New York federal prosecutors suspend case against former CIA analyst accused of working for South Korea

The U.S. Attorney’s Office for the Southern District of New York (SDNY) agreed to suspend criminal proceedings against Sue Mi Terry, a former CIA analyst and former National Security Council official, accused of acting as an unregistered agent of the South Korean government in exchange for lavish gifts and covert payments.

The agreement, known as a "deferred prosecution agreement," will allow the charges to be dropped if Terry complies with the conditions for 12 months.

The charges and the gifts

Terry was charged in July 2024 with conspiring to violate the Foreign Agents Registration Act (FARA) and with failing to register as a foreign agent. Prosecutors alleged that, since 2013, she had advocated for Seoul's positions, facilitated contacts between South Korean and U.S. officials, and shared nonpublic information with South Korean intelligence agents.

According to the indictment, Terry received a Louis Vuitton handbag valued at $3,450, another from Bottega Veneta worth $2,950, and a coat from Dolce & Gabbana worth $2,845. She was also taken to several Michelin-starred restaurants and arranged for $37,000 in covert payments from the South Korean embassy to a think tank where she worked.

A plea deal three weeks before the trial

The plea agreement was filed Tuesday in federal court in Manhattan, just weeks before the trial was set to begin on October 27. Prosecutors did not publicly explain the reasons for the decision, except to state that suspending the proceedings was in the "best interests" of both the United States and Terry.

Under the terms of the agreement, Terry does not admit guilt, but she does acknowledge key facts of the case, including the handover to a South Korean intelligence officer of notes from a confidential meeting with then-Secretary of State Antony Blinken in 2022.

The terms of the agreement

Over the next 12 months, Terry must comply with strict restrictions: she may not communicate with employees of South Korea's National Intelligence Service without authorization, may not accept gifts from foreign governments valued at more than $100, and may not leave the continental United States without permission.

If she complies with all the conditions, the charges will be dropped entirely. If she fails to comply, the prosecution may resume the proceedings. This is neither an acquittal nor a conviction: it is a conditional suspension of criminal prosecution.