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How Koreans reacted to US factory raid
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A chartered Korean Air jet landed in Seoul this afternoon with more than 300 workers who were detained in a raid at a Hyundai-LG battery plant in Georgia last week. Bloomberg reporters Hyonhee Shin and Denny Thomas tell us how Koreans are reacting to the arrests. Plus: A new episode of the Everybody’s Business podcast, a visit with the CEO of Axel Springer, and a look at the success of the WNBA’s Golden State Valkyries.

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For generations, South Koreans have woven the American story into their own: Local troops patrolled with GIs to defend the demilitarized zone along the North Korean border, moviegoers chased popcorn with Coca-Cola while enjoying Hollywood blockbusters, and students spruced up their resumes with Ivy League degrees. The US was the best friend, the model, the future, a trusted ally and aspirational partner.

A few hours in Georgia last week threaten to unravel those decades of goodwill.

On Sept. 4, hundreds of state and federal agents descended on a building near Savannah where workers were putting the final touches on a $7.6 billion battery plant for Hyundai Motor Co. The joint venture with LG Energy Solution Ltd. had been billed as a crown jewel of America’s clean-energy boom. By the end of the day, agents with US Immigration and Customs Enforcement had taken almost 500 people into custody, more than 300 of them Koreans.

These engineers, technicians and project specialists, most handcuffed or shackled, were walked to waiting vans and buses, then transported to a sprawling detention center about two hours’ drive to the south, a few miles from the Florida state line. Photos and video clips of the raids soon flooded South Korean social media, sparking outrage. “They were treated as if they were illegal immigrants or drug smugglers or even worse,” says Kim Wang-jung, chief executive officer of Canatech Co., a Korean company whose employees at the site were detained in the raid.

A video provided by ICE shows manufacturing plant employees waiting to have their legs shackled at the Hyundai Motor Group’s electric vehicle plant in Ellabell, Georgia. Photographer: Corey Bullard/US Immigration and Customs Enforcement/AP Photo

South Korea’s foreign minister quickly jetted to Washington to try to undo the damage. On Thursday the two sides settled on a compromise that allowed most of the detainees to be released, leaving the country voluntarily to avoid deportation orders that could bar them from returning to the US for years. A charter flight ferrying the workers home arrived in Seoul today to a heroes’ welcome, with journalists and family members jostling for position to see them deplane. “The anxiety gave me insomnia,” said Cho Yangsoon, 67, while waiting for her son who had been working at the plant for the past three months. “For days there was no word, no call, nothing but the news. It was suffocating.”

Just two weeks earlier, South Korean President Lee Jae Myung had met with his US counterpart in Washington, announcing billions in new investment. Seoul had staked political capital by embracing President Donald Trump’s “America First” revival, casting South Korea as a partner in jobs, factories and clean-tech ambition. That made the raid doubly injurious, says Kim Tae-Hyung, a political science professor at Soongsil University in Seoul. “It’s like a stab in the back,” he says. “Koreans can’t help but feel infuriated.”

In Georgia, construction halted. Schedules slipped. Managers scrambled to replace missing hands with local crews unfamiliar with specialized equipment. And Seoul fumed, with business leaders privately asking: If this is how America treats its closest allies, does it make sense to bet billions on operations there? “Korean companies are finding it difficult to shake off anxiety about US policy uncertainty,” the conservative daily Chosun Ilbo wrote in an editorial. “This raises fundamental questions about what the United States truly means by ‘alliance’ and whether investment incentives will remain valid even after a change in administration.”

Trump’s response: “Foreign companies are welcome,” he told reporters, “but they must follow our laws and hire American workers.” Homeland Security Secretary Kristi Noem insisted the action wouldn’t deter investment but rather signal that “the rules apply equally to everyone.”

The EV plant will eventually rise (though Hyundai now says it will be delayed by months). Batteries will roll off its lines, powering cars on American highways. But for many Koreans, the memory of their shackled compatriots will remain. “I’m wondering how the US ended up like this,” says Christine Jung, a 28-year-old who was an exchange student in the US a few years ago. “I don’t know whether I’d go if I were in college now. It’s not the country we used to know.”

In Brief

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On the Everybody’s Business Podcast

Not that long ago the US economy was wrestling with an interesting problem: Jobs data looked very strong, but people didn’t feel good about the economy. The dissonance became known as the “vibecession” and was the topic of many economic and policy debates. Why do people feel bad about the economy when the economy is actually doing great?

