South Korea's Lee says U.S. immigration raid may make companies 'hesistant' about investing

South Korean President Lee Jae Myung said on Thursday, (11 September), that a U.S. immigration raid resulting in the detention of hundreds of workers at a Hyundai Motor business project could have an impact on U.S. investment decisions made by Korean companies.

The raid was a confounding event and caused a great deal of confusion, Lee told a news conference, adding it was likely to leave South Korean businesses "hesitant" about investing in the United States.

Last week's raid at a Hyundai Motor project site in the state of Georgia led to the detention of about 300 South Korean workers, sending shockwaves through South Korea and raising questions about the viability of doing business in the United States.

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 centre will leave that facility at 3 p.m. Korean time on Thursday and board a chartered plane to South Korea, Lee said.

South Korea and U.S. talks

South Korean Foreign Minister Cho Hyun flew to Washington to resolve what has become a diplomatic quagmire after 475 people working at the site in Georgia were detained by U.S. immigration authorities 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 complained about strict U.S. limits on visas for skilled foreign workers, which they say make it difficult for them to oversee the construction of factories or to train local workers.

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.

Capital gains tax

Lee also said he did not see a need to follow through on a plan to revise the country's capital gains tax that was intended to increase tax revenue from stock investors.

The president said he now considered it unnecessary to lower the threshold defining "large shareholders" subject to paying capital gains tax. The planned tax change has caused a public backlash among South Korean investors.

South Korea and North Korea relations

South Korea will continue to make efforts to improve ties with North Korea and establish peace on the Korean Peninsula, even though Pyongyang has so far remained cold to the peace outreach by Seoul, Lee said.

Considering the unique role that U.S. President Donald Trump can play in efforts to reopen dialogue with North Korea, Lee said Seoul did not necessarily have to take the lead in diplomacy with Pyongyang.

North Korea's nuclear and missile capabilities have reached a level that make them a complicated issue that directly involves and impacts the United States, Lee said.

Trump said after talks with Lee last month that he wanted to meet North Korean leader Kim Jong Un this year. The U.S. president held two summits with Kim in his first term, though the talks produced no deal on North Korea's nuclear programme.

Copied