ICE raid surfaces risks as Korea Inc. eyes large-scale investment in United States

U.S. visa crackdowns are emerging as a new risk for Korean companies seeking to expand investment in the United States after authorities detained about 300 Korean workers during a raid at an electric vehicle battery plant run in Georgia on Thursday.

This handout photo released by U.S. Immigration and Customs Enforcement on Sept. 5 allegedly shows a Homeland Security Investigations police officer during a federal search warrant at a company in Ellabell, Georgia, on Sept. 4. [AFP/YONHAP]

U.S. visa crackdowns are emerging as a new risk for Korean companies seeking to expand investment in the United States after authorities detained about 300 Korean workers during a raid at an electric vehicle battery plant run by Hyundai Motor and LG Energy Solution in Georgia on Thursday.

The presidential office said Sunday it had concluded negotiations to secure the release of the detained workers, but the risk of further visa crackdowns still hangs over Korean firms.

LG Energy Solution dispatched Chief Human Resources Officer Kim Ki-soo to the United States on Sunday. The company has also suspended all business trips to the United States except for unavoidable cases, such as client meetings, and ordered its staff in the country to either return to Korea or remain in their accommodation.

“The top priority is the swift release of the detained employees," Kim said at Incheon International Airport before departing. "We will do our utmost to ensure their safe and speedy return.”

Kim Ki-soo, chief human resources officer of LG Energy Solution, speaks to reporters at Incheon International Airport on Sept. 7 before departing for the United States. [NEWS1]

Hyundai Motor has also activated an emergency task force in preparation for further inspections and recommended employees postpone travel to the United States unless absolutely necessary.

The company also plans to tighten visa checks for subcontractors. Other Korean firms with ongoing factory projects in the United States, including SK On, Samsung SDI, Hanwha Ocean, LS Cable & System, Hyosung Heavy Industries and CJ Foodville, are urgently reviewing visa issuance for their staff.

"We have concluded negotiations for the release of the detainees," presidential chief of staff Kang Hoon-sik said on Sunday. “To prevent recurrence and similar incidents, we will work with the Ministry of Trade, Industry and Energy and related companies to check the visa systems and residency status of travelers linked to U.S. projects.”

Presidential chief of staff Kang Hoon-sik speaks during a high-level meeting of the Democratic Party and government officials at the prime minister’s residence in central Seoul on Sept. 7. [YONHAP]

The Wall Street Journal said the incident is where “two of Trump’s key policies — cracking down on illegal immigration and rebuilding U.S. manufacturing — have unexpectedly collided,” adding that it introduced “fresh risk to overseas firms eyeing American investment to satisfy President Trump’s trade demands.”

The raid came after the Trump administration had determined that some Korean workers used the Electronic System for Travel Authorization (ESTA) — intended for tourism or short-term business trips — as de facto 90-day work visas, tightening its entry checks.

“Strictly speaking, working in the United States for 90 days under an ESTA instead of a proper visa is a loophole,” said Jung Man-suk, a lawyer at Daeyang Immigration Law Group.

In June, dozens of LG Energy Solution engineers without work visas were denied entry after attempting to use an ESTA. Samsung Electronics later warned its staff not to stay longer than two weeks on ESTAs during U.S. business trips.

“We even required employees filming a promotional video in the United States to get a proper B-1 short-term business visa, which shows how cautious we’ve become," said an executive at a secondary battery maker.

This handout photo released by U.S. Immigration and Customs Enforcement on Sept. 5 allegedly shows a Homeland Security Investigations police officer during a federal search warrant at a company in Ellabell, Georgia, on Sept. 4. [AFP/YONHAP]

Industry officials said the crackdown amounts to pressure on Korean firms to hire more U.S. workers, but finding local talent with the necessary expertise remains difficult, especially during factory construction and early operation steps.

“There have been cases where we urgently dispatched Korean engineers to fix problems during the stabilization phase,” said one official involved in a U.S. plant project. “The further down you go into subcontracting, the looser the visa management tends to get.”

Korean workers face hurdles in obtaining professional work visas such as H-1B, intracompany transfer visas like L-1 and E-2 or short-term business visas like B-1.

Acquiring a B-1 visa takes at least 100 days, and smaller subcontractors face even greater difficulties than large contractors due to employment requirements.

LG Energy Solution's factory in Michigan, United States [LG ENERGY SOLUTION]

The U.S. State Department said 27.8 percent of B-1 visa applications were rejected last year, meaning more than one in four applicants were turned away after waiting months.

Industry groups have called for a dedicated work visa quota for Korean professionals. The Korea International Trade Association and Korean firms have proposed creating 15,000 E-4 visas annually, similar to quotas already in place for other countries. Australia has 10,500, Singapore 5,400 and Chile 1,400 — but Korea currently has none.

“Visa issues are not something companies can resolve on their own — they require government-to-government talks,” said Chang Sang-sik, head of the International Trade Research Institute at the Korea International Trade Association. “The U.S. government needs to resolve visa bottlenecks for essential personnel if it wants Korean investment projects to proceed smoothly.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom. BY KIM KI-HWAN [paik.jihwan@joongang.co.kr]