Hong Kong International School (HKIS) faces possible eviction from its Repulse Bay campus after its US-based founder sued the school for alleged financial mismanagement, accusing it of serving only an “elite” section of Hong Kong.
The Lutheran Church – Missouri Synod (LCMS), which founded HKIS in 1966, announced on Thursday that it had launched litigation against the Hong Kong International School Association Limited (HKISAL) over “serious concerns” for its finances and what they deemed as transparency and leadership issues.
HKIS, which it said was holding more than HK$2.8 billion in financial reserves, serves “only a small, elite section of Hong Kong,” going against the original agreement of being open to “all children” when the school was set up, the LCMS said.
The American church alleged that HKISAL continuously demanded payments from parents by regularly raising school fees and selling “priority access debentures.”
The school also repeatedly sought funding and donations, including in cryptocurrency, and charged students fees for training and competitions, the church claimed.
It added that the school is building a new student activity centre with “two gymnasiums, four tennis courts, a fitness center, an indoor golf simulator, a dance studio, indoor rock-climbing facilities and HKIS’ third indoor swimming pool at a cost of over HK$1 billion.”
According to the LCMS, citing information from the school’s website, HKISAL oversaw a cumulative net operating surplus of almost HK$800 million over the past five years. In 2024 alone, the company had an operating surplus of HK$300 million.
As of the end of June last year, HKISAL held more than HK$2.45 billion of current assets.
HKISAL also faces allegations of failing to supply information requested by the LCMS or providing outdated information, which the church said compromised its ability to oversee and supervise the Hong Kong school. Directors of HKISAL had signed documents on behalf of the church without approval, the LCMS claimed.
“The LCMS believes that in recent years, under current HKISAL management, HKIS has lost its way and no longer resembles the equitable, compassionate, supportive and generous school the LCMS originally established for the Hong Kong community,” an LCMS statement read.
The church said the legal dispute may result in the eviction of HKIS from the Repulse Bay campus. HKIS also has a campus in Tai Tam, which is not registered under the LCMS. The church is committed to “ensuring minimal disruption” to current students and their families, the LCMS said. HKIS has around 3,000 students and 260 teaching staff, according to the Education Bureau.
The LCMS may set up a new school, Hong Kong Pacific School (HKPS), if HKISAL fails to address the church’s concerns. This would be subject to the outcome of the litigation and approval from the Education Bureau, the LCMS said.
It added that apart from a “reimbursement for a relatively small amount” the church believed it was owed as third-party costs, it would not pursue money from the school or its operating company.
Ming Pao reported on Thursday that the LCMS is seeking close to US$1.75 million, approximately HK$13.63 million, from HKIAL for allegedly breaching the operating terms, according to a writ it filed to the High Court.
