Here's a brief description of what happened from the TT:
Local media reported yesterday that the Taiwanese student, surnamed Lin (林), at South Korea’s Silla University in Busan, received first prize in a Korean-language speech contest. However, after the contest, Lin was chased and besieged by a group of Chinese contestants who were angry over Lin showing an ROC flag during the speech, they said.Now the responses:
DPP Legislator Chen Ting-fei (陳亭妃) said despite the so-called truce, tensions between people on both sides of the Taiwan Strait were worse than ever “because Chinese hostility toward Taiwan has spread from the government down to the individual level.”
Describing the incident as “outrageous,” KMT Legislator Shyu Jong-shyoung demanded the administration condemn the Beijing government and its people for their unfriendly behavior.
Chinese Nationalist Party (KMT) Legislator Justin Chou (周守訓) said Taipei should complain to the host and the Beijing government, and investigate whether officials at the Taiwanese representative office in South Korea were guilty of dereliction of duty in handling the matter.
KMT Legislator Yang Chiung-ying (楊瓊瓔) said Beijing should apologize although she believed that it was an isolated incident. (it's not - End of August, 2006 During the 40th International Children's Games (ICG) in Bangkok, members of the Beijing delegation team thrice wrested away the ROC flag draped on Taiwan's gold medalists.)
Ministry Spokesman Henry Chen (陳銘政) said the Busan representative office would look into the matter, adding that the organizers had said there was no report of violence and that the media might have exaggerated it. "We will do what needs to be done,” Chen said. “However, we must have a clear picture of the incident before taking any action such as lodging a protest.”
This is an embarrassment for the KMT and for Beijing just before another round of talks between the two sides (or two parties). Another point is that violence is not just physical but also verbal. If the student was not being intimidated, why would other foreign students intervene to protect her?. We also need to wait for the student's return to Taiwan to get her story for a better idea of what happened.
Another thought: It is strange but indicative that lawmakers in Taiwan would ask for an apology from Beijing. Normally, a country would not take the actions of a few students as the diplomatic responsibility of the Government but given the nature of this confrontation and the fact that some Chinese students abroad are quite nationalistic (as a direct result of the Government's policies and propaganda) it is not entirely weird to ask Beijing to apologise. It is on a hiding to nothing though.