HKIS paid substantial amount to US church co-founder to end ‘bad marriage’: source

The Lutheran Church-Missouri Synod (LCMS), which co-founded Hong Kong International School (HKIS), paid a significant sum to end a "bad marriage" with the institution, according to a source. The payment was seen as a necessary "penalty" for the school's perceived breaches of its operating agreement, due to fundamental differences in mission and values.

The church accused HKIS of serving the "rich and privileged few" and amassing financial reserves, while the school argued the lawsuit was motivated by financial gain, as the LCMS contemplated developing part of the campus into a $1 billion commercial project. Despite both sides declining to disclose the settlement amount, the partnership was deemed unworkable, with the church's conservative, mission-driven nature contrasting sharply with HKIS's board of directors, composed of individuals with strong financial and elite backgrounds.

HKIS, established in 1966, was a joint venture between the LCMS and American business professionals. The relationship deteriorated in 2022, with disputes over management and school leadership, leading to a lawsuit and mediation efforts that ultimately resulted in the settlement.