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), Hanwha Petrochemical Corp, and POSCO (005490.KS), 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)