US immigration authorities have raided the site of a new joint venture between South Korea’s Hyundai Motor Group (HMG) and LG Energy Solution, HL-GA Battery Company, located in Bryan County, in the US state of Georgia.
The raid, conducted on the site of a new electric vehicle (EV) battery plant under construction near HMG’s newly-built vehicle assembly plant, resulted in the detention of 475 people, the majority of whom were South Korean nationals.
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According to South Korea’s Foreign Minister Cho Hyun, US Immigration and Customs Enforcement (ICE) federal agents detained around 300 South Korean nationals, with an investigation launched into “unlawful employment practices.” Many of those detained are understood to include specialist automotive industry personnel employed to install advanced manufacturing facilities and equipment at the plant.
The raid came just a month after the US and South Korea reached a broad-based trade agreement, which included a 15% import tariff applied on South Korean vehicles imported into the US and South Korea agreeing to generate US$ 350 billion in investments in the US. So far, South Korean companies have committed to investing US$ 150 billion. The auto industry is spearheading Korea’s US investment ambitions, led by Hyundai Motor Group.
The South Korean government expressed “concern and regret” over the raid that targeted mainly its citizens, and sent diplomats to help negotiate their release. South Korea’s Presidential Chief of Staff, Kang Hoon-sik, confirmed that South Korea and the US have already finalized negotiations for the workers’ release, with South Korea planning to charter a plane to repatriate the workers as soon as the remaining administrative formalities are completed.
The EV battery plant was scheduled to be completed by the end of 2025, but it is unclear whether this will be delayed due to the detention and deportation of the South Korean workers. A spokesperson for Hyundai-GA Battery Company said construction work at the site has been suspended and that the company is cooperating fully with the US authorities.
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By GlobalDataA spokesperson for the US Department of Homeland Security said the arrested workers will be barred from working in the US, after crossing the border illegally or overstaying visas, following an investigation that lasted several months.
Kang Hoon-sik said in a statement: “To prevent similar incidents in the future, we will review and improve the accommodation and visa system for those on US project business trips in cooperation with the Ministry of Trade, Industry and Energy and related companies. The government will ensure the practical implementation of all measures to harmoniously achieve the two goals of the swift release of detained citizens and the stable execution of the investment project.”
