South Korean President Lee Jae Myung has warned that companies from his country will be “very hesitant” about investing in the United States following last week’s immigration raid at a Hyundai battery plant in Georgia. Speaking at a press conference marking his first 100 days in office, Lee described the incident as “extremely bewildering” and said the disruption raised questions about whether Korean firms could continue expanding their manufacturing presence in the US.

The raid led to the detention of 475 workers, including more than 300 South Korean nationals, many of whom were mechanics contracted to install production lines at the site. Although all of the South Koreans have since been released and are due to return home, Lee said their departure was delayed on the orders of President Donald Trump, who wanted to check whether they would remain in the US to continue working and training local staff. The White House later defended the operation, insisting it was a necessary enforcement of immigration laws.

Lee said it is standard practice for Korean companies to send workers overseas to help set up new factories, and warned that if such arrangements are blocked, establishing US-based facilities would become far more difficult. His administration is negotiating with Washington on potential visa solutions, including higher quotas or new categories that could allow Korean firms to continue their projects smoothly. “I think the US will address this if they see it as a practical necessity,” he told reporters.

The raid has caused alarm in South Korea, where media outlets described it as a “shock” and warned it could cast a chill over billions of dollars in planned investments. Editorials from outlets such as the Dong-A Ilbo and Yonhap News Agency stressed the importance of repairing cracks in the Seoul-Washington alliance, particularly as both governments engage in sensitive trade negotiations. The incident also comes amid broader South Korean pledges to invest heavily in US clean energy and manufacturing sectors to help offset tariffs.

President Trump, in a social media post after the raid, urged foreign companies to hire Americans first but added that his government would make it “quickly and legally possible” for overseas firms to bring workers if they complied with immigration rules. Still, with South Korea among America’s closest allies in Asia and a key player in its industrial supply chains, the raid has injected a new source of tension into an otherwise close economic and strategic partnership.

Source: BBC