Hyundai Factory Raid Stirs U.S.-South Korea Tensions, Local Discontent

In a significant development, the U.S. Immigration and Customs Enforcement (ICE) conducted a raid on an electric battery factory in Georgia, owned by Hyundai Motor Co. This action has heightened tensions between the U.S. and South Korea, and has also exacerbated local discontent. The factory, part of a larger manufacturing complex with a total investment of 7.6 billion dollars, has been a source of frustration for local residents who feel excluded from the job opportunities, economic benefits, and wealth generated by the project.

In the nearby port city of Savannah, local leaders have questioned the hiring practices of the battery factory, which is a joint venture between Hyundai and LG Energy Solution Ltd. The state governor, a Republican, and other local politicians had initially hailed the project as a boon for the region, providing over 2 billion dollars in tax incentives. However, the local community, which is predominantly African American and Democrat-leaning, feels that the benefits of the project have not trickled down to them. A local professor and radio host, Jamal Toure, expressed the community's frustration, stating that despite initial promises of job creation, the factory has not hired local residents due to a lack of relevant training.

In Bryan County, located about 25 miles west of Savannah, the Hyundai "Metaplant" industrial park is situated in a former rural area. The county, which is predominantly white and has strong support for Donald Trump and other Republicans, shares similar concerns about who will benefit from the economic boom. A local resident, Megan Lee, noted that while the factory has brought some economic activity to the area, she and her neighbors have not seen direct benefits. She expressed a preference for the area's previous, more rural character.

Last week, ICE agents arrested 475 individuals, mostly from South Korea, for allegedly working illegally at the factory. This incident has sparked ongoing discussions in Washington, Seoul, and global corporate boardrooms. The foreign ministers of the U.S. and South Korea held talks in Washington to ease tensions, and South Korean workers were allowed to return home on Thursday.

The local opposition to the factory is complex, consisting of activists concerned about job opportunities in underserved communities and those generally opposed to development. Many are confused about the factory's operations and the distinction between temporary construction jobs and permanent positions. The situation in Savannah poses a risk to Trump's goal of attracting more foreign investment to revitalize U.S. manufacturing.

Several South Korean companies, including LG Energy Solution and SK On, have plans to build approximately 22 factories in the U.S. However, the progress of these projects depends on the ability to quickly move trained engineers across borders. Visa processing delays and increased immigration scrutiny are hindering this process.

Asian companies dominate the global electric vehicle battery market, having developed the technology over decades. U.S. battery manufacturing executives, who requested anonymity due to the sensitive nature of the discussion, noted that companies looking to bring this technology to the U.S. often form joint ventures with Asian partners. Tensions can arise due to language barriers, cultural differences, or intellectual property issues.

These manufacturers typically hire U.S. companies to build the production line facilities but rely on employees from the equipment vendors, often from South Korea, Japan, or China, to install specialized equipment. This is because they aim to replicate a highly precise system where even minor defects can contaminate the entire production line, rendering the batteries unusable. Once the equipment is installed and operational, local workers are trained to take over the long-term positions.

Other Asian manufacturers in the U.S. also bring in overseas personnel for technical work during the construction phase, but the number is usually in the tens, not hundreds. The Hyundai manufacturing complex in Georgia is located along Interstate 16 in the town of Ellabell, with newly paved streets named after Hyundai and Kia. The Hyundai car assembly plant is already producing the Ioniq 5 and Ioniq 9 electric vehicles and plans to expand its capacity.

A spokesperson for Hyundai's "Metaplant" stated that the ICE raid did not affect the main car assembly plant. When asked about hiring practices and the immigration raid, the spokesperson referred questions to LG Energy Solution, which declined to comment on the hiring process. The Savannah Economic Development Authority, which played a key role in attracting Hyundai to the area, stated that the detained workers were not full-time employees but consisted of three groups: construction workers, equipment installers, and trainers.

The spokesperson also noted that the Hyundai car assembly plant and related companies in the park currently employ over 2,800 people, with more than 50% being African American. Some local companies that provide labor to Korean-owned component factories have expressed frustration that these factories prefer to hire Korean workers or collaborate with Korean-owned staffing agencies, causing tension in the community.

One local staffing agency owner revealed that about a year ago, they provided approximately 60 temporary workers to a Hyundai supplier in the Lincon area. However, the supplier later terminated the contract and hired workers from South Korea instead. To avoid offending potential future partners, the owner requested anonymity. The replaced workers were involved in assembly work, which is not typically considered a technical position.

Another local staffing agency executive, who also requested anonymity due to business concerns, stated that Hyundai's suppliers tend to work with other Korean-owned local companies for hiring. To adapt to this situation, the executive began collaborating with a Korean-owned staffing agency that lacked a stable talent pipeline, while the executive provided the labor force.

The executive also mentioned that many workers in Savannah are dissatisfied with Hyundai and its suppliers due to strict work rules, where even minor mistakes can result in immediate termination. Michael Obrecht, who runs a boutique recruitment firm in the northern mountains of Georgia, specializing in battery and energy storage talent, mentioned that he had previously reached out to the Hyundai-LG joint venture battery plant but was informed that they had their own network for hiring "hard-to-find" positions.

Obrecht welcomed the ICE raid, expressing disappointment that the company did not consider hiring American citizens for these positions. "They didn't even consider letting Americans apply for these jobs," he lamented. "They just said, 'No, we have our own people.'"

Governor Brian Kemp of Georgia emphasized the state's commitment to its relationship with South Korea and Hyundai, thanking them for their pledge to comply with U.S. state and federal laws. "As President Trump pointed out, our relationship with the South Korean government and businesses is strong," he stated.

Since the ICE raid, many businesses that cater to Korean workers have seen a decline in revenue. J. Brown, a local resident, explained that his landscaping company's employees are afraid of encountering ICE agents. "Would you go to work if you were in their situation?" he asked. At the "912 Korean BBQ Hotpot Restaurant" in Pooler, Georgia, server LuLu noted that Hyundai factory employees have stopped frequenting the establishment in the past week.

However, other less conspicuous establishments seem to be faring better. At the nearby "Jin Guk" restaurant, all seats were occupied, with over 50 patrons dining while a Korean golf tournament played on an LG flat-screen TV. An employee at the cash register, who appeared to be the only one fluent in both English and Korean, stated that the staff had expected the raid to negatively impact business, but this was not the case.

A Korean engineer working at the battery factory, who requested anonymity and only revealed his last name as Lee, mentioned that he entered the U.S. on a temporary visa to install equipment and train personnel. He arrived in Georgia a day after the immigration raid. "We assist the factory in installing and debugging equipment and also oversee some aspects of the process," Lee said outside the "Jin Guk" restaurant. "We will stay here for 3 to 6 months, complete the training, ensure all equipment is operational, and then return to South Korea."