South Korea's prime minister called on the United States to resolve its visa issues quickly, signalling that continued investment in the U.S. is uncertain unless South Koreans are reassured they will not be detained for working there.
"Without resolving the visa issue, meaningful progress remains virtually impossible," Prime Minister Kim Min-seok told Bloomberg News in an exclusive interview.
The comments come after hundreds of South Koreans were detained by U.S. law enforcement during a raid on a Hyundai Motors and LG Energy Solution battery plant under construction in Georgia earlier this month. While the detainees were released and flown back home a week later, the incident has sparked outrage among South Koreans and has complicated sizable investment plans by Korean conglomerates.
"Although the projects have not been entirely halted or formally placed on hold, it will be very difficult for a large number of workers to enter or re-enter the US until this problem is resolved," he said. "In the absence of firm assurances regarding their safety, both they and their families are understandably reluctant to enter the US again while this matter remains unresolved."
The visa concerns arise as Seoul and Washington are in intense negotiations to finalize a trade deal that would set a 15% tariff on South Korean automobiles and other goods. A major point of contention is a proposed $350 billion investment package central to the deal.
Kim said the investment, which amounts to more than 70% of South Korea's foreign reserves, would result in a severe shock to the economy unless a currency swap agreement is made with the U.S. President Lee Jae Myung earlier told Reuters that such a swap is necessary to avoid an economic disaster similar to the 1997 Asian Financial Crisis if the country meets U.S. demands.
Kim did not provide details of the negotiations but said a deal that puts a significant financial burden on South Korea may require parliamentary approval. He expressed hope that talks over the deal would not carry over into the next year.
"There's the feeling that it's difficult for us to accept that, not just the negotiating team but also among the public," Kim said.