NextFin news, South Korean Prime Minister Kim Min-seok announced on Thursday, September 25, 2025, in Seoul that investment projects by South Korean companies in the United States will remain in limbo until visa issues are resolved. This statement comes amid heightened tensions following recent ICE raids on a Hyundai Motor and LG Energy Solution battery plant under construction in Georgia, where hundreds of South Korean workers were detained temporarily.
Kim emphasized that without a resolution to the visa problems, meaningful progress on joint US-South Korea investment projects is virtually impossible. Although the projects have not been formally halted, the visa complications have caused significant reluctance among workers and their families to enter or re-enter the US, casting a shadow over the $350 billion investment fund agreed upon in a July trade deal between the two countries.
The visa issue arose after the US Immigration and Customs Enforcement (ICE) raids, which led to the detention and subsequent release of South Korean workers. The incident has fueled public anger in South Korea and raised concerns about the safety and treatment of Korean workers in the US.
Prime Minister Kim urged Washington to act swiftly to reassure South Korean workers and resolve the visa system problems. He noted that the investment pledge represents 70 to 80 percent of South Korea's total foreign exchange reserves, and without mechanisms such as a currency swap agreement, the economic impact on South Korea could be severe.
Regarding trade negotiations, Kim highlighted ongoing difficulties in finalizing the deal, particularly concerning the structure and execution of the $350 billion investment package. He indicated that any agreement imposing a significant fiscal burden on South Korea might require parliamentary approval and expressed hope that talks would not extend into the next year.
Kim also addressed the issue of tariffs, noting that the US has yet to lower car tariffs on South Korean vehicles to the agreed 15 percent. Until the negotiation concludes, South Korean automakers face a 25 percent tariff, creating challenges for companies like Hyundai Motor.
On security matters, Kim revealed South Korea's intention to raise defense spending to 3.5 percent of GDP over the next decade to strengthen independent national defense. Currently, South Korea spends 2.32 percent of its GDP on defense. The government is still discussing the final decision on this increase.
Regarding geopolitical relations, Kim acknowledged the complex balance South Korea must maintain between the US and China amid growing tech rivalry and trade tensions. He stated that while South Korea aims to maintain good relations with both countries, the strategic terrain has shifted closer to the US.
On North Korea, Kim said there is no concrete dialogue between the US and North Korea but left open the possibility of a meeting between North Korean leader Kim Jong Un and US President Donald Trump during the upcoming APEC summit in Gyeongju. Kim noted that unexpected developments could occur, although North Korea has shown no signs of changing its stance on denuclearization demands.
Finally, Kim expressed hope for continued diplomatic continuity with Japan despite potential leadership changes, emphasizing the importance of maintaining the current friendly atmosphere between the two countries.
These remarks were made in an exclusive interview with Bloomberg News on September 24, 2025, and reported on September 25, 2025, reflecting ongoing challenges in US-South Korea relations amid trade, immigration, and security issues.
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