcing that the plant's opening would be delayed by at least two months as a result of the raid.
Amid the turmoil, President Trump took to his Truth Social platform on September 14 to address the controversy and clarify his administration's stance. In a lengthy post, Trump appeared to strike a conciliatory tone, acknowledging the value of foreign expertise in building high-tech goods and the importance of foreign investment to the U.S. economy. "When Foreign Companies who are building extremely complex products, machines, and various other 'things,' come into the United States with massive Investments, I want them to bring their people of expertise for a period of time to teach and train our people how to make these very unique and complex products before leaving," he wrote. "If we didn't do this, all of that massive Investment will never come in the first place—Chips, Semiconductors, Computers, Ships, Trains, and so many other products that we have to learn from others how to make, or, in many cases, relearn, because we used to be great at it, but not anymore."
Trump's post was a frank acknowledgment of a reality that many in Washington have been reluctant to admit: the U.S. lacks the know-how to manufacture many of the advanced products at the center of its industrial policy. He emphasized, "We welcome them, we welcome their employees, and we are willing to proudly say we will learn from them, and do even better than them at their own 'game,' sometime into the not too distant future!"
At the same time, the White House underscored that any foreign workers brought in for specific projects must do so legally. In a statement, spokeswoman Abigail Jackson said, "Any foreign workers brought in for specific projects must enter the United States legally and with proper work authorizations. President Trump will continue delivering on his promise to make the United States the best place in the world to do business, while also enforcing federal immigration laws."
For many in South Korea, however, these assurances rang hollow. The raid not only delayed the plant's opening but also cast a shadow over future economic cooperation. South Korean President Lee Jae Myung reiterated his concern that the incident could chill investment, a sentiment echoed by business leaders and union officials alike. The country's trade unions remained adamant in their demand for an official apology from Trump, arguing that the arrests were both unnecessary and damaging to bilateral relations.
Back in the U.S., officials initially downplayed the risk that the raids would deter foreign companies from expanding stateside. But as Axios noted, Trump's own statements seemed to acknowledge the potential for long-term damage. "I don't want to frighten off or disincentivize Investment into America by outside Countries or Companies," he wrote. "We welcome them, we welcome their employees."
The coming months will be critical for both nations as they seek to repair the rift and resume work on the delayed plant. Whether the repatriated South Korean workers will return to Georgia to finish the job remains uncertain, as does the broader impact on U.S.-South Korea economic relations. What is clear, however, is that this episode has exposed the delicate balance between enforcing immigration laws and maintaining a welcoming environment for foreign investment—an issue that will likely remain at the forefront of policy debates in both countries for some time.
As the dust settles, the world will be watching to see if the promises of mutual respect, legal compliance, and economic partnership can withstand the pressures of politics and public opinion on both sides of the Pacific.