The President held a weekly emergency economic council meeting Thursday (June) with the focus this time being saving energy in the face of a steady rise in international oil prices.

President Lee and related ministers discussed ways to improve the fuel efficiency of locally made automobiles and develop technologies so that more energy can be saved.

The Ministry of Knowledge Economy said it will allocate 150 billion won (US$120 million) over the next five years to improve the fuel efficiency of cars.

Cars made in Korea are currently less fuel efficient than those made in Japan and the United States.

For instance, an average Korean car can go about 11.2 kilometers per liter of fuel, while a Japanese car averages about 16.0 kilometers per liter.

Ministry officials say the plan to improve fuel economy is important for the future of the Korean auto industry when it comes to exporting cars abroad.

The allocated money will also be spent to build and commercialize so-called plug-in vehicles and other eco-friendly cars.

In addition, the government will spend about 1.6 trillion won to assist companies in developing various technologies that can boost energy conservation in consumer and industrial products.

Furthermore, plans are under consideration to make it mandatory for more than 5,500 public companies to use only high energy efficient products, along with getting businesses that use a lot of electricity to set conservation targets.