Seoul demands US visa reform to secure Korea’s $350B investments

South Korea is pressing the United States to fix its visa system after a sweeping immigration raid at a Hyundai-LG Energy Solution battery plant in Georgia triggered a diplomatic rift and halted projects across multiple states. As of September 10, 2025, Seoul says continued or expanded Korean investment in the United States hinges on concrete changes to visas for skilled Korean professionals. The standoff now touches trade talks, manufacturing timelines, and the wider US–Korea economic partnership, with billions in planned funding on hold.

The crisis escalated after US Immigration and Customs Enforcement carried out what officials and industry sources described as its largest workplace raid to date on August 29. Authorities detained about 475 workers, including roughly 300 South Koreans. Many were present under short-term B-1/B-2 visitor visas or through the Visa Waiver Program (ESTA). Korean officials argue that several detainees were performing time-limited, technical tasks tied to factory setup and equipment installation—activities common during early project phases.

Seoul responded by dispatching a government aircraft to repatriate detained workers and launching high-level protests in Washington. President Lee Jae-myung expressed “serious concern and regret,” and senior officials warned that core elements of the US–Korea trade framework and more than $350 billion in planned Korean investments are now at risk. Several lawmakers in Seoul have urged an official apology from Washington and swift legislative fixes to prevent similar crackdowns.

At least 22 major South Korean-led industrial projects in the United States, together worth over $101 billion, have been suspended or delayed while companies recall staff and halt travel. Korean firms say they fear further enforcement actions that could place employees at risk of detention, deportation, and bars on reentry. According to analysis by VisaVerge.com, prolonged uncertainty could slow construction and commissioning schedules for electric vehicle battery plants and related facilities, complicating local hiring plans and community commitments.

Policy demands and diplomatic stakes

Seoul’s central demand is targeted and longstanding: create a dedicated US visa quota for skilled Korean professionals. Officials again cited the stalled “E-4 visa” concept and the “Partner with Korea Act,” a proposal that would set aside 15,000 visas each year for Korean specialists. Korean leaders say the current mix of visas leaves no clean, lawful path for short-term deployment of technicians who must install, calibrate, and hand off complex equipment to US-based teams.

As of September 2025, the United States has not created a new visa category or quota for Korean workers. Korean officials say they have pushed this issue for over a decade and received encouraging signals during trade talks, but no binding action followed. With tempers running high in Seoul, lawmakers delivered protest letters to the US Embassy, and the president’s office called for “active negotiation efforts based on mutual trust and the spirit of alliance” to resolve the dispute.

The raid drew a firm defense from President Trump, who said the workers “were here illegally” and argued that US companies should train American workers for specialized manufacturing roles. That message appeals to domestic audiences focused on jobs, but it clashes with Korea’s position that the United States needs a workable legal channel for brief, high-skill deployments that aren’t covered by existing categories. The disagreement goes to the heart of how the two allies manage a modern manufacturing buildout where initial setup often depends on factory-specific know-how from the equipment’s makers.

Seoul notes that Korean companies have long relied on short visits under the B-1 business category or the ESTA program to support US projects. These entries do not authorize employment. Yet industry leaders say the practice was widely used and, until now, tolerated during time-limited commissioning work. Immigration attorneys argue that the current framework is a poor fit for specialized setups and that, without reform, companies face a painful choice between delaying work in the United States or moving key stages offshore.

The stakes extend into trade policy. In July 2025, the two countries announced a pact that included a $350 billion investment fund, inspired by a larger deal with Japan. Korean officials now say rolling out that fund, as well as tariff steps linked to it, depends on visa fixes. Seoul’s message is blunt: if the visa system remains unchanged, more investments could pause, shrink, or leave the United States altogether.

Key diplomatic points:
– Seoul demands a dedicated visa quota or category for short-term, high-skill Korean technicians.
– Korean officials link visa reform to implementation of major investment and trade commitments.
– Washington faces domestic pressure to prioritize American worker training while managing international investment ties.

