A Silent War Echoing in the Land of Promise
Have you ever heard of friend-shoring? It might sound unfamiliar, but it’s actually a simple promise: “Let’s make and trade important goods only with trusted friend countries from now on!” This was the sweet offer from the United States. Especially in fields like semiconductors and electric vehicle batteries—the very heart of future industries—the grand dream was to build a strong supply chain centered on the U.S., subtly countering China.
The first friend to rush to this wonderful promise was us, South Korea. Leading Korean companies, as if struck by a new gold rush, headed to the U.S. with tens and hundreds of billions of dollars. Georgia, Texas, Arizona… cutting-edge factories built with Korean technology rose like beacons of hope across the U.S.
The U.S. government warmly welcomed them, saying, “Friend, you came at the right time!” and promised huge subsidies and tax benefits. This great investment seemed more than just business—it symbolized the Korea-U.S. alliance evolving from a blood-bonded “military alliance” to a strong “economic alliance.”
But the fairy tale didn’t last long.
On Thursday, September 4, 2025, the morning in the small town of Ellabell, Georgia was peaceful. Here, Hyundai Motor and LG Energy Solution were jointly building a massive battery factory (HL-GA) to lead America’s electric vehicle future. At the very moment when thousands of sweat drops made the heart of the Korea-U.S. economic alliance beat, peace shattered.
“Freeze! Hands on your heads!”
With a roar, armored vehicles blocked the construction site entrance, helicopters stirred dust clouds overhead. Hundreds of fully armed agents poured in. It was a brutal scene reminiscent of a movie’s anti-terror operation. The operation involved Homeland Security Investigations (HSI), Immigration and Customs Enforcement (ICE), and even Drug Enforcement Administration (DEA) agents. Their target? Hundreds of Korean technicians.
They were not criminals. They were top experts who came to install core equipment and teach cutting-edge technology to American workers. Yet that day, they were bound in cold chains and dragged away like criminals.
Later called the “Georgia Shock,” this incident was a tragedy where America’s two faces collided head-on: the face of the “friend” who reached out for investment and the face of “America First” that ruthlessly abandoned its ally to protect domestic jobs.
Advertisement
Now, let’s open the door to the shocking truth of how the land of promise became a stage for betrayal.
Chapter 1: What Happened That Day in Georgia
1. “This Is Not a War Movie!” — A Raid Resembling a Military Operation
“At first, I thought it was a movie shoot. Armored vehicles blocking the site entrance like they were going to break down the gate—it was impossible to believe this was real…”
As testified by an American worker on site, the scene was surreal. About 500 agents from the Department of Homeland Security (DHS), DEA, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and state patrol were deployed in an operation named ‘Operation Low Voltage.’ A pointedly symbolic name targeting the battery factory.
Why such extreme measures? Why armored vehicles and helicopters just to check visa issues? This was a ‘show’ beyond law enforcement, meant to send a message to the American public. An HSI official proudly stated, “This operation demonstrates our firm resolve to protect American jobs.”
This was politics, not law. And that politics inflicted deep humiliation on us. The video released by ICE showing our technicians with hands tied, dragged onto buses, shocked and angered all of Korean society.
2. Experts Turned Criminals: Who Were They?
About 300 Koreans were detained that day. Who were they? Far from the sensational “illegal immigrant workers” label first used by U.S. media, they legally entered the U.S. under visa waiver programs (ESTA) or business visas (B-1).
They were veteran engineers from LG Energy Solution and various partner companies. Without them, multi-billion-dollar precision equipment was nothing but scrap metal. They were the core workforce running the factory.
What the U.S. government took issue with was their ‘actions.’ ESTA or B-1 visas allow attending meetings or supervision but prohibit direct labor involving tools and machinery. But think about it—can cutting-edge equipment be installed by just saying “do it this way”? This was an open secret in the industry and a tacitly tolerated practice by the U.S. government to save time and cost.
But that day, the U.S. government drew a clear red line of ‘illegality’ in this gray area and chose our companies as the first victims.
