A New Zealand government official in South Korea whohad his diplomatic immunity waived could be charged by police.

Korean Police alleged an "altercation" took place outside a bar in Seoul and were interviewing the Kiwi official who was present, the Ministry of Foreign Affairs and Trade said.

Foreign Affairs Minister Murray McCully had waived the New Zealander's diplomatic immunity on 9 June to allow police to question him.

PETAR KUJUNDZIC/REUTERS New Zealand Foreign Minister Murray McCully waived the diplomat's immunity on 9 June.

"The waiver of immunity allows the police to interview the government employee and press charges, if required," an MFAT spokesperson said.

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McCully would not give out details, but reports out of Korea allege the New Zealander obstructed police officers in Seoul who tried to arrest his friends on suspicion of molesting a female bar last month.

MFAT was advised Korean Police were called to a bar in the Itaewon district following a complaint by a female staff member about the conduct of two New Zealand businessmen.

Korean Police investigated the matter and no charges were pursued against the two businessmen who have since departed Korea.

The Korea Times reported the diplomat had pushed police officers and kicked their patrol car after his friends had assaulted a security guard.

"I think it's well-established that we expect diplomats in New Zealand to behave well and be accountable under our laws and we try and take the same approach in other people's jurisdictions," McCully said.

The New Zealand Embassy reportedly told The Korea Times: "If his problem is confirmed, we will make him pay the price by stripping off his diplomat privilege."

But McCully said some reports out of Korea were incorrect.

McCully said the Kiwi did not invoke immunity, as reported, because it wasn't required. He was already covered by the immunity until it was lifted by the New Zealand Government.

"New Zealand officials from a number of agencies are covered by diplomatic immunity in places like Korea," McCully said.

"This is somebody who was covered by such immunity."

"As a consequence of us lifting the immunity he is able to be interviewed by police, I saw a report that this was happening overnight, but I've had nothing further at this stage."

Prime Minister John Key had been briefed on the situation.

He said the waiver was "quite appropriate", adding: "If the person's done something wrong, then they should be held to account."

"We do waive diplomatic immunity if we believe someone's done something wrong. There have been very good reasons why we wouldn't do that from time to time."

Foreign diplomats are given immunity from civil or criminal prosecution under the Vienna Convention.

MFAT would not comment further while the police investigation was underway.