Park Yun-young, Chief Executive Officer (CEO) of KT, unveiled a new vision titled AX Platform Company to mark his 100th day in office.
KT plans to invest approximately 18 trillion KRW (about 11.85 billion USD) over the next three years to bolster its information security, information technology (IT), network, and artificial intelligence (AI) infrastructure. The company will allocate 6 trillion KRW (about 3.95 billion USD) to expand AI Data Centers (AIDC), AI Edge capabilities, and submarine cables, while also fostering new ventures like the Token Factory. An additional 12 trillion KRW (about 7.9 billion USD) will be directed towards information security and network sectors.
Park presented this new vision during his inaugural press conference held at the Pullman Ambassador Seoul Eastpool Hotel in Gwangjin-gu, Seoul.
The AI Platform Company vision positions KT as a national telecommunications leader, responsible for South Korea’s present and future connectivity, aiming for substantial growth through innovative platforms and services in the AI transformation (AX) era.
Park announced plans to establish a 1GW-scale AIDC based on actual demand to expand AI infrastructure.
The company will invest 5 trillion KRW (about 3.29 billion USD) in AIDCs across approximately 25 nationwide locations and utilize 3,500 local offices as AI Edge hubs. By linking the central AIDC with AI Edges near industrial sites, KT aims to create a low-latency inference environment crucial for physical AI and autonomous driving advancements.
Park explained that to prepare for the rapidly expanding markets of physical AI and autonomous driving, it’s strategically positioning the AI Edges at the forefront. It plans to organically connect 3,500 local internet centers nationwide with the central AIDC, providing a country-wide, low-latency, real-time inference environment.
Anticipating a significant increase in global submarine cable traffic demand linked to AIDC, KT will invest 1 trillion KRW (about 658 million USD) to boost its submarine cable capacity by over 90 Tbps.
Park highlighted KT’s data center operational expertise as a key differentiator from competitors.
He emphasized that while its competitors have their strengths, the critical factor for successfully operating an AIDC ultimately stems from accumulated operational experience. They’ve consistently built the operational know-how over many years, including architectural design. The strengths lie in efficient, demand-based investment and optimizing data center operational costs, which will deliver tangible value to our customers compared to the competitors.
Furthermore, KT will aggressively pursue new growth in AX businesses, including the Token Factory and stablecoin projects, leveraging its existing capabilities and assets.
Utilizing its ultra-precise charging and settlement capabilities developed through communications network operations, KT plans to combine its nationwide 1GW-scale AIDC with a token optimization engine, including proprietary models, to create the Token Factory. This initiative will become KT’s flagship AX business model.
Park stated that if bits were the basic unit of the economy in the past, tokens will be the new economic unit in the AI-connected era. It will establish a Token Factory capable of generating, mediating, and supporting token charging. This will be nurtured as the premier AX business model.
KT will continue to explore mutually beneficial cooperation with Microsoft while diversifying partnerships with global AI leaders like Google and Palantir, as well as promising domestic AI firms such as Upstage, Rebellions, and Saltlux.
To strengthen its core capabilities, KT will invest approximately 12 trillion KRW (about 7.9 billion USD) in information security, IT, and network sectors over the next three years.
Following a hacking incident last year, KT will overhaul its corporate security system under the zero-trust principle and invest 4 trillion KRW (about 2.63 billion USD) in information security and IT innovation, doubling its investment compared to the past three years.
During the same period, KT will invest around 8 trillion KRW (about 5.26 billion USD) in the network sector to achieve a significant competitive edge. The goal is to secure leadership in key technologies such as 6G, satellites, and data center interconnectivity (DCI).
To enhance customer satisfaction, KT plans to shift product service control to customers, enabling hyper-personalization.
Park announced that they’re preparing to empower customers to design their own rate plans, shifting the design authority from the telecom company to the individual. It’ll incorporate AI to ensure customer satisfaction and problem resolution, advancing the hyper-personalized AX initiative to improve customer experience.
KT will invest approximately 12 trillion KRW (about 7.9 billion USD) in information security, IT, and network sectors to reinforce its solid foundation for growth.
Under the zero-trust principle of trust nothing, verify everything, KT will redefine its corporate security system and invest 4 trillion KRW (about 2.63 billion USD) in information security and IT innovation, doubling its investment compared to the past three years.
