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An Analysis of the Hyundai-LG Battery Plant Immigration Enforcement Action: A Strategic Review of Legal, Economic, and Geopolitical Implications for Foreign Direct Investment in the United States
This report provides a comprehensive analysis of the large-scale immigration enforcement operation that took place on September 4, 2025, at the Hyundai-LG electric vehicle battery plant under construction in Bryan County, Georgia. The enforcement action, which resulted in the detention of 475 workers, more than 300 of whom were South Korean nationals, was not a routine audit but a multi-agency criminal investigation into alleged unlawful employment practices and visa violations.1 The incident exposed a critical disconnect between the operational practices of foreign companies and the strict legal and regulatory framework of the U.S. immigration system. The core legal issue at the center of the incident was the alleged misuse of short-term business visas, specifically the Electronic System for Travel Authorization (ESTA) and the B-1 visa, for unauthorized manual and productive labor. These visa categories are strictly limited to activities such as meetings and consulting and explicitly prohibit hands-on work or receipt of a U.S.-based salary.6 The enforcement action highlights that the U.S. government is taking an increasingly aggressive stance against such violations, even when they occur at major foreign investment sites with significant economic and strategic importance. The fallout from the raid has been profound, extending beyond the immediate legal and operational disruption. Economically, the forced halt in construction has created significant timeline uncertainty, jeopardizing the project’s eligibility for lucrative federal subsidies tied to operational start dates.2 Geopolitically, the incident triggered a high-level diplomatic response from the South Korean government, testing the strength of the strategic alliance between the two nations.2 For foreign corporations, the primary lesson is that U.S. immigration compliance is no longer a peripheral administrative task but a core strategic and operational necessity. The raid demonstrated that U.S. law imposes strict liability on employers—including those who rely on a network of subcontractors—and that a failure to ensure compliance can result in severe financial, legal, and reputational damage.
The events of September 4, 2025, marked a seminal moment in the landscape of U.S. corporate immigration enforcement. The enforcement action targeted the construction site of the Hyundai-LG joint venture electric vehicle battery plant in Bryan County, Georgia, a project valued at $7.6 billion and one of the largest industrial investments in the state's history.2 Dubbed "Operation Low Voltage," the raid was the culmination of a months-long criminal investigation, not a spontaneous immigration sweep.1 The scale of the operation was unprecedented. More than 400 federal agents from a coalition of agencies, including Homeland Security Investigations (HSI), U.S. Immigration and Customs Enforcement (ICE), the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), and the Internal Revenue Service (IRS), converged on the site.1 HSI officials publicly described the action as the "largest single-site enforcement operation" in the agency's history and in two decades, underscoring its significance and the level of planning involved.1 The raid resulted in the detention of 475 individuals, a majority of whom were South Korean nationals.1 While initial reports suggested a lower number, later corporate and diplomatic sources confirmed that over 300 South Koreans were taken into custody.5 Many of the detainees were employees of subcontractors or other construction-related partners, with LG Energy Solution confirming that 47 of its own staff were detained and Hyundai insisting that none of its direct employees were among those arrested.1 The incident swiftly stirred diplomatic unease between Washington and Seoul, compelling South Korea to dispatch diplomats and its foreign minister to secure the release and repatriation of its citizens.1
The enforcement action at the Hyundai-LG plant was a direct consequence of alleged violations of U.S. immigration law, specifically concerning the appropriate visa categories for work. The distinction between permissible business activities and unauthorized labor is a critical legal and operational boundary that foreign companies must navigate with precision.
3.1. The Misused Visa Categories: ESTA and B-1 Visas
The primary allegation against the detained workers was that they had entered the United States on non-immigrant visas that do not permit the type of labor they were performing. The Electronic System for Travel Authorization (ESTA), which falls under the Visa Waiver Program (VWP), and the B-1 business visa are intended for short-term stays for business or tourism.6 South Korea is a designated VWP country, allowing its citizens to travel to the U.S. for up to 90 days for certain business or tourism purposes without obtaining a formal visa.11 Similarly, the B-1 visa allows for a stay of up to six months.13 However, the list of permissible activities under both ESTA and the B-1 visa is highly restrictive. These visas are designed for passive business activities, such as attending meetings, conferences, conventions, and negotiating contracts.6 A crucial prohibition is against engaging in any form of "productive work" or receiving compensation from a U.S.-based source.6 While a foreign worker can be reimbursed for travel expenses and receive a per diem, they must remain on their foreign employer's payroll and cannot perform any hands-on labor or render services that would normally be performed by a U.S. worker.6 The central legal claim in this case is that many of the detained South Korean nationals entered the country on ESTA approvals or B-1 visas but were found to be performing hands-on, productive work at the construction site.1 A labor union leader alleged that the workers were engaged in "basic construction work" such as "pouring cement, erecting steel, carpentry, and fitting pipes".13 While defense counsel countered that the workers were "highly specialized technicians," "engineers," and "equipment installers" required for the specialized machinery 3, the enforcement action and subsequent arrest of the workers indicate that federal authorities viewed their activities as falling outside the scope of what is legally permissible under their visa status.
