Commercialization of "Korean-Style AI" and "KT SPC" