Could the US’ visa system be scaring off businesses? There is already evidence of South Korean investor hesitation following the recent incident at a Hyundai-LG Georgia factory site last week. Over 300 Korean workers were detained in the US after a raid was conducted at a battery factory that was under construction. On Thursday, South Korea’s president warned that Korean businesses will now think twice before making any future investments in the US until the country makes changes to its visa system promptly.
In the high-stakes world of global business expansion, the recruitment of top talent is not as easy when there are also geopolitical considerations to be made, while being confronted by regulatory crackdowns. Korea’s visa reform demands have emerged as a result of a single recent incident, but growing difficulties with regulations could result in more businesses hesitating to invest in a country where the labor force is already dwindling.
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South Korean Investors May Hesitate to Bring Business to the US: What the Georgia Raid and Visa Issues Teach Us
A dramatic immigration raid at a Hyundai and LG battery plant under construction in Georgia on September 4 resulted in the detention of hundreds of workers. Around 300 of them were South Korean workers who were caught on video being chained and handcuffed by US authorities. The incident sparked diplomatic fury, but South Korea was quick to take action, sending a charter plane to the US to bring back its workers.
South Korean officials claimed that they had negotiated with the US to allow for “voluntary” departures of these detained workers rather than deportations, as in the latter case, workers would be debarred from re-entering the US for up to 10 years.
What Caused the Georgia Raid and the Resulting Visa Issues?
US authorities accused the detained workers of illegally crossing the US border or having expired visas. South Korea, on the other hand, has relied on bringing skilled workers through short-term visitor visas or Electronic System for Travel Authorization to help set up manufacturing sites in the US for years now.
The raid came less than two weeks after a meeting between the presidents of South Korea and the US, which reassured both parties of continued peace between the two countries. While the US agreed to back down on some of its higher tariff impositions, South Korea promised investments of $350 billion in the US.
As South Korea brings detained workers back home, Korean investors could continue to hesitate in establishing themselves in the US.
What President Lee Had to Say About the Visa System Scaring Off Business
During a conference marking South Korean President Lee Jae-Myung’s 100-day milestone in office, he explained that under the current system, South Korean companies can’t help but “hesitate a lot” about making any direct investments into the US.
Talking about the dearth of the necessary talent to set up these facilities, he explained, “It’s not like these are long-term workers. When you build a factory or install equipment at a factory, you need technicians, but the United States doesn’t have that workforce, and yet they won’t issue visas to let our people stay and do the work.”
According to AP News, he also added, “If that’s not possible, then establishing a local factory in the United States will either come with severe disadvantages or become very difficult for our companies. They will wonder whether they should even do it.” The Georgia raid and resulting visa issues bring up a question of local talent vs external expertise, and the slow-fading opportunities to collaborate with both parties.
What the Ongoing Visa Issues Will Mean for US Businesses
The Korean workers in Georgia are being released, but the issue has put many businesses on high alert. The implications extend far beyond Hyundai and South Korea, and remind businesses about the strict demands of worker regulation compliance in the US. Businesses that operate in the US will have to continue to study the geopolitical climate and integrate additional risk assessments into their business model to plan their expansions carefully.
The hiring of immigrant labor is much harder in 2025, but reports have emerged of crops languishing in agricultural states like California and Texas due to the shortage of laborers. Even in the corporate space, the changing regulations around the H-1B visa will require businesses to be more strategic about recruiting talent from other regions.
Businesses will have to look into embedding immigration discussions into C-suite decisions so they can mitigate such shocks and ensure that their bold investments yield innovation, not indictments.
What Can HR Do to Adapt to the Changing Regulations?
The need for a strategic approach to hiring without coming under fire from federal forces is essential to keep businesses alive in 2025. There is also the consideration of employee well-being. With the current climate, HR teams that do hire externally will have to look into employee safety and well-being to ensure they can navigate the regulations expertly in the US.
Investing in US training programs to upskill talent is a viable solution, but there will be project delays and talent gaps until workers can be brought up to speed. Designing standard relocation packages, enhancing crisis response planning with on-site legal teams, fostering cross-cultural collaborations, and advocating for visa reforms via industry groups are just some of the changes that HR teams can lead while the conversation regarding visa reform authorizations continues to take shape.
We’ll keep an eye out to study whether Korean investors ultimately hold back from investing in the US and whether Korea’s visa reform demands are met fairly. It’s just as essential for other businesses to do the same, to ensure they are aware of how the landscape of work evolves in 2025 and beyond.
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