With help of revised data, we now know that the vibes were right. The US Bureau of Labor Statistics on Tuesday released its latest data, which included a massive revision. Kathryn Anne Edwards, host of the Optimist Economy podcast, joins co-hosts Stacey Vanek Smith and Max Chafkin on the Everybody’s Business podcast this week to talk about how a giant revision like this can happen. Plus Chafkin talks about his book The Contrarian, which looks at the world of Silicon Valley billionaire Peter Thiel.

Listen and subscribe to the podcast on Apple, Spotify, iHeart and the Bloomberg Terminal.

Looking for Gold in Publishing

CEO Mathias Döpfner at the new Axel Springer building in Berlin. Photographer: Ériver Hijano for Bloomberg Businessweek

Mathias Döpfner shakes the rain from his jacket as he enters the Berlin headquarters of media titan Axel Springer SE, his 6-foot-7-inch silhouette reflected in the glass facade. The building is a 13-story cube with a soaring ceiling, the floors cascading down to form a kind of valley inside, each filled with desks from Springer’s dozen or so European and US titles. Journalists from the German tabloid Bild can see staff from Politico and Business Insider working above them; they in turn peer up at reporters from the Die Welt broadsheet. The building opened in 2020 at a cost of more than €300 million (about $350 million in today’s dollars)—pricey by Berlin standards—but, Döpfner gloats, the company had already booked a profit of more than €100 million by selling it to Norway’s sovereign wealth fund in 2017. The transaction hints at Döpfner’s relentless drive to prove skeptics wrong—in news or real estate—and make money doing it.

A white bull terrier and its owner precede Döpfner into the elevator; the office has 250 registered dogs, all vetted by canine “psychologists,” he says with a chuckle. He began allowing them in after an employee asked why pets weren’t welcome. “I was so shocked, as I am a dog lover,” Döpfner says, listing his three poodles and a Labrador: Plisch, Plum, Lara and Mira. Springer goes to great lengths to woo employees to the place, with free lunches (“from vegan to very unhealthy,” Döpfner says) and a verdant rooftop bar for after-work hangouts. Since this summer, four days a week in person has been a requirement, so showing up is also important to keep your job. Unless, of course, you’re chasing the news. “A reporter should be out where the story is, and a salesperson with the client,” he says.

At 62, the journalist-turned-chief executive officer is clearly the top dog at the conservative-leaning publisher and he has a desire to keep it growing. Benoit Berthelot joins Döpfner for our series A Walk With: The German Owner of Politico Wants Another US Media Outlet

WNBA’s Valkyries Have Great Timing

Illustration: Alex Gamsu Jenkins for Bloomberg Businessweek

Last February, at an event over NBA All-Star Weekend in San Francisco, Golden State Warriors owner and venture capitalist Joe Lacob told an audience of investors, executives, athletes and media that he expected the first $1 billion franchise in women’s sports wasn’t far away. At the time it seemed slightly outlandish, a bit of casual bluster from a billionaire talking up his own portfolio: Lacob also leads the ownership group for the WNBA’s Golden State Valkyries, the league’s newest team, which just completed its first season. He bought the franchise in 2023 for a $50 million expansion fee, then a record for the league.

Two years later that price appears to be a steal. The Valkyries’ inaugural season has been one of the most successful in the history of US sports. The team led the league in attendance, filling the Chase Center—the same venue where the Warriors play—with a sellout crowd of more than 18,000 for all 22 of its home games. It also became the first WNBA expansion team to make the playoffs in its first season. On Sunday the Valkyries begin a best-of-three series against the Minnesota Lynx.

On game nights the Chase Center becomes “Ballhalla,” a raucous mix of couples in matching violet-and-gold hats, middle-aged women sporting bomber jackets with the team’s “V” logo, young families and office workers—all ready to get loud. “This is a vibe like no other,” says Valkyries guard Tiffany Hayes, a 13-year WNBA veteran now on her fourth team, before a game against the Phoenix Mercury in August. “I have never felt anything like what this arena gives me every night.”

In a new Field Day column, Ira Boudway and Vanessa Perdomo write about the phenomenon: How the Golden State Valkyries Became the Hottest Team in the WNBA

Tariff Diplomacy

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