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South Korea Warns of Investment Fallout After U.S. Immigration Raid

UPDATE: South Korean President Lee Jae Myung has issued a stark warning that a recent U.S. immigration raid could severely impact South Korean companies’ investment decisions in the United States. This urgent development follows U.S. Immigration and Customs Enforcement (ICE) detaining 475 workers at a Hyundai Motor project in Ellabell, Georgia, on September 4, 2023.

The raid, which is now recognized as one of the largest in ICE’s history, has raised serious concerns over the future of multinational investments. Among those detained, more than 300 were South Korean nationals, causing an uproar back home. President Lee expressed fears that such enforcement actions could make it “very hesitant” for Korean firms to invest in the U.S., stating, “It could be disadvantageous or difficult to set up a factory there.”

Construction at the site has come to a halt, raising alarms about the broader implications for job creation and economic collaboration between the U.S. and South Korea. This joint venture between Hyundai Motor Group and LG Energy Solution is touted as a significant job-creation project that U.S. officials have heavily promoted.

Just days after a summit between President Lee and U.S. President Donald Trump, during which South Korea committed to investing $350 billion in the U.S. to avert higher tariffs, this immigration crackdown appears to undermine those diplomatic efforts. At a news conference marking his first 100 days in office, Lee stated that companies are now “agonizing” over their future in the U.S. due to the tightened immigration policies.

The raid has prompted widespread outrage, especially as footage of the detained workers being led away in chains circulated in South Korea. President Lee confirmed that the detained Koreans would start returning home on Friday, September 8, with a chartered flight scheduled to arrive in Seoul later that day.

Sean King, a senior vice president at Park Strategies, remarked that the Georgia incident could cause “real concern” among foreign companies trying to meet President Trump’s demands for increased investment in the U.S. Meanwhile, President Trump assured investors on his Truth Social account, emphasizing that foreign investments are welcome as long as they comply with U.S. laws.

As the situation unfolds, the return of the South Korean workers will likely draw significant media attention, with many eager to hear their accounts of the raid. Any indication of mistreatment could escalate public anger and deepen corporate anxieties regarding U.S. investments.

What Happens Next: With the South Korean workers expected to arrive home later today, all eyes will be on their testimonies regarding the raid and its aftermath. The implications for future investments could be profound, making this a developing story to watch closely.

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