FT sources say Korean conglomerates and subcontractors in the U.S. routinely misused visas for workers on multibillion-dollar advanced manufacturing projects

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FT sources say Korean conglomerates and subcontractors in the U.S. routinely misused visas for workers on multibillion-dollar advanced manufacturing projects

Korean conglomerates and subcontractors in the U.S. are grappling with visa misuse issues, which have led to significant setbacks in multibillion-dollar advanced manufacturing projects. Recent immigration crackdowns by U.S. authorities have highlighted the severe talent dilemma and unaccommodating visa system faced by these companies. A recent U.S. immigration crackdown on Korean employees in Georgia has laid bare the visa challenges. The U.S. Immigration and Customs Enforcement (ICE) raid on Korean workers at LG Energy Solution and Hyundai Motor's joint battery plant in Savannah, Georgia, has caused a significant slowdown in factory ramp-up [1]. The raid, which detained around 300 employees, has forced the suspension of construction at the plant, which symbolizes a major shift in the EV industry's supply chain [1]. The immediate impact of the raid is evident in the suspension of construction at the Savannah-based EV battery joint venture between LG Energy Solution and Hyundai Motor. The plant, with an investment of $4.3 billion, was slated for completion in October but has now been put on hold [1]. The issue has escalated to the level of state-to-state diplomacy, with the Korean government scrambling to address the visa concerns [1]. The visa system's rigid bureaucratic nature is at odds with the on-the-ground realities of these projects. Korean workers have faced difficulties in obtaining professional work visas such as H-1B and intracompany transfer visas like L-1 and E-2 [1]. Due to long processing times and conditions favoring low-cost laborers from other countries, ESTA or B1 visas had become a common workaround [1]. Industry groups have long called for a dedicated work visa quota for Korean professionals, but these requests have largely gone unanswered [1]. The issue is not confined to the battery industry. Shipbuilding, another key area of cooperation, also faces talent acquisition hurdles. Korean shipbuilders, such as Hanwha Ocean, have struggled to hire and train local talent, with many facing issues like drug use, hindering fast and sophisticated workforce training [1]. The visa challenges are further exacerbated by a lack of a dedicated visa quota for Korean professionals. The Korea International Trade Association (KITA) and Korean firms have proposed creating 15,000 E-4 visas annually, similar to quotas for other countries [1]. However, major Congressional gridlock has made it unlikely that such a proposal will gain traction [1]. The U.S. immigration enforcement crackdowns have strained ties between South Korea and the U.S. Seoul has expressed concerns and regret over the arrests, with the foreign ministry spokesperson urging Washington to safeguard the rights of detained Koreans [2]. U.S. officials, including President Trump, have defended the actions of ICE, stating that the agency was "just doing its job" [3]. In conclusion, Korean conglomerates and subcontractors in the U.S. face significant challenges in managing visa issues for workers on multibillion-dollar advanced manufacturing projects. The visa system's rigid nature and the lack of a dedicated quota for Korean professionals have led to setbacks in these projects. As the issue escalates to state-to-state diplomacy, the future of these investments remains uncertain. References: [1] https://koreajoongangdaily.joins.com/news/2025-09-08/business/industry/US-visa-roadblock-creates-speed-bump-for-Koreas-billiondollar-investments/2394190 [2] https://www.nationalheraldindia.com/international/475-immigrants-mostly-south-koreans-detained-at-hyundai-factory-in-georgia [3] https://www.bbc.com/news/articles/cx2plmxm4r3o