Advertisement
3. Diplomatic War: A Full-Scale Response for National Pride
Immediately after the incident, the South Korean government entered emergency mode. The Foreign Minister flew directly to Washington D.C. to knock on the White House door. The biggest issue was to have our nationals return in a ‘voluntary departure’ format without a criminal record, not as deportees. Deportation would bar them from entering the U.S. for years.
During this process, there was a momentary halt when former President Trump reportedly said, “Aren’t these the technicians we need? Let them stay and work!” This showed how uncoordinated the U.S. government was internally.
After intense diplomacy, 316 of our workers were able to board a charter flight on September 12, freed from chains. But their faces at Incheon Airport showed not relief but deep wounds and betrayal. With one hand, the U.S. welcomed investment with subsidies; with the other, it wielded ruthless whips. We clearly saw America’s two faces.
Chapter 2: Billions of Dollars Vanish into Thin Air
1. Factories Halted, Investments Frozen
Since that day, the HL-GA construction site turned into a ghost town. All machinery stopped, and foot traffic ceased. But the problem didn’t end in Georgia. The shockwave spread across the U.S. LG Energy Solution was building battery factories in four locations including Arizona and Michigan, investing over $11 billion.
The company virtually suspended all U.S. business trips. Extreme fear of “when and where the next betrayal will come” paralyzed the entire system. A single spark had turned into a massive wildfire threatening Korea’s entire future food project.
2. The Bill Arrives: Double Loss of Revenue and Subsidies
What did this halt cost? If the HL-GA factory’s operation is delayed by one year, about $3 billion—roughly 4 trillion won—in revenue disappears. Even a one-month delay means over 300 billion won lost.
But the real disaster was the risk of losing the massive U.S. government subsidy, the Advanced Manufacturing Production Tax Credit (AMPC). This subsidy requires batteries to be ‘produced’ in the U.S. If the factory stops and produces zero batteries, no subsidy is paid.
This is the worst irony. The sweetest ‘carrot’ that lured us turned into a ‘poisoned apple’ overnight because of the ‘stick’ wielded by another U.S. agency.
3. Shaken Trust: Investors Recalculate
Wall Street experts analyzed that this incident fundamentally changed the U.S. ‘risk premium.’ Until now, U.S. investment risks were predictable—taxes or tariffs.
Advertisement
But the ‘Georgia Shock’ revealed a completely new risk: ’the sudden labor supply disruption risk driven by political motives.’ The terrifying reality that a single government decision can halt multi-trillion-won projects was witnessed by investors worldwide. Now, companies everywhere will ask before investing in the U.S.,
“Could our technicians suddenly be chained and dragged away one day?”
Chapter 3: Why Did This Happen? (Structural Problems That Festered)
1. First Cause: “There Are No People!” — America’s Severe Skilled Labor Shortage
The fundamental cause is simple. The U.S. severely lacks technicians to build cutting-edge factories. Decades of focusing only on offshoring manufacturing have completely destroyed the technical base. The term ‘Rust Belt’ didn’t come out of nowhere.
Most core battery factory equipment is made in Korea or Germany. Naturally, technicians from those countries must come to install and repair them. Training local U.S. workers takes years. Companies worth billions can’t just wait.
2. Second Cause: “The Road Is Blocked!” — The Flawed U.S. Visa System
Why not use formal work visas? The U.S. professional visa (H-1B) is like a lottery with less than 15% chance. Other visas (L-1) can’t be applied for by partner company employees.
The main roads are blocked, and there are no alternative routes. Companies had no choice but to use the narrow alley of short-term business visas (ESTA, B-1). This was not lawbreaking but a forced choice to survive a broken system.
3. Third Cause: “We Missed the Chance!” — Korea’s Painful Diplomatic Failure
More painfully, other countries solved this problem in advance. Australia, Singapore, Chile created separate professional visa “fast lanes” for their nationals through FTA negotiations with the U.S.
