executives

SEOUL — The immigration raid that snatched up hundreds of South Koreans last week sent a disconcerting message to companies in South Korea and elsewhere: America wants your investment, but don’t expect special treatment.

Images of employees being shackled and detained like criminals have outraged many South Koreans. The fallout is already being felt in delays to some big investment projects, auto industry executives and analysts said. Some predicted that it could also make some companies think twice about investing in the U.S. at all.

“Companies cannot afford to not be more cautious about investing in the U.S. in the future,” said Lee Ho-guen, an auto industry expert at Daeduk University, “In the long run, especially if things get worse, this could make car companies turn away from the U.S. market and more toward other places like Latin America, Europe or the Middle East.”

The raid last week, in which more than 300 South Korean nationals were detained, targeted a factory site in Ellabell, Ga,. owned by HL-GA Battery Company, a joint venture between Hyundai and South Korean battery-maker LG Energy Solutions to supply batteries for EVs. The Georgia factory is also expected to supply batteries for Kia, which is part of the Hyundai Motor Group. Kia has spent hundreds of millions of dollars on its factory in West Point, Ga.

“This situation highlights the competing policy priorities of the Trump administration and has many in Asia scratching their heads, asking, ‘Which is more important to America? Immigration raids or attracting high-quality foreign investment?” said Tami Overby, former president of the American Chamber of Commerce in Korea. “Images of hundreds of Korean workers being treated like criminals are playing all over Asia and don’t match President Trump’s vision to bring high-quality, advanced manufacturing back to America.”

A protester wears a mask of President Trump at a rally Tuesday in Seoul protesting the detention of South Korean workers in Georgia. The signs call for “immediate releases and Trump apology.”

(Ahn Young-joon / Associated Press)

South Korea is one of the U.S.’ biggest trading partners, with the two countries exchanging $242.5 billion in goods and services last year. The U.S. is the leading destination for South Korea’s overseas investments, receiving $26 billion last year, according to South Korea’s Finance Ministry.

Trump is banking on ambitious projects like the one raided in Georgia to revive American manufacturing.

Hyundai is one of the South Korean companies with the largest commitments to the U.S. It has invested around $20 billion since entering the market in the 1980s. It sold 836,802 cars in the U.S. last year.

California is one of its largest markets, with more than 70 dealerships.

Earlier this year, the company announced an additional $26 billion to build a new steel mill in Louisiana and upgrade its existing auto plants.

Hyundai’s expansion plans were part of the $150-billion pledge South Korea made last month to help convince President Trump to set tariffs on Korean products at 15% instead of the 25% he had earlier announced.

Samsung Electronics announced that it would invest $37 billion to construct a semiconductor factory in Texas. Similarly large sums are expected from South Korean shipbuilders.

Analysts and executives say the recent raid is making companies feel exposed, all the more so because U.S. officials have indicated that more crackdowns are coming.

“We’re going to do more worksite enforcement operations,” White House border advisor Tom Homan said on Sunday. “No one hires an illegal alien out of the goodness of their heart. They hire them because they can work them harder, pay them less, undercut the competition that hires U.S. citizen employees.”

Many South Korean companies have banned all work-related travel to the U.S. or are recalling personnel already there, according to local media reports. Construction work on at least 22 U.S. factory sites has reportedly been halted.

The newspaper Korea Economic Daily reported on Monday that 10 out of the 14 companies it contacted said they were considering adjusting their projects in the U.S. due to the Georgia raids.

It is a significant problem for the big planned projects, analysts say. South Korean companies involved in U.S. manufacturing projects say they need to bring their own engineering teams to get the factories up and running, but obtaining proper work visas for them is difficult and time-consuming. The option often used to get around this problem is an illegal shortcut like using the Electronic System for Travel Authorization, a non-work permit that allows tourists to stay in the country for up to 90 days.

Unlike countries such as Singapore or Mexico, South Korea doesn’t have a deal with Washington that guarantees work visas for specialized workers.

