KATHMANDU: An immigration raid at a Hyundai-LG electric vehicle (EV) battery plant in Ellabell, Georgia, has shaken the U.S. auto industry and foreign investors.
On September 4, 2025, federal agents detained about 475 people at the site, many of whom were South Korean engineers and technicians brought in to help set up the new high-tech factory.
Officials said many workers were in the country on business or visa waivers that did not allow them to work, instead of proper work visas. South Korean companies say U.S. visa rules make it hard to get short-term permits for skilled workers, even as the U.S. wants more foreign investment and local manufacturing.
The raid has delayed Hyundai’s project, with the company saying the plant’s opening may be pushed back by two to three months. Other Korean companies have also slowed or paused their projects due to concerns about labor shortages, higher costs and stricter regulations.
Analysts warn the move could worsen shortages of skilled workers needed for large construction efforts in the U.S.
The incident has also caused diplomatic tension. South Korea’s president warned that strict enforcement could discourage investment, while South Korean officials went to Washington to resolve the issue and secure the release of the detained workers.
The incident highlights the challenge of balancing strict immigration rules with efforts to strengthen supply chains and create jobs.
Some observers say the raid was driven as much by political pressure as by immigration concerns, noting that a strong focus on deportations could harm economic goals.
To avoid similar issues, the U.S. and South Korea have agreed to discuss a new visa category for short-term skilled workers. Officials in Seoul have also urged companies to follow visa rules carefully and coordinate with U.S. agencies when sending staff abroad.
For now, the raid has created uncertainty for South Korean companies investing in America’s growing EV supply chain. How both governments handle labor and visa rules will be crucial to keeping projects on track and protecting future investment.
