The South Korean government was considering paying more money than agreed to the company that raised the sunken "Sewol" because the work was much tougher than expected. The Ministry of Oceans and Fisheries wants to compensate Shanghai Salvage for additional costs somewhere in the region of W30-40 billion, but below W50 billion (US$1=W1,140). The company was originally contracted for W91.6 billion. Initially the price was set at W85.1 billion, but that increased to reflect the cost of setting up safety nets around the wreck to keep crucial pieces of evidence from being washed away. But as the salvage operation dragged on longer than planned, the company's costs swelled to W28 billion as equipment rent and staff wages rose. Shanghai Salvage's director Hong Chong recently said the company borrowed US$100 million from a bank. The company asked the ministry to cover the additional costs, saying the warped hull plus unexpected underwater conditions caused a four to five-month delay. For instance, it expected to take around two months to insert the lifting beams under the ferry, but it actually took five months because it meant drilling through the tough bedrock. The ministry decided to accept the request since the problems were due to unexpected natural causes. Shanghai Salvage was also tasked with underwater searches around the wreckage, which entitles it to billions of won in extra payments. The exact amount will be decided after further discussions with budget officials.
ACCIDENTS
13 April 2017 - 14:00
Update: 14 April 2017 - 07:39
Salvors demand more costs to be compensated: Sewol
Salvors demand more costs to be compensated
ACCIDENTS
13 April 2017 - 14:00
Update: 14 April 2017 - 07:39
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