Sue Mi Terry, a former United States Central Intelligence Agency (CIA) analyst, has been indicted by a New York grand jury for allegedly working as a spy for the South Korean government in exchange for luxury goods, bags and fancy meals.

According to the BBC, the indictment includes charges of failing to register as a foreign agent and conspiring to violate the Foreign Agents Registration Act.

The court documents unveiled in the Southern District of New York, stated that Terry, who is also a leading expert on North Korea, allegedly served as an agent for the South Korean government for more than a decade without registering as a foreign agent with US officials.

Terry, 54, has worked as a senior analyst for the CIA from 2001 to 2008, before holding a variety of posts in the federal government, including as Director for Korea, Japan, and Oceanic Affairs at the National Security Council during the George W Bush and Barack Obama administrations.

The 31-page indictment alleges that Terry admitted to Federal Bureau of Investigation (FBI) agents in a voluntary interview in 2023 that she was a "source" for South Korea's National Intelligence Service.

It also claims that the South Korean government gifted Terry a $2,845 luxury brand coat, a $3,450 handbag and meals at upscale restaurants.

Officials say the government also gave her $37,000 and came up with a plan to hide the source of the funds, placing them in a gift fund at the think tank where she worked.

Terry denies the charges and her attorney, Lee Wolosky, told the BBC the allegations against her were "unfounded".

The charges "distort the work of a scholar and news analyst known for her independence and years of service to the United States", Wolosky said.

"In fact, she was a harsh critic of the South Korean government during times this indictment alleges that she was acting on its behalf."