"The Internal Affairs report is misleading and ultimately has resulted in severely damaging Lydia Ko's image," Gil Hong Ko said in a statement.
"Our family is considering legal actions against any individual or organisations making public negative statements based on misleading information and spreading false rumours. We plan to pursue strong legal actions against these people in the areas which we feel they have violated."
Mr Ko said the attacks on his daughter could have serious consequences in her preparations for the 2016 Summer Olympics in Brazil, and New Zealand's chances of winning a "precious gold medal" in golf.
In a response to Internal Affairs yesterday, the society claimed it was Mr Ko who had requested the money transfer to be made through its accounts and asked for it to be kept secret. A spokesman for Mr Ko said there was no plan to keep the transaction secret.
John Yoo, who authored the Korean Society's response, said: "Mr Gil Hong Ko confirmed it was not allowed for Lydia Ko to receive cash by USGA [United States Golf Association] and R&A [Rules and Amateur Status] rules ... therefore Mr Ko and his supporter visited the Korean Society and met Mr Hong [former president] and requested the money transfer." The society claimed it released details of the transactions on its websites and a Korean newspaper, Korean Post, but Mr Ko requested the notices be withdrawn.
"[Mr Ko] explained personally it would be criticism [sic] if it became known that they [KDB] were funding a NZ citizen instead of supporting a similarly talented Korean citizen."
A spokesman for Mr Ko said there was no plan to conceal the transaction, and denied that he had mentioned anything about the golfing rules.
"The reasons why the scholarship funding was handled privately is because although it was a very nice gesture by KDB, the members did not necessarily have the right to know about [it]," said Michael Yim, who is also Lydia Ko's agent.
"All he said was that, from his limited knowledge, for an amateur to receive scholarship, he thought that the money had to go through an association, which is why he chose the Korean Society as it represents the Korean community."
Mr Ko met Mr Hong to ask if it was possible, and the society president at the time agreed, he said.
"Mr Ko did not request for the society not to inform its members because of the criticism KDB would receive ... but instead, it was out of respect for KDB's genuinely good intentions to quietly help a top global talent and her family," Mr Yim said.
The Seoul-based KDB Bank did not respond to the Herald's request for comment.
New Zealand Golf said it was aware of the KDB payments.
"In our view all payments for Lydia Ko were appropriate when she was an amateur player and there has been no breach of the USGA and R&A rules of amateur status," said chief executive Dean Murphy.
Secret cash saga
• 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 Government bank to Lydia Ko. An Internal Affairs-Charities Services investigation deemed these activities were against its charitable purpose and a breach of rules.
• The response: The society was given a formal warning and told to provide a "thorough and detailed written response" to Internal Affairs.
• The meeting: A special meeting was held last Friday to discuss its response which alleges that it was Lydia Ko's father, Gil Hong Ko, who requested the transaction and asked for it to be kept secret.
• The father: Mr Ko denies there was a plan to keep the transaction secret. In a statement read at the meeting, he said he plans legal action against those who have hurt Lydia Ko's image.
