KT Accelerates AI Transformation with Microsoft Partnership, Unveiling Korean-Tailored AI Model

KT CEO Kim Young-shub says will accelerate AI partnership with Microsoft

KT CEO Kim Young-shub says will accelerate AI partnership with Microsoft KT CEO Kim Young-shub speaks at a press conference during the ongoing Mobile World Congress (MWC) 2025 in Barcelona, Spain, in this photo provided by KT, March 4. Yonhap Kim Young-shub, chief executive officer (CEO) of KT, a major Korean mobile carrier, said Wednesday he will strengthen the company's artificial intelligence (AI) partnership with Microsoft to deliver tangible results within the year. "I will accelerate efforts to achieve concrete outcomes with Microsoft this year," Kim said at a press conference during the ongoing Mobile World Congress (MWC) 2025 in Barcelona, Spain. Last year, KT and Microsoft signed a five-year partnership agreement to invest a combined 2.4 trillion won ($1.65 billion) to jointly advance AI technologies, including developing new AI models tailored to Korean language and culture, as well as new cloud services catering to the needs of Korean corporate customers. Through this initiative, KT aims to increase AI-driven revenue to 12 percent of its overall sales this year. As a first step, an AI transformation (AX) strategic fund, created to expand the AX ecosystem in Korea under the partnership with Microsoft, will begin operations in the first quarter. A joint innovation center for AI and cloud research will open in the third quarter. Moreover, KT plans to unveil a Korean-style AI model leveraging Open AI's GPT 4o in the second quarter. The Koreanized AI model, which is being co-developed by KT and Microsoft, is designed to better understand Korean language, knowledge and culture, complementing English-based ChatGPT and offering localized solutions that cater to Korean users and businesses. CEO Kim reaffirmed his vision of transforming the company into an "AICT" company, a fusion of AI, telecommunications, and information and communications technology (ICT). "KT's key slogan will be the complete transformation into an AICT company from this year," he said. "We will drive innovation across all areas." (Yonhap)

KT eyes shift from telecom to AI tech firm

KT CEO Kim Young-Shub speaks during a press conference at Mobile World Congress 2025 in Barcelona, Spain, Tuesday (local time). Courtesy of KT 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."