US states race to retain Korean investors after immigration raid

A signboard stands at the construction site of HL-GA Battery's electric vehicle battery plant in the U.S. state of Georgia, Sept. 11. Yonhap

A growing number of U.S. state governors have reaffirmed the importance of Korean companies investing in their states. Their moves to court the Korean firms came after a massive immigration raid at HL-GA Battery’s Georgia factory on Sept. 4 and the subsequent weeklong detention of more than 300 Korean workers, which has prompted some firms to reconsider their planned investments in the U.S.

Georgia Gov. Brian Kemp said Tuesday (local time) that the raid highlighted the need for reforms to the U.S. visa system. He made the remarks a day after the state issued a press release noting that Korea was among the top sources of international investment in his state, along with Japan and Canada.

"That's not a problem that was just for Hyundai: a lot of companies across the country have dealt with that," Kemp said at the construction site of Rivian's new electric vehicle plant.

The Republican governor previously defended Immigration and Customs Enforcement (ICE), which raided the construction site for the plant, a joint venture between Hyundai Motor and LG Energy Solution. A day after the raid, his spokesperson confirmed that the state's Department of Public Safety coordinated with ICE to provide support for the operation, saying that Georgia will always enforce all state and federal immigration laws.

However, Kemp reversed course after U.S. President Donald Trump acknowledged the need for foreign experts to train U.S. workers.

"I don't want to frighten off or disincentivize Investment into America by outside Countries or Companies," Trump wrote Sunday on social media. "We welcome them, we welcome their employees, & we are willing to proudly say we will learn from them, & do even better than them."

In Louisiana, where Hyundai Steel is planning to build a steel mill with a $5.8 billion investment, Gov. Jeff Landry said Tuesday that the project remains on track and denied any possibility of a raid similar to Georgia’s happening in his state.

"I don't expect anybody illegally to be working on the project," he said.

Texas Gov. Greg Abbott, another Republican governor, emphasized Samsung Electronics’ contribution to his state, announcing Wednesday that the Korean company’s semiconductor plant in Taylor has been allowed to receive $250 million in subsidies.

"With approximately $40 billion invested in Texas, Samsung is helping to cement Texas' position as the leading state for semiconductor manufacturing, bringing in more business investment to Texas communities and creating thousands of good-paying jobs for hardworking Texans," he said.

Some U.S. institutions have been more outspoken in criticizing the immigration raid and the detention of the Korean workers.

Trip Tollison, president of Georgia's Savannah Economic Development Authority, told local media Wednesday that the state is relying on Korean workers, who are the only ones who can install and teach future employees about technology such as battery cell equipment. Georgia Chamber of Commerce CEO Chris Clark also said Korean workers bring unique expertise and knowledge that will benefit the state's workforce in the long term.

The U.S. Congressional Research Service said in a recent report that the Georgia incident has raised concerns in Korea about the bilateral relationship and questions about whether U.S. immigration policy may conflict with efforts to increase U.S. manufacturing jobs through foreign investment.

Civic groups stage a protest across the street from the U.S. Embassy in central Seoul, Thursday, calling for U.S. President Donald Trump to apologize for the detention of Korean workers in Georgia and for Korean companies to scrap their U.S. investment plans. Yonhap

Amid U.S. efforts to prevent Korean firms from leaving the country, Hyundai Motor and other major companies have ostensibly committed to pushing ahead with their planned U.S. investments. The Ministry of Foreign Affairs also launched a pan-governmental task force Thursday to cope with the U.S. visa issue in collaboration with business associations.

However, some Korean firms are reportedly considering relocating facilities to Mexico or Canada. Civic groups and labor unions in Korea are also calling for companies to scrap their U.S. investment plans, denouncing the detention of Korean workers.