U.S. immigration enforcement raids Hyundai factory, 300 arrested, possibly impacting U.S.-South Korea investment relations

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U.S. federal law enforcement carried out a large-scale raid on Hyundai Motor, arresting nearly 500 workers suspected of working illegally.

According to CCTV reports, on the 4th local time, U.S. Immigration and Customs Enforcement and other agencies conducted a raid at the construction site of the battery joint venture factory between Hyundai Motor and LG Energy Solution in Bryan County, Georgia. According to the Wall Street Journal, about 450 people were taken away from the site by U.S. law enforcement, including more than 300 Korean staff members.

On Friday, Steven Schrank, head of the Homeland Security Investigations in Atlanta, emphasized:

This is the largest single-location law enforcement action in the history of Homeland Security Investigations.

Schrank said this operation was the result of several months of criminal investigation, focused on "illegal employment and other serious federal crimes" at the site. The detained individuals are suspected of illegal border crossing, entering via visa waiver programs that do not permit work, or overstaying after their visas expired.

The South Korean government expressed "concern and regret" about the operation and has made representations to the U.S. embassy. South Korean Foreign Ministry spokesperson Lee Jae-yong stated:

The economic activities of companies investing in the U.S. and the rights of South Korean nationals should not be unjustly infringed in the course of U.S. law enforcement.

This sudden incident caught the South Korean government and Hyundai Motor off guard. According to media reports citing South Korean officials, the Trump administration did not notify South Korea in advance. The timing is sensitive, coming just a week after South Korean President Lee Jae-myung held a friendly summit with Trump at the White House.

Massive Investment Commitments by Korean Companies Face Test

This incident comes as Korean companies are making large-scale investments in the United States.

In late July, South Korea and the U.S. reached an agreement: the U.S. would impose a 15% tariff on Korean imports, and in exchange, Korea would pledge $350 billion of investment in the U.S.

Hyundai Motor itself has repeatedly increased its investment commitments. In August, the company announced it would increase its U.S. investment to $26 billion, $5 billion more than previously promised. The company said these investments would create about 25,000 direct jobs over the next four years.

The Hyundai factory in the town of Ellabell is the largest manufacturing project in Georgia’s history, with a total investment of $7.6 billion, and plans to employ 8,500 people by 2031. Georgia is providing Hyundai with $2 billion in incentives.

Once completed, the battery plant will supply batteries to Hyundai’s EV manufacturing plant, which began operations last year. The plant is being built by HL-GA Battery Company, a joint venture between Hyundai Motor and LG Energy Solution. In a statement, the company confirmed that construction had been suspended to cooperate with authorities.

Hyundai spokesperson Michael Stewart said the company is aware of the situation and is looking into the details. In a statement, he said:

To our current knowledge, none of the detainees are direct employees of Hyundai Motor Company.

Hyundai’s partner, LG Energy Solution, said it is working with the South Korean government and relevant agencies to ensure the safety of its employees and to seek their early release.

Reportedly, production at Hyundai’s EV plant, which has operated nearby for one year, has not been affected.

Alliance Under Pressure

This arrest incident has caused a stir in South Korea, especially coming just after President Lee Jae-myung had a friendly summit with President Trump at the White House early last week.

The headline of a report in Korea’s largest newspaper, Chosun Ilbo, sharply pointed out:

After investing in Trump’s MAGA, what we get is 300 Koreans arrested.

Hur Jung, an economics professor at Sogang University in Seoul specializing in international trade, warned:

If such law enforcement actions happen repeatedly, it will damage the trust between the U.S. and South Korea, hurt industrial cooperation in various sectors, and have negative impacts on local communities.

In addition to Hyundai, Samsung Electronics is expanding chip manufacturing facilities in Texas, SK Hynix plans to build an advanced chip packaging plant in Indiana, and battery makers like LG Energy Solution, Samsung SDI, and SK On have also invested billions of dollars in the American Midwest.

This incident is a warning sign for these massive investment plans and their complex labor arrangements.

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