"Crackdown During Equipment Installation... Why Was LG Energy Solution Hit Hardest?"

Skilled Labor Needed for Construction Phase
Use of Tourist Visas Instead of Work Visas
Growing Need to Resolve Visa Issues

The mass detention of over 300 Korean workers associated with LG Energy Solution at the joint battery factory of Hyundai Motor Group and LG Energy Solution in Georgia, United States, appears to be due not only to visa restrictions but also to the need for a large number of skilled workers at this stage of the construction process.

U.S. immigration enforcement authorities released a video on their official website on the 4th (local time) showing the illegal residency and employment crackdown at the construction site of the joint battery factory of Hyundai Motor Group and LG Energy Solution in Georgia. Photo by Yonhap News Agency

According to industry sources on September 10, at the time of the U.S. immigration authorities' crackdown on the 4th (local time), the construction site was in the phase where the exterior work had been completed and production equipment was being brought in, lines were being installed, and preparations for trial operations were underway. This stage requires skilled technicians because it involves building clean rooms, connecting power and piping, and performing precise calibration simultaneously. Since it is difficult to secure such personnel locally, specialized workers were dispatched from Korea. These workers entered the U.S. with business visas (B1) or under the Visa Waiver Program (ESTA), rather than with official work visas, and were targeted by the crackdown for engaging in employment activities outside the scope of their permitted stay.

However, employees from Hyundai Motor Group, the joint venture partner, were not present at the site during the authorities' crackdown. Hyundai Motor Group explained, "Since it was the stage of installing battery equipment, there was no need for personnel from the finished vehicle division." LG Energy Solution also stated, "This was a process unrelated to vehicle assembly, so Hyundai Motor Group employees were not assigned to the site." Hyundai Motor Group had also dispatched personnel with B1 or ESTA visas, but since it was not yet the stage to deploy skilled workers on-site, they were not detained.

Industry experts point out that this issue could recur unless the visa situation between the two countries is resolved. An official from a major Korean conglomerate currently building a factory in the United States said, "We are still in the stage of constructing the factory exterior, so there was no need to dispatch Korean employees, and this incident did not have a direct impact on us. However, if we reach the stage of bringing in equipment and conducting trial operations, we will need to send skilled workers, which could become a problem."

An LG Energy Solution representative stated, "We will work with the government to establish concrete measures, such as improving the visa system, after the detained workers return."