Activists gathered outside the presidential office in Taipei Saturday, waving flags and banners urging him to step down.
The People's First Party organized the demonstration as part of a larger opposition movement to introduce a recall motion to dismiss the president.
The recall effort faces an uphill battle because the referendum must win support by two-thirds of the parliament before it can be presented to voters for approval.
Mr. Chen's popularity plummeted in recent weeks after his wife was accused of corruption and at least one of his top aides and his son-in-law were implicated in an insider trading scandal.
Mr. Chen has not been personally implicated in any wrongdoing
Ma Ying-jeou, the chairman of the main opposition Nationalist Party, or Kuomintang, rallied the crowd Saturday in the second mass demonstration in two weeks.
A separate rally in the southern city of Kaohsiung was canceled because of heavy rain.
Some information for this report was provided by AFP, AP and Reuters.