US Prosecutors Arrest Sumi Terry for Selling Information to Korea in Exchange for Luxury Goods and Money

Controversy Over Careless Intelligence Activities... Concerns Over Fallout in Hanmi Relations

Sumy Terry, a former CIA North Korea analyst and senior fellow at the Council on Foreign Relations (CFR), was arrested on the 16th (local time) following her indictment. It is unusual for the United States to indict and arrest a think tank expert supported by its ally, the South Korean government, on charges of illegal lobbying, and this incident has brought the lax intelligence activities of our intelligence agencies into question. There are also concerns that this could become a negative factor in the currently smooth South Korea-U.S. relationship.

[Image source=Yonhap News]

On the 17th (local time), the U.S. Department of Justice announced that "Sumy Terry provided information and advocacy to South Korean intelligence agencies in exchange for luxury goods and money," and that she was arrested in New York City the previous day and taken into custody.

Damian Williams, the U.S. Attorney for the Southern District of New York who indicted Terry, stated in a Department of Justice press release that day, "Terry, a former CIA employee and White House staffer, violated the Foreign Agents Registration Act (FARA)." He added, "She is suspected of selling her position and influence to the South Korean government in exchange for high-end handbags, expensive meals, and thousands of dollars in funding related to public policy programs." He emphasized, "This sends a clear message to public policy officials who may be tempted to sell their expertise to foreign governments that they must think twice and comply with the law."

Christy M. Curtis, Acting Deputy Director of the Federal Bureau of Investigation (FBI), also confirmed, "Threatening national security endangers all Americans," and said, "Terry, a former CIA employee and White House staffer, was arrested on charges of acting as an unregistered agent for South Korea." She continued, "Terry is accused of abusing her think tank role to advance the agenda pursued by a foreign government despite repeated warnings over more than ten years. She provided sensitive U.S. information to South Korean intelligence agencies and used her position to influence U.S. policy in favor of South Korea. In return, she received money and luxury goods."

Acting Deputy Director Curtis stated, "Her actions posed a serious threat to national security," and emphasized, "The FBI will track down and arrest anyone who collaborates with foreign spies to threaten national security."

According to the indictment released earlier by prosecutors, Terry began acting as an agent for the South Korean government after contacting a person introduced as a counselor at the South Korean Mission to the United Nations in 2013, five years after retiring from the CIA in 2008. She is accused of passing confidential information to South Korean National Intelligence Service (NIS) agents dispatched to the U.S. and arranging meetings with current and former U.S. government officials. The indictment specifies that the information Terry passed to NIS agents included private conversations with U.S. Secretary of State Antony Blinken. During this process, Terry reportedly received a Louis Vuitton handbag, a Dolce & Gabbana coat, meals at upscale restaurants, and at least approximately $37,000 in cash. Although acting on behalf of a foreign government requires registration with authorities under FARA, prosecutors point out that Terry violated this obligation. Terry denies the charges.

This incident has brought the lax intelligence activities of our intelligence agencies into question. The FBI and others had been aware of unofficial contacts between South Korean intelligence agencies and Terry and had monitored her for a long time, but it has been revealed that the NIS did not properly recognize this. There are also concerns that this could negatively affect the South Korea-U.S. relationship, which has been strengthening economic and military security cooperation.

Meanwhile, the background of the recent resignation of Jung Park, a senior U.S. State Department official for North Korea and Deputy Assistant Secretary, has also drawn attention following Terry’s indictment. The indictment states that in 2021, Terry mentioned a close relationship with a senior State Department official responsible for Korean affairs while having dinner with an NIS agent, and the career history of the senior official described there is similar to that of Deputy Assistant Secretary Jung Park. The State Department did not explain the reason for Jung Park’s resignation at the time.