“The U.S. keeps calling for more investments into the country. But no matter how many people we end up hiring locally later, there is no way around bringing in South Korean experts to get things off the ground,” said a manager at a subcontractor for LG Energy Solution, who asked not to be named. “But now we can no longer use ESTAs like we did in the past.”

Trump pointed to the problem on Truth Social, posting that he will try to make it easier for South Korean companies to bring in the people they need, but reminding them to “please respect our Nation’s Immigration Laws.”

“Your Investments are welcome, and we encourage you to LEGALLY bring your very smart people … and we will make it quickly and legally possible for you to do so,” the post said.

Sydney Seiler, senior advisor and Korea chair at the Washington-based Center for Strategic and International Studies, said that the timing of the raids was an “irritant” but that South Korean companies would eventually adjust.

“Rectifying that is a challenge for all involved, the companies, the embassies who issue visas, etc.,” Seiler said, adding that the raids will make other companies be more careful in the future.

President Trump is scheduled to dine with tech executives from Apple, Meta, Google and OpenAI on Thursday night at a White House event in the newly renovated Rose Garden.

The gathering is the latest example of how the world’s most powerful tech leaders are forging stronger ties with Trump’s second administration.

There’s one high-profile tech executive who won’t be at the gathering: Tesla and xAI Chief Executive Elon Musk, who backed Trump but then feuded with the president after temporarily leading an effort to slash government spending.

Musk posted on X that he “was invited, but unfortunately could not attend” and a representative would show up on his behalf.

The Hill first reported that roughly two dozen tech and business leaders, including Meta Chief Executive Mark Zuckerberg, Apple Chief Executive Tim Cook, Microsoft co-founder Bill Gates, Google Chief Executive Sundar Pichai and OpenAI Chief Executive Sam Altman, are on the invite list. The gathering is scheduled to take place after First Lady Melania Trump hosts an event for the new Artificial Intelligence Education task force.

“The president looks forward to welcoming top business, political, and tech leaders for this dinner and the many dinners to come on the new, beautiful Rose Garden patio,” White House spokesperson Davis Ingle told the Hill.

Meta declined to comment. Apple and xAI didn’t immediately respond to a request for comment.

Ahead of the dinner, Microsoft and OpenAI announced ways the companies are supporting the White House’s efforts to expand AI literacy. As AI disrupts industries including entertainment and healthcare, workers have expressed anxiety about whether they will lose their jobs.

OpenAI said it’s working with businesses such as Walmart and John Deere to build a platform that will help employers find workers with AI skills. The San Francisco tech company, which also has a platform where people can learn about AI, plans to offer certifications so workers can showcase how much they know about the technology. OpenAI said it aims to to certify 10 million Americans by 2030.

Microsoft outlined several ways it’s trying to help students and workers learn more AI skills through its grants, partnerships and products, including offering a year of Microsoft 365 Personal — which includes the company’s AI assistant Copilot — free for all U.S. college students if they sign up before the end of October.

“AI is the defining technology of our time, and how we empower people to use it will shape our country’s future,” said Microsoft Chief Executive Satya Nadella, who is also expected to attend the dinner, in a video. “That’s why we are so grateful to the President, First Lady and the entire administration for making it a national priority to prepare the next generation to harness AI’s power.”

Silicon Valley tech executives had a contentious relationship with Trump during his first term, sparring with the president over issues such as immigration.

They’ve struck a more friendly tone with the president during his second term as they push for a more hands-off approach to regulation while competing to dominate the artificial intelligence race.

In July, the Trump administration released an action plan that aimed to cut “red tape” so tech companies can quickly develop and deploy AI technology as they go head-to-head with firms in China and elsewhere. Trump tapped venture capitalist David Sacks, who is also expected to attend Thursday’s dinner, to guide the White House’s policy on AI and cryptocurrency.

As tech companies charge ahead, child safety and advocacy groups have raised concerns there aren’t enough guardrails in place to protect the mental health of young people as they spill their darkest thoughts to chatbots.

