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 said.

More than 300 South Koreans who were arrested in the raid are due to return home on Friday, after their departure was delayed “due to circumstances on the US side”, officials said.

“The situation is extremely bewildering,” said Lee, noting that it is common practice for Korean firms to send workers to help set up overseas factories.

“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.”

Last week, US officials detained 475 people – more than 300 of them South Korean nationals – who they said were working illegally at the battery facility, one of the largest foreign investment projects in the state.

A worker at the plant spoke to the BBC about the panic and confusion during the raid. The employee said the vast majority of the workers detained were mechanics installing production lines at the site, and were employed by a contractor.

South Korea, a close US ally in Asia, has pledged to invest tens of billions of dollars in America, partly to offset tariffs.

The timing of the raid, as the two governments engage in sensitive trade talks, has raised concern in Seoul.

The White House has defended the operation at the Hyundai plant, dismissing concerns that the raid could deter foreign investment.

On Sunday, US President Donald Trump referenced the raid in a social media post and called for foreign companies to hire Americans.

The US government would make it “quickly and legally possible” for foreign firms to bring workers into the country if they respected its immigration laws, Trump said.