8-K

         UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C.  20549

                             FORM 8-K


                          CURRENT REPORT

              PURSUANT TO SECTION 13 OR 15(D) OF THE
                 SECURITIES EXCHANGE ACT OF 1934



Date of Report (Date of earliest reported): June 3, 2003



                    FIRST KEYSTONE CORPORATION
               ____________________________________
      (Exact name of registrant as specified in its Charter)


          PENNSYLVANIA             2-88927           23-2249083
       __________________         __________         _____________
        (State or other          (Commission         (IRS Employer
          jurisdiction          File Number)     Identification No.
       Of incorporation)



111 West Front Street, Berwick, Pennsylvania       18603
____________________________________________      ________
  (Address of principal executive offices)       (Zip Code)


Registrant's telephone number, including area code: (570) 752-3671





Item 5. Other Events

        The Registrant issued a press release on May 30, 2003,
announcing Second Quarter Dividend.


Item 7.    Exhibits

        The following exhibit is filed with this Current Report
on Form 8-K.

Exhibit No.              Description
___________              ___________

  99.1         Press Release of First Keystone Corporation dated
               May 30, 2003.





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                            Signatures


     Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the Registrant has duly caused
this report to be signed on its behalf by the undersigned, there
unto duly authorized.


FIRST KEYSTONE CORPORATION
     (Registrant)




By:       /s/ J. Gerald Bazewicz
          J. Gerald Bazewicz
          President and Chief Executive Officer

Date:     June 3, 2003



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EXHIBIT INDEX

Exhibit No.    Description                             Page No.
___________    ___________                             ________

   99.1        Press Release of First Keystone            5
               Corporation dated May 30, 2003.



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EX-99

                             For Further Information Contact:

                             J. Gerald Bazewicz
                             President and
                             Chief Executive Officer
                             (570) 752-3671



                           Exhibit 99.1


                          PRESS RELEASE

         FIRST KEYSTONE ANNOUNCES SECOND QUARTER DIVIDEND

Berwick, Pennsylvania   May 30, 2003 - First Keystone Corporation
(OTC BB: FKYS), parent company of The First National Bank of
Berwick, declared a $.24 per share quarterly cash dividend to
shareholders of record as of June 10, 2003, payable June 30,
2003.  This is a 20% increase in the second quarter dividend over
the $.20 per share paid in June 2002 (adjusted to reflect a 5%
stock dividend paid August 2002).  With the second quarter
dividend payment, year-to-date cash dividends total $.48 per
share in 2003 as compared to $.40 in the first two quarters of
2002.

The dividend payment continues to reflect the strong earnings
history and excellent capital level of First Keystone
Corporation.

The First National Bank of Berwick now operates 10 full service
offices in Columbia (5), Luzerne (4), and Montour (1) Counties
providing banking and trust services.

Inquiries regarding the purchase of the company's stock may be
made through the following brokers:  Legg Mason Wood Walker,
Inc., 800-888-6673; Janney Montgomery Scott, Inc., 800-526-6397;
Ferris, Baker, Watts, Inc., 800-638-7411; Ryan, Beck and Company,
800-223-8969; and Boenning & Scattergood, Inc., 800-883-8383.

Note:  This press release may contain forward-looking statements
as defined in the Private Securities Litigation Reform Act of
1995.  Actual results and trends could differ materially from
those set forth in such statements due to various factors.  These
factors include operating, legal and regulatory risks; changing
economic and competitive conditions and other risks and
uncertainties.

For more information on The First National Bank of Berwick or its
parent company, First Keystone Corporation, please contact J.
Gerald Bazewicz at 570-752-3671, extension 172.


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