A consortium led by a Chinese firm was named the successful bidder to recover the South Korean ferry that sank last year, along with the remains of people still missing from the tragic accident, on Tuesday.

An official contract was signed between the Ministry of Oceans and Fisheries and the consortium led by China's state-run Shanghai Salvage, according to the South Korean ministry.

The Chinese consortium was named the preferred bidder among seven consortia last month.

The Sewol sank off the country's west coast on April 16 last year while en route to the country's southern resort island of Jeju. Out of some 400 passengers, 304 people, mostly high school students on a school excursion, died. Nine people's remains have yet to be recovered.

Under the 85.1 billion-won ($72.75 million) contract, the Chinese consortium will pull the ship out of the water, hopefully with the remains of those missing inside.

To this end, the Chinese firm and its partners will enclose all openings of the ship with nets, one of the reasons the consortium was awarded the multimillion dollar project.

"The ministry carefully examined the proposed measure to prevent any loss of what is inside the ship as the ultimate objective of the recovery plan is to find the missing people," the ministry said in a press release.

Also, two giant nets will surround the ship at the start and end of underwater currents to intercept any articles that may slip out.

The deal also requires the Chinese consortium to check all its key equipment for conformity with the standards set by the International Association of Classification Societies to ensure a successful recovery, the ministry said.

In addition, the Chinese consortium will be held solely responsible for any accidents or mistakes during the recovery, except those directly caused by the local government. (Yonhap)