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June 21, 2014

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S. Korean ferry firm CEO and 4 staff blamed for tragic sinking

Source: AP | June 21, 2014, Saturday | Print Edition

PROSECUTORS yesterday said the CEO and four staff of the operator of a sunken South Korean ferry caused the accident by overloading the ship with poorly stowed cargo after a risky redesign and neglecting safety by spending under US$2 last year on crew training.

The defendants countered that the cause of the April disaster that left more than 300 people dead or missing wasn’t yet clear. The five had been expected to verbally enter pleas at a preliminary hearing yesterday at Gwangju District Court, but their lawyers said they needed more time and would submit written pleas later. Another hearing is scheduled in three weeks.

The CEO and four executives or managers at the operator, Chonghaejin Marine Co, faced a decidedly less hostile reception yesterday than the 15 crew members charged with negligence had at their hearing last week. Family members of the dead heckled and screamed at the crew members throughout that hearing. The spectators yesterday, many of whom were reporters, listened quietly as prosecutors read the indictment. When Judge Lim Joung-youb asked if there were relatives of the victims present, no hands were raised.

Prosecutors indicted the officials for alleged professional negligence and violating a law on measures required for safe maritime navigation.

The Sewol, a 6,825-ton car ferry bought in Japan for 800 million yen (US$7.8 million) in 2012, was redesigned to add cabins and create an exhibition room after its purchase, according to the indictment. The ship became top heavy as a result of the rework, so the Korean Register of Shipping approved the ship on the condition that it substantially reduce its cargo limit.

Chonghaejin is said to have continued to overload the ferry with cargo even though it knew the ship’s redesign made it top heavy and unstable. By overloading the Sewol, the firm made an extra US$3 million in profit in the past year, according to the indictment.

The CEO of Chonghaejin, Kim Han-sik, 71, did not deny the ferry was overloaded with cargo and had been redesigned, but said it was questionable whether those factors led to the sinking, according to his lawyer, Kang Seok-won.

Defendant Nam Ho-man, who headed Chonghaejin’s cargo team, never told workers to load as much cargo as possible, didn’t know the ferry’s cargo limit and didn’t know how much cargo was loaded on the day of the accident, said his lawyer, Kim Jun-seong.

Meanwhile, prosecutor Park Jae-eok said the five defendants neglected the passengers’ safety in return for economic benefits and must be held responsible.

The Sewol sinking has caused widespread grief and fury in South Korea and has prompted the country to reassess its long history of disregarding safety as it pursued economic growth.

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