A renowned Korean American foreign policy expert was arrested this week on allegations of acting as an unregistered agent for the South Korean government, the US attorney's office in New York said Wednesday.

Sue Mi Terry, who formerly worked for the Central Intelligence Agency, the National Security Council and US think tanks, was arrested in New York on Tuesday, the office in the Southern District of New York said in a release, as she was accused of offenses under the Foreign Agents Registration Act.

Terry was reportedly released on $500,000 bail on the same day.

In the release, US Attorney Damian Williams said Terry allegedly sold out her positions and influence to the Korean government in return for luxury handbags, expensive meals, and thousands of dollars of funding for her public policy program.

"As alleged, Sue Mi Terry, a former CIA and White House employee, subverted foreign agent registration laws in order to provide South Korean intelligence officers with access, information, and advocacy," the attorney said.

He pointed out that the charges brought against her "should send a clear message to those in public policy who may be tempted to sell their expertise to a foreign government to think twice and ensure you are in accordance with the law."

Terry has been charged with one count of conspiracy to violate FARA, which carries a maximum sentence of five years in prison, and one count of failure to register under FARA, which carries a maximum sentence of five years in prison, the attorney's office said.

FARA requires any person acting in the US as an agent for a foreign government to register with the attorney general if he or she is engaging directly or through another person in certain activities, including political and publicity activities, for that foreign government.

After leaving US government service, Terry worked as an agent for the South Korean government without registering as a foreign agent as required by law, according to the allegations in the indictment.

She is alleged to have publicly advocated for South Korea's policy positions, disclosed non-public US government information to South Korean intelligence officers and enabled Seoul officials to gain access to US government officials.

In the release, Christie Curtis, the acting assistant director in charge of the New York field office of the Federal Bureau of Investigation, noted that despite "repeated warnings," Terry allegedly exploited her think tank roles to advance a foreign agenda.

"Her alleged actions posed a severe threat to national security," Curtis said. "This arrest sends a clear message: the FBI will pursue and arrest anyone who endangers our nation's security by collaborating with foreign spies."

In a press briefing, Matthew Miller, the State Department spokesperson, refused to comment on the indictment, calling it an "ongoing law enforcement matter," But he touched on the general tenor of FARA.

"I will say more generally that the reason the Foreign Agents Registration Act exists is that those of us in government as well as people in the public as well ... know, when we engage with people who come in to meet with us, who they are representing -- whether they are representing themselves or whether they are representing a foreign government," he said.

"That's why that law was passed. That is why the Justice Department vigorously enforces it and it's, of course, appropriate for them to do so," he added.

Asked whether there was any conversation on the issue with Seoul, he declined to comment.

Meanwhile, the indictment document mentioned that in April 2021, Terry discussed with a South Korean intelligence official her "close relationship with a senior State Department official with responsibilities covering Korean affairs who had previously served in senior roles at the CIA and at the National Intelligence Council."

It did not name the department official. But speculation arose that the job description of the official appears similar to that of Jung Pak, a former US senior official for North Korea who left the department earlier this month. Pak formerly worked for the CIA and NIC.

Terry's indictment raised questions over whether it would affect the relationship between Seoul and Washington or South Korean diplomats' outreach in the United States.

Observers largely concurred that the indictment will not affect the South Korea-US relationship given that it appears to be part of a broader effort to address foreign influence in US affairs, while some raised speculation that Terry's charges could be a tacit warning to South Korea's intelligence community.

"Her indictment is also a reflection of the heightened attention the US government and law enforcement have been giving in recent years to ensuring compliance with the FARA," a source in the US told Yonhap News Agency.

"I don't see any impacts on the overall US-ROK relationship, which otherwise remains strong," the source added. ROK stands for South Korea's official name, the Republic of Korea.

Another source expressed doubts over whether Terry's case is related to the status of the relations between Seoul and Washington.

"I doubt that this has anything to do with the US-South Korea relationship now, which is quite good. Instead, I think this was likely a decision by a US prosecutor who perceived legal violations in how Sue had done business," the source said.

"But I don't know that is the case -- just my suspicion. It is always tricky trying to advise both the US government and allied governments."

Last year, an eavesdropping scandal involving allegedly leaked Pentagon documents flared up, triggering worries about its impact on the bilateral alliance. South Korean President Yoon Suk Yeol stressed the alliance would not be shaken by the allegations, and that bilateral ties only continued to strengthen.

US media reports said that a set of leaked Pentagon documents shared on social media revealed that US intelligence services eavesdropped on conversations related to Korea's decision whether to provide weapons support to Ukraine at the South Korean presidential office last March. (Yonhap)