South Korean companies will be very hesitant about investing in the US following a massive immigration raid at a Hyundai plant in the state of Georgia last week, President Lee Jae Myung has said. More than 300 South Koreans who were arrested in the raid have now been released from detention and are due to return home on Friday after having their release delayed by more than a day. Their departure was delayed because of an instruction from the White House, Lee added. President Donald Trump ordered the pause to check whether the workers were willing to remain in the US to continue working and training Americans, according to a South Korean foreign ministry official.

Lee, who was speaking at a news conference to mark the first 100 days of his presidency, noted the situation is extremely bewildering, while also stating it is common practice for Korean firms to send workers to help establish overseas factories. He indicated that if such arrangements are no longer allowed, establishing manufacturing facilities in the US would become increasingly complicated, making companies question the value of investment there.

Seoul is currently negotiating visa options with Washington that might include requesting higher quotas or creating new visa categories. Lee suggested that the US is likely to address this situation if necessary.

In a related incident, US officials detained 475 individuals, with over 300 being South Korean nationals, for working illegally at the Georgia battery facility, which is one of the largest foreign investment projects in the state. LG Energy Solution, which operates the plant with Hyundai, stated that many of its employees had various types of visas or were part of a visa waiver program.

The raid, described as a shock by South Korean media, not only raises concerns about immediate business impacts but also threatens the long-term investment and operational landscape for South Korean companies in the US as both governments engage in sensitive trade discussions.