Washington, D.C. – Sept. 8, 2025
Former President Donald Trump has called on all foreign companies operating in the United States to “hire and train American workers,” following a massive Immigration and Customs Enforcement (ICE) raid at a Hyundai-LG EV battery plant in Georgia.
The Sept. 4 operation, which Homeland Security described as the largest single-site immigration enforcement action in U.S. history, resulted in the detention of nearly 500 workers, including over 300 South Koreans — many of them engineers and instructors — and nearly 200 Latino workers.
Images of handcuffed detainees being led to buses were widely broadcast in South Korea, triggering political backlash in Seoul and rattling Korean investors with significant stakes in U.S. manufacturing.
“Following the Immigration Enforcement Operation on the Hyundai Battery Plant in Georgia, I am hereby calling on all Foreign Companies investing in the United States to please respect our Nation’s Immigration Laws,” Trump wrote on Truth Social early Monday.
He emphasized that while the U.S. welcomes international investment and foreign talent, companies must legally obtain work authorization and commit to training American employees.
Later, speaking to reporters, Trump said: “They were illegal aliens, and ICE was just doing its job.”
Korean Workers to Return Home
South Korea confirmed Sunday that an agreement had been reached with the Trump administration to release the detained nationals. Chief of Staff Kang Hoon-sik said that “only administrative procedures remain” before the workers board chartered flights back to Seoul.
Trade Minister Yeo Han-koo acknowledged growing concerns and said the government would explore ways to improve its labor deployment system to prevent similar incidents.
Foreign Minister Cho Hyun departed for Washington to finalize the agreement and told reporters he may return with the detainees as soon as Wednesday.
Corporate Fallout
The raid has already had significant repercussions for South Korean companies:
- LG Energy has postponed the launch of EV battery production at the Georgia facility, initially scheduled for this year. Production is now delayed until at least early 2026.
- Hyundai has restricted employee travel to the U.S.
- Samsung Electronics has tightened business travel under the ESTA visa waiver program, advising employees to limit U.S. stays to two weeks.
LG Energy told Bloomberg that the delay was originally attributed to “market conditions,” but analysts now say the ICE raid and diplomatic fallout could further extend production timelines.
Hyundai and Kia, which rely on the Georgia plant for EV battery supply, have yet to confirm business impacts but are closely monitoring the situation.
Diplomatic Tensions Amid Investment Boom
The raid occurred less than two weeks after a high-profile summit between South Korean President Lee Jae Myung and President Trump in Washington, where the two leaders touted a trade pact backed by a $350 billion U.S. fund to support Korean investment.
Korean firms had pledged $150 billion in direct U.S. spending, but recent developments have cast doubt on these commitments.
Analysts, including Kang DaeKwun of Life Asset Management, cited rising costs, labor shortages, and new immigration hurdles as major headwinds for Korean businesses in the U.S.
SK Group Chairman Chey Tae-won called on the Korean government to negotiate expanded U.S. visa quotas to avoid similar disruptions for skilled Korean workers.
Industry Impact
The Georgia plant is a cornerstone of the Trump administration’s strategy to build a domestic EV supply chain. However, the ICE crackdown and resulting production delays now threaten the timelines of Hyundai, Kia, and LG Energy’s expansion plans.
Yuanta Securities analyst Anna Lee warned that mass production in 2026 is no longer realistic due to the complex visa and diplomatic challenges ahead. However, she noted that the financial impact may be limited, as LG had already forecast potential delays.
Despite the political shockwave, investor response in Seoul was subdued: LG Energy shares rose 0.2% on Monday, while Hyundai dipped 0.7%, underperforming the broader market.
