New Azure-based platform targets industries with strict compliance needs as sovereign cloud adoption accelerates
KT Corp. has unveiled a new public cloud service developed in partnership with Microsoft, marking a strategic move to strengthen its role in South Korea’s fast-growing multi-cloud and managed services market. Powered by Microsoft Azure, the platform aims to deliver high-performance computing while adhering to Korea’s strict standards for data sovereignty and regulatory compliance.
The service, branded as Secure Public Cloud, is KT’s response to rising demand for cloud environments that guarantee domestic data governance. KT said it designed the platform around three pillars: protecting data across its entire lifecycle, giving enterprises stronger control over cloud resource management and ensuring that all sensitive information remains stored and processed within Korea.
Targeting High-Security Industries First
KT plans to roll out the Secure Public Cloud initially to financial institutions and manufacturing companies, which face some of the country’s toughest data protection requirements. The company expects to expand availability to more industries over time, positioning the platform as a fundamental component of KT’s enterprise digital transformation portfolio.
The strategy reflects broader interest from Korean organizations that must comply with sector-specific privacy rules, national security standards and industry regulations. For these companies, adopting global cloud platforms alone is no longer sufficient without strong guarantees of domestic control.
Built to Meet Sovereign Cloud Standards
To align with Korea’s sovereign cloud expectations, KT based the platform on three internal criteria:
- End-to-end protection of data during storage, transmission and processing
- Enhanced customer authority over cloud resource configuration and access
- Strict domestic residency, ensuring all data stays within Korean borders
KT said these factors were essential for creating a “Korean-style cloud” that offers the flexibility and scalability of Azure while remaining compliant with local laws.
Confidential Computing as a Key Differentiator
A major highlight of the Secure Public Cloud is its support for confidential computing, a hardware-based security technology that encrypts data even during in-memory execution. This means sensitive data remains protected at every stage, reducing exposure risks even if unauthorized access is attempted at the hardware or hypervisor level.
KT emphasized that this feature is particularly important for workloads involving personal data, financial transactions, manufacturing processes or operational control systems—areas where even brief exposure could carry significant risks.
Hardware-Level Encryption Through Managed HSM
KT has also integrated a managed hardware security module (HSM) into the platform. This enables customers to generate, store and manage their own encryption keys, giving them full ownership of their cryptographic assets.
According to KT, combining confidential computing with customer-managed keys enables true end-to-end encryption—from data at rest to data in use—making the platform suitable for AI training environments, transaction-heavy applications and other high-security workloads.
Guaranteed Domestic Data Residency
KT highlighted that all data on the Secure Public Cloud is, by default, stored and processed entirely within Korea. This design ensures compliance with local regulations and gives institutions full visibility and control over where their data resides.
The company said this model addresses growing demand from Korean enterprises and public sector clients seeking global cloud performance without the risk of cross-border data exposure.
Expanding KT’s Cloud Ecosystem
KT noted that the new service enhances its broader cloud ecosystem, which already includes:
- KT Cloud, a CSAP-certified platform widely used by public institutions
- Global cloud services such as Amazon Web Services, supported through KT’s managed service provider (MSP) capabilities
As an MSP, KT provides full-lifecycle support—from consulting and migration to ongoing operations—helping customers build cloud environments tailored to both performance and compliance.
KT Forecasts Rising Demand for Sovereign Cloud Solutions
Yoo Seong-bong, head of KT Enterprise’s AX Business Division, said the launch marks an important step in supporting Korea’s transition to secure, locally governed cloud systems.
“KT will gradually expand the scope of service adoption so that customers can experience a reliable sovereign cloud environment,” he said.
Yoo added that inquiries from sectors requiring strict data control have been increasing, and the company expects demand to accelerate further across both public and private organizations.
