Lydia Ko. Photo / Getty Images
The father of golfing superstar Lydia Ko says he will not be pursuing a planned legal action against Korean Society of Auckland members.
An Internal Affairs - Charities Services investigation this year found donations of more than $100,000 from a Korean Government bank to Lydia Ko's family had been secretly filtered through the society's bank account.
The investigation found the activities of the society, a registered charity, could "constitute serious wrongdoing" and issued a formal warning over the way it tried to disguise the Korean Development Bank donations in 2012 and 2013.
Some members told investigators that it was Lydia Ko's father, Gil Hong Ko, who requested the transaction and asked for it to be kept secret.
In April, Mr Ko told the Herald he was planning to take legal action against the members who he claimed had severely damaged Lydia Ko's image.
Yesterday, however, he said through a family spokesman that he would not be proceeding with the plan.
"The Ko's won't be pursuing any legal action," said Michael Yim, who is also Lydia Ko's agent.
"Hopefully this matter is now behind us and the Korean Society can work towards reuniting its members and contributing to the betterment of the NZ community."
Society spokesman John Yoo said members will be told of Mr Ko's decision at a special meeting at the Korean Community Centre tomorrow.
The final outcome of the Internal Affairs investigation and actions that had been taken by the society following the investigation will also be discussed, he said.
Compliance investigator Mike Stone wrote to society president Sung Hyuk Kim last month stating that the society would be placed under the department's compliance monitoring list.
"This will result in routine reviews of the societies compliances obligations until such time that the Charities Services deems it appropriate for the society to be removed from the list," Mr Stone said in the letter.
He said the circumstances of the payments to Lydia Ko's mother "speak for themselves" and that the assertion that Mr Kim had made attempts to conceal these payments were "reasonable in the circumstances".
Mr Stone acknowledged the society's unwillingness to accept the view that the payments to Lydia Ko were not disclosed or incorrectly concealed.
"However our view remains that the specific details and purpose of the transactions should have been fully disclosed within the financial statements," he added.
The department had also become aware of infighting between members and groups concerning the society and its leadership during the course of the investigation, Mr Stone said.
"We do encourage the society to take active steps to resolve these issues and encourage the use of a professional mediation service."
The case:
Korean Society of Auckland leaders used the organisation, a registered charity, to conceal financial support of more than $108,000 from a Korean bank to Lydia Ko. An Internal Affairs investigation deemed these activities were against its charitable purpose and a breach of rules.
Meeting:
A special meeting was held in March where it was alleged that it was Lydia Ko's father, Gil Hong Ko, who requested the transactions and asked for them to be kept secret.
Father:
Mr Ko denied there was a plan to keep the donations secret, and said he planned legal action against those who have hurt Lydia Ko's image.
Decision:
The society has been put on the Internal Affairs' compliance monitoring list. The department maintains the view that details and purpose of the transactions should have been fully disclosed. Mr Ko says he will not be taking legal action.