More than 200,000 South Korean workers have marched through the capital, Seoul, to demand there should be no mass sackings as a result of the economic crisis gripping the country.

The protests highlights the challenge faced by President-elect Kim Dae-jung, who is trying to find a formula for labour reform acceptable to both the country's militant unions and big business..

At present under South Korean law it is almost impossible for companies to lay off workers.

Last year, the country was crippled by a massive series of strikes, which managed to defeat government attempts to change the law.

But correspondents say one of the key conditions of the International Monetary Fund rescue plan agreed with the South Korean government is to introduce much more flexibility in the labour market.

It's thought big job losses are almost inevitable.

Hundreds of black-helmeted riot police with shields stood guard during the protests on Saturday.

No clashes or arrests were reported. Smaller rallies were reported in 10 provincial cities.

South Korea launched a new consultative group of business, union and government leaders last Thursday to try to forge a new social contract on how to share the burden of the austerity measures.

The group is due to report by next Wednesday, the final day of a special parliamentary session to discuss labour reform.

If the bill can be passed officials believe their hand will be strengthened in next week's talks with international bankers on rescheduling the country's debts.

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