New KT CEO Park Yoon-young committed to invest 18 trillion won ($11.77 billion) in network security and artificial intelligence (AI) infrastructure, aiming to reposition the telecom operator as a company focused on AI transformation.
Park stated that KT aims to be a platform company for AI transformation, founded on two main business pillars: its telecommunications sector and AI operations, encompassing data centers, cable, and AI transformation services.
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To enhance its telecommunications business, KT intends to allocate 12 trillion won over the upcoming three years toward information security, IT, and network infrastructure.
“Our vision is built on two pillars: reinforcing our core business while driving the company's next phase of growth through AI transformation.
The investment will direct 4 trillion won towards information security and IT advancements. The firm stated that the funds will be allocated to create a zero-trust security framework with continuous prevention and response abilities, as well as to hasten the shift to cloud-native systems. It also aims to incorporate security governance throughout its IT and network operations to facilitate quicker and clearer reactions to cyber threats.
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KT plans to allocate 8 trillion won during the same timeframe for its network operations to enhance network quality and maintain leadership in next-generation technologies, such as 6G, satellite communications, and data center connectivity. On the AI infrastructure front, KT aims to invest 5 trillion won in the next five years to enhance its data center operations. The firm aims to allocate 1 trillion won to increase underwater cable capacity by over 90 terabits per second.
Park emphasized that KT's approach distinguishes itself from other data center operators as its growth strategies rely on verified customer demand instead of speculative funding.
The firm intends to construct approximately 25 data centers across the country, increasing its overall capacity to roughly 1 gigawatt within the next five years. He stated that KT will utilize its network of over 3,500 exchange buildings nationwide to establish data centers near industrial areas, decreasing latency and more effectively serving enterprise clients.
To drive new growth, KT mentioned it is focusing on token factory and stablecoin ventures.
A token represents the fundamental element utilized by AI models for processing and creating information, and the AI sector employs the term token factory to refer to data center infrastructure that produces AI tokens via extensive computing efforts.
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Park stated that KT's token factory will serve as a platform enabling customers to utilize AI tokens more effectively by choosing the most appropriate foundation models for various tasks while enhancing costs, performance, and security.
"According to Park, telecom operators understand the intricacies of pricing and billing plans better than anyone else." "Utilizing KT's billing expertise from its telecom sector, we will assist customers in efficiently using AI tokens, selecting the best foundation models, and overseeing security."
He anticipates that the business portfolio will aid in speeding up KT’s worldwide growth. Aiming to achieve 1 trillion won in foreign revenue from AI transformation, token factory, and stablecoin ventures by 2030, he mentioned that KT is currently offering AI transformation services in Thailand and Vietnam and intends to expand further throughout the Global South.
“We will further strengthen our telecommunications business and build solid growth on that foundation, helping Korea become a global leader in AI transformation,” he says.