The fatal sinking of the Polaris Shipping VLOC Stellar Daisy in 2017 was caused by neglect of maintenance by the operator.
That is the finding of a South Korean state maritime tribunal set up to examine the South Atlantic accident off Uruguay that left 22 seafarers dead.
Yonhap reported the Busan Regional Maritime Safety Tribunal as saying Polaris Shipping installed an unauthorised wastewater storage device on the bottom of the ship and did not inspect or strengthen the hull.
The shipowner was supposed to conduct repairs to safely load cargo on the Stellar Daisy, but let it set sail without reinforcement, it added.
The company was ordered to correct its repair and maintenance practices.
But the tribunal acquitted class society Korean Register of Shipping, ruling it was difficult to recognise any causal relationship between the company and the sinking.
The decision is now expected to affect civil and criminal proceedings.
Polaris Shipping has been contacted for comment.
The converted 266,000-dwt Stellar Daisy (built 1993) was carrying 260,000 tonnes of iron ore from Brazil to China on its fateful voyage. It was one of several ore carriers owned by Polaris Shipping and committed to long-term contracts of affreightment with Brazilian miner Vale.
In 2020, Polaris Shipping chief executive Kim Wan-Jung, then 64, was sentenced to a six-month suspended sentence.
He was found guilty of not reporting vessel defects, but not guilty of failing in his obligation to maintain the “balance” of the ship.
An appeal failed and he is awaiting a final verdict from the Supreme Court.
Polaris was handed a KRW 15m ($12,400) fine in 2020.
In 2022, seven people, including the CEO, were charged with manslaughter by negligence. Trials are still in progress.
