As Korean investments go, so do workers with firms struggling with U.S. hiring

When U.S. immigration authorities detained more than 300 Koreans at a battery plant in Georgia last week, it exposed a structural challenge: Korean firms cannot build or operate their sprawling U.S. plants without workers flown in from home.

The workers had been dispatched to help launch the plant, a 10 trillion won ($7.2 billion) project by LG Energy Solution and Hyundai Motor Group.

The problem is not new. Since the Donald Trump administration's first term, Korean firms have rushed to set up factories across the United States, spurred on by tariffs and subsidies. But they have faced obstacles ranging from regulatory hurdles to a shortage of skilled labor.

The first barrier comes even before construction begins. Companies must secure permits from both federal and state governments, and environmental and safety standards differ by state. Even after navigating that bureaucracy, they struggle to find qualified welders — a critical role in factory construction. The profession is scarce in the United States, and Korean companies struggle to find welders who can meet the needs of their projects.

“In the United States, plant design, construction and supervision are divided into highly detailed processes, so it takes longer to complete a factory than in Korea," said Cho Chul, a senior research fellow at the Korea Institute for Industrial Economics and Trade. "On top of that, labor shortages are severe.”

Struggles after opening

The challenges continue once plants are up and running. Skilled workers remain in short supply.

Hyundai’s Alabama plant, completed in 2005, overcame early difficulties only after nearly two decades of trial and error to train local staff. In the early years, the company struggled because it could not find enough assembly and welding technicians. Automation has eased some of the burden, but final assembly and quality checks still require experienced workers.

“Even Tesla’s U.S.-made cars are considered less precise than its China-made vehicles, especially in panel alignment. That shows how much the United States lacks workers with fine assembly skills," an industry source noted.

Retention is another problem. “In the United States, it happens too often that workers quit just a few months after being trained," said a second source who asked for anonymity.

Battery, auto and chip plants that Korean firms have built in the United States over the past decade face even greater challenges. They combine advanced technology with labor-intensive processes, making technical staff essential for operating and maintaining complex equipment.

“Training local workers to reach an acceptable yield rate takes significant time and effort," a battery industry source explained. "In the beginning, we cannot avoid sending workers from Korea who already have experience running these factories.”

The U.S. shipbuilding industry, which U.S. President Trump has pledged to revive, also lacks skilled labor. There is a severe lack of experienced shipyard workers, and only one university — the University of Michigan — trains naval architects. Hanwha Ocean, which recently acquired Philly Shipyard in Philadelphia, has dispatched 50 Korean employees to train local recruits.

“If there is not enough supply of skilled labor, even major projects like 'MASGA' ['Make American Shipbuilding Great Again'] could face difficulties," Rhee Shin-hyung, a professor of naval architecture and ocean engineering at Seoul National University, warned.

A national labor gap

The labor shortage extends far beyond Korean companies. Trump’s tariffs spurred a wave of direct investment in the United States and drove up demand for manufacturing workers, but even existing jobs in the sector have proved difficult to fill.

National Public Radio reported in May that about 500,000 manufacturing jobs remain unfilled. A Deloitte survey last year of 200 U.S. manufacturers found that more than 65 percent considered hiring and retention their biggest challenge. Deloitte forecast that by 2033, the industry will need 3.8 million more workers, but as many as 1.9 million positions could go unfilled if the shortage continues.

Analysts argue that the U.S. government should not only demand that companies build factories in the United States but also cultivate its own manufacturing work force and make better use of foreign specialists. Foreign workers made up 19.2 percent of the private labor force last year, up from 18.6 percent the year before, according to the U.S. Bureau of Labor Statistics.

“The Trump administration has aggressively attracted large-scale manufacturing facilities but has neglected work force development," said Kim Dae-jong, a professor of business at Sejong University. "In the end, Koreans have to train local workers. The United States should help both Korean and U.S. workers collaborate instead of creating obstacles.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.

BY KIM HYO-SEONG, CHOI SUN-EUL [[email protected]]