Magnetic dichroism in the angular distribution has been demonstrated for single-electron photoemission from inner ns(2) subshells of gaseous atomic targets using the example of K-shell photoionization of polarized Li atoms laser prepared in the 1s(2)2p (2)P(3/2) excited state. The effect is pronounced for the conjugate shakeup and conjugate shakedown photoelectron lines, and less important, though observable, for the main and direct shakeup lines. The phenomenon is caused by configuration interaction in the final continuum state and is quantitatively described by the close-coupling R-matrix calculations.