PRESS DIGEST - South Korean newspapers - Nov 11

SEOUL, Nov 11 (Reuters) - The following is a summary of major South Korean newspapers on Wednesday prepared by Reuters in Seoul. Reuters has not checked the stories and does not guarantee their accuracy.

DONGA ILBO

The public administrative minister announced that 16 cities and districts in the country had been cleared for consolidation into six new cities from July 2010.

Defense minister Kim Tae-young told a parliamentary committee that there is a possibility the North might retaliate after Tuesday's skirmish on the West Sea.

KOREA ECONOMIC DAILY

The National Pension Service said negotiations are under way with several Korean companies such as SK Energy (096770.KS), LS Group, Samyang Corp (000070.KS) and POSCO Power to invest 1 trillion won ($864.1 million) in facilities.

The chief of Samsung Medical Center in Seoul said the hospital is planning to start construction on a foreigners-only wing with 100 one-person rooms.

THE HANKYOREH

Financial authorities said the government is developing a policy to reduce emergency support methods imposed in response to the global financial crisis last year for small to medium size businesses and troubled construction companies.