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South Korea warns US raid on Hyundai-LG plant could chill investment

South Korean President Lee Jae-myung on Thursday called a recent US immigration raid at a Hyundai-LG battery plant in Georgia "bewildering," cautioning that such actions could deter future investment.

Last week’s operation—the largest single-site immigration sweep since President Trump’s crackdown—led to the detention of over 475 workers, most hailing from South Korea. Seoul says those held will be released and flown home by the end of the week.

Lee attributed the raid to cultural differences, noting that minor visa infractions by American nationals in South Korea are rarely treated as serious offenses. “After this incident, South Korean companies can’t help but question whether setting up a plant in the US is worth the potential risks,” he said.

South Korea is one of the United States’ top foreign investors, with its leading automakers and tech firms pouring billions into US factories and plants. Executives now face tough decisions about expanding direct operations amid evolving immigration and labor enforcement policies.

As global investors seek predictable regulatory environments, analysts say this raid could become a case study in balancing national security concerns with the need to maintain a welcoming climate for international business.

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