The unprecedented raid at a Hyundai Motor Co.-LG Energy Solution Ltd. battery plant under construction in Georgia has rattled South Korea, where images of shackled workers have circulated widely and fueled public anger, casting a cloud over President Lee Jae Myung’s young presidency. Construction on the plant is being delayed by several months, Hyundai Chief Executive Officer José Muñoz said in an interview Thursday, as disruption spread across the industry.
Also Read: US to target more businesses after Hyundai raid, top official saysThe September 4 raid took place just two weeks after Lee and President Donald Trump held a summit to reaffirm their economic and security ties. Lee said on Thursday the incident could have a significant impact on direct investment into the US as Korean firms grow wary of a potential crackdown.
The fallout from the incident amplifies strains from a July trade deal that kept a 15% levy on most Korean imports. Trump has yet to sign an order lowering auto tariffs as promised, while the two sides remain divided over Seoul’s $350 billion investment pledge, a central pillar of the accord.
Also Read: South Korea expresses ‘concern’ over US immigration raid at Hyundai’s Georgia plant
As the operation threatens to undermine billions in investment plans by Korean conglomerates, Commerce Secretary Howard Lutnick said in an interview with CNBC that South Korea must accept the trade deal that includes investment in the US, or it will pay tariffs. Lutnick said Trump plans to help facilitate short-term visas for foreign skilled workers needed to build new factories.
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