We had two chances: during the 2007 Korea-U.S. FTA and the 2018 renegotiation. But domestic public opinion and urgent issues repeatedly pushed this important matter aside. Short-term political calculations of the past have become today’s economic Achilles’ heel.
Advertisement
4. The Spark: “Don’t Take Our Jobs!” — Local Union Discontent
Fueling this fragile structure was local union discontent. They felt Korean technicians were stealing their jobs, and this resentment was amplified by local politicians. Ultimately, the raid was not just a unilateral federal decision but a response to organized political pressure from the local community. This shows how foreign investors must now secure not only government approval but also the ‘social license to operate’ from local residents and unions.
Chapter 4: Shaken Alliance, Lost Investment
1. America’s Two Faces: Friend or Competitor?
This incident was the direct clash of two U.S. policies: ‘friend-shoring’ and ‘America First.’ For us, it was like being stabbed by a trusted axe. We trusted America’s promise and invested our nation’s fate, only to be met with boots and chains.
This sent a terrible message worldwide: “Even America’s closest allies can become enemies anytime under domestic political logic.” The U.S. itself kicked away the fundamental trust that underpins friend-shoring.
2. Frozen Investment Sentiment: “Can We Still Trust America?”
President Lee Jae-myung strongly warned, “This incident will make Korean companies hesitate to invest in the U.S.” This warning was not only for Korea. Japan, in a similar position, reacted almost in fear. CEOs worldwide must now completely recalculate the risks of investing in the U.S.
3. Shaken Supply Chains: Who’s Smiling? China
Why did the U.S. attract our companies in the first place? To break free from China’s dominance in the electric vehicle battery market. But the U.S. undermined its own plan. The longer factory construction is delayed, the longer America must rely on Chinese batteries. Ironically, the biggest beneficiary of this chaos could be China, their biggest competitor.
Chapter 5: Turning Crisis into Opportunity — A Strategic Map for a New Voyage
Now it’s time to answer the most important question: “So, what should we do now?” Here is a concrete strategic map to turn this crisis into opportunity.
1. Recommendations for Korean Companies: “The Rules of the Game Have Changed!”
- Strict Internal Compliance: Abandon the mindset of “everyone does it.” Establish a strong immigration compliance department at headquarters with authority to thoroughly manage partner companies.
- Coexistence with Locals: Partner with local universities to create technical education programs, fostering the perception of “partners creating jobs,” and keep communication channels with the local community open.
- Unite as ‘Team Korea’: Samsung, SK, and all companies must unite with a single voice demanding a new visa system that guarantees safe activities for our technicians, warning that without it, no further investment will come.
2. Recommendations for the South Korean Government: “Change the Paradigm of Diplomacy!”
- Make Visas a ‘National Security’ Issue: Secure a separate professional visa quota exclusively for Koreans (tentatively named ‘E-4 Korea-U.S. Alliance Technical Visa’) as the top diplomatic priority with the U.S.
- Leverage Investment: Don’t give our massive investments as gifts; negotiate concretely with a “give-and-take” approach demanding visa solutions in exchange for investment.
- Pursue a ‘Two-Track Strategy’: Push for long-term legislation while persistently demanding immediately implementable administrative measures.
3. Recommendations for the U.S. Government: “Get Out of the Hole You Dug Yourself!”
- Create a New ‘Strategic Industry Visa (SIV)’: Abandon the outdated visa system and establish a quota-free fast-track visa for projects essential to national security.
- Set Up a Policy Control Tower: Prevent the Department of Homeland Security from undermining industrial policy by creating a White House-led coordination process to resolve inter-agency conflicts.
- Invest in Teaching ‘How to Fish’: Ultimately, the answer is to cultivate skilled labor domestically. Mandate that part of subsidies be invested in vocational training programs.
The ‘Georgia Shock’ left deep wounds and lessons for all. But how we overcome this crisis and rebuild broken trust could mark an important turning point for the Korea-U.S. economic alliance to mature to the next level. The path won’t be easy, but now we know where to go.