KT announced its transformation into an 'AX Platform Company' on the 6th, with CEO Park Yoon-young unveiling the strategy at the company's first press conference since his appointment at Pullman Ambassador Seoul Eastpol Hotel in Gwangjin-gu. The telecom operator plans to invest approximately 12 trillion won over three years in information security, IT, and network infrastructure to strengthen its core business while expanding into AI-driven growth sectors. The strategy positions KT as South Korea's national telecommunications infrastructure provider responsible for connectivity in the AI era, combining enhanced network capabilities with new AI data center and platform services.
KT Allocates 12 Trillion Won for Security and Network Infrastructure
KT will invest a total of approximately 12 trillion won over three years to strengthen its core telecommunications capabilities. The investment breaks down into 4 trillion won for information security and IT innovation—double the amount from the previous three-year period—and 8 trillion won for network infrastructure. The company will implement a Zero Trust security framework across the organization, requiring thorough verification without assuming trust. In the network sector, KT will focus on proactive quality diagnostics and improvements while securing leadership in 6G, satellite, and data center interconnect (DCI) technologies. The company operates both geostationary orbit (GEO) and low Earth orbit (LEO) satellites, making it the only domestic operator with direct control and operation of multi-orbit satellite systems.
KT Plans 6 Trillion Won Investment in AI Infrastructure Expansion
KT will invest approximately 5 trillion won to build an additional 1GW capacity of AI data centers (AIDC) based on actual demand. The company plans to organically connect central AIDCs handling large-scale training and inference workloads with AI Edge facilities deployed near industrial sites, providing nationwide ultra-low-latency real-time inference environments essential for physical AI and autonomous driving. KT will invest 1 trillion won in submarine cable infrastructure to add over 90Tbps of supply capacity in response to anticipated global submarine cable traffic growth linked to AIDC operations. The expanded infrastructure aims to attract global big tech investments in domestic AIDCs, positioning South Korea as an 'Asia AX connectivity hub' that aggregates global traffic.
KT Launches Token Factory and Stablecoin Business Initiatives
KT will commercialize two new AX businesses: Token Factory and stablecoin platforms. The Token Factory combines KT's ultra-precise billing and settlement capabilities accumulated from telecom network operations with 1GW-scale distributed AIDCs nationwide and token optimization engines including proprietary models. The platform will support token generation, brokerage, and billing services, developed as KT's flagship AX business model. KT Group will enter the stablecoin-based digital financial platform market by integrating capabilities across the entire value chain—from issuance to custody, settlement, network transmission, and actual usage ecosystems—leveraging K Bank's 16 million customer base as the domestic market enters the formation stage with legislation and private sector participation.
KT Expands Partnerships with Global and Domestic AI Companies
KT established a roadmap to gradually expand its business territory from ASEAN to Global South emerging markets based on strengthened AX capabilities and diversified business portfolio. The company will continue exploring mutually beneficial cooperation with Microsoft while diversifying partnerships to include global AI leaders such as Google and Palantir, as well as domestic promising AI companies including Upstage, Rebellions, and Saltlux. CEO Park Yoon-young stated that KT's essence as the entity responsible for South Korea's connectivity remains unchanged in the AX era where connection targets expand from people to AI, emphasizing the company's commitment to solidifying its core telecommunications business while driving South Korea's advancement as an AX powerhouse.
FAQ
What did KT announce on the 6th?
KT announced its transformation into an 'AX Platform Company' at a press conference held by CEO Park Yoon-young at Pullman Ambassador Seoul Eastpol Hotel in Gwangjin-gu, unveiling a strategy that includes approximately 12 trillion won in infrastructure investments over three years.
How much will KT invest in AI data centers?
KT will invest approximately 5 trillion won to build an additional 1GW capacity of AI data centers based on actual demand, and 1 trillion won in submarine cable infrastructure to add over 90Tbps of supply capacity.
What new businesses is KT launching?
KT is launching Token Factory, a platform supporting token generation, brokerage, and billing services, and entering the stablecoin-based digital financial platform market by leveraging K Bank's 16 million customer base and capabilities across the entire value chain.
