No this is not what I understand. He opened his 1st school in Kaesong at an archery range, 1 of the few martial arts allowed during the occupation on March 11, 1944, according to the Modern History. He was forced to close about 6 months later by the Japanese. He went south after the division of Korea by the USSR & USA in 1945. That photo was most likely in south Korea, not north Korea (Kaesong, just north of the present day DMZ), which was still part of a unified & occupied Korea back in 1944.
This is what the Modern History book says about the Song Moo Kwan:
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From the Chung Do Kwan entry:
Right after the independence of Korea, the Chung Do Kwan, one of the five key Dojangs, was founded first.
Chapter 1, Section 5: Song Moo Kwan
The Song Moo Kwan was founded by RO Byung Jick in Kae Song in 1946. Song Moo Kwan founder RO Byung Jick studied together with Chung Do Kwan founder LEE Won Kuk in Japan. They both studied Karate under Funakoshi Sensei. Right before the Independence Day, he returned to Korea and taught youngsters Karate as a hobby at an archery place, the Kwan Duk Jung.
RO Byung Jick explained his school's name: "Song Moo Kwan's *Song* meant pine tree, which meant green and a long life. Also, Song was one of the Koryo capital city name, Song Do. And Song was also borrowed from the Song Do Kwan (Shotokan) when I learned Karate under Funakoshi while studying abroad."
RO's practice sessions started one hour earlier with warm up exercises consisting of lifting weights and then practicing on the Kwon Go (makiwara). He was known as a powerful puncher and kicker from his students.
RO always let his students punch the Kwon Go at least 100 times and then started the real practice. If students received the 4th Guep or higher, he let them spar. Like any other dojang, he was known to let his students practice in cold weather during winter, and in the hot weather during summer.
RO Kwan Jang's student, and the 2nd Kwan Jang, LEE Young Sup reflects: "Every six months, there was testing for promotion. Mainly one step sparring, three step sparring, free sparring and forms were used to decide promotions. But free sparring was for 4th guep and higher, and 1st Dan required breaking a board. If these rules were broken, the Kwan Jang was very upset."
The Song Moo Kwan graduates were:
1. LEE Hwae Soon
2. LEE Young Sup
3. KIM Hong Bin
4. HAN Sang Min
5. SONG Tae Hak
6. LEE Hwi Jin
7. JO Kyu Chang;
8. HONG Young Chang
9. KANG Won Sik (co-author of this book) and others.
However, its power and customs were the weakest among the first big five Kwans.
Song Moo Kwan's first Kwan Jang was RO Byung Jick; the second was LEE Young Sup and the third KANG Won Sik.
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So what we have is the current Song Moo Kwan Jang stating that the Chung Do Kwan was first, not the Song Moo Kwan. Also, the picture was taken in Kaesong; it is written directly on the photo, and GM LEE Won Kuk said that they all went to Kaesong in November 1947 and did a demonstration to help GM Ro with his new school, because GM RO Byung Jick was a Chung Do Kwan member. GM Ro had come back from Japan in the late 1930's and stopped training until GM LEE Won Kuk came back in 1944. GM Ro's dojang was at the Kaesong Police Academy I believe, a position that GM Lee helped GM Ro obtain, through his connections with the police.
Back then, there were two main groups: The Tang Soo Do based group (Chung Do Kwan, Song Moo Kwan and Moo Duk Kwan, although Moo Duk Kwan was called something else) and the Kwon Bup group (Chosun Yun Moo Kwan Kwon Bup Bu and YMCA Kwon Bup Bu), each with their own curriculum.