South Korean President Lee Jae Myung said on Thursday a U.S. immigration raid which detained hundreds of workers at a Hyundai Motor project could affect future U.S. investment decisions by Korean companies.
Lee told a news conference that the raid was a confounding event and caused a great deal of confusion, adding it was likely to leave South Korean businesses "hesitant" about investing in the United States.
The raid, carried out last week at a Hyundai Motor project site in Georgia, led to the detention of about 300 South Korean workers. The incident sent shockwaves through South Korea and raised concerns about the viability of doing business in the U.S.
There had been no review yet by the government on whether there should be a new approach to business cooperation between the two countries, Lee said.
"But our businesses that have entered (the United States) are likely in a state of serious confusion," he said.
The 316 South Koreans who are now held at a detention center will leave that facility at 3 p.m. Korean time on Thursday and board a chartered plane to South Korea, Lee said.
South Korean Foreign Minister Cho Hyun traveled to Washington to address the diplomatic fallout after U.S. immigration authorities detained 475 workers at the site last week.
At a meeting with U.S. Secretary of State Marco Rubio, Cho said Koreans were "hurt and shocked" by the arrest of workers "who came to the U.S. to transfer technology and know-how to contribute to the Trump administration's efforts to revive the U.S. manufacturing industry."
Korean businesses have also voiced concern over strict U.S. limits on visas for skilled foreign workers, saying the restrictions make it difficult to oversee the factory construction or to train local staff.
The allies were now discussing ways to improve the visa process for South Koreans and Washington was likely to seek a reasonable solution, Lee said.
"But in this situation, our businesses that are investing in the United States will no doubt be very hesitant," he added.
(With input from Reuters)