The second richest man in Russia complains that the country's economy has come to resemble that of South Korea: “clear domination”

One of the richest businessmen in Russia has warned that the country's economy is increasingly dominated by large corporate conglomerates similar to the “Chaebol” model in South Korea, in which extended industrial groups exerts a significant influence on the national economy, writes the Russian independent publication The Moscow Times.

In an interview given to the State Agency Ria Novosti, Alexei Mordașov, CEO of the Severstal steel giant, said that Russia's economic landscape currently shows a “clear domination of large corporations, while the presence of small and medium-sized enterprises remains insufficient.”

Mordașov's statements come in the context in which Western sanctions oblige Moscow to rely more on the largest companies to support the key industries and national income.

Vasili Osmakov, a high official of the Russian Ministry of Industry and Trade, has publicly described the passage of Russia to a Chaebol -type system as a direct consequence of the international sanctions regime.

Although he acknowledges that the South Korebel Chaebol initially stimulated rapid economic growth, Mordașov warned that, finally, he has led to competition, economic imbalances and large corruption scandals.

Mordașov, whose personal fortune is estimated at $ 28.6 billion, is the second richest man in Russia.

His own business empire, which includes Severstal, the cordial tire manufacturer, Power Machines, the North Gold producer and the Forestier Giant Sveza, illustrates the model of conglomerates in Russia.

The tycoon also occupied the first place in the last forbes ranking of the largest beneficiaries of dividends in Russia, collecting $ 2.2 billion in dividends last year – more than 10% of the total dividends received by the natural persons included in the Forbes top.