Owner Risk Crisis Communication: Revisiting the Korean Air ‘Nut Rage’ Apology

This case study examines the Korean Air “Nut Rage” incident as a high-profile example of “owner risk” within South Korea’s chaebol system, where inherited family control can lead to public crises. It analyzes Korean Air’s crisis communication strategy, focusing on CEO Cho’s emotion-centered apology on behalf of his daughter, and situates this within Korean cultural expectations around familial responsibility. The case explores how protecting the company’s owner over stakeholders intensified public backlash, especially in an era of social media where traditional media control is ineffective. It also assesses the financial consequences through an event study and investigates the effectiveness of different apology types in restoring public trust. This case is appropriate for graduate or advanced undergraduate courses in Crisis Communication, Business Ethics, Corporate Governance, and Asian Business, offering students insights into crisis leadership, corporate accountability, and stakeholder management in family-led firms.