3.2. The Correct Work Visa Categories: H-1B, L-1, and B-1 in Lieu of H-1B
For foreign nationals to legally perform productive labor in the United States, they must obtain a formal, employment-authorized nonimmigrant visa. The U.S. immigration system offers several pathways for this type of work, each with specific requirements. The most common visa for foreign professionals is the H-1B visa, which is designated for individuals in "specialty occupations".14 A specialty occupation is defined as a position that requires the theoretical and practical application of a body of highly specialized knowledge and, as a minimum for entry, the attainment of a bachelor's degree or its equivalent.14 The H-1B process is rigorous, requiring a U.S. employer to first obtain a certified Labor Condition Application (LCA) from the Department of Labor (DOL) and then file a petition with U.S. Citizenship and Immigration Services (USCIS).14 The process is also subject to an annual cap, which can make it competitive and time-consuming, sometimes taking months to complete.1 An unnamed Korean executive cited this lengthy process as "unreasonable" given the "urgent need" for staff.1 A common alternative for multinational companies is the L-1 intracompany transferee visa, though this was not mentioned in the context of the raid. The L-1 visa facilitates the transfer of managers, executives, and employees with "specialized knowledge" from a foreign company to a qualifying U.S. entity. This visa is particularly well-suited for a project like the Hyundai-LG plant, as it is designed for a multinational company to staff its U.S. operations with key personnel. A lesser-known but highly relevant visa provision is the B-1 "in Lieu of H-1B," which is distinct from the standard B-1 business visa.16 This provision allows a foreign professional with specialized knowledge to perform short-term work (typically under six months) that would normally require an H-1B visa.16 Crucially, the worker must remain on the payroll of their foreign employer and cannot receive any compensation from a U.S.-based entity, other than expenses like per diems and accommodation.16 The fact that this specific mechanism exists for such a scenario underscores that the U.S. immigration system has an authorized pathway for this type of work, and failure to use it—by relying on a standard ESTA or B-1 visa—constitutes a clear violation.
3.3. Table: Comparison of Key U.S. Visa Categories for Corporate Foreign Nationals
Category Purpose Maximum Duration Compensation Source Permissible Activities Key Requirements ESTA Tourism or short-term, passive business activities 90 days Foreign employer only Meetings, conferences, consulting, negotiating contracts From a VWP-designated country; no productive labor or U.S.-based salary B-1 Business Short-term, passive business activities 6 months Foreign employer only Meetings, conferences, consulting, negotiating contracts No productive labor or U.S.-based salary; must have nonimmigrant intent B-1 in Lieu of H-1B Short-term, specialized work 6 months Foreign employer only H-1B-type work for a limited project Specialized knowledge professional; no U.S.-based compensation H-1B Specialty Occupation Long-term employment in a specialty occupation 3 years (with extensions up to 6 years) U.S. employer Theoretical & practical application of specialized knowledge Bachelor's degree or equivalent; U.S. employer sponsorship; certified LCA L-1 Intracompany Transferee Transfer of key personnel within a multinational company 3 years (with extensions) U.S. employer Managerial, executive, or specialized knowledge work One continuous year of prior employment abroad; qualifying relationship between companies
The raid at the Hyundai-LG battery plant was not an isolated event; it represents a convergence of legal, economic, and geopolitical forces that has significant consequences for foreign companies operating in the U.S. The implications of this incident extend far beyond the immediate legal issues and provide a powerful case study for strategic risk management.
4.1. Economic and Business Fallout
The immediate economic impact was severe. The raid forced an immediate cessation of all construction activities at the site, putting the project's timeline "in limbo".2 This disruption rippled through the financial markets, causing shares of both Hyundai Motor and LG Energy Solutions to drop in the aftermath of the operation.1 Beyond the direct operational and market disruption, the incident exposes a more fundamental risk related to the strategic rationale for the investment itself. The Hyundai-LG battery plant is part of a larger trend of foreign direct investment in the U.S. driven by federal incentives, such as the Advanced Manufacturing Production Credit (AMPC).8 These lucrative tax credits are designed to accelerate the development of a domestic clean energy supply chain. However, they are temporary and tied to a factory's operational start date.8 A delay of one or two years in construction, directly caused by this enforcement action, could lead to a significant reduction in the period during which the company can claim these subsidies. This translates into a sharp decrease in the project's overall financial benefits and a direct loss of the very incentives that underpinned the investment decision in the first place.8 This situation demonstrates that a seemingly isolated legal compliance issue can directly undermine a company's financial model and business case, transforming a procedural oversight into a strategic financial disaster. Furthermore, the incident has created a "chilling effect" on future foreign investment, particularly within the South Korean business community.8 Companies that were already considering or planning U.S. expansion in the battery and materials sectors are now "recalculating their plans from scratch" and adjusting their timelines.8 The incident is perceived by some as an "economic suicide" on the part of U.S. authorities, as it could erode the confidence of international investors and undermine the U.S. goal of attracting foreign capital.4 The raid has introduced a new, tangible risk factor—the potential for an aggressive and unpredictable immigration enforcement action—that companies must now weigh in their strategic decision-making process.
