Coast guard chief Kim Suk-kyoon said only 172 people survived the April 16 sinking of the ferry Sewol not 174, as the government had been saying since April 18.
Kim said one of the survivors was accidentally listed twice, and he blamed the other mistake on an inaccurate report by a passenger.
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She said the passenger later told officials he gave wrong information because he had "lost track of things."
Kim also said there are two more missing passengers than authorities previously knew about. Both are Chinese nationals.
That change raises the number of people feared dead to 304. So far 269 bodies have been recovered, and divers are searching for 35 more people. More than 80% of the dead are students from a single high school near Seoul who were on a trip to southern Jeju island.
Families of the victims and many other South Koreans have been highly critical of the government's handling of the rescue effort, and the regulatory failures that may have allowed the disaster to happen.
Shortly after the sinking, officials announced that 368 people were saved, giving scores of families false hope. There is evidence not only that the ship was overloaded with cargo, but that the agency responsible for ensuring passenger safety has incorrect information about how much the ship could safely carry.
The lengthy, difficult underwater search for bodies off South Korea's southern coast has deepened the anguish of families of missing people, who have been camping out at a nearby port waiting for the news of their loved ones.
Prime Minister Chung Hong-won told a Cabinet Council meeting that officials must work with "resolve to finish searches" by Saturday to help ease the suffering of relatives of missing people. Tidal currents, a frequent obstacle for divers, are forecast to be weak until then.
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