Financial Markets : S. Korean Ministers Meet After Market Plunge, Unrest

President Roh Tae Woo called an emergency meeting of his economic ministers Monday after a record plunge in the South Korean stock market and another day of labor unrest.

The composite stock index hit an 18-month low after falling 31.71 to close at 688.66, its lowest level since Oct. 13, 1988. The index has lost 24% this year.

Protests by investors crippled operations at stock trading offices in Seoul and at least six other cities. Newspapers said some had to close their offices to keep out angry customers.

News reports said investors staged sit-down protests demanding special government measures to prevent a stock market crash.

Militant shipyard workers, whose strike was broken up over the weekend, fought running battles with riot police in the port city of Ulsan and sympathy protests spread nationwide.

Economic ministers met in emergency session Monday night to review the nation’s growing economic crisis, news reports said.

Finance Minister Chung Yung Ui was recalled from New Dehli, where he was to attend a meeting of the Asian Development Bank beginning today, an aide said.

Roh met during the day with Deputy Prime Minister Lee Seung Yun and economic advisers to draft new measures to curb inflation and spiraling land speculation, presidential press secretary Lee Soo Jung told reporters.

Lee said Roh ordered the formation of a special team to look at stabilizing the real estate market, including ways to encourage securities and insurance companies to dispose of their land holdings.