[THE INVESTOR] The People’s Party’s former Chairman Rep. Ahn Cheol-soo on Sept. 3 criticized President Park Geun-hye’s policy on small and medium-sized companies in South Korea during a rare visit to the annual IFA trade show.

Describing the business-to-business environment in Korea as a “zoo,” Ahn said many Korean small and medium-sized enterprises have had limited opportunities to grow as they were forced to make an exclusive contract with one conglomerate, blocking them from supplying products to more clients.

“The reason why B2B firms in Korea are not making progress is because of this zoo-like system,” he told reporters while touring around Messe Berlin, the venue for the annual event.

“Big firms demand them to sign an exclusive contract. (A SME) starts to work only for the big firm but ends up with a failure as it has no way to get out (from the contract), losing a chance to grow the market.”

He had previously suggested to have creative economy centers in Korea jointly managed by three or four conglomerates so that SMEs or startups incubated there could have business ties with more than one firm, however, this had not happened. The centers are the centerpiece of President Park’s policy drive on the creative economy.

“That was the golden opportunity for the government to break such a system.”

Ahn’s visit to Berlin raised questions as it came less than a week since he signaled a second presidential bid.

He declined to comment whether his visit had political reasons.

But the entrepreneur-turned-politician said he wanted to see how innovative the German companies are and would seek ways to help Korean SMEs with his experience in business.

By Cho Chung-un/The Korea Herald (christory@heraldcorp.com)