Seoul has reached an agreement with a local employee of the South Korean Embassy in New Zealand, who was sexually harassed by a South Korean diplomat in 2017.

In a statement on Monday, the embassy said the two sides managed to amicably narrow differences through a dispute-settling mediation process in accordance with New Zealand's labor law.

While the employee is able to seek compensation from the embassy in the process, the embassy declined to elaborate on the agreement.

The Kiwi staffer at the South Korean Embassy in Wellington had accused a South Korean diplomat of groping him three times in 2017.

After the diplomat was assigned to a new post in the Philippines in 2018 and later disciplined with a salary cut, the issue was brought up by New Zealand Prime Minister Jacinda Ardern during phone talks with President Moon Jae-in in July.

The embassy hopes the latest agreement will reflect positively on the ongoing criminal investigation in New Zealand and civil proceedings between the victim and the accused.

Meanwhile, New Zealand police on Tuesday said they will not request the diplomat's extradition, adding the standard of proof required to "initiate extradition proceedings [had] not been met."