After Being Accused of Working for Seoul, U.S. Suspends Prosecution of Former Intelligence Official

The U.S. Department of Justice has agreed to suspend criminal prosecution against Sue Mi Terry, a former Central Intelligence Agency (CIA) analyst and former White House National Security Council official who was accused of acting as an unregistered agent for South Korea in exchange for luxury goods and other gifts.

Under the deferred prosecution agreement, the U.S. Attorney's Office for the Southern District of New York announced the suspension of the criminal charges contained in the indictment issued by a grand jury in July 2024.

According to Reuters, the agreement stipulates that the case will be permanently dismissed after 12 months, provided Terry complies with a set of conditions, including restrictions on her travel and communications with the South Korean government.

Details of the agreement were included in a four-page notice filed Tuesday with the U.S. District Court in Manhattan, without the Department of Justice providing a clear explanation for its decision to suspend the case, merely stating that deferring prosecution serves the interests of the United States and of Terry.

The indictment accused Terry of receiving gifts from the South Korean government in exchange for promoting political positions adopted by Seoul, disclosing information not available to the public to officials in its intelligence agencies, and facilitating access between South Korean officials and their American counterparts.

According to the allegations, Terry's alleged activities on behalf of South Korea began in 2013, two years after she left U.S. government service, and continued for approximately 10 years, including during her time as a senior fellow at the Council on Foreign Relations, where she specialized in East Asian affairs and the Korean Peninsula. The Council had placed her on unpaid leave following the issuance of the indictment.

Terry faced charges of failing to register under the Foreign Agents Registration Act and conspiracy to violate the law.

Terry denied any wrongdoing. Her attorney, Lee Wolosky, stated earlier that his client had been a harsh critic of the South Korean government, and that her prosecution stemmed from her work as an independent researcher and news analyst.

The agreement spares Terry the risk of immediate criminal conviction or imprisonment, just weeks before the scheduled start date of her trial, according to The New York Times.

The newspaper quoted Wolosky as saying, in response to the agreement, that the defense team consistently maintained its position that Terry's interactions with South Korean officials were intended to serve U.S. interests and fell within her role as a prominent American expert on North Korea and East Asia.

Although the agreement does not include an admission of guilt by Terry, she acknowledged assisting South Korean intelligence officials in several ways, including sharing notes she prepared for a meeting held in 2022 between senior U.S. State Department officials and experts on Korea-related policies.

She also admitted to accepting handbags from luxury brands worth more than $9,200, 19 meals at upscale restaurants, and payments totaling $37,000 for a public policy program specializing in Korean affairs that she managed.

The indictment stated that these benefits were provided to her as gifts by South Korean intelligence officials.