The behavior of one Korean Air executive illustrates how, despite all its accomplishments, South Korea is still trying to escape its past.
     The success of South Korea’s economy over the last five decades has become something of an inspiration for today’s emerging economies.
     Without being blessed with an inheritance of vast raw materials, the country’s political and economic pioneers instead manufactured cheap exports to kick-start growth before gradually moving up the value chain to build a multi-layered economy.
     Today Korea is one of the richest countries in Asia, boasting global behemoths such as Samsung as well as growing cultural reach through the popularity of its music and film industries.
     But South Korea is also stuck in the past. Family-owned industrial conglomerates with huge political influence spearheaded much of the country’s success. Known in Korea as the ‘chaebol,’ these sprawling companies still dominate the economy—some analysts believe they also choke the life out of SMEs.
     That leading family members still inspire fear cannot be doubted.
     Heather Cho was forced to resign last week as a leading executive at Korean Air and from her positions at all affiliated companies.
     She was accused of forcing a plane bound for New York to turn back to the gate so that a flight attendant could be removed.
     The attendant’s alleged offense?
     Serving Ms. Cho nuts in a bag, not on a plate.
     Head Steward, Park Chang-jin, claimed Ms. Cho also forced him and a female attendant to kneel and beg forgiveness.
     ‘Nutgate’ has taken Korea’s media by storm, not least because Ms. Cho’s father is Cho Yang Ho, CEO of Korean Air. The Cho family has controlled Korean Air since the late 1960s, when it purchased it from the government.
     Korean Air is also part of the Hanjin Group, a key component of Korea’s chaebol system, which owns Hanjin Shipping, one of the world’s biggest shipping and shipbuilding companies.
     Ms. Cho’s father has since apologized for his daughter's "foolish act" and blamed himself for not raising her correctly.
     Others view the incident as an example of all that is wrong with a Korean economic and social model that, for all its successes, has also bred a generation of arrogant and over-privileged offspring linked to tycoon families with unhealthy levels of political and commercial power.
     Whether nuts in a bag will ever be served again or acknowledged at KAL is currently unknown.
     Your move . . .
SkyKing