Families of Chinese victims from Icheon explosion reach agreement on compensation

SEOUL, Jan. 14 (Xinhua) -- Families of Chinese victims from the warehouse explosion in South Korea's Icheon city said Monday that they reached agreement in principle on the compensation for the victims.

Under an agreement with the owner of the warehouse, families of 12 Chinese victims have signed on agreements on the compensation, said Bai Yuzhu, a relative of Shen Dongxue, who was killed in the accident on last Monday.

The owner of the "Korea 2000" warehouse promised to provide 75 million won, about 80,600 U.S. dollars, as compensation for each Chinese victim, Bai told Xinhua, adding that each victim's family will also receive industrial accident compensation insurance.

Families of each Chinese victim will receive a total of 150 million (about 161,000 U.S. dollars) to 180 million won (about 193,000 U.S. dollars) as compensation, Bai said.

However, some detailed process of compensation still needs to be resolved, Bai said.

A total of 40 people, including 27 South Koreans, 12 Chinese and one Uzbeks, were killed in explosion at a warehouse in South Korea's Icheon city, 80 km southeast of Seoul.

South Korea's Yonhap News Agency reported Monday that the families of the 40 victims are to receive average compensation payments of 240 million won (256,000 U.S. dollars) each from the facility's owner, who faces legal action for allegedly violating safety laws.

The compensation for South Koreans are higher than those for foreigners, Bai said.

The warehouse owner and several managers are expected to be charged with violating fire safety laws.

Police alleged the heavy casualties were partly caused by faulty safety equipment in the warehouse. The fire originated in abasement boiler room, where 35 dead bodies were found, but the sprinkler system, exit doors and alarms did not work. The warehouse managers had adjusted them to only operate manually to prevent them from bursting in the winter or malfunctioning, local police said.