Three relatives of billionaire shipowner Yoo Byung Eun, whose ferry sank with the loss of more than 300 lives in April, were convicted of corruption in Incheon District Court today.

Mr Yoo's body was discovered in a remote rural area in July after he became a fugitive from justice.

South Korean authorities allege that his corruption probably contributed to the ferry capsizing, revealing that Mr Yoo controlled the ferry operator through a complex web of holding companies in which his children and close associates are large shareholders.

His eldest son, Yoo Dae Gyun, was sentenced to three years in prison over embezzlement and breach of trust.

Two of the shipping magnate's brothers were convicted of similar corruption charges - one receiving a two-year prison term and the other given a suspended one-year sentence.

Ten of the late tycoon's associates were also sentenced to up to four years in prison over embezzlement and other corruption charges.