KT Corp. CEO Kim Young-shub has outlined plans to deepen the company’s AI collaboration with Microsoft, targeting tangible outcomes by the end of the year. Speaking at the Mobile World Congress (MWC) 2025 in Barcelona, he highlighted the importance of fast-tracking joint efforts to achieve significant AI progress.
KT is set to establish the AI Transformation Delivery Center (AX Delivery Center) in partnership with Microsoft this month, bringing together a team of more than 300 experts. This initiative reflects KT’s strategic shift towards AI-driven innovation, focusing on developing an AI model tailored for Korea and a new cloud platform in collaboration with Microsoft.
KT and Microsoft’s deepening collaboration builds on a five-year agreement signed in October, committing 2.4 trillion won (US$1.65 billion) to AI and cloud development. Under this partnership, the companies will launch an AI Transformation (AX) strategic fund in the first quarter, with KT contributing 13 billion won (US$8.93 million) and Microsoft providing GPU resources to support AI adoption in startups and small businesses.
A key initiative under this collaboration is the AI Transformation Delivery Center, a hub for over 300 experts focused on developing AI solutions and accelerating enterprise AI projects. KT has also restructured its internal organization to strengthen AI expertise, introducing a job classification system prioritizing AI, forming industry-specific AX communities, and launching an AI education center covering healthcare, defense, and energy sectors.
KT plans to introduce a Korean AI model in the second quarter, leveraging OpenAI’s GPT-4o to enhance its understanding of the Korean language, culture, and regulations. This localized AI will complement English-based models and provide tailored solutions for Korean businesses and users. The company also aims to commercialize its Secure Public Cloud (SPC) during the same period, offering high-security cloud services that comply with domestic laws.
To further expand its AI footprint, KT will establish a joint innovation center with Microsoft in the third quarter, focusing on AI and cloud research. Additionally, the company is working on “Network AI,” an advanced system designed to detect network issues, improve service quality, and optimize energy consumption using automation.
KT is also preparing to launch a consumer-facing AI service in the second quarter, competing with existing solutions like SK Telecom’s A. and LG Uplus’ ixi O. These efforts align with the company’s broader vision of transforming from a traditional telecom provider into an AI-driven technology leader.
