This sounds like a culture clash. Asian cultures (Korean and Chinese specifically) have a really unique family dynamic which you could describe as boundaryless; I worked for a Korean entrepreneur for a while and he said it's a foregone conclusion that if the business strikes it big his family members get to come share in the success.
Hsu should have tried harder to understand the cultural dynamic in the US.
As an Asian, this only half true. When reading the article, the management style did strike me as extremely Chinese, though it should be noted that even in Asia this sort of managerial obsessiveness is still largely frowned upon by employees.
Obvious nepotism, excessive involvement from non-employee family members, all of that stuff is just as sketchy in Asia as it is here, though sadly still more common.
Hsu should have tried harder to understand the cultural dynamic in the US.