In a move that could reshape the landscape for Korean investment in the United States, officials from both nations have reached a key agreement to clarify and expand the use of short-term business visas and visa waivers for South Korean workers. The decision, announced after a high-level meeting in Washington on September 30, 2025, comes in the wake of a controversial immigration raid at a Hyundai-LG battery plant in Georgia that saw more than 300 Korean workers detained, sparking outrage and diplomatic tension between the two allies.
According to Yonhap News and The Korea Herald, the inaugural session of the Korea-US Business Travel and Visa Working Group brought together senior diplomats and officials from both governments, including South Korea’s ambassador for public diplomacy, Jung Ki-hong, and Kevin Kim, a senior official from the US State Department. The agenda was clear: resolve the uncertainty that has plagued Korean companies sending personnel to the US for major industrial projects, and prevent a repeat of the mass detentions that rattled the relationship earlier in the month.
At the heart of the agreement is a reaffirmation by US authorities that Korean companies investing in the US can use the B-1 business visa, as well as the Visa Waiver Program’s Electronic System for Travel Authorization (ESTA), for activities such as equipment installation, inspection, servicing, and maintenance. This clarification directly addresses the ambiguity that led to the Georgia detentions, where most of the 317 detained Koreans held either ESTA (170) or B-1/B-2 visas (146), according to Yonhap News. The US State Department, in a statement quoted by The Korea Herald, said, “The US government is working closely with its Korean allies to advance the US-ROK trade and investment partnership, including by processing appropriate visas for qualified ROK visitors to continue investing in America, in compliance with US laws.”
The new understanding is expected to provide immediate relief for Korean firms, which have long relied on short-term visas or ESTA to dispatch skilled workers for manufacturing site setup and related tasks. As reported by Associated Press, this practice had been tolerated for years, but the recent raid and subsequent images of Korean workers shackled at the hands, ankles, and waist fueled public outrage in South Korea and a sense of betrayal by the US—a country that had just welcomed massive Korean investment pledges in hopes of avoiding steep tariffs under the Trump administration.
Yet, while the agreement marks progress, it is not a panacea. Both governments acknowledged that broader tasks involved in establishing new factories—beyond installation and maintenance—remain in a legal gray area. Discussions are set to continue on whether such activities can also be covered under B-1 or ESTA, leaving some uncertainty for companies planning large-scale projects in the US.
To further ease the process for Korean investors, the two sides agreed to establish a dedicated visa support desk at the US Embassy in Seoul, known as the “Korean Investor Desk.” Scheduled to launch later in October 2025, this administrative measure is designed to serve as a communication channel, offering guidance and consultations on visa issues for Korean companies. The Korea Herald noted that US Deputy Secretary of State Christopher Landau emphasized Washington’s commitment to supporting Korean personnel engaged in investment projects, announcing the creation of the desk as an additional step to assist Korean firms operating in the US.
The visa support desk is a practical, if incremental, solution. It sidesteps the need for legislative reform, which is a much heavier political lift. South Korea, however, is not letting up on its push for a dedicated visa category for Korean businesspeople and professionals—similar to Australia’s E-3 visa, which was created in 2004 after a bilateral free trade agreement. The so-called E-4 visa, first envisioned under the 1989 Korea-US trade agreement as a Korea-exclusive work visa for professionals, remains unrealized. Past attempts, such as the “Korean Partners Act” in the US Congress, have failed to pass, and US officials reiterated during the meeting that any new visa category would require congressional approval and faces significant political and public opposition given prevailing anti-immigration sentiment.
“The US generally takes a negative view toward expanding foreign labor,” Min Jeong-hoon, a professor of Korea-US relations at the Institute of Foreign Affairs and National Security, told The Korea Herald. “But given that the Georgia case can be largely attributed to insufficient institutional arrangements at the time, Korea may still push for the creation of an E-4 visa category, if not greater access to the H-1B.” Min also highlighted the need for Seoul to continually remind Washington of the benefits it gains from the alliance, especially as US priorities oscillate between restricting immigration and attracting foreign investment. “Even Trump knows that Korean firms and workers are doing what the US cannot in advanced technology sectors,” he added.
For many in South Korea, the raid at the Hyundai-LG battery plant was more than a bureaucratic mishap; it was a diplomatic flashpoint. The Foreign Ministry reported that many detainees described poor facilities, shortages of food and water, lack of medical treatment, sleep deprivation, and racially discriminatory remarks during their detention. The US had previously expressed regret over the incident, with Deputy Secretary Landau conveying this at Korea-US vice foreign ministerial talks in September. However, as Min observed, the recent US reaffirmation is more of a diplomatic gesture to ease tensions rather than an official apology or admission of wrongdoing.
Most of the detained workers were employed by LG Energy Solution and its subcontractors. In the aftermath, LG stated it would “thoroughly prepare and work diligently to normalize the construction and operation of our factories in the United States.” This sentiment reflects the determination of Korean companies to continue investing in the US, even as they navigate a complex and sometimes unpredictable visa environment.
Looking ahead, the new visa arrangements offer a measure of stability for Korean businesses, but the larger issue of long-term access for skilled workers remains unresolved. Seoul plans to emphasize the economic contributions of Korean investments—citing job creation and technological advancement—in its ongoing campaign for more robust institutional improvements. US officials, for their part, must balance domestic political pressures with the clear economic benefits of foreign investment in advanced sectors. As the two allies move forward, the stakes are high: the outcome will shape not only the future of Korean investment in America but also the broader contours of the US-South Korea economic partnership.
For now, the establishment of the Korean Investor Desk and the clarification of short-term visa use mark concrete steps toward a more predictable framework—one that both sides hope will prevent future diplomatic crises and keep the wheels of industrial cooperation turning.
