According to a report by Jacob Wolf for ESPN, Lunatic-Hai is expecting to temporarily move to Los Angeles once the current season of APEX finishes up. While the deal with KSV Esports, the owner of the Seoul franchise spot, isn't official yet, both sides are simply waiting for the deal to be approved.
The team will be able to finish APEX and move to Los Angeles just in time to settle down before BlizzCon, in which much of the roster will be competing as members of Team South Korea. The players will not be taking up permanent residence in Southern California, instead making the move back to South Korea once Overwatch League teams begin playing in their home cities rather than at the Los Angeles site.
As the best team in the world, according to over.gg's official world rankings, and back-to-back APEX champions, it was widely speculated that Lunatic-Hai would end up on an OWL team and specifically the Seoul team. However, adding further fuel to the flames of speculation, one sentence stuck out in ESPN’s report regarding additional Korean teams in the Overwatch League:
"This likely won't be the only South Korean Overwatch team to take a deal with one of the Overwatch League organizations, sources said."
It is expected that Overwatch League teams field the best rosters in the world, and since Korea is widely-regarded as the best Overwatch region in the world, it has already been speculated that Koreans would be fielded as a part of OWL rosters across the world. Despite there currently being only one Overwatch League team based in Korea, it seems to be increasingly likely that there won't be just one team of Koreans participating in the league.