South Korea's president announced the country's coastguard will be disbanded, in a televised apology and speech.
Park Geun-hye said the rescue operations after the April 16 disaster a failure, and she would push for legislation that would transfer the coastguard's responsibilities to the National Police Agency and a new government body she plans to establish.
More than a month after the sinking, 286 bodies have been retrieved but 18 others are still missing. Some 172 people, including 22 of the ship's 29 crew members, survived.
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The body has not been formally identified but officers believe it is 40-year-old Dean Tate, who was reported missing two months ago.
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