25.09.08.Today News : Hyundai, LG Energy Face Setbacks After Undocumented Korean Workers Detained at U.S. Plant

Hyundai, LG Energy Face Setbacks After Undocumented Korean Workers Detained at U.S. Plant

📍Over 300 Korean workers detained in Georgia battery plant raid; project delays raise uncertainty for North American strategy

Hyundai Motor Group and LG Energy Solution’s joint battery plant project in Georgia has been disrupted after U.S. authorities detained over 300 Korean workers during a large-scale immigration raid. The incident has halted construction and raised major concerns over labor shortages, trade tensions, and the companies’ North American investment strategies.

A situation arose in which approximately 300 Korean workers were detained.

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■ Mass Raid and Detention of Korean Workers
On September 4, U.S. Immigration and Customs Enforcement (ICE) and Homeland Security Investigations (HSI) raided the construction site of HL-GA Battery Company, a joint venture between Hyundai Motor Group and LG Energy Solution. More than 450 undocumented workers were detained, including approximately 300 Koreans, many of whom were employees of subcontractors affiliated with Hyundai Engineering and LG Energy Solution. Most of the detained Koreans are expected to return voluntarily, with Seoul and Washington discussing charter flights for repatriation.

■ Construction Halt and Project Disruption
The HL-GA plant, established in 2023 with an investment of $4.3 billion, was scheduled for completion in October this year. However, the raid has brought construction to a complete halt, and the timeline for resumption remains unclear. Addressing visa and labor issues could require significant time and financial resources, making delays in mass production—originally set for late 2025—inevitable.

■ Political Motives and Tariff Uncertainty
Speculation is growing that President Donald Trump may have ordered the raid with political intentions. At the same time, tariff issues are adding to uncertainty: Trump recently signed an executive order imposing a 15% tariff on Japanese cars and auto parts. Negotiations with Korea to lower tariffs from 25% to 15% are still pending, and the latest dispute could further delay tariff reductions, increasing burdens on Hyundai and Kia.

■ Spotlight on Chairman Chung Eui-sun’s U.S. Visit
Hyundai Motor Group Chairman Chung Eui-sun is set to deliver a keynote speech at the Automotive News World Congress in Detroit on September 11. His trip is drawing greater attention in light of the plant disruption, and observers are watching closely whether he will issue remarks regarding the situation.

■ Market Outlook and Labor Shortage Concerns
Analysts expect the incident to delay battery production schedules into early next year, prompting downward revisions in performance forecasts. In addition, the U.S. quota system on foreign work visas poses significant challenges for large-scale projects, raising risks of prolonged disruptions and increased costs.

■ Emergency Response by Hyundai and LG Energy
Hyundai’s U.S. subsidiary emphasized that none of the detained individuals were directly employed by the company but pledged to review subcontractor hiring practices. LG Energy Solution dispatched its Chief Human Resources Officer to the U.S. to oversee crisis management and ordered immediate repatriation of employees holding ESTA or B1 visas.

■ Government’s Measures and Bilateral Talks
In response, South Korea’s Ministry of Trade, Industry and Energy convened an emergency meeting with major investors in the U.S., including Hyundai, LG Energy, Samsung, SK On, and Hanwha. Officials are considering institutional reforms such as creating new visa categories for short-term workers while continuing negotiations with U.S. authorities to stabilize labor supply.

One-line summary : Over 300 Korean workers were detained at Hyundai-LG’s joint battery plant in Georgia, halting construction and raising uncertainties for their North American strategy.