Work at a Hyundai Motor car battery facility under construction in Georgia halted after hundreds of workers, predominantly South Korean nationals, were arrested in an immigration raid.
According to Independent, the site is one of the Korean car maker's most substantial investments in the US.
Approximately 475 people were arrested, as per US immigration officials, marking the largest single-site enforcement operation in the history of the US Department of Homeland Security (DHS).
The arrests occur amidst an escalating crackdown on immigrants by the administration of President Donald Trump, a policy that has disrupted businesses across the country even as the White House has actively encouraged more foreign investment.
This incident risks heightening tensions between Washington and Seoul, a crucial ally and investor in the US.
Homeland Security officials said the workers arrested at the Ellabell, Georgia, site were barred from working in the US after crossing the border illegally or overstaying their visas.
A Hyundai Motor spokesperson said none of the people arrested were employed directly by the company.
The spokesperson said its chief manufacturing officer for North America, Chris Susock, would "assume governance of the entire megasite in Georgia," adding, "We will conduct an investigation to ensure all suppliers and their subcontractors comply with all laws and regulations.”
The two nations have already been at loggerheads over the finer details of a trade deal that includes $150 billion in US investments, with Hyundai Motor alone pledging $26 billion.