Ok, after some decent research, I've concluded one thing:
Kung Lao was one confused Buddhist.

Raiden is the Japanese god of thunder and lighting, we all know this... But it's the Shinto that worshipped him, not the Buddhists, yes?

In Mortal Kombat Conquest, Kung Lao lived in a temple, and the monks wore the bright robes, but they worshipped the Shinto Gods?

Maybe I did poor research afterall, but maybe someone more educated on the subject could shed some light on this?