Trump has also publicly criticized many tech executives before striking deals with them. After Trump called for the resignation of Intel Chief Executive Lip-Bu Tan over alleged conflicts related to his reported investments in Chinese companies, tensions cooled after they met. Intel then announced in August that the U.S. government would take a roughly 10% stake in the semiconductor company.

Trump also struck an unusual deal with Nvidia and Advanced Micro Devices that allows the companies to sell certain chips to China in exchange for giving the U.S. government a 15% cut of those sales.

This raised questions among politicians and legal experts about whether that agreement is legal. Nvidia previously said it would spend up to $500 billion over the next four years on AI infrastructure.

Other tech executives have shown support for building in the United States as they face the threat of tariffs from the Trump administration. They also donated to Trump’s inaugural fund after he won the presidential election and have been showing up at high-profile events.

Apple in August pledged to spend an additional $100 billion on domestic manufacturing, bringing its total U.S. investment commitment to $600 billion after Trump criticized the company for expanding iPhone manufacturing in India.

OpenAI, Oracle and SoftBank announced this year that they planned to invest a total of $500 billion in U.S. AI infrastructure over the next four years.

Edison International officers and directors misled the company’s investors about the effectiveness of its efforts to reduce the risk of wildfire in the months and years before the devastating Eaton fire, a shareholder lawsuit claims.

The lawsuit, filed last week in U.S. District Court in Los Angeles, points to repeated statements that the utility made in federal regulatory reports that said it had reduced the risk of a catastrophic wildfire by more than 85% since 2018 by increasing equipment inspections, tree trimming and other work aimed at stopping fires.

The complaint also raises doubts about news releases and other statements that Edison made soon after the start of Eaton fire, which killed 18 people and destroyed thousands of homes and businesses in Altadena.

“We take all legal matters seriously,” said Jeff Monford, a spokesman for Edison. “We will review this lawsuit and respond through the appropriate legal channels.”

The lawsuit claims that Edison’s early statements on the Eaton fire — in which it detailed why it believed its equipment was not involved in the fire’s start — were wrong.

“Edison obfuscated the truth by making false and misleading statements concerning its role in the fire,” the lawsuit claims.

More recently, Pedro Pizarro, the chief executive of Edison International, said the leading theory for the fire’s start was the reenergization of an unused, decades-old transmission line in Eaton Canyon.

The investigation by state and local fire investigators into the official cause of the deadly fire is continuing.

The lawsuit was filed as a derivative action in which shareholders sue a company’s officers and directors on behalf of the company, claiming they had breached their fiduciary duties. It seeks financial damages from Pizarro, Chief Financial Officer Maria Rigatti and members of the company’s board of directors. Money recovered would go to the company.

It also directs Edison “to take all necessary actions” to reform its corporate governance procedures, comply with all laws and protect the company and its investors “from a recurrence of the damaging events.”

The lawsuit was brought by Charlotte Bark, a shareholder of Edison International, the parent company of Southern California Edison.

“Prior to the outbreak of the Eaton Fire, the Company had a long history of not prioritizing the safety of those who lived in the areas it serviced, and paying fines as a result,” the lawsuit states. Since 2000, it says, Edison has paid financial penalties of $1.3 billion for violating utility safety regulations.

The complaint points to an October regulatory report that was the focus of a Times report. In the article, state regulators criticized some of Edison’s wildfire mitigation efforts, including for falling behind in inspecting transmission lines in areas at high risk of fires.

The lawsuit lists the major destructive wildfires that investigators said were sparked by Edison’s equipment in recent years, including the Bobcat and Silverado fires in 2020, as well as the Coastal and Fairview fires in 2022.

“The recurring wildfire incidents connected to the Company display that the Board has repeatedly failed to mitigate a risk that materially threatens Edison,” the complaint states.

The lawsuit accuses Pizarro, Rigatti and the company’s board of directors of “gross mismanagement” and claims that the defendants “unjustly enriched” themselves.

“Because the Individual Defendants failed to carry out their respective duties, the compensation they received was excessive and undeserved,” the suit states.

It asks the court for an order that would require the officers and directors to pay restitution, including returning the compensation they received that was tied to how well the company performed.