South Korea’s National Intelligence Service (NIS) and Ministry of Foreign Affairs have initiated follow-up measures after Sue Mi Terry, senior fellow at the Council on Foreign Relations, was indicted by U.S. federal prosecutors on July 16. The Korean-American former CIA analyst faces charges for working on behalf of the South Korean government without notifying the U.S. Department of Justice. This incident has raised concerns that it could undermine South Korea’s intelligence and diplomatic activities in the lead-up to the U.S. presidential election in November.
The spy agency here has reportedly begun an internal investigation related to the case. According to an intelligence source on July 21, “One of the three agents involved has already retired, while the other two are currently serving.” The source added, “Actions against the two active agents are underway.” Agent A, a second-tier official, was recently relieved of duty. It is also reported that the NIS is considering recalling Agent B, who is currently on overseas assignment, for investigation. Agents A and B served in the U.S. during the Moon Jae-in administration and have a senior-junior relationship.
The U.S. prosecutors’ indictment alleges that Terry met with three NIS agents assigned to New York and Washington as diplomats from 2013 to 2023, exchanging confidential information and facilitating meetings between U.S. and South Korean officials. The indictment revealed that the agents, under constant surveillance, provided Terry with luxury handbags and clothing, using diplomatic privileges for tax-free benefits, sparking controversy over their professionalism.
Intelligence experts suggest that the background of this incident should be examined for the possibility of intentional information leaks. “When an NIS agent’s activities are exposed to a foreign country, it is protocol for intelligence agencies to investigate potential internal leaks,” an intelligence source said. “There may also be a mole hunt underway.” The source added, “There is much discussion within the NIS about why U.S. prosecutors are handling the case so publicly, including arresting Terry. This has stirred up old personnel conflicts and led to heated debates over accountability.”
The Foreign Ministry, which reorganized the Office of Korean Peninsula Peace and Security Affairs into the newly established Office of Strategy and Intelligence by adding an intelligence analysis unit earlier this year, is now facing a dilemma. A ministry official said, “Key figures in Trump’s circle are already extremely cautious about meeting foreign officials due to past incidents like Michael Flynn’s firing and indictment for contacting the Russian ambassador during the 2016 campaign. This situation will likely deter even non-campaign experts from meeting Korean officials.”
The ministry has initiated a legal review of potential violations of the Foreign Agents Registration Act (FARA) in its public diplomacy efforts targeting U.S. think tanks and universities.
