ICE enforcement costs L.A. $840 million in production losses

The ICE enforcement impact across Los Angeles County, including Koreatown, has resulted in hundreds of millions of dollars in economic losses, according to a recent county report.

County officials estimate that short-term production losses alone exceeded $800 million. In addition, neighborhoods with high concentrations of noncitizens, such as Koreatown, were identified as particularly vulnerable to intensified immigration enforcement. The findings were included in a report released by the Los Angeles County Department of Economic Opportunity and the Los Angeles County Economic Development Corporation.

According to the report, enforcement operations targeting undocumented immigrants, along with protests and counterprotests, triggered curfews in parts of downtown Los Angeles. As a result, short-term economic production losses were estimated at approximately $840 million.

The report also outlined the scale of the undocumented population and its economic contribution. Authorities estimate that about 950,000 undocumented immigrants live in Los Angeles County. Together, they generate roughly $254 billion in economic output, accounting for 17% of the county’s economy.

Immigrant workers represent 40% of construction laborers, 37% of janitorial and maintenance workers, and 25% of food service employees, the report found.

Mexican nationals make up the largest share of undocumented residents, followed by immigrants from Guatemala and El Salvador. Among Asian groups, Chinese and Filipino immigrants account for higher proportions. The report estimates that approximately 13,000 undocumented Korean immigrants reside in the county.

However, the report stressed that the ICE enforcement impact extends beyond those directly targeted. Economic harm spreads to local communities, small businesses and the broader labor market.

Korean-owned businesses have also been affected. In June of last year, ICE conducted a raid at a Korean-owned clothing store in downtown Los Angeles. In September, a Korean-operated car wash in Koreatown was also targeted.

Dae Joong Yoon, community solidarity director at the Koreatown Immigrant Workers Alliance (KIWA), said enforcement actions create fear that depresses consumer activity and weakens the local economy.

The ZIP code 91402, which includes Mission Hills, Panorama City and North Hills in the San Fernando Valley, experienced the most significant enforcement-related impact, according to the report.

Meanwhile, neighborhoods such as Koreatown, Westlake and Pico-Union were identified as areas with high concentrations of foreign-born noncitizens. These communities also have many mixed-status households, where citizens and noncitizens live together. Therefore, heightened enforcement may reduce consumer spending and workforce participation due to fear and uncertainty.

Among 300 small businesses surveyed, 82% reported negative effects such as declining sales. More than half cited reduced daily revenue and foot traffic. About one-quarter temporarily closed because of community instability. The report estimates that small businesses lost approximately $3.7 million in revenue over a two-month period, from July through September, when enforcement intensified.

Meanwhile, a federal court recently halted enforcement of California’s so-called “No Secret Police” law, which sought to limit ICE agents from wearing masks during operations. However, requirements that federal, state and local officers display names or badge numbers during enforcement remain in effect.

BY HANKIL KANG  [kang.hankil@koreadaily.com]