Right. The engine needs to be cooled and therefor, the block has what is called a water jacket. This allows water to circulate round the cylinders, thus taking the heat away. If the car is parked in very low temperatures, ie below freezing, the water in the block has a good chance of freezing. When water freezes, it expands. The purpose of the core plugs is to relieve the pressure build up of the ice as it expands by the core plugs popping out. If the core plugs did not exist, a real possibility exists of the engine block itself cracking or splitting, instantly scrapping the engine.
The core plugs are like small round metal discs, but concaved. You fit them by placing them in the core plug hole with the concave facing out. You then lightly tap the concave with a soft metal drift and a hammer. This will cause the disc to expand slightly and plug the hole, thus preventing any water leaks.
It sounds as if one of your core plugs is either missing, or has come loose, but not enough to fall out.
When you fit them, make sure that the plug hole is clean and free of rust, or the core plug will not sit properly. I hope this makes sense.