Seoul: KT Corp., a prominent South Korean telecommunications operator, has announced plans to invest approximately 18 trillion won (US$11.8 billion) to transform into a platform company focused on artificial intelligence (AI). Park Yoon-young, the company's chief executive officer, shared these strategic plans at a press conference in central Seoul, marking his first major public address since his appointment in March.

According to Yonhap News Agency, KT's initiative, termed the "AX Platform Company," involves a substantial investment of 12 trillion won over the next three years in cybersecurity, IT, and networks. This investment aims to bolster KT's cybersecurity capabilities under a zero-trust principle while fostering IT innovation. The company also seeks to establish dominance in next-generation network technologies, including 6G and satellite communications, and to enhance the quality of its existing network infrastructure.

On the AI infrastructure front, KT has earmarked 5 trillion won for the development of AI data centers with a capacity of 1 gigawatt. These centers are intended to deliver ultra-low latency and real-time inference capabilities crucial for the advancement of physical AI and autonomous driving technologies.

Additionally, KT plans to allocate 1 trillion won to expand its submarine cable capacity to over 90 terabits per second, addressing the rising demand for data traffic. Beyond AI, the company aims to establish a token factory by merging its AI data centers with token optimization engines and to venture into businesses related to stable coins.

KT emphasized its commitment to leveraging its core business strengths to position South Korea as a leader in AI transformation, or AX. "We will build on the solid growth of our core business as a telecom operator, so that Korea can emerge as a leading AI transformation, or AX, nation," the company stated.