4.2. Geopolitical and Diplomatic Consequences
The raid triggered an immediate and high-stakes diplomatic firestorm. The South Korean government responded swiftly, dispatching diplomats to Georgia and sending its foreign minister, Cho Hyun, to Washington to negotiate a resolution.2 This intense diplomatic pressure resulted in a bilateral agreement for the "voluntary repatriation" of over 300 South Korean workers on a chartered flight "without formal deportation".9 The speed and scale of this diplomatic effort highlight the gravity of the incident and the level of international concern it generated. This event is particularly significant because it tested the strength of the U.S.-South Korea strategic and economic partnership. South Korea is a key Indo-Pacific ally and a major investor in the U.S. clean energy sector, a point of strategic importance in the context of global economic competition.4 The raid came as a "shock" and a "sense of betrayal" to many in South Korea, especially in light of recent investment pledges and ongoing trade negotiations.9 While major retaliatory measures from Seoul are considered unlikely due to its security dependence on the U.S., the incident sets a "problematic precedent" for how immigration enforcement can intersect with and potentially destabilize strategic economic alliances.4 It forces a re-evaluation of the fragile balance between national sovereignty—the U.S. government's right to enforce its laws—and the need for international economic cooperation, particularly on projects of mutual strategic interest.
4.3. Corporate and Legal Compliance Lessons
A fundamental lesson from the Georgia raid is that U.S. law imposes significant liability on employers for the immigration status of their workforce, and that this liability extends beyond a company's direct employees. U.S. law imposes "strict liability" on employers who "knowingly—or through constructive knowledge—employ unauthorized workers".18 "Constructive knowledge" means that an employer is liable if they "should have known" that a worker was unauthorized, even if they did not have direct, explicit knowledge. This is a critical point given that the majority of the detained South Koreans were employees of subcontractors or other third-party partners involved in the construction.1 While Hyundai's public statement that none of its "direct employees" were arrested attempted to create a legal distance from the incident, the nature of the criminal investigation suggests that the authorities were likely building a case to prove that the parent companies—Hyundai and LG—had constructive knowledge of the labor violations within their supply chain.1 This illustrates a powerful legal principle: a company cannot simply outsource its compliance obligations to third parties and expect to be absolved of responsibility. The legal risk extends throughout the entire project supply chain and is now a significant factor in managing relationships with vendors and contractors.
The Hyundai-LG raid serves as a wake-up call, demonstrating that U.S. immigration compliance is no longer a mere administrative formality but a core strategic function that must be integrated into a company’s operational and risk management framework. To mitigate similar risks in the future, foreign corporations undertaking large-scale investments in the U.S. should adopt a proactive and holistic approach. Proactive Compliance Audits: Companies should not wait for an audit or an enforcement action to assess their immigration compliance programs.18 It is imperative to conduct regular, independent audits of all foreign national employees and their visa statuses, including those employed by contractors and subcontractors. This should be a top priority from the earliest stages of a project's lifecycle. Review of Third-Party Agreements: All master services agreements and contracts with vendors, subcontractors, and staffing agencies must be reviewed and updated to include robust immigration compliance clauses.18 These clauses should mandate proof of legal work authorization for all foreign nationals and establish clear accountability and liability for any non-compliance. Engagement with U.S. Immigration Counsel: Foreign corporations should engage specialized U.S. immigration counsel from the initial planning stages of a U.S. project.18 An attorney can help develop a comprehensive immigration strategy that is integrated with the business plan, identify appropriate visa pathways (such as the L-1 or H-1B), and provide guidance on the use of provisions like the B-1 in Lieu of H-1B. Employee Education and Training: A culture of compliance must be built from the ground up. Companies must establish clear, mandatory training programs for all foreign nationals on their visa restrictions and the severe consequences of engaging in impermissible work.
