President Donald Trump's new deal with South Korea that he proudly boasted would bring in $950 billion is already falling apart after several South Korea companies have either pulled or paused planned investments into the United States, citing concerns over a chaotic immigration raid at a Hyundai plant in Georgia in September.
“It's too risky with the unpredictability of the U.S. market right now and determined it’s better to do their expansion in Korea,” said Tami Overby, an international business consultant, speaking with The Washington Post about a Korean firm that had decided against investing in the United States out of concern over Trump’s deportation policies, he told the outlet in its report Saturday.
Trump recently returned from his trip to Asia – throwing a Great Gatsby-themed party Friday on the eve of millions of Americans losing food assistance – and secured several deals with Asian nations, including the $950 billion agreement which would have included a $350 billion investment to reduce the United States’ tariff rate on South Korea, and $600 billion worth of investments in energy.
The chaotic raid on the Hyundai plant in Georgia, however, which saw the arrest of 475 people, has continued to concern South Korean investors, according to Kurt Tong, a managing partner at the Asia Group, a strategic advisory firm based in Washington, D.C.
“The Hyundai event still leaves a significant bad aftertaste that may be specifically impacting companies who are still scrambling to figure out their exact immigration compliance methodologies,” Tong said, speaking with the Post.
While the Hyundai raid still remains top of mind for many South Korean investors, it wasn’t the only mitigating factor in giving investors pause when deciding where to spend their companies’ money. Jonathan Cleave, the managing director at the international business consultancy firm Intralink, told the Post that the Trump administration's overall chaotic nature was also a major concern for South Korean investors.
“The Georgia raid is just one reason firms are hesitating on [investing in] the United States at the moment,” Cleave said. “The key concern among companies is the chaotic nature of governance in the [United States]... That, I believe, will have the largest negative impact on investments made and jobs created in the U.S. over the coming years.”