If this is what it looks like, that's just amazing and perfect.
I mean, I myself would be pretty certain he was a divine dragon god too, under the circumstances. Like, you jump into the ocean and end up in a palace with a dragon, what can it be but Ryuguu Palace? (Well, Korean equivalent.)
Even if a bunch of contradicting information coming later on, I'd just be like, "wow the gods' realm is different than I imagined" XD There's no reasonable way to clear up this misunderstanding, short of a third party in the know painstakingly explaining it.