Korean businesses in the Los Angeles garment district are considering making a mass move to El Paso, Texas. Their business in Los Angeles is responsible for at least $10 billion in annual revenues as well as 20,000 jobs. An increase in minimum wage in California, coupled with rising rent and strict labor laws, are some of the reasons for relocation.

El Paso was once home to denim companies including Levi’s and Wrangler. It has abundant skilled laborers, fewer regulations, much cheaper rent and direct flights from Los Angeles. There's already a strong Korean presence in El Paso with more than 100 businesses in downtown El Paso, half of them owned by Koreans.

There is a feeling the shift to El Paso has been prompted by strict labor laws in Los Angeles and that some employers may be looking to El Paso to take advantage of lax enforcement of laws and a vulnerable new immigrant population. Los Angeles’ garment district were predominantly Jewish in the 1970s when Korean immigrants first began selling textiles there. Many had first emigrated from Korea to Latin America, where they operated successful fashion businesses, before migrating north to California.

Soon entrepreneurs were hiring their own designers and seamstresses and fortunes were created. But now, problems have arisen. Apparel manufacturing moved to China, Southeast Asia or other places with cheap labor and other ways to cut costs.