South Korean companies will be very hesitant about investing in the US following a massive immigration raid at a Hyundai plant in the state of Georgia last week, President Lee Jae Myung has said.
More than 300 South Koreans who were arrested in the raid have now been released from detention and are due to return home on Friday after having their release delayed by more than a day.
Their departure was delayed because of an instruction from the White House, Lee added.
President Donald Trump ordered the pause to check whether the workers were willing to remain in the US to continue working and training Americans, according to a South Korean foreign ministry official.
Lee, speaking at a news conference marking the first 100 days of his presidency, stated that the situation is extremely bewildering, highlighting that it is common for Korean firms to send workers to help set up overseas factories.
He noted, If that's no longer allowed, establishing manufacturing facilities in the US will only become more difficult... making companies question whether it's worth doing at all. Seoul is currently negotiating with Washington on visa options for South Korean workers, discussing whether to secure higher quotas or create new visa categories.
Lee expressed hope that the US will address the visa issues if deemed a practical necessity. The BBC has reached out to the White House for comments.
Last week, US officials detained 475 people - more than 300 of them South Korean nationals - who they said were working illegally at the battery facility, one of the largest foreign investment projects in Georgia.
LG Energy Solution, which operates the plant with Hyundai, stated that many of the arrested employees had various types of visas or were under a visa waiver programme.
A worker at the plant described the panic and confusion during the raid, noting that the majority of the detained workers were mechanics installing production lines and were employed by a contractor.
As a close ally in Asia, South Korea has pledged to invest tens of billions of dollars in America, partly to offset tariffs. However, South Korean media characterized the raid as a shock, with the Dong-A Ilbo warning of a chilling effect on business activities in the United States.
The timing of the raid, amid sensitive trade talks between the two governments, has raised concerns in Seoul. The White House defended the operation, dismissing fears that such actions could deter foreign investment.
On Sunday, President Trump referenced the raid via social media and called for foreign companies to hire Americans, stating that the US government would make it quickly possible for foreign firms to bring workers into the country provided they respect immigration laws.
