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William Yiu

Leopold Chen

An almost year-long legal dispute involving a prestigious Hong Kong international school and its US-based co-founder, a Lutheran church, has been resolved out of court, with the school making a substantial payment and ending its association with the religious body.
A source familiar with the legal community told the South China Morning Post that former Hong Kong chief justice Geoffrey Ma Tao-li had overseen mediation between the two parties over two days in early August.
Harold Kim, chairman of the board of managers of Hong Kong International School (HKIS), announced the move in a letter to parents on Tuesday, pledging that the settlement would not result in fee increases.
“We are pleased to share that Hong Kong International School Association Limited (HKISAL) and the Lutheran Church-Missouri Synod (LCMS) have reached a mediated settlement,” he wrote.
“Under the terms of the settlement, LCMS will discontinue its legal proceedings against HKISAL, and both parties mutually agree to terminate the operating agreement, thereby concluding LCMS’ governance role with regard to HKIS. We are pleased to have reached this resolution.”
Kim stressed that the settlement would not result in fee hikes.
“HKIS remains in a strong financial position. The settlement will not affect our planned investments in the future of the school. Future tuition adjustments will continue to be reviewed through HKIS’ normal annual budget process,” he said.
“The settlement will not affect tuition, nor will philanthropic donations be used to fund the settlement.”
A financial statement previously seen by the SCMP showed that HKISAL had amassed financial reserves totalling HK$2.8 billion (US$357 million) as of July 31, 2024.
Kim said that school operations would proceed as normal at its campuses in Repulse Bay and Tai Tam.
“School leadership will continue unchanged under the governance of the board of managers, and the recent LCMS-initiated head of school search will be discontinued,” he said.
Last year, LCMS said that the interim head of the school, Ron Roukema, was not a member of the church and called for him to be replaced.
Kim said in the letter that Roukema continued to serve as the interim head.
Both sides said details of the settlement were confidential.
LCMS said in a statement that the settlement money would be used for religious, charitable and educational work.
“As a church body, not one dollar goes to profit,” it said.
“The agreement concludes proceedings in the High Court of Hong Kong, returns significant resources to LCMS and formally ends the relationship between LCMS and HKISAL.”
The church stressed that its work in Hong Kong would continue after the agreement.
“What has changed is that we have now secured our assets to fund that work on an even greater scale,” said Christian Preus, chairman of LCMS’ board of directors.
A spokesman for the Education Bureau welcomed the resolution of the dispute, saying it had kept close contact with both parties.
“The Education Bureau will continue to closely monitor the school’s operation and financial status, providing appropriate assistance to both parties in implementing the agreement,” he said.
The agreement comes nearly a year after the church accused the school of serving only the rich and privileged and amassing excessive financial reserves.


The church, which co-founded HKIS in 1966 with a group of American business professionals, earlier demanded that the school management pay it an indemnity of US$1.75 million.
The school management, in turn, accused the church of exploring multiple options to develop part of the HKIS campus in Repulse Bay into a US$1 billion commercial project.
The school’s primary and secondary sections follow the American curriculum.
Primary school tuition fees for the 2026-27 academic year are HK$231,600, while those for secondary school range from HK$244,500 to HK$272,600.
The dispute came to light when LCMS filed a lawsuit against the school’s management, alleging a breach of its 2013 operating agreement and demanding HKIS stop serving only the “rich and privileged few”.
The church accused HKIS management of running the non-profit institution in a similar manner to a commercial business after accumulating HK$2.8 billion in financial reserves, even as it continued to raise tuition fees, collect cryptocurrency donations and sell HK$3 million priority debentures.
In response, HKIS board chairman Kim rejected all the allegations as false, asserting that the school’s mission had always been to support the international expatriate business community by offering a top-tier education to attract global executives to Hong Kong.
LCMS threatened to evict the school from its Repulse Bay campus, which the church owns, and to establish a cheaper alternative, named Hong Kong Pacific School, if HKIS failed to rectify the alleged breaches by 2027-28.
But the school’s operator countered that the church’s sudden hostility in 2022 was financially motivated, pointing to LCMS’s prior property valuations and past sales of Hong Kong real estate to cover its global budget deficits.
A source familiar with the matter said that HKIS would be able to “securely” operate its Repulse Bay campus under the agreement.
Chief Executive John Lee Ka-chiu and a group representing parents and staff earlier stepped in to emphasise that student learning must remain unaffected, even as the Education Bureau paused the church’s new school application pending litigation.


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Education in Hong Kong

HKIS settles bitter legal row with US church co-founder with substantial payment

Hong Kong International School’s campus at Tai Tam. Management pledged that the settlement would not result in fee increases. Photo: Dickson Lee

The HKIS campus in Repulse Bay. A financial statement previously seen by the SCMP showed that Hong Kong International School Association Limited had amassed financial reserves totalling HK$2.8 billion as of July 31, 2024. Photo: Sun Yeung

US church launches search for new HKIS school head amid legal row with operator

Hong Kong International School was co-founded by the Lutheran Church-Missouri Synod. Photo:  Dickson Lee

Interim head of school Ron Roukema (left) with Harold Kim. Photo: Sun Yeung

HKIS pledges to spend HK$2.5 billion on campus as legal fight with LCMS rolls on

HKIS’ new Dragon Centre for Activities and Athletics includes a climbing wall. Photo: Sun Yeung

Harold Kim (left) and Ron Roukema at the school’s new facility. Photo:  Sun Yeung

Hong Kong International School has a campus at Tai Tam. Photo: Dickson Lee

LCMS, HKIS enter new war of words over value of school’s properties

One of the school’s properties is a cabin on Lantau Island’s Sunset Peak. Photo: Daniel Suen

The school’s building in Repulse Bay for staff accommodation. Photo: Handout

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Hong Kong

Education

Former chief justice Geoffrey Ma oversaw mediation between Hong Kong International School and Lutheran Church-Missouri Synod, source says


Former chief justice Geoffrey Ma oversaw mediation between Hong Kong International School and Lutheran Church-Missouri Synod, source says.


LCMS sues Hong Kong International School (HKIS)

International schools in Hong Kong

Hong Kong society

HKIS settles bitter legal row with US church co-founder with substantial payment

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Former chief justice Geoffrey Ma oversaw mediation between Hong Kong International School and Lutheran Church-Missouri Synod, source says

Former chief justice Geoffrey Ma oversaw mediation between Hong Kong International School and Lutheran Church-Missouri Synod, source says