Officials say 179 people have been rescued. Most of the passengers were students from the same high school.
Teams used lights to search overnight but strong currents have hampered divers' efforts to enter the ship, where it is thought many were trapped.
At least nine people are confirmed to have died, with dozens more injured.
The vessel was travelling from Incheon port, in the north-west, to the southern resort island of Jeju.
It is not yet clear what caused the ship to list at a severe angle and flip over, leaving only a small part of its hull visible above water. The captain was being questioned, Yonhap news agency reported.
Yonhap said the nine dead include four 17-year-old students and a 25-year-old teacher as well as a 22-year-old female crew member. Identities of the other three were not immediately known.
The latest figures say 475 people were on board, with 287 still unaccounted for. Figures issued by the government have changed several times, prompting criticism.
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