South Korea Learns Hard Lesson on Trump-Era US Business Deals

The Raid That Stunned an Ally

Nearly 500 armed officers stormed Hyundai Motor Group’s EV battery plant construction site in Georgia, detaining 475 workers—most of them South Korean nationals. Workers described the raid as chaotic, with some hiding in ducts and others fleeing into a sewage pond before being caught.

The incident immediately froze construction at the $350 billion facility, shaking South Korea’s trust in its US partnership.

A Deal With Strings Attached

The raid came less than two weeks after President Trump and South Korean President Lee Jae Myung celebrated Seoul’s massive US investment. For Trump, the message was clear: foreign companies are welcome if they create American jobs. Yet the reliance on Korean specialists to install proprietary equipment and train US workers—often on short-term or murky visas—was an open secret.

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A Longstanding Tension Over Visas

Korean executives told the Financial Times they were in an “impossible position.” Successive US administrations encouraged investment but failed to provide streamlined visa pathways for short-term technical staff. For years, local authorities had looked the other way, but Georgia’s government supported ICE in executing the September raid.

Political Shockwaves in South Korea

The images of Korean workers shackled in buses dominated South Korean media, triggering outrage. Former Vice Foreign Minister Choi Jong-gun called the arrests “humiliating” and said Koreans were treated “as if they were terrorists or thugs.” Seoul has already pledged to charter flights to return detainees, but the political damage is harder to undo.

A Chilling Effect on Future Investment

While Hyundai says its US investment plans remain intact, it admitted business trips on short-term visas are under internal review. Samsung has also issued strict limits on US travel for employees. The raid may cool the willingness of Korean conglomerates to follow through on ambitious American expansion projects.

Georgia’s Hardline Stance

Georgia Governor Brian Kemp’s office defended the operation, stating the state “will always enforce the law, including all state and federal immigration laws.” The message underscores how state and federal agencies are aligned under Trump’s second term, regardless of international fallout.

Strategic Partnership Under Strain

South Korea is one of America’s closest allies and its sixth-largest trading partner. Yet this episode has exposed the fragility of trust when domestic US politics collide with international business commitments. For allies investing billions into Trump’s “America First” agenda, the Hyundai raid may serve as a stark warning: no deal is without risk.

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