KT’s Park Unveils $13 Billion Plan to Bolster Telecom, Build AI-Driven AX Company

KT CEO Park Yoon-young Media Briefing

$8.7 Billion for Security and Networks Over Three Years

AIDC, Submarine Cable Investment to Expand

Token Factory, Stablecoin Plans

KT Corp. Chief Executive Officer Park Yoon-young laid out a strategy to strengthen the company’s telecom network and security capabilities while making artificial intelligence transformation, or AX, a new growth engine. He said the goal is to remake KT into an “AX platform company.”

Park announced the strategy at a press briefing on July 6 at the Pullman Ambassador Seoul Eastpole in Seoul’s Gwangjin district. The plan expands KT’s role as a national telecommunications carrier for the AI era. The company aims to move beyond connecting people to people and people to data, extending that role to links between people and AI and between AI systems.

After spending about 100 days since taking office inspecting operations including security, networks, customer touchpoints, submarine cables and research and development, Park said KT had developed a strategy focused on restoring customer trust and laying the groundwork for future growth.

Core Business First: KT Pledges $8.7 Billion to Security and Networks

Park said KT’s new vision starts with reinforcing its core business. Stronger security, information technology and network capabilities are essential if the company is to build an AI business on a sustainable basis.

KT plans to invest about 12 trillion won, or $8.7 billion, over the next three years in information security, IT and networks. Of that, 4 trillion won, or $2.9 billion, is earmarked for information security and IT innovation. The company has integrated security operations that had been split between network and IT divisions into a companywide system. It also separated the roles of chief information security officer and chief privacy officer to deepen specialization, and doubled its security workforce.

The new security framework will center on a zero-trust approach that verifies every access attempt, whether internal or external. KT also plans to strengthen information security capabilities across its affiliates, including through a talent development program with Seoul National University.

KT will invest about 8 trillion won, or $5.8 billion, in networks over three years. The spending is aimed at improving service quality for customers while preparing for next-generation technologies including 6G, satellites and data center interconnection, or DCI. On 6G, the company said it sees earlier opportunities in business-to-business services and satellite connectivity than in consumer commercialization.

KT Targets 1 Gigawatt of AIDC Capacity

KT said it will expand AI data centers, or AIDC, based strictly on actual demand. The company set a goal of building 1 gigawatt of AIDC capacity within five years. Total investment is about 5 trillion won, or $3.6 billion. In the Seoul metropolitan area, KT plans to add supply in areas where power and permitting conditions are already in place. Outside the capital region, it will begin construction only after confirming firm tenant demand.

KT said its long experience operating data centers is a key differentiator. Running high-density GPU servers reliably requires cooling technology, power efficiency and building design expertise. The company plans to combine its operating know-how, including liquid cooling, with its wired and wireless networks, submarine cable assets and DCI capabilities to win global AIDC customers.

KT also plans to sharply increase submarine cable capacity to prepare for rising international data traffic. The investment totals about 1 trillion won, or $725 million. The company plans to expand capacity from about 38 terabits per second to more than 128 terabits per second. It is also reviewing large-scale new submarine cable construction in cooperation with end users including global technology companies.

Token Factory Takes Aim at AI Billing

One of KT’s main new business initiatives is Token Factory. The concept is based on the view that demand for AI cost management will surge as AI services shift from flat-rate subscriptions to usage-based billing. Tokens are the basic units used when AI models process text inputs and outputs.

Token Factory is a platform that links multiple AI models, automatically routes each query or task to the most suitable model and calculates usage. KT said it can address usage control and cost management by employee and department when enterprise customers use a mix of models such as ChatGPT, Gemini and Claude. The company believes it can apply expertise built over many years in telecom billing and settlement systems directly to this business.

Park said billing is Token Factory’s main advantage. “There will be few organizations better at billing than telecom carriers,” he said. “We have the capability to charge customers across a wide range of pricing plans and bundled products.”

KT also said it plans to go beyond simple intermediation by lowering token generation costs through optimization of GPU and NPU resources. It will apply technology that matches the best model to the context and purpose of a query and reduces token consumption as AI agents become more widely used.

Whether the business gains traction will depend on KT’s ability to prove real cost savings for enterprise customers rather than simply reselling AI models. To attract clients that can sign directly with global AI model providers, the company will need to show clear value as an integrated platform combining model routing, security, settlement and AIDC infrastructure.

From Digital Finance to Hyper-Personalized Pricing

KT is also preparing a stablecoin-based digital finance platform using capabilities across its group. The plan is to combine K Bank’s customer base and BC Card’s payment and settlement infrastructure with KT’s network and security technologies, covering issuance, custody, remittances and real-world use. The company is conducting an internal proof of concept in line with legislative developments.

KT’s business-to-business AX operation will focus on four sectors: finance, public services, manufacturing and healthcare. For the financial industry, it plans to provide AI agents and AI contact centers, or AICC. For the public sector, it will offer sovereign AI-based services aimed at demand for data sovereignty. In manufacturing and healthcare, KT will pursue opportunities centered on physical AI and government-backed pilot projects.

KT also plans to overhaul its consumer service structure. The company said it will move away from supplier-led pricing and introduce hyper-personalized services that allow customers to design their own plans and benefits. It aims to provide tailored experiences by digitizing the entire process from sign-up to customer consultation based on data analysis.

KT will also expand partnerships with global and domestic technology companies. Alongside its existing cooperation with Microsoft, the company plans to work with global AI companies including Google and Palantir, as well as South Korean AI firms such as Upstage, Rebellions and Saltlux. The strategy is to broaden options based on customer demand rather than tie itself to a single partner.

“The object of connectivity is expanding from people to AI in the AX era, but KT’s core mission of connecting South Korea will not change,” Park said. “We will make the fundamentals of the telecom business even stronger and deliver clear growth on that foundation so South Korea can advance as a leading AX nation.”

Hong Min-seong, Hankyung.com reporter mshong@hankyung.com