US Justice Department Drops Prosecution of Ex-CIA Analyst Sue Mi Terry

The US Justice Department has agreed to defer prosecution of former CIA analyst and White House National Security Council official Sue Mi Terry, who was accused of acting as an unregistered foreign agent for South Korea in exchange for luxury gifts and other benefits.

Under a deferred prosecution agreement filed Tuesday in Manhattan federal court, the US Attorney’s Office for the Southern District of New York will suspend criminal charges brought against Terry in July 2024.

The charges could be dismissed entirely after 12 months if Terry complies with the agreement's conditions, including restrictions on international travel and interactions with South Korean government officials.

Federal prosecutors offered no detailed explanation for the decision, stating only that delaying prosecution would serve the interests of both the United States and Terry.

The original indictment alleged that Terry secretly promoted South Korean government policies, shared confidential information with intelligence officers and helped Seoul officials establish connections with their American counterparts.

Prosecutors claimed her activities began in 2013, two years after leaving government service, and continued for approximately a decade. During that period, she worked as a senior fellow specializing in East Asian affairs at the Council on Foreign Relations.

Terry faced charges of violating the Foreign Agents Registration Act (FARA) and conspiracy to breach the law.

However, she consistently denied wrongdoing. Her attorney, Lee Wolosky, argued that her professional interactions with South Korean officials supported US interests and reflected legitimate academic and policy research.

The agreement, reached shortly before her scheduled trial, allows Terry to avoid an immediate criminal conviction and potential imprisonment.

Although Terry did not admit criminal wrongdoing, she acknowledged sharing notes prepared for a 2022 meeting involving senior State Department officials and Korean policy specialists with South Korean intelligence officers.

She also acknowledged receiving designer handbags worth more than $9,200, 19 expensive restaurant meals and $37,000 in contributions to a Korean affairs public policy program she managed.

Born in Seoul and raised in Virginia, Terry served as a CIA analyst between 2001 and 2008. She subsequently worked at the National Security Council from 2008 to 2009 under Presidents George W. Bush and Barack Obama.

The deferred prosecution agreement marks a significant development in a closely watched US foreign influence case involving South Korean intelligence activities.