Federal prosecutors will drop their case against Sue Mi Terry, a former CIA analyst and prominent U.S.-Korea policy expert, under a deferred prosecution agreement filed Tuesday in federal court in New York City. The agreement came roughly two weeks before Terry was scheduled to face trial on two felony counts: conspiracy to violate the Foreign Agents Registration Act and failure to register under the law, which requires people acting as agents of foreign governments to disclose that work. In the agreement, Terry admitted accepting a Bottega Veneta handbag, a Louis Vuitton handbag and a Dolce & Gabbana coat from South Korean officials. The gifts were valued at about $9,245, according to the court filing. She also acknowledged sharing notes from a meeting with then-Secretary of State Antony Blinken with a South Korean official and helping raise about $37,000 for her think tank. The money came through checks issued directly by South Korea’s U.S. embassy. Terry’s attorney, Lee Wolosky, said she was pleased with the outcome and maintained that her contact with South Korean officials supported U.S. interests and her work as a specialist on North Korea and East Asia. “Dr. Terry, who served her country loyally for many years, is pleased with this result,” he said in a statement. The agreement resolves a case that placed scrutiny on the boundary between foreign-policy expertise and activities that federal law requires to be disclosed. Terry was charged in 2024. The agreement’s filing sets out her admissions and the government’s plan to end the prosecution; the provided details do not specify additional terms.