S.Korean firms to invest more on energy-saving

SEOUL, July 7 (Reuters) - South Korean industrial firms will invest a total 2.79 trillion won ($2.66 billion) until 2012 to develop energy-saving facilities, Seoul's energy ministry said on Monday.

The plan comes a day after the government announced a multi-stage contingency plan aimed at reducing energy consumption to cushion the impact of soaring crude oil prices. [ID:nSEO329269]

Along with the investment, the firms including STX Shipbuilding (067250.KS: Quote, Profile, Research), Hanwha Petrochemical Corp, and POSCO (005490.KS: Quote, Profile, Research), vowed to cut energy use equivalent to 11.46 million barrels, or 1.8 billion litres of petroleum a year, saving a total 8.4 trillion won by 2012, the Ministry of Knowledge Economy said in a statement.

The government will raise the tax exemption rate for spending on energy saving facilities to 15 percent from 10 percent, to promote such spending. (Reporting by Angela Moon; Editing by Keiron Henderson)