Essentially, he is allowing the ability to be Kukkiwon certified to die on the vine.
And I'd wager that 99% of the reason for that is the GM telling them that it isn't important or telling them that it is even an option.
And this confirms my statement above.
Pretty sure that Rhee was ITF. At the very least, early on he was using Chang Hon forms.
Well, to be accurate, unless the Kukkiwon took some kind of dan-stripping action against him (which I doubt), he is still nominally affiliated with them by virtue of his certification. He could attend events and his rank of whatever it is he holds would still be recognized, and I'm sure that if you plug in his cert number or his name correctly that he will come up on a dan check on the Kukkiwon website.
But I agree that calling your club a Kukkiwon club at this point would be a stretch, given that aside from the GM and one KKW first dan/dojang7th dan, none of the other 4000 students have a Kukkiwon cert.
If you don't mind my asking, how many dojangs are in his organization?
Daniel