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The rescue operation is currently underway
One passenger told the YTN news channel: "We heard a big thumping sound and the boat stopped. The boat is tilting and we have to hold on to something to stay seated."
Another passenger said the ship was "shaking and tilting", with people tripping and bumping into each other.
It is not yet known what caused the ship to capsize but witnesses have described hearing an impact before the ship sank.
The ferry sent out a distress signal about 20km (12 miles) off the island of Byungpoong at about 09:00 local time (00:00 GMT).
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