The Dark Side of Major Korean Companies in the US: Illegal Workers Controversy, Just the Tip of the Iceberg?
Recently in Georgia, USA, a shocking incident occurred in which Korean workers employed by subcontractors of Hyundai Motor and LG Energy Solution were arrested on suspicion of illegal residence. The media is treating it as if companies were unintended victims, but looking at the situation on the ground, this incident is an already foreseen tragedy and merely part of the dark shadow that major Korean companies that have entered the US have maintained as a practice.
'Strong Unions' Avoided: From Rust Belt to the South?
Many Koreans criticize Korean unions as being overly strong, but the story changes when looking at union activities in the manufacturing-declining regions called the 'Rust Belt' in the US. For companies, the unions' high labor costs and strict regulations were a major burden, and to solve this, they chose to move production bases to southern states like Georgia and Texas. And in this process, they massively hired Hispanic workers with low labor costs and difficult union formation.
'Dangerous Costs' Pushed to Subcontractors
In the case of Hyundai, it applied the same method it had been using in the past to solve this burden. It was 'shifting burdens to subcontractors.' Costs outside core competencies were structured for subcontractors to bear. In the process of building factories in the US, domestic subcontractors who did not want to offend ended up reluctantly establishing local US subsidiaries.
The problem arises here. Even if subcontractors want to send skilled technicians from Korean headquarters to the US to secure stable labor, the visa issuance process is very complex and costly. Dispatching a single worker on a formal visa requires enormous costs and time amounting to 200 million to 500 million won. It is practically impossible for small subcontractors to bear this cost.
Eventually, they resorted to irregular methods. They did 'rotation' by using 'ESTA (Electronic Travel Authorization)' to replace workers every 3-4 months. This is a clear violation of the law, and if unlucky enough to be caught, workers face the tragedy of deportation and never being able to set foot in the US again. The Georgia incident is a case where this illegal practice surfaced.
Samsung and POSCO Are No Exception
This behavior is not unique to Hyundai. In Samsung's case, after dispatching key personnel to a US project in the past and experiencing a mass exodus after acquiring permanent residency, it became reluctant to dispatch personnel to its US subsidiary. Nevertheless, it is difficult to say that the practice of illegally recruiting personnel has completely disappeared. Furthermore, it is a public fact that most major Korean companies that have expanded overseas, including POSCO, are resorting to similar irregular methods, albeit to different degrees.
Stop 'Playing the Victim'
What I think when looking at this incident is: despite the fact that corporations caused this due to their long-standing practices, aren't they 'playing the victim' as if it were the responsibility of the government or US authorities? Even though they had known about everything for a long time.
Recalling cases where they siphoned off money earned through local subsidiaries abroad and consistently denied knowledge, this incident is merely the tip of the iceberg. The dark reality of major Korean companies, which could never have been fully understood through the news, is now gradually being revealed. I hope this incident does not end as a one-time issue, but becomes an opportunity to reconsider the unreasonable labor practices of all Korean companies that have expanded overseas, not just in the US.
