POLICE arrested the owner of the firm that ran South Korea ferry Sewol today pending formal manslaughter charges related to the 300 people that died when it sank last month.

Prosecutors said that Chonghaejin Marine chief executive Kim Han Sik, had been taken into custody at his home and would be formally arraigned later.

The charges arise from allegations that Mr Kim was either involved in the regular overloading of the 6,825-ton ferry or turned a blind eye to it.

According to company records, the Sewol was carrying more than three times its cargo limit when it sank en route from the port of Inchon to the island of Jeju.

The captain of the Sewol has already been arrested, along with 14 crew members and four lower-ranking Chonghaejin officials.

The South Korean Ministry of Oceans and Fisheries says it plans to close down Chonghaejin’s ferry operations entirely.