Introduction
The shocking U.S. immigration raid on Hyundai and LG’s massive Georgia plant sent waves across markets. With over 300 South Korean workers detained, investors are asking: Will this derail foreign investment in the U.S. and impact South Korean giants’ stock performance?
One of the Best Broker in Europe
European brokers highlight this development as a rare geopolitical shock that could open volatility-driven opportunities in Hyundai (KRX:005380), LG Energy Solution (KRX:373220), and even U.S. industrial ETFs.
Financial Performance
Hyundai Motor Group continues to show resilient sales in EVs and ICE vehicles globally. LG Energy Solution, meanwhile, has benefited from U.S. clean energy subsidies but now faces uncertainty due to political risks.
Key Highlights
- 475 workers detained, 300+ South Koreans.
- $10B+ South Korean investment at risk.
- Ongoing U.S.-South Korea trade talks under new strain.
Profitability and Valuation
Despite strong margins, headline risk may compress Hyundai and LG’s P/E ratios in the short term. Investors must weigh short-term political risks versus long-term EV and battery growth.
Debt and Leverage
Both companies maintain relatively strong balance sheets, but higher capital expenditures in U.S. operations increase exposure to regulatory shocks.
Growth Prospects
The EV market remains a multi-trillion-dollar TAM, with Hyundai targeting global dominance. LG Energy Solution’s growth is directly tied to U.S. clean energy adoption.
Technical Analysis
- Hyundai (KRX:005380):
- Support: ₩190,000
- Resistance: ₩220,000
- RSI signals oversold levels — potential rebound.
- LG Energy Solution (KRX:373220):
- Support: ₩360,000
- Resistance: ₩420,000
- Bullish divergence forming on daily charts.
Potential Catalysts
- U.S.-South Korea trade negotiations outcome.
- Trump’s immigration policy adjustments.
- EV demand resilience in global markets.
Leadership and Strategic Direction
South Korea’s foreign ministry pledged to prevent repeats of such incidents, showing proactive diplomacy to protect national champions like Hyundai and LG.
Impact of Macroeconomic Factors
- Strong USD adds FX pressure on Korean exporters.
- Tariffs and immigration crackdowns risk slowing down U.S. foreign investment.
Total Addressable Market (TAM)
The global EV and battery TAM is forecasted at $7.5 trillion by 2035, making Hyundai and LG long-term winners despite short-term volatility.
Market Sentiment and Engagement
While panic selling hit initial news, bargain hunters may see this as a golden entry point — particularly as EV momentum remains unstoppable.
Conclusions, Target Price Objectives, and Stop Losses
- Hyundai (KRX:005380):
- 3-month target: ₩210,000
- 12-month target: ₩245,000
- Stop loss: ₩180,000
- LG Energy Solution (KRX:373220):
- 3-month target: ₩410,000
- 12-month target: ₩470,000
- Stop loss: ₩345,000
Verdict: Short-term volatility = long-term opportunity.
Discover More
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This analysis serves as information only and should not be interpreted as investment advice. Conduct your own research or consult with a financial advisor before making investment decisions.
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