South Korean Police have arrested the captain and two crew members of the ferry that capsized earlier this week.
Reuters is also reporting that the Vice Principal of the high school who accompanied hundreds of pupils on the ferry has committed suicide.
The captain, Lee Jun-Seok, was one of the first group of survivors when the ferry began to sink Wednesday.
Police are investigating whether Lee was in the bridge of the ferry when the third mate made a sharp turn that may have contributed to the vessel listing and eventually capsizing.
Lee faces five charges, including negligence of duty and violation of maritime law, according to a South Korean News Agency.
Another news agency reported that when Lee arrived at Jindo Island after the ship began to sink, he tried to conceal that he was the ferry's captain.
28 people have been confirmed dead and 274 are still missing. Most of the missing are high school students.
A government office says a South Korean passenger ship carrying about 470 people has sent a distress call off the southern coast after it began leaning to one side.
South Korean media, including Yonhap news agency, say passengers were asked to jump overboard with life vests as the ship was on the verge of sinking. News reports say about 120 people have already been rescued.
The Busan Regional Maritime Affairs & Port Administration says in a statement that the ferry with 471 people was sailing to the southern island of Jeju when it sent a distress call Wednesday morning.
There are no immediate reports of causalities.
Agency officials say they have no further details. Calls to South Korea's coast guard headquarters weren't immediately answered.