Hong Kong International School (HKIS) and its U.S.-based co-founder, the Lutheran Church–Missouri Synod (LCMS), have resolved a nearly year-long legal dispute through an out-of-court settlement, resulting in the school ending its association with the religious organization and making a substantial payment. The mediation, overseen by former Hong Kong Chief Justice Geoffrey Ma Tao-li, took place over two days in early August, according to a source familiar with the matter.
Harold Kim, chairman of the HKIS board of managers, announced the settlement in a letter to parents, stating that the Lutheran Church would discontinue legal proceedings against HKIS Association Limited (HKISAL), and both parties agreed to terminate their operating agreement. This step effectively ends LCMS’s governance role in the school, which was originally co-founded in 1966 by the church alongside a group of American business professionals.
Kim emphasized that the settlement would not lead to tuition increases or affect philanthropic funding. He noted that HKIS remains financially robust with reserves totaling approximately HK$2.8 billion as of July 31, 2024. The school’s operations at its Repulse Bay and Tai Tam campuses will continue without disruption under the existing governance structure, and the ongoing LCMS-initiated search for a new head of school has been discontinued, with interim head Ron Roukema maintaining his role.
The dispute arose after LCMS accused HKIS of serving an exclusively affluent demographic while amassing excessive financial reserves, alleging that the school operated more like a commercial enterprise than a nonprofit institution. In its lawsuit filed last year in Hong Kong’s High Court, LCMS claimed that HKIS’s management breached the 2013 operating agreement and demanded an indemnity payment estimated at US$1.75 million. The church also criticized the school’s tuition fee policies, highlighting that fees for the 2026-27 academic year range from HK$231,600 for primary students to as high as HK$272,600 for secondary students.
In response, the HKIS board denied the allegations, asserting the school’s mission has always been to provide a high-caliber American curriculum designed to support the international expatriate community in Hong Kong. The school’s management also rejected LCMS’s claims regarding financial mismanagement and noted that future tuition hikes would follow the standard annual budgeting process.
Tensions escalated when LCMS threatened to evict HKIS from its campus in Repulse Bay—property owned by the church—and proposed establishing a lower-cost alternative school called Hong Kong Pacific School should the school fail to address the church’s concerns by the 2027-28 academic year. HKIS countered by suggesting that LCMS’s increased hostility was driven by financial motivations, referencing prior property sales and evaluations by the church to manage its global budget deficits.
LCMS confirmed that the settlement funds will be directed exclusively towards its religious, charitable, and educational activities, with no profits retained. Christian Preuss, chairman of LCMS’s board of directors, stated the church’s work in Hong Kong will continue independently, now supported by secured assets from the settlement. A spokesman for the Hong Kong Education Bureau welcomed the resolution and indicated ongoing monitoring and support for the school’s operations and financial health.
The mediated settlement marks a significant development in the relationship between HKIS and LCMS, concluding a protracted dispute over governance, financial management, and the school’s mission. Both parties have agreed to keep further details confidential as they move forward separately.