KT eyes shift from telecom to AI tech firm

By Ko Dong-hwan

The head of KT, a leading Korean mobile carrier, said Tuesday the company will shift its investment focus toward artificial intelligence (AI) transformation, also called AX.

As part of this shift, KT will introduce an AI model tailored for Koreans along with a new cloud platform in collaboration with Microsoft.

"KT will strengthen its partnership with Microsoft to cultivate more AI experts and introduce a dedicated fund for AX strategies this year," said CEO Kim Young-Shub during a press conference at Mobile World Congress 2025 in Barcelona, Spain.

The measures are part of the company’s agenda for the year, aimed at achieving a "complete transformation" from a telecommunications provider to an artificial intelligence and communication technology company.

Kim said the company will introduce “Korean AI” in the second quarter.

Beyond language translation, the company will distinguish itself by offering an AI service that “comprehensively understands Korean culture, including its spirit, style, knowledge and the framework of the country’s societal, historical and national perspectives, while adhering to the nation’s laws.”

The company also plans to introduce KT Secure Public Cloud (SPC) in the same quarter. The upgraded version from an ordinary public cloud features stricter security and greater capacity for expansion while adhering to the country’s legal boundaries. The company has already launched it as its new internal IT system for its employees to test.

KT is also pursuing a project to evolve its current digital network. “Network AI,” currently under development using KT’s own technologies and in partnership with global tech giants, can automatically detect broken wires in a core network, enhance user experience quality and reduce energy consumption.

KT plans to launch an AX-dedicated team later this month. The team, comprising 300 experts from KT and Microsoft, will oversee AX projects and new business development. It will also lead new expert communities and AX education centers for professionals in various sectors, including education, health care, defense, and shipbuilding.

The company plans to launch a strategic AX fund in collaboration with Microsoft to consistently expand its partnerships with global platform companies. The company added the fund also allows it to build a “true AX ecosystem.”

“KT will become a new accelerator for Korea’s AX this year,” Kim said.

“We will start commercializing Korean AI and KT SPC and concentrate our manpower and resources into expanding our AX initiatives.”