Dozens of relatives of victims of a South Korean ferry sinking that killed more than 300 a year ago have shaved their heads in protest of government plans to provide about 420 million won ($383,000) for each of the 250 students on the ship and 760 million won ($694,000) for 11 dead teachers.

The relatives demanded during a rally in Seoul on Thursday a more thorough investigation into the sinking of the ferry Sewol off the country's southwest coast and called on the government to salvage the ship before starting the compensation process.

The government said the calculations were based on age and future income potential. It said it is still calculating compensation for the other passengers.