KT unveils W18tr AI push under new CEO

Telecom carrier bets on AI data centers, cybersecurity, next-generation networks to drive future growth

KT announced Monday that it will invest 18 trillion won ($12 billion) in the next three years to accelerate its shift into an AI-driven platform company, while reinforcing its core telecom, security and network infrastructure.

The plan, unveiled by CEO Park Yoon-young at his first press conference since taking office in March, marks one of the telecom carrier’s most aggressive investment pushes as it seeks growth beyond its traditional mobile and broadband business.

“KT’s fundamental role in connecting the country does not change in the (AI transformation) era, where the focus of connection is expanding from people to AI,” Park said at a press briefing in Seoul. “We will make our telecom foundation stronger and achieve clear growth on top of that.”

Park, who has spent his first 100 days visiting KT’s network and security sites across the country, said the company’s AI strategy must start with stronger fundamentals.

KT will spend 4 trillion won on cybersecurity and IT innovation, twice the amount invested over the previous three-year period.

The security push comes as KT seeks to regain customer trust after last year’s lapses in femtocell management and a personal data leak. Under a “zero trust” principle, the company said it plans to rebuild its groupwide security framework by integrating scattered IT and network security operations, unifying crisis response governance, separating the roles of chief information security officer and chief privacy officer, bringing in outside experts and doubling its information security workforce.

The mobile carrier will also invest about 8 trillion won in next-generation network technologies, including 6G, satellite communications and data center interconnection. KT said it aims to build resilient networks capable of supporting national security, disaster response and future AI services, using its ability to operate both geostationary and low Earth orbit satellites.

For growth infrastructure, KT will spend about 5 trillion won to add AI data centers with a combined capacity of 1 gigawatt. It plans to connect central AI data centers with edge facilities near industrial sites, providing low-latency computing power for physical AI, autonomous driving and other real-time applications.

“There is strong demand for physical AI as the government moves to promote the sector,” Park said. “KT will actively take part in pilot projects and seek to enter areas such as manufacturing and healthcare.”

Another 1 trillion won will go into undersea cables, adding more than 90 terabits per second in capacity to attract global big tech AI data center projects to Korea and position the country as an “Asian AX connection hub.”

KT also outlined new AI-linked businesses, including a “token factory” and stablecoin services, as AI usage shifts toward token-based billing.

“The token factory business will combine a gateway that helps customers choose the right AI model and use tokens efficiently with KT’s billing expertise,” Park said. “By linking that with our AI data center infrastructure and foundation model partners, we believe it can become a profitable business model.”

KT will also enter the stablecoin-based digital finance platform market, drawing on K bank’s 16 million customers, BC Card’s 3.5 million merchants and its own secure network infrastructure to cover issuance, custody, settlement and real-world payments.

Park said KT will broaden AI partnerships beyond Microsoft to Google, Palantir and local firms including Upstage, Rebellions and Saltlux, while expanding AX infrastructure and solutions overseas, starting with Southeast Asia.

“KT will help Korea become an AX powerhouse by strengthening the essence of telecom and building firm growth from that base,” Park said.