U.S. Raids on South Korean Engineers Halt Joint Venture, Delay Project

South Korea and the United States have resumed working-level talks on tariff issues in Washington. The discussions covered multiple sensitive topics, including the details of the 3500 billion dollar investment plan that the U.S. agreed to implement when it reduced tariffs on South Korean goods from 25% to 15%. Additionally, the talks addressed the issue of opening South Korea's agricultural and livestock markets. The two countries reached a tariff agreement on July 30, but the specific details of the agreement have yet to be finalized.

This development comes as the U.S. has been pushing to revitalize its manufacturing sector, a goal that has been a key focus of the Trump administration. The administration has employed various tactics to achieve this, including imposing tariffs and encouraging foreign companies to invest in the U.S. However, the recent actions taken by U.S. authorities against South Korean engineers working on a joint venture with LG Energy Solution and Hyundai Motor Company in Georgia have raised concerns about the U.S.'s approach to attracting foreign investment.

On September 4, 2025, U.S. authorities conducted a large-scale raid on the construction site of the joint venture, arresting 475 workers, including over 300 South Korean nationals. The raid was carried out by multiple agencies, including the U.S. Immigration and Customs Enforcement, the U.S. Department of Homeland Security, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the Georgia State Patrol. The authorities cited violations of immigration laws and other federal crimes as the reason for the arrests.

The raid has had a significant impact on the joint venture, with both Hyundai Motor Company and LG Energy Solution announcing that they have suspended construction and are considering recalling their employees from the U.S. The companies have also expressed concern about the potential delay in the project's completion, which was originally scheduled for the end of 2025. The companies have stated that the loss of key personnel will make it difficult to meet the original timeline, and that the project may be delayed by at least a year.

The U.S. government has defended the raid, stating that it was carried out as part of an ongoing criminal investigation and that the arrests were made in accordance with the law. However, the South Korean government has expressed its concern and regret over the incident, and has called on the U.S. to ensure the safety and well-being of its citizens. The South Korean government has also announced that it will send a special plane to bring the arrested engineers back to South Korea on September 10.

The incident has raised questions about the U.S.'s approach to attracting foreign investment and its treatment of foreign workers. While the U.S. has been pushing to revitalize its manufacturing sector, the recent actions taken against South Korean engineers have sent a mixed message to potential investors. The incident has also highlighted the challenges that foreign companies face when operating in the U.S., including navigating complex immigration laws and dealing with potential legal and regulatory hurdles.

In response to the incident, the South Korean government has called on the U.S. to take steps to ensure the safety and well-being of its citizens and to provide a more favorable environment for foreign investment. The South Korean government has also expressed its willingness to work with the U.S. to address any outstanding issues and to strengthen bilateral relations. The U.S. government, for its part, has stated that it is committed to working with South Korea to resolve the issue and to promote greater cooperation between the two countries.