Caution Spreads Among Asian Companies in the U.S.
Crackdown Amid Labor Shortages Could Hurt the U.S. Economy
Japanese media outlets have expressed concerns that the mass arrest of undocumented immigrants-including over 300 South Koreans-by U.S. immigration authorities at the construction site of the joint battery factory of Hyundai Motor Group and LG Energy Solution in Georgia could negatively impact economic cooperation between South Korea and the United States.
The Yomiuri Shimbun reported on the 7th that Foreign Minister Cho Hyun stated he was "deeply concerned" about the incident. The article noted, "The leaders of South Korea and the United States held a summit in August, and South Korea pledged to expand investment in the U.S., but this situation could put a damper on the momentum for economic cooperation."
The Nikkei also pointed out that the construction of the factory was decided during the previous Biden administration and has been regarded as a symbolic case of South Korea's investment in the U.S. The newspaper continued, "This incident could put a damper on bilateral relations," and added, "In South Korea, there is a dilemma being raised that although President Donald Trump is attracting investment, he is not issuing enough visas for foreign corporate workers, resulting in a shortage of skilled labor that can be immediately employed locally."
The Nikkei further reported that while South Korean companies are rushing to enter the U.S. market across the entire manufacturing sector-including semiconductors, shipbuilding, steel, and food-there are now calls to rework talent acquisition strategies in light of this incident. The article also pointed out that the U.S. has long faced a shortage of manufacturing labor, so when foreign companies build new factories, competition for workers inevitably intensifies.
The newspaper stated, "The U.S. government crackdown has shown that factories of foreign-invested companies, including those run by Asians, can also be targeted," and predicted that "foreign companies based in the U.S., including Japanese firms, are likely to become more cautious." It went on to say, "The Trump administration's intensified crackdowns are already affecting economic activity within the U.S.," noting that "large-scale crackdowns on undocumented immigrants are shrinking the economic activity of Hispanic workers and consumers as they become more wary."
The article also noted, "Undocumented immigration has supported a wide range of industries in the U.S.," and warned that the Trump administration's encouragement of large-scale investments such as factory construction, combined with tougher crackdowns on undocumented immigrants, could negatively impact its own goal of reviving American manufacturing.
Previously, on the 4th (local time), U.S. Immigration and Customs Enforcement (ICE) and Homeland Security Investigations (HSI) conducted a raid at the joint factory construction site in Savannah, Georgia, arresting 475 people. Among them, over 300 are reported to be South Korean nationals.
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