By Cho Jin-seo
Staff Reporter
Samsung Heavy Industries said it will set up a 100 billion won fund for those affected by the massive oil spill on Korea's southwestern coast.
The shipbuilding company's compensation offer is a belated apology for Korea's worst marine environment disaster, which devastated the coast of Taean county last December and caused two fishermen and one seafood restaurant owner to commit suicide.
Samsung Heavy's CEO Kim Jing-wan said the fund will be managed by an outside agency to be designated by the government and will be separate from official compensation to be made by insurance companies. He also said the company will build recreational facilities in the region for its employees to help revive the local economy.
``We made this decision because we feel morally responsible for causing the accident and we wanted to fulfill our social responsibility,'' Kim said at a press conference Friday at the firm's headquarters in southern Seoul. ``At the same time we also had to consider our shareholders' interests and the company's operational capability in fixing the amount (of compensation).''
Residents and local politicians showed disappointment with the announcement.
``We cannot accept this offer under these conditions. There should be more discussion,'' Lee Wan-koo, governor of South Chungcheong Province, told Samsung Heavy's vice president Park Young-huhn in his office on Friday, Yonhap news agency reported. ``The residents of Taean are demanding unlimited compensation from Samsung Heavy. Samsung should not try to solve this matter with money. It should suggest plans that can actually benefit the residents.''
``Offering 100 billion won to a regional development fund does not reflect local sentiment. This amount is short of satisfying people's expectations,'' Lee Won-jae, the acting leader of the oil spill victims, was quoted as saying by Yonhap.
On Dec. 7, a Samsung Heavy barge carrying tall construction cranes lost control and crashed into an anchored supertanker owned by Hong Kong-registered Hebei Spirit Shipping. The tanker spilled more than 10,000 tons of crude oil into the Yellow Sea off South Korea's western coast. The accident resulted in serious damage to the local economy, which depends on the fishery and tourism industry.
Last month, the companies were indicted. Samsung had remained silent on the issue but made its first official apology after the suicides of three residents, enraging other residents and public sentiment. While most of the blame has been put on Samsung, Hebei has received little castigation from the Korean media and environmental groups as many think Samsung is at fault.
Shares of Samsung Heavy rose by 0.63 percent on Friday, while the benchmark KOSPI index fell 1.41 percent.