KT Partners with Singtel for Digital Logistics... CEO Koo Hyun-mo Stays Committed to "Digico" Until the End

MWC2023 Keynote
Collaboration to Enhance Data Center and 5G Platform 'Paragon'
Reserved Comments on Future Plans and Shortlist

[Barcelona=Asia Economy Reporter Oh Su-yeon] Koo Hyun-mo, CEO of KT, who is leaving KT after a three-year term, introduced the global expansion cooperation of digital logistics solutions with Singapore's leading telecom company Singtel during his keynote speech at Mobile World Congress (MWC) 2023. He also announced the achievements of KT's transformation into a 'Digico (digital platform company)'.

On the 28th (local time) at MWC2023 held in Barcelona, Spain, CEO Koo appeared as a keynote speaker on the theme "Is it time for co-creation?" alongside Yuen Kuan Moon, CEO of Singtel. CEOs from prominent global IT companies such as Nokia, HTC, and Telecom Italia also participated in the session.

KT CEO Koo Hyun-mo is delivering a keynote speech at Mobile World Congress (MWC) 2023 held in Barcelona, Spain, on the 28th (local time).
[Photo by Oh Su-yeon]

The Singtel Group is the number one fixed and mobile telecommunications operator in Singapore. Headquartered in Singapore, it provides fixed and mobile communication services such as mobile and high-speed internet in 21 countries worldwide, including Australia, India, Thailand, and the Philippines.

On this day, KT announced that it will jointly enter the global market with Singtel through AI-based digital logistics solutions. Applying KT's digital logistics solution to Singapore's current logistics system, which involves high costs, is expected to reduce expenses. In September, KT plans to commercially launch a transportation optimization solution in Singapore by combining KT's AI technology with Singtel's GIS and IT solutions, and subsequently expand coverage to the Asia-Pacific (APAC) market.

KT's global data specialist subsidiary Epsilon holds over 280 Points of Presence (PoPs) in 45 cities, mainly across Asia and Europe. Singtel also provides services in over 180 PoPs across 60 cities centered on Singapore, Southeast Asia, and Australia. The two companies plan to link their coverage and provide network services in the form of platform services, allowing customers to adjust traffic capacity as needed and use optimal global data services. Additionally, based on decades of data center operation know-how, they will pursue business cooperation to find new opportunities in Southeast Asian markets such as Vietnam and Malaysia. Furthermore, KT will participate in the advancement of Singtel's next-generation 5G platform, 'Paragon.'

In this keynote session, CEO Koo also introduced KT's Digico (digital platform company) strategy. During his term, he emphasized the transition from a telco (telecommunications company) to a Digico and accelerated the nurturing of non-telecom new businesses. He explained, "We expanded the B2B market from the traditional enterprise-consumer (B2C) telecommunications services to digital solutions based on AI, big data, and cloud, and in B2C, we expanded the market beyond simple connectivity services to media platforms. In 2022, the sales proportion of B2B and digital solution businesses exceeded 40% of the total."

As examples in the B2B sector, CEO Koo cited internet data centers (IDC), cloud, AI contact centers (AICC), and AI robots. Since 2020, KT has been applying AI to mobility data to develop and enhance an optimal logistics platform. Applying this to a major domestic retail company resulted in improvements such as a 22% reduction in travel distance, a 22% reduction in carbon emissions, and a 15% cost reduction.

In the B2C area, he emphasized innovation in media services. CEO Koo introduced, "We have completed the media value chain encompassing original content planning, production, and platform distribution. 'Extraordinary Attorney Woo,' which was invested in and planned by Studio Genie and aired on the ENA channel, achieved good results in the global market." He also explained the case of reorganizing IPTV by applying AI curation technology into an all-in-one content platform called 'Genie TV.'

Additionally, CEO Koo announced that KT has completed an 'AI full stack' to systematically and efficiently provide everything from AI semiconductors and cloud infrastructure to application services. He stated, "The super-large AI 'Mideum' possesses empathy capabilities that understand emotions and can be flexibly applied across various industries. It will also be applied to AI semiconductor development that KT is preparing with Rebellion." He added that KT's 'AI full stack' will be an important stepping stone for expanding business areas into the global market.

Meanwhile, KT announced four shortlisted candidates for the next CEO on the same day. The incumbent CEO Koo, who was a strong candidate, withdrew from the next CEO candidacy on the 23rd and gave up reappointment. Although he achieved a 45% increase in corporate value in three years through the Digico strategy, it is reported that he decided to withdraw due to external political pressures and prosecutorial investigations. His term will last until the shareholders' meeting scheduled for the end of March.

Regarding the shortlist announcement, CEO Koo remained reserved. After the keynote speech, he told reporters, "I cannot and should not be involved," and added, "It would not be appropriate to comment until the CEO is finally confirmed on March 7." About his future plans, he said, "I will try to find opportunities in Seoul."