South Korean President Lee Jae Myung on Thursday said that the US immigration raid on a Hyundai factory was "bewildering" and could have adverse effects on future South Korean investments in the US.

The raid was the largest single-site anti-immigration operation conducted since US President Donald Trump cracked down on immigration, a top political priority since he returned to office in January.

At a press conference, Lee said that the raid is likely to leave South Korean businesses "hesitant" about investing in the United States.

Last week, the detention of some 300 South Korean workers in a massive raid on a Hyundai-LG battery factory site in the state of Georgia raised concerns over the viability of doing business in the US.

He said that the detained workers will leave the detention center at 3 p.m. Korean time on Thursday and fly back to South Korea.

After the detentions, South Korean companies "can't help but question whether setting up a plant in the US is worth the potential risks," Lee said.

"This could have a significant impact on future investment decisions, particularly when evaluating the feasibility of direct operations in the US," he added.

The incident has caused outrage in South Korea, coming on the heels of a major trade agreement between the two countries made to avert massive tariffs threatened by Trump.

Seoul looking for solutions to ease tensions

Following the raid, South Korean Foreign Minister Cho Hyun flew to Washington to resolve what has become a diplomatic mess.

Lee said Seoul is in talks with Washington "to ensure that visa issuance for investment-related purposes operates normally."

This could include "securing additional quotas" or even creating a new visa category, he said, adding that he trusted the "US side will find a solution."

 "But under the current circumstances, Korean companies will have little choice but to hesitate about making direct investments in the US," he added.

Edited by: Elizabeth Schumacher