
The sweeping raid Friday (local time) at the 3000-acre Hyundai Motor Group-LG Energy Solution joint venture facility came as the two countries were conducting follow-up negotiations on tariffs and investment plans following an Aug. 25 summit between Presidents Lee Jae Myung and Donald Trump.
Homeland Security Investigations called it the largest single-site immigration enforcement operation ever conducted, targeting workers across multiple contractor levels at the electric vehicle battery manufacturing plant under construction.
Hyundai Motor Group has committed to investing $26 billion across the United States over four years as part of Trump's push to revitalize American manufacturing. Chairman Chung Eui-sun personally announced the investment plan at the White House in March with Trump present.
The timing has raised eyebrows among Korean officials and business leaders, coming amid Trump's broader campaign to use tariffs as leverage to attract foreign investment while simultaneously cracking down on illegal immigration.
Most arrested South Korean workers allegedly entered on short-term visitor visas or through the visa waiver program but worked illegally at the construction site, violating immigration law despite the project's strategic importance to U.S.-Korea economic ties.
The raid highlights a dilemma facing Korean companies: the U.S. government actively courts foreign investment while failing to provide sufficient work visas for overseas firms, forcing them to rely on limited pools of skilled American workers.
Seoul responded swiftly to the crisis, with Foreign Ministry spokesperson and Deputy Minister Lee Jae-woong warning that "the rights and interests of our investment companies' economic activities and our nationals must not be unfairly violated during U.S. law enforcement processes." The ministry dispatched consular officials to the scene and established an emergency response team.
Lee added Korea also conveyed its concerns and regret to the U.S. Embassy in Seoul, urging American authorities to ensure Korean nationals' legitimate rights are not violated during the enforcement process.
Industry observers suggest the operation may signal to foreign investors that major investments don't guarantee immunity from immigration crackdowns, potentially complicating Trump's manufacturing revival strategy.
Hyundai remained silent on the incident while LG Energy Solution said it was closely monitoring the situation and continuing cooperation with relevant authorities. Construction at the battery plant has been suspended, though Hyundai's electric vehicle production lines continue normal operations.
Trump addressed the raid at a White House press conference, saying, "They were illegal aliens and ICE [United States Immigration and Customs Enforcement] was just doing its job."
"And we have, as I understand it, a lot of illegal aliens, some not the best of people, but we had a lot of illegal aliens working there."
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