South Korean companies will be very hesitant about investing in the US following a massive immigration raid at a Hyundai plant in the state of Georgia last week, President Lee Jae Myung has said.

More than 300 South Koreans who were arrested in the raid have now been released from detention and are due to return home on Friday after having their release delayed by more than a day.

The delay was attributed to an instruction from the White House, according to Lee. President Donald Trump ordered the pause to assess whether the workers were willing to stay in the US to continue working and training locals.

Lee emphasized that the situation is extremely bewildering, pointing out that it's common for Korean companies to send workers to set up overseas factories. He stated, If that's no longer allowed, establishing manufacturing facilities in the US will only become more difficult... making companies question whether it's worth doing at all.

Discussions are ongoing between Seoul and Washington regarding visa options for South Korean workers, including higher quotas or new visa categories. Lee expressed hope that the US would act if it deemed the situation practically necessary.

The White House has defended the operation at the Hyundai plant, citing the need for compliance with immigration laws, while President Trump suggested the government would facilitate the immigration process for companies honoring those laws.

The recent raid has raised significant concerns in Seoul, with reports describing it as a shock that may have a chilling effect on future investments from South Korea, a key ally of the US. As both governments engage in sensitive trade negotiations, the timing of the raid adds another layer of complexity to their relationship.