Impact on workers and industry

The human toll is immediate. Hundreds of Korean nationals face prolonged detention and possible 10-year bans from reentry if they are ordered removed. Families in Korea, already unsettled by headlines and uncertainty, are waiting for updates as repatriations continue. Many affected workers believed they were following common practice for short-term technical duties and are now confronting life-changing consequences.

Korean firms have instructed employees on B-1/B-2 visas not to report for work, and those who entered on ESTA to return home until the diplomatic impasse clears.

On the factory floor, the slowdown is already visible. EV battery lines, steel processing, shipbuilding support, and electronics projects across multiple states depend on precise installation and calibration work by specialists who know the equipment inside and out. Industry executives warn that a prolonged halt risks:

• Missing delivery dates for US customers
• Undermining hiring timelines for local workers
• Eroding confidence among suppliers
• Potentially rerouting production abroad if commissioning delays pile up

Policy analysts caution that failure to accommodate short-term, skill-specific assignments under a lawful, predictable framework could weaken the United States’ pitch to global manufacturers. The country seeks to grow high-value production—especially in batteries and semiconductors—but those projects often require original technicians to handle the first phases. Without a visa route matched to that reality, analysts say, enforcement crackdowns and project pauses could become a recurring cycle.

Proposed solutions and legal pathways

Korean ministers and trade officials in Washington are pushing for immediate steps:

• A clear legal channel for high-skill, short-duration assignments
• Guidance that distinguishes true unauthorized employment from brief commissioning work
• Protections for workers who acted in good faith under long-standing industry practice

Lawmakers in Seoul argue Korea’s status as a top investor gives it room to insist on these changes before releasing more capital. US industry partners also want breathing room: companies tied to these projects seek clarity so they can continue building plants, hiring local staff, and meeting community commitments. Their concerns are practical—every month of delay increases costs and complicates tightly sequenced schedules.

For workers and employers, two concrete reforms could help:

1. A dedicated quota like the proposed E-4 to allow technicians lawful entry for weeks or months.
2. Clearer guidance on B-1 activities—with strict limits and documentation—to reduce gray areas that lead to raids.

Behind the scenes, negotiators are weighing a mix of legislative and administrative paths. Options include:

• Congressional action to create a new visa category or quota (requires legislative approval)
• Interim administrative measures such as detailed policy guidance or pilot programs for short-term, high-skill assignments
• Targeted bilateral agreements tied to specific strategic manufacturing projects

Business responses and contingency planning

US immigration lawyers point out that enforcement has outpaced policy updates. The law often treats specialized installation work the same as regular employment, even when tasks are brief and tied to proprietary equipment. Work-authorized visas exist but can be slow, capped, or mismatched to short assignments.

Korean firms are now mapping contingencies:

• Shifting initial commissioning to facilities outside the US, then shipping calibrated units back later
• Delaying supplier contracts
• Freezing hiring until technicians can return safely

These adjustments can cause lost time at the start of a plant’s life, with ripple effects through supply chains for months—even after crews are allowed back in.

Seoul’s approach blends diplomacy with pressure. The foreign minister and a trade team are in Washington for emergency talks. Formal protest letters have been delivered, and public statements underscore that alliance ties are at stake. Officials in Seoul say they want a partner’s solution, not a public fight, but their message remains clear: the visa system must match today’s industrial reality, or future investments will be hard to justify.

Practical guidance and next steps

For readers following the practical side, the US government maintains detailed information on visitor categories and the Visa Waiver Program. The US Department of State’s visa page offers official guidance on permitted activities for business visitors and the limits of short stays.

Until new policies are adopted, employers and travelers should:

• Review official guidance closely
• Seek legal advice before sending teams to US sites for technical work
• Consider contingency plans for commissioning and calibration that do not depend on short-term site visits

All sides agree on one point: factories do not run themselves. The coming weeks will show whether the two allies can build a clear, lawful path for the skilled hands that turn steel, chips, and battery cells into working plants—or whether more projects will stall as the policy gap widens.