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LG Energy Solution Employees Detained in U.S. Crackdown... Battery Industry on Edge (Comprehensive)

Over 30 Koreans Detained in U.S. Immigration Crackdown
Industry: "Sending Business Travelers on B1/ESTA Visas Is Problematic"
SK On and Samsung SDI Also Begin "Process Review"

On September 5, LG Energy Solution announced that it is currently investigating the details of an incident in which some of its own employees and those of its partner companies were included in an immigration raid targeting undocumented workers at the battery plant construction site in Savannah, Georgia, a joint venture with Hyundai Motor Group.


A company representative explained, "We are actively cooperating with the Korean government and relevant authorities to ensure the safety of our employees and those of our partner companies, and to secure their prompt release from detention. We are also taking all necessary measures, including providing interpreters and legal assistance."


LG Energy Solution Employees Detained in U.S. Crackdown... Battery Industry on Edge (Comprehensive) Yonhap News

Previously, on September 4 (local time), the U.S. Immigration and Customs Enforcement (ICE) and Homeland Security Investigations (HSI) conducted a large-scale raid at the construction site, reportedly detaining about 450 individuals. According to local sources, ICE detained more than 30 Korean nationals, including headquarters employees, partner company workers, and day laborers at the site.


A significant number of the Korean employees detained this time are said to be affiliated with LG Energy Solution. They reportedly entered the U.S. using business visas (B1) or the Visa Waiver Program (ESTA), which are suitable for conferences or tourism, but were targeted in the raid for engaging in employment activities beyond the permitted scope of their stay. It is also reported that their mobile phones have been confiscated, making it impossible for the company to contact them.


Industry insiders commented that this incident is the result of a long-standing practice among companies of sending business travelers to the U.S. using B1 visas or ESTA rather than proper work visas. While these visas allow attendance at business meetings or contract negotiations, employment activities at worksites are strictly prohibited.


It is reported that LG Energy Solution's U.S. subsidiary has repeatedly warned headquarters staff that entering the country on ESTA and engaging in on-site work is risky. In the case of Hyundai Motor Group, employees were encouraged to obtain B1/B2 visas, which allow employment activities, but actual use was hindered by difficulties in securing timely visa interview appointments.


This situation is similar to an incident that occurred during the construction of SK On's Georgia plant in 2020. At that time, employees of Korean companies building factories in the U.S. had difficulty obtaining visas on time and departed using ESTA, only to be considered illegal workers. ICE arrested 13 Korean workers at the site for unauthorized employment on ESTA, and at the airport, denied entry and forcibly deported an additional 33 Korean nationals.


Other battery manufacturers are closely monitoring the situation. SK On is currently building large-scale production bases in Kentucky and Tennessee. Samsung SDI is constructing an electric vehicle battery plant in Kokomo, Indiana, in partnership with Stellantis. A representative from a battery company stated, "We have always dispatched business travelers according to proper visa issuance procedures," but added, "We plan to review our internal processes in light of this incident."


Some are expressing concern that, with the recent tightening of immigration enforcement standards, not only direct employment activities at worksites but also indirect activities such as consulting or management and supervision could now be considered illegal employment.


© The Asia Business Daily(www.asiae.co.kr). All rights reserved.

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