Court Upholds Compensation Limit for Samsung
By Kang Shin-who
Staff Reporter
A high court upheld a lower court's ruling that limited the compensation Samsung Heavy Industries must pay for the nation's worst oil spill, which occurred off the coast of Taean, South Chungcheong Province, in 2007 to 5.6 billion won.
Judge Kim Yong-heon of the Seoul High Court rejected an appeal filed by some 7,500 fishermen and residents in the region. The litigants demanded that Samsung compensate them beyond the maximum amount.
The court said Samsung is subject to regulations limiting the liability of ship owners, and that the ship captains didn't cause the accident deliberately or recklessly.
In 2008, the International Oil Pollution Compensation Funds estimated the damage from the man-made catastrophe to be up to 573.5 billion won due to a decrease in tourists and damage to the fishing industry.
Earlier, a lower court decided to apply the regulations on liability and set the maximum compensation at 5.6 billion won. Fisheries and residents, however, appealed the decision, arguing that Samsung should pay a high price for the damage.
The spill occurred on Dec. 7, 2007 when a Samsung barge rammed a Hong Kong registered supertanker that was at anchor off Taean. The towlines attaching the barge to the tugboats broke approximately 11 kilometers away from Mallipo, a beach in Taean.
Some 12,000 tons of crude oil flowed into the sea, severely damaging the maritime ecosystem including numerous scenic beaches, wildlife habitats, oyster beds and fishing areas.