Videos released by the Coast Guard on Wednesday evening showed the ship engulfed in flames and people being pulled from the water into rescue boats.
The cause of the fire is still under investigation, the Coast Guard said.
The Coast Guard said preliminary interviews with survivors suggest the fire started in the cargo hold, which is a section where containers and/or goods are stored, the Coast Guard said. They noted that some passengers were not wearing life jackets.
Forty-three people were rescued, but it is unknown how many were injured.
The seven survivors were taken to a hospital on Culion, a larger neighboring island that has more beds and more comprehensive medical services.
First responders told the BBC they had never seen such a disaster in Corona, calling it “truly heartbreaking”.
“I was one of those who carried and transported the wounded to the hospital last night,” they said, adding that the ferry was an hour’s drive from their destination.
The survivors were taken to an evacuation center in Barangay Turda, which is north of Marcilla. The status of their injuries is unclear.