The large-scale immigration enforcement action at the Hyundai-LG battery plant in Georgia marks a turning point in the enforcement of U.S. immigration laws at the corporate level. The incident dismantled any remaining illusion that major foreign investment projects are immune from federal scrutiny. The raid demonstrated that U.S. immigration authorities will not hesitate to execute a targeted criminal investigation and enforcement action, regardless of a project's economic or diplomatic significance. The Georgia raid serves as a crucial case study for any foreign company investing in or expanding its presence in the United States. It underscores that failing to secure the appropriate work visas for foreign employees—particularly those engaged in hands-on, productive labor—is not a simple administrative error but a violation that can lead to catastrophic operational delays, significant financial losses, and profound diplomatic and reputational damage. Ultimately, the incident reinforces the message that U.S. immigration compliance is no longer a peripheral concern but a fundamental strategic risk that must be managed with the same rigor and foresight as financial, legal, and operational risks. 참고 자료 Inside the Hyundai raid: How a monthlong operation led US ..., 9월 10, 2025에 액세스, https://timesofindia.indiatimes.com/world/us/inside-the-hyundai-raid-how-a-monthlong-operation-led-us-immigration-to-georgia-plant-whats-next/articleshow/123747070.cms Largest-ever immigration raid: Hyundai-LG plant in Georgia targeted ..., 9월 10, 2025에 액세스, https://timesofindia.indiatimes.com/world/us/largest-ever-immigration-raid-hyundai-lg-plant-in-georgia-targeted-7-6-billion-project-now-in-limbo-what-we-know/articleshow/123748218.cms Community Advocates Say ICE Violated Workers' Human Rights in GA Raid | ACoM, 9월 10, 2025에 액세스, https://americancommunitymedia.org/immigration/community-advocates-say-ice-violated-workers-human-rights-in-ga-raid/ Korean companies caught in ICE rampage: ICE arrests 300 Korean corporate staff dispatched for the establishment of Hyundai-LG factory in Georgia : r/geopolitics - Reddit, 9월 10, 2025에 액세스, https://www.reddit.com/r/geopolitics/comments/1n9gzkj/korean_companies_caught_in_ice_rampage_ice/ 미국 현대차 공장서 체포된 한국인 300명 넘어…정부 “유감” [영상], 9월 10, 2025에 액세스, https://www.hani.co.kr/arti/politics/politics_general/1217232.html UNITED STATES - Immigration issues for business travellers - BDO, 9월 10, 2025에 액세스, https://www.bdo.global/en-gb/microsites/tax-newsletters/ges-news/november-2022-issue/united-states-immigration-issues-for-business-travellers What constitutes 'permissible activities' under ESTA or the B-1 Business Visa?, 9월 10, 2025에 액세스, https://davieslegal.com/news/what-constitutes-permissible-activities-under-esta-and-b-1-business-visa/ 비자 리스크 드러난 K배터리···북미 투자 일정에 변수 - 시사저널e, 9월 10, 2025에 액세스, https://www.sisajournal-e.com/news/curationView.html?idxno=415079 300 South Korean workers detained, Hyundai raid angers South ..., 9월 10, 2025에 액세스, https://americanbazaaronline.com/2025/09/09/300-south-korean-workers-detained-hyundai-raid-angers-south-korea-467346/ 미국 현대차-LG엔솔 공장서 한국인 등 450명 체포‥"불법체류" 혐의 (2025.09.05/5시뉴스와경제/MBC) - YouTube, 9월 10, 2025에 액세스, https://www.youtube.com/watch?v=WUDnNOWnDBE Visa Waiver Program | Homeland Security, 9월 10, 2025에 액세스, https://www.dhs.gov/visa-waiver-program Visa Waiver Program | U.S. Customs and Border Protection, 9월 10, 2025에 액세스, https://www.cbp.gov/travel/international-visitors/visa-waiver-program Lawyer says South Korean engineers and installers were doing ..., 9월 10, 2025에 액세스, https://apnews.com/article/south-korea-us-georgia-raid-hyundai-24d990562f5ac20e7d3e983a77a4f7ff H-1B Specialty Occupations | USCIS, 9월 10, 2025에 액세스, https://www.uscis.gov/working-in-the-united-states/h-1b-specialty-occupations H-1B; H-1B1 and E-3 Specialty (Professional) Workers - Foreign Labor Certification, 9월 10, 2025에 액세스, https://foreignlaborcert.doleta.gov/h-1bdd.cfm B-1 in Lieu of H-1B: Eligibility & Application Guide | NNU Immigration, 9월 10, 2025에 액세스, https://www.nnuimmigration.com/b-1-in-lieu-of-h-1b/ B-1 in Lieu of H-1B or H-3 for Certain Business Visitors or Trainees, 9월 10, 2025에 액세스, https://www.grossmanyoung.com/immigration/corporate-immigration/temporary-work-visas/b-1-in-lieu-of-h-1b-or-h-3-for-certain-business-visitors-or-trainees/ Major Immigration Raid at Hyundai-LG Battery Plant in Georgia ..., 9월 10, 2025에 액세스, https://www.jw.com/news/insights-immigration-raid-hyundai-georgia/