KT, Shedding the 'Telephone Office' Label After 20 Years of Privatization, Powered by 'Wooyoungwoo'

KT Surpasses 10 Trillion Market Cap: "Content Companies Had Confidence"
CEO Koo Hyun-mo Credits Digital Platform Strategy

[Asia Economy Reporter Lim Hye-seon] "Does KT also engage in this kind of (media content) business?"

This is the question CEO Koo Hyun-mo (photo) has been asked most frequently recently. This follows the revelation that KT Studio Genie co-produced the hit drama "Extraordinary Attorney Woo." Recently, CEO Koo told employees, "I wanted to expand the playground where KT can play," adding, "Although there were many external concerns about the media content business, I was confident we would not fail."

Thanks to the expanded playground created by CEO Koo, KT is now being recognized for shedding the "telephone company" label after 20 years since its privatization in 2002. For decades, KT invested heavily in corporate branding to shake off the image of a local telephone exchange, but it was the success of a single piece of content that truly realized this aspiration. The result was created by one person, Woo Young-woo, a lawyer with autism spectrum disorder. As the ratings of "Woo Young-woo" surpassed 15%, setting records with each episode, KT’s newly launched channel ENA became a nationally recognized "must-watch" channel. This also contributed to CEO Koo’s strategy of transforming KT into a "digital platform company." It is reported that KT invested about 20 billion KRW in producing the 16-episode series. The industry estimates the economic ripple effect to be more than ten times the production cost. KT’s market capitalization also exceeded 10 trillion KRW for the first time in 10 years.

CEO Koo has continuously focused investments on media as a core pillar that changes customers’ lives. A good example is the establishment of KT Studio Genie in March last year as an intermediate holding company, consolidating the group’s content production capabilities in one place. KT Studio Genie produces competitive content by utilizing original IP assets owned by Storywiz and distributes primary and secondary rights through KT Group platforms such as the skyTV channel, Olleh TV, and Skylife. Subsequently, it distributes follow-up rights domestically and internationally via online video services (OTT) and creates additional content value through Genie Music and others. This has established a virtuous cycle within KT Group where content is produced to generate stable profits and then reinvested in new content.

The first result is "Woo Young-woo." KT Studio Genie plans to release 24 original dramas by next year. CEO Koo is leading the "de-telecommunication" transformation through a strategy to become a digital platform company, "DIGICO." Instead of competing in the stagnant telecommunications market, KT is accelerating efforts to secure future growth engines such as artificial intelligence, robotics, media content, and digital finance. CEO Koo said, "The first half of this year was a valuable time when all of us could feel that we are changing and growing as a digital platform company," adding, "In the second half, we will continue to adhere to basics and principles and create a growth story for KT that resonates with both employees and customers."