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

KT's Strategic Shift to AI Transformation

KT, one of Korea's leading mobile carriers, is embarking on a significant transformation from a telecommunications provider to an artificial intelligence and communication technology (AICT) company. CEO Kim Young-shub announced this strategic shift during the Mobile World Congress (MWC) 2025 in Barcelona, emphasizing the company's commitment to accelerating its AI partnership with Microsoft 1

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Strengthening Microsoft Partnership

Last year, KT and Microsoft signed a five-year partnership agreement, investing a combined 2.4 trillion won ($1.65 billion) to jointly advance AI technologies. This collaboration aims to develop new AI models tailored to Korean language and culture, as well as cloud services catering to Korean corporate customers 1

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Key initiatives of this partnership include:

1. An AI transformation (AX) strategic fund, set to begin operations in the first quarter of 2025.
2. A joint innovation center for AI and cloud research, scheduled to open in the third quarter.
3. The formation of a 300-expert team from KT and Microsoft to oversee AX projects and new business development 2

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Korean-Tailored AI Model

One of the most anticipated outcomes of this partnership is the development of a Korean-style AI model leveraging OpenAI's GPT 4o. Set to be unveiled in the second quarter of 2025, this AI model is designed to better understand Korean language, knowledge, and culture 1

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Kim emphasized that this "Korean AI" will go beyond mere language translation, offering a comprehensive understanding of Korean culture, including its spirit, style, knowledge, and the framework of the country's societal, historical, and national perspectives, while adhering to Korean laws 2

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Cloud Services and Network AI

KT is also focusing on enhancing its cloud offerings:

1. KT Secure Public Cloud (SPC): An upgraded version of public cloud with stricter security and greater capacity for expansion, adhering to Korean legal boundaries 2

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2. Network AI: A project aimed at evolving KT's current digital network to automatically detect issues, enhance user experience, and reduce energy consumption 2

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Financial Goals and Industry Impact

Through these initiatives, KT aims to increase AI-driven revenue to 12 percent of its overall sales in 2025 1

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. The company's strategic shift is expected to have a significant impact on various sectors, including education, healthcare, defense, and shipbuilding 2

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CEO Kim stated, "KT will become a new accelerator for Korea's AX this year. We will start commercializing Korean AI and KT SPC and concentrate our manpower and resources into expanding our AX initiatives" 2

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This transformation represents a major shift in Korea's tech landscape, potentially positioning KT as a leader in AI and cloud technologies tailored for the Korean market and beyond.