U.S.Immigration raid Raises Concerns for South Korean Investment
A recent large-scale immigration raid in Georgia is prompting concern in South Korea regarding the future of its notable investments in the United States. The operation,conducted by U.S.Immigration and Customs Enforcement (ICE) at a battery plant construction site, was the largest single-site raid in the history of the Department of Homeland Security and part of a broader initiative called operation Take Back America, aimed at combating illegal immigration.
The raid resulted in the arrest of workers allegedly employed illegally, many of whom were in the U.S. on short-term or recreational visas not authorized for employment. While the workers have as been released, the incident has sparked anxieties in South Korea about the potential impact on ongoing and future business ventures.
South Korea is a major U.S. ally and investor, currently accounting for the greatest share of overseas investments into the U.S., totaling $26 billion in the last year. The two countries also maintain a considerable trade relationship, exchanging $242.5 billion in goods and services last year, making South Korea the U.S.’ 8th largest trading partner.
South Korean companies have historically relied on dispatching technical specialists to oversee factory construction and operations in the U.S., frequently enough utilizing non-work travel permits like the Electronic System for Travel Authorization (ESTA), a visa waiver allowing tourist stays of up to 90 days. While these visas technically prohibit employment, U.S. authorities have historically tolerated this practice.However, obtaining the necessary work visas, such as the H-1B visa, has become increasingly challenging. The H-1B visa is awarded through an annual lottery, and eligibility has been restricted in recent years.The process can take upwards of eight months, with no guarantee of approval. Experts note a shortage of qualified American workers in specialized fields like lithium-ion battery manufacturing and shipbuilding, making reliance on South Korean specialists crucial for projects like the recently announced $150-billion investment to revitalize the American shipbuilding industry and the construction of nearly ten battery plant projects across the U.S.
industry analysts suggest the crackdown could create logistical challenges and costly delays for South Korean companies. Following the raid,South Korean officials have indicated they will seek improvements to U.S. work permit processes for their citizens, potentially modeled after special work visa programs offered to citizens of countries like Chile, Australia, and Singapore.
The incident has raised concerns that companies may reconsider sending workers to the U.S., potentially hindering the progress of significant investment projects.
