The government on Monday revoked the operating license of the shipping line that owned the ill-fated Sewol ferry, citing gross violations of safety rules by the company and crew.

The Ministry of Oceans and Fisheries said the Incheon Regional Maritime Affairs & Port Administration annulled the Incheon-Jeju license, after Chonghaejin Marine Co. did not raise any objections to an administrative action notice outlining the intent to penalize the company.

The ministry said the move has been taken because the company contributed to the worst maritime accident in South Korea's history, and because the captain and the crew took no action to save passenger from the ship that sank on April 16. The ship sank near Jindo island off the country's southwestern coast as it headed for the resort island of Jeju.

An ongoing investigation into the accident has already found numerous problems related to the marine company including overloading of cargo, and shoddy safety inspections of its ships.

It said under the country's maritime law such violations makes it possible for authorities to cancel operating licenses.

Chonghaejin had already said it would voluntarily turn in all of its operating licenses in light of the accident, which left 304 passengers dead or missing.

The shipping line operated two other routes from Yeosu to Geomun Island and between Incheon and Baengnyeong Island. None of its other ships have set sail since the sinking of the Sewol.

Authorities said that with the revoking of the license, a new operator is being sought to offer ferry passenger service on the route. (Yonhap)