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South Korea Warns of Investment Hesitation Over US Visa Issues

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On September 11, 2025, South Korea’s President Lee Jae Myung urged the US to improve its visa system for Korean workers. Speaking at a press conference marking his 100 days in office, Lee warned that South Korean companies may hesitate to invest in the US without changes.

His comments followed a September 4 immigration raid in Georgia, where authorities detained over 300 South Korean workers at a Hyundai battery factory.

Hyundai Raid Sparks Tensions

The raid targeted a Hyundai-LG Energy Solution plant in Georgia, a major economic project. US officials said some workers crossed the border illegally, while others used expired visas or visa waivers barring work.

South Korea secured the release of 330 detainees, including 316 Koreans, who will return home on a chartered flight on September 12, 2025.

Visa System Challenges

Lee highlighted the US’s failure to address South Korea’s long-standing request for a visa system supporting skilled workers.

South Korean firms rely on short-term visitor visas or the Electronic System for Travel Authorization (ESTA) for setup tasks, a practice previously tolerated. Lee noted:

  • Skilled technicians are needed for factory setups.
  • The US lacks this workforce but restricts visas.
  • Without reforms, investments may decline.

Economic Implications

South Korea, a major US investor, pledged $350 billion in July 2025 to secure a trade deal. Lee warned that visa restrictions could deter future investments.

“If the US doesn’t allow our skilled workers, companies will question building factories here,” he said.

Discussions between US and South Korean officials are ongoing to address visa policies.

Why It Matters

The visa dispute strains US-South Korea economic ties, critical for trade and innovation.

The raid, occurring shortly after a US-South Korea summit, underscores tensions. Resolving visa issues is vital to sustain investments and bilateral cooperation.

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