South Korean government, shipping company ordered to pay compensation for 2014 Sewol ferry disaster that killed 304

SEOUL, South Korea -- South Korea's court has ordered the government and a shipping company to pay compensation to the families of victims of the Sewol ferry that sank in 2014, killing 304 on board, mostly high school students. It is the first time the state was held responsible for the tragedy that took a toll on the nation for years.

"The court acknowledges the liability in compensating the plaintiffs, since the negligence by the state and Cheonghaejin Marine Co. has resulted in the occurrence of the accident," the court announced on Thursday.

Each victim is to receive $177,000 in compensation. An additional $35,000 will go to parents of students who died, and a smaller portion will go to siblings and grandparents.

On April 16, 2014, the Sewol ferry sank on its way from Incheon to Jeju Island. There were 476 people on the ferry at the time, including 325 students from Danwon High School. Five of the passengers were never found.

An investigation later determined that the boat was over capacity.