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Samsung to Donate W100 Billion to Oil-Spill Stricken Area

Samsung to Donate W100 Billion to Oil-Spill Stricken Area

Posted March. 01, 2008 03:21,   


Samsung Heavy Industries, which was responsible for the ship involved in an oil tanker crash near Taean County in South Chungcheong Province, said that it would donate 100 billion won for the development of affected areas.

Samsung Heavy`s CEO Kim Jing-wan announced the assistance measures at a press conference on Feb. 29.

Apart from financial aid, the company also announced plans to support the restoration of the ecosystem in the West Sea, the establishment of partnerships with fishing villages, and the support of the displaced.

“Our development fund has been prepared separately from our legal compensation for damages incurred,” Kim said. “It will take a long time to complete the process of our compensation, so Samsung Heavy has decided to alleviate the economic burden of those in need.”

The fund is likely to be used as second-hand assistance for the development of the damaged region rather than as the main-source of indemnity.

He also said, “Legal indemnities will be provided according to our fault ratio once the oil tanker’s insurance company and the IOPC Fund has paid their portions.”

Regarding the scope of the fund, CEO Kim explained, “We didn’t discuss this matter with the local citizens, so we don’t know whether the amount of the fund is enough. Our company has decided to donate 100 billion won, based on our shareholdings and the company’s ability to make a payment.”

Samsung Heavy is set to decide the donation date, process and fund designation as soon as the relevant government department has been specified.

In response, Lee Wan-gu, the governor of South Chungcheong Province, said, “As Samsung’s decision was made without understanding the situation of the local people, it is hard to accept the plan as it is. Samsung Heavy should come up with a new proposal.”

In response to suspicion that the assistance announcement was made to divert public attention from the independent investigation over Samsung Group, Kim said, “This announcement is irrelevant to the investigation. We wanted to make public our plan as soon as possible.”