CORRECTED - CORRECTED-PRESS DIGEST - South Korean newspapers - June 30

(Corrects second item in Chosun Ilbo to clarify KDB wants Daewoo Engineering to be sold in an auction to a third party)

SEOUL, June 30 (Reuters) - The following is a summary of major South Korean newspapers on Tuesday, prepared by Reuters in Seoul. Reuters has not checked the stories and does not guarantee their accuracy.

CHOSUN ILBO

The Organization for Economic Cooperation and Development said the South Korean economy is likely to grow at an annual rate of 4.9 percent in 2011 to 2017, the third-highest among its 30 member countries.

The CEO of Korea Development Bank (KDB), the main creditor of Daewoo Engineering & Construction (047040.KS), said it prefers selling Daewoo Engineering in an auction rather than a KDB-led private equity buying it, adding that creditors want Kumho Group to sell a 50 percent stake plus one share in Daewoo.

The main opposition Democratic Party head, Lee Kang-rae, said the media law should be passed on to the September regular session. The media bill proposed by the ruling Grand National Party is to allow new broadcasting businesses and permit the cross-ownership of newspapers and broadcast companies.

JOONGANG ILBO

President Lee Myung-bak said his administration would not push for the canal project during his term.

Ruling and opposition parties have narrowed views on gradual adoption of flexible employment for contract workers, according to the labour committee members.