Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Raid casts shadow over Korean firms' US investments
U.S. police officers arrest Korean workers at the construction site of HL-GA Battery's electric vehicle battery plant in Georgia, Thursday (local time), after Immigration and Customs Enforcement (ICE) raided the joint venture between Hyundai Motor and LG Energy Solution. Captured from ICE's website
By Park Jae-hyuk
Korean companies circumvented visa rules amid skilled worker shortages in US
Concerns are mounting among Korean companies investing in the United States after nearly 300 Korean workers were detained Thursday at the construction site of HL-GA Battery's electric vehicle battery plant in Georgia, a joint venture between Hyundai Motor and LG Energy Solution (LGES).
Amid the Donald Trump administration’s ongoing refusal to grant work visas to Koreans despite a shortage of skilled U.S. labor, Korean firms are facing a dilemma over how to address stricter immigration crackdowns and the continued pressure to manufacture goods in the U.S. using American workers.
According to industry officials, Sunday, most of the detained Korean workers entered the U.S. on B-1 visas for short-term business travel or through the Electronic System for Travel Authorization (ESTA) travel visa. Although Korean companies require the H-1B (foreign specialist) visa to send supervisors to their U.S. factory construction sites, only 85,000 specialty occupation visas are awarded worldwide each year, chosen by random lottery.
“It is unreasonable to ask companies to wait months for their employees to receive H-1B visas if there is an urgent need to send their workers to U.S. plant construction sites,” an official at a Korean company investing in the U.S. said on condition of anonymity.
Other U.S. free trade partners such as Canada, Mexico, Australia and Singapore have secured special H-1B quotas allowing them to send certain numbers of professionals each year. Korean businesspeople and politicians, however, have failed to persuade the U.S. to create an allotment of 15,000 E-4 highly skilled work visas for Korean nationals with specialized skills or expertise.
Industry officials point out that strict U.S. visa rules have forced many Korean companies to circumvent immigration laws in recent years when sending supervisors and workers to assist with factory construction. In 2020, 13 Korean nationals were arrested at SK Battery America’s construction site after entering through ESTA.
Despite such concerns, U.S. politicians argue that foreign companies must comply with U.S. laws by hiring American workers.
“If they don't want to do business with us because they have to do it legally, then we don't want them, and it is a privilege to do business in our country. So follow our laws, or we don't want you,” Tori Branum, who is known for reporting workers at the HL-GA Battery plant site, wrote on Facebook.
Kim Ki-soo, chief human resources officer at LG Energy Solution, speaks to the press at Incheon International Airport, Sunday, before heading to Georgia to meet with U.S. immigration authorities and workers detained at HL-GA Battery's plant construction site. Yonhap
Unsatisfactory skills and work ethic among U.S. workers have also been cited as reasons Korean companies rely on their own workforce.
“We have been hesitant to increase the production capacity of our U.S. plant due to its low yield rates,” said an official at another Korean company investing in the U.S. “It is difficult for us to keep investing in the factory with such a low yield rate.”
Neither Hyundai Motor nor LGES has officially complained about the recent immigration crackdown, though their $6.3 billion factory plan has been indefinitely delayed with the decision to temporarily halt sending LGES workers to the U.S.
“The top priority at this moment is the immediate release of detainees," LGES Chief Human Resources Officer Kim Ki-soo said Sunday while on the way to Georgia to meet with U.S. officials and the detained workers. "As the government is making all-out efforts, I will do our best for them to quickly and safely return to Korea.”
Later in the day, presidential Chief of Staff Kang Hoon-sik said the government has concluded talks about their release, and they will return to Korea on a charter flight once the administrative process is completed.
"To prevent similar cases from recurring, the government will work with related ministries and companies to overhaul visa systems for employees dispatched to the U.S.," Kang said. "The government will take all practical measures for the swift release of detained nationals and the stable execution of the project (the construction.)"
Hyundai Motor’s U.S. subsidiary said in a statement Friday it remains committed to full compliance with all laws and regulations in every market where it operates.
"Based on our current understanding, none of those detained is directly employed by Hyundai Motor," the company said. "Hyundai has zero tolerance for those who don’t follow the law."
To avoid tariffs and access subsidies, Korean companies have invested billions in U.S. plants for semiconductors, automobiles, batteries and steel. Under a $150 billion initiative to revive U.S. shipyards with Korean investment, shipbuilders are also seeking to construct vessels stateside.
If U.S. immigration crackdowns prompt these companies to delay or cancel investment plans, their U.S. partners could also suffer losses, missing out on job creation for American workers.