Hyundai U.S. Immigration Raid Sparks Investment Concerns in South Korea

South Korean President Lee Jae Myung warned that a recent U.S. immigration raid detaining hundreds of workers at a Hyundai Motor project in Georgia could affect Korean companies’ investment plans in the United States. Speaking at a news conference, Lee described the raid as “confounding” and said it has left Korean businesses hesitant about future U.S. projects.

The raid led to the detention of about 300 South Korean workers, raising doubts over the business climate for foreign companies. Lee confirmed that 316 workers will be released from a U.S. detention center and return to South Korea on a chartered flight.

South Korean Foreign Minister Cho Hyun has traveled to Washington to address the diplomatic fallout, meeting with U.S. Secretary of State Marco Rubio. Cho emphasized that Koreans were “hurt and shocked” by the arrests, stressing that the workers were in the U.S. to transfer technology and support manufacturing growth.

Korean companies have long voiced frustration over strict U.S. visa limits for skilled workers, which they argue hinder factory construction and training efforts. Discussions are now underway between Seoul and Washington to streamline the visa process, with both sides seeking a practical solution.

Lee also addressed domestic concerns, ruling out plans to expand capital gains taxes on stock investors after public backlash. On North Korea, he reaffirmed Seoul’s commitment to peace but noted the critical role U.S. President Donald Trump plays in potential dialogue with Pyongyang. Trump has expressed interest in meeting North Korean leader Kim Jong Un this year, following two past summits.

Lee underscored that North Korea’s growing nuclear capabilities remain a direct challenge for the U.S., reinforcing the need for international cooperation while South Korea navigates both economic and security challenges.