South Korean Prez Lee says detention of workers in US may impact investments

South Korean President Lee Jae Myung on Thursday said that companies based in the country will be hesitant to invest and operate in the US in the absence of a proper visa system for its workers.

Lee’s comments came days after over 300 South Korean workers were detained during an ICE raid at a battery factory under construction at Hyundai’s sprawling auto plant in Georgia. He added that the workers would be brought into the country via a charter plane on Friday.

South Korean and US officials are discussing a possible improvement to the US visa system, Lee said, adding that under the current system, South Korean companies “can’t help but hesitate a lot” about making direct investments in the US.

Whether the US establishes a visa system allowing South Korean companies to send skilled workers to work at industrial sites will have a “major impact” on future South Korean investments in the US, Lee said.

Last week, approximately 475 workers were arrested, marking the largest single-site enforcement action in the history of the US Department of Homeland Security (DHS).

Steven Schrank, a Homeland Security Investigations special agent in Atlanta, said that the recent raids were part of a “criminal investigation into allegations of unlawful employment practices and serious federal crimes” at the Hyundai Motor-LG Energy Solution joint venture plant in the town of Ellabell.

‘Cultural differences’

Addressing a press conference on his 100th day in office, Lee blamed the raid on “cultural differences”, saying that in South Korea, American nationals teaching English while on a tourist visa was not seen as “a serious issue”.

After the detentions, South Korean companies “can’t help but question whether setting up a plant in the US is worth the potential risks,” the president said.

“This could have a significant impact on future investment decisions, particularly when evaluating the feasibility of direct operations in the US,” he added.

Will there be a new visa system?

Lee said Seoul was negotiating with Washington “to ensure that visa issuance for investment-related purposes operates normally”.

This could include “securing additional quotas” or even creating a new visa category, he said, adding that he trusted the “US side will find a solution”.

Images of the South Korean workers being chained and handcuffed have caused widespread alarm, and Seoul has said it negotiated to make sure the workers were not handcuffed again as they were repatriated.

With inputs from agencies