▲ This CCTV image shows Hankuk Chemi after its seizure in Iran in 2021. (PHOTO NOT FOR SALE) (Yonhap)

lawsuit-Iran seizure

Court upholds ruling against operator of chemical tanker seized in Iran in 2021

SEOUL, Jan. 28 (Yonhap) -- A Seoul appellate court has ruled against the operator of the South Korean chemical tanker that was detained in Iran in 2021 in a compensation suit the firm filed against the government.

In January 2021, the South Korean-flagged vessel, Hankuk Chemi, and its 20 crew members, including five South Koreans, were seized by Iran's military near the Strait of Hormuz. Tehran released 19 sailors after about a month, and the ship and its captain after 95 days.

At that time, Iran claimed it detained the vessel due to marine pollution. But the seizure was widely believed to be connected to Tehran's frustration over what it perceived as a lack of effort from Seoul to release about US$7 billion of Iranian assets locked in South Korean banks due to U.S. sanctions.

DM Shipping, the ship's operator, had since filed a lawsuit against the government, seeking 1.45 billion won (US$1.08 million) in compensation.

The shipping company claimed that the government violated its obligations to protect the lives and properties of its nationals by failing to inform the vessel of the risk of capture in advance and by not making sufficient efforts to secure their release.

The Seoul High Court recently ruled against DM Shipping, upholding a lower court's decision.

The lower court ruled that the government did not disregard its obligations to prevent safety accidents, as it had been frequently in contact with Korean ships passing near the Strait of Hormuz since January 2020 to ensure their safety.

The court also noted that the government engaged in multiple diplomatic negotiations with Iran for the ship's release and provided financial support for the firm at that time to help it overcome managerial difficulties.

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