*

Hyundai, LG Energy's $4.3 billion project site in Georgia

raided

*

South Korea plans chartered flight for detained workers'

return

*

Seoul also seeking to have US visa system for Koreans

streamlined

(Recasts and writes through with foreign and finance ministers'

comments)

By Joyce Lee and Hyunjoo Jin

SEOUL, Sept 8 (Reuters) - South Korea said on Monday

that it wants hundreds of its citizens, who were arrested last

week during a large U.S. immigration raid at a car battery

project and are due to be flown home soon, to be allowed to

re-enter the United States.

Foreign Minister Cho Hyun is flying out to Washington on

Monday evening and will meet with U.S. Secretary of State Marco

Rubio during his trip to resolve the issue. Cho also said he

would be asking for the U.S. visa system for Korean workers to

be streamlined in the future.

About 300 South Koreans were among 475 arrested on Thursday

at the site of a $4.3 billion project by Hyundai Motor ( HYMLF )

and LG Energy Solution to build

batteries for electric cars. It was the largest single-site

enforcement operation in the history of the Department of

Homeland Security's investigative operations.

The raid sent shockwaves through South Korea, a major U.S.

ally which has been trying to finalise a U.S. trade deal agreed

in late July. It came just 10 days after South Korea's new

president, Lee Jae Myung, met with U.S. President Donald Trump

in Washington and the two pledged closer business ties.

In addition to potentially fraying bilateral ties, the

development has shone fresh light on how many foreign firms

investing in the U.S. have struggled to find qualified American

workers.

Seoul said on Sunday that discussions to arrange the release

of workers, who were mostly employed by subcontractors, were

largely concluded. A plan is in the works to fly them home on a

chartered plane this week under what one South Korean foreign

ministry official said would be called a "voluntary departure".

"From the beginning, we negotiated with the premise that

there should be no personal disadvantage (to the detained

workers)," Cho told a parliamentary hearing on Monday.

Details on how the workers may have breached immigration

rules have not been released by authorities or the companies,

but South Korean lawmakers on Monday said some may have

overstepped the boundaries of a 90-day visa waiver programme or

a B-1 temporary business visa.

South Korea Finance Minister Koo Yun-cheol said on Monday

that he had heard that some experts had travelled from South

Korea to help with a test run of the factory which was due to

begin production in October.

"You need to get a visa to do a test run, but it's very

difficult to get an official visa. Time was running out, and I

think experts went to the United States," he said.

DISMAY IN SOUTH KOREA

Seoul has expressed its unhappiness about the arrests and

the public release of footage showing the operation which

involved armoured vehicles and the shackling of workers.

Trump, who has ramped up deportations nationwide as his

administration cracks down on illegal immigrants, said last week

he had not been aware of the raid. He called those detained

"illegal aliens".

On Sunday, he called on foreign companies investing in the

U.S. to "respect our Nation's immigration laws", but sounded

more conciliatory.

"Your Investments are welcome, and we encourage you to

LEGALLY bring your very smart people, with great technical

talent, to build World Class products, and we will make it

quickly and legally possible for you to do so," he said on Truth

Social.

Hyundai Motor ( HYMLF ) is one of the biggest foreign investors in

the United States and is among South Korean companies

participating in a pledge of $150 billion in foreign direct

investment in the U.S., which comes on top of a $350 billion

fund that the South Korean government has separately pledged.

A spokesperson for the automaker said some staff had been

asked to suspend non-essential trips to the United States.

LGES has also suspended most staff business trips to the

U.S. and will be recalling South Korea-based employees now in

the country.

The battery maker said last week it is cooperating with U.S.

authorities and had paused construction work on the factory.

A Hyundai Motor ( HYMLF ) spokesperson said last week none of the

people detained were employed directly by the automaker and that

production of electric vehicles at the sprawling site was not

affected.

The companies declined further comment on Monday.

Cho's trip to the U.S. is due to end on Wednesday.