Published on
September 12, 2025
Now South Korea and the US are on the brink of a trade war over travel and visa policies for workers, as recent US immigration raids on a Hyundai Motor site have sparked significant diplomatic tensions. The raids that led to the arrest of 475 South Korean workers have been the focus of increased attention from South Korea about the need to rework the US visa system which South Korea says adds burdens South Korean businesses have to endure in managing operation and investment activities in the US. This deportation of workers continues to fuel anger and resentment which adds to the growing concern about the free movement of people in South Korea and the United States and the potential of these tensions to bilateral trade relations.
Tensions between South Korea and the United States are escalating, with a potential new trade conflict brewing over visa issues and immigration policies. The diplomatic fallout stems from a recent US immigration raid at a Hyundai Motor site, where 475 workers were detained. This event has prompted both governments to discuss creating a new visa category for South Korean workers, signaling a shift in the broader economic and political relationship between the two countries.
Background of the US Immigration Raid and Detentions
The immigration raid in question occurred at a Hyundai Motor site in Georgia, where a significant number of South Korean workers were detained by US immigration authorities. About 300 South Koreans working at the site of an electric vehicle battery plant were arrested. The workers were reportedly employed under short-term visitor visas, Electronic System for Travel Authorization (ESTA), or visa waivers, which historically allowed them to oversee the construction of factories or train local workers.
While some of the detained workers had entered the US legally, their visas had either expired or they had overstayed their permitted duration. Others had entered under visa waivers that prohibited them from working. US authorities justified the raids by pointing to alleged violations of US immigration laws, claiming that some workers had illegally crossed the US border. This development has raised significant concerns, especially among South Korean businesses that have long relied on these visa arrangements for their workers.
The Diplomatic Response
Following the raid, South Korean Foreign Minister Cho Hyun flew to Washington for a meeting with US Secretary of State Marco Rubio on September 10, 2025. Minister Cho met with US officials to discuss the unfolding diplomatic crisis and to find a resolution for the detained workers. One of the key outcomes of the meeting was the assurance from US authorities that those South Koreans who would be released would not face further disadvantages should they attempt to re-enter the United States in the future.
The South Korean Foreign Minister also confirmed that the workers, who were detained, would be safely flown back to South Korea aboard a chartered plane. The plane is scheduled to depart the United States on Thursday, September 11, 2025. Notably, the workers will not be handcuffed during their transfer from the detention center to the airport, a protocol typically followed in deportation cases. This decision was seen as a gesture of goodwill amid the growing tension between the two nations.
South Korea’s Response: Economic and Diplomatic Concerns
The raid and subsequent detentions have not only put a strain on the diplomatic relations between the US and South Korea, but they also raised concerns over the future of South Korean investments in the United States. South Korean businesses, particularly in the manufacturing and technology sectors, have long relied on the flexibility of the US visa system to send skilled workers to assist with setting up factories, training local employees, and managing large-scale projects.
South Korean companies have complained about the stringent limitations of the current US visa system, arguing that it hampers their ability to oversee operations and make direct investments in the United States. The US has long been an attractive market for South Korean companies, but these visa restrictions have created barriers for the timely and efficient implementation of business projects. If the US fails to ease these visa limitations, South Korean companies may reconsider or hesitate to make further investments in the US market.
South Korean President Lee has publicly expressed concerns about the long-term impact on business relations, stating that South Korean firms may hesitate to maintain or increase their direct investments in the US if the current visa system remains unchanged. In a press conference marking his first 100 days in office, President Lee urged the US to improve its visa system to facilitate the mobility of skilled workers who are essential for the growth of industries like automotive and technology. These industries require specialized labor, and the rigid visa policies are seen as a major obstacle to growth.
US Government’s Position and the Call for Reform
US officials, however, argue that some of the detained workers entered the country illegally or had overstayed their visa durations. The US Department of Homeland Security has yet to provide an official comment on the issue, but the Department of State’s response has indicated that they view the violations seriously. Despite this, many South Korean experts and officials have criticized Washington for its lack of action in addressing the long-standing issue of visa accessibility for skilled South Korean workers.
