(LEAD) KT aims for 4.6 tln won in sales over next 5 yrs through AI partnership with Microsoft


KT Corp., a major South Korean mobile carrier, said Thursday it aims to generate a cumulative 4.6 trillion won (US$3.4 billion) in sales over the next five years through its artificial intelligence (AI) partnership with Microsoft Corp.

At a press conference unveiling its vision to evolve into a comprehensive AI and IT company, KT shared its plans to move beyond its traditional role as a fixed-wire and mobile telecommunications provider.

Last month, KT and Microsoft signed a five-year partnership agreement to invest a combined 2.4 trillion won 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.

The new models, including a Korean-style AI model leveraging Open AI’s GPT 4o, small LLMs based on Microsoft’s Phi, and cloud services for the public and financial sectors, are scheduled to be launched next year.

KT Corp. CEO Kim Young-shub speaks at a press conference held i
n Seoul on Oct. 10, 2024, in this photo provided by the company. (PHOTO NOT FOR SALE) (Yonhap)

KT Corp. CEO Kim Young-shub speaks at a press conference held in Seoul on Oct. 10, 2024, in this photo provided by the company. (PHOTO NOT FOR SALE) (Yonhap)

“Microsoft knows the importance of South Korea in the global information and communications industry,” KT CEO Kim Young-shub said, emphasizing the strategic value of KT and the U.S. tech giant’s partnership.

Through this collaboration, KT aims to achieve a cumulative 4.6 trillion won in sales by 2029, with projected sales of 1.3 trillion won in 2028 and 1.37 trillion won in 2029.

The 2.4 trillion-won investment will support infrastructure expansion, research and development, and marketing efforts.

Also, KT also plans to launch a new company specializing in AI transformation (AX) in the first quarter of next year to offer customized service to corporate clients and expand into the global AX market.

The KT-Microsoft partnership will also create an AX strate
gic fund to expand the AX ecosystem in South Korea and open a joint innovation center for AI and cloud research next year.

Cho Won-woo, head of Microsoft Korea, said Microsoft seeks to advance its AI solutions in South Korea by collaborating with local industries that boast top-tier capabilities, such as manufacturing.

“I think we are at a critical juncture of whether AI can actually seep into companies across various industries … and the AI solutions advanced in South Korea will help Microsoft and KT not only expand their foothold in the country but also to new markets,” Cho explained.

Source: Yonhap News Agency