U.S. investment initiatives in Korea at a standstill following impending release of LG Energy's detained workers
In a surprising turn of events, the detention of Korean nationals at a Hyundai-LG Energy battery joint venture in Georgia has sparked concerns about the future of US-South Korea relations. The incident, described as "collateral damage" to the alliance between Washington and Seoul, risks inflaming tensions between the two nations, a key ally and major investor in the US.
The detention could potentially lead to reconsideration of investment in the US, particularly in the battery and electric vehicle industry. Companies like General Motors, Ford Motor Company, Tesla, and Rivian Automotive, which often collaborate with battery suppliers such as LG Energy, could be impacted.
The ongoing issue has already caused delays and cost overruns in investment timetables worth more than 140 trillion won ($101 billion) across multiple US states, if visa arrangements for skilled Korean employees are not settled.
The Hyundai-LG joint venture project was announced during former President Joe Biden's 2022 visit to Seoul and championed by him as a pillar of his clean-energy agenda. The $4.3 billion facility, expected to create 8,500 jobs, was scheduled for completion later this year to supply battery cells to Hyundai's nearby EV factory. Construction work on the site was suspended following the raid.
Nearly 500 employees, including 300 Koreans, were taken into custody last Thursday by US Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), the Drug Enforcement Administration (DEA) and Georgia state troopers. The detained employees are alleged to have worked on the site without proper work permits, having entered the US under the Electronic System for Travel Authorization (ESTA) or short-term B1 business visas.
Kang Hoon-sik, Seoul's presidential chief of staff, announced that negotiations with the US government for the release of the detained workers have concluded. The Korean workers will return home on a chartered plane under a "voluntary departure" process, avoiding deportation records and future entry bans.
Analysts suggest that the Georgia raid reflects partisan fault lines in Washington, with the ongoing issue with the detention of Korean nationals at the Hyundai-LG Energy battery joint venture in Georgia potentially influencing future investment decisions in the US.
As the situation unfolds, it is advisable to stay informed by following the latest news and press releases regarding this matter. The outcome of these events could have significant implications for the US-South Korea alliance and the clean-energy sector in the US.
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