The US has repeatedly pressured South Korea to increase its industrial investments, especially in high-tech sectors like electric vehicles, renewable energy, and advanced manufacturing. However, the US’s unwillingness to accommodate South Korea’s need for skilled labor has created a paradox. While the US demands more investment, it simultaneously creates barriers to the very workforce that would facilitate these investments.
The matter has become a point of contention not just for businesses but for the broader diplomatic ties between the two nations. As the global economy continues to change, countries are becoming increasingly dependent on the mobility of skilled workers, and the United States must now decide how it will handle the needs of its international partners.
The Potential for a New Visa Category: South Korea’s Proposal
In response to the ongoing tensions, South Korea has proposed the creation of a new visa category that would allow for more flexible entry and employment conditions for skilled workers. This proposal could potentially address the current challenges faced by South Korean companies operating in the US, while simultaneously alleviating the diplomatic strains resulting from the immigration raid.
The new visa category would specifically target workers involved in the setup and management of factories, including those in the electric vehicle and battery industries. By offering a visa designed for these skilled laborers, both South Korean businesses and the US government could benefit from a more stable and predictable flow of labor. The introduction of this visa category would also be a strategic move to mitigate the negative economic impact of the current visa restrictions.
The US has yet to formally respond to South Korea’s proposal, but discussions are underway. South Korean officials hope that the creation of this new visa category will pave the way for greater cooperation between the two countries and prevent further disruptions to business operations. This potential policy shift comes at a time when both nations are trying to strengthen their economic ties and address global supply chain issues.
The Bigger Picture: Trade Relations and Worker Mobility
While the immediate concern revolves around the immigration raid and the detention of workers, the issue of visa restrictions is indicative of broader trade relations between South Korea and the US. Worker mobility has become a critical factor in global trade, as countries continue to engage in competitive industries where skilled labor is at a premium. South Korea’s experience highlights the importance of flexible immigration policies in sustaining international business operations.
In addition to visa issues, South Korean businesses have faced challenges in expanding their operations in the US due to trade tariffs and other regulatory hurdles. The US has imposed various tariffs on South Korean goods, particularly in the automotive and technology sectors, which has added further complications to the economic relationship.
As South Korea seeks to increase its investments in the US, it is essential for both countries to find a mutually beneficial solution to the ongoing visa disputes. A more open and accessible visa system would not only improve the flow of skilled workers but also enhance the business environment and foster closer economic ties.
Looking Forward: The Need for Long-Term Solutions
The immigration raid and the subsequent diplomatic fallout are only the latest developments in the ongoing struggle for a more open and efficient visa system. While the US has shown some willingness to engage with South Korea on these issues, a long-term solution is still far from being realized.
Both South Korea and the US need to recognize that the free movement of workers is a key component of global trade. As such, the creation of specialized visa categories and the relaxation of restrictions on skilled foreign workers would be a significant step toward improving relations and ensuring that both countries remain competitive in an increasingly interconnected world economy.
For South Korea, the focus will remain on advocating for changes to the US visa system that can better accommodate the needs of its businesses. For the US, the challenge will be balancing its immigration enforcement priorities with the economic realities of globalization and the importance of skilled labor in supporting its industrial growth.
Now South Korea and the US are on the brink of a trade war over travel and visa policies for workers, following US immigration raids that detained 475 South Korean workers at a Hyundai Motor site. This has prompted South Korea to push for reforms in the US visa system, which it argues restricts skilled labor mobility essential for business operations.
The US-South Korea visa dispute is about much more than the immediate fallout from the immigration raid. It represents a larger question about the role of worker mobility in international trade and the future of economic cooperation between these two critical global players. Both nations must work toward a solution that enables businesses to thrive while respecting the rules of immigration, paving the way for a stronger, more collaborative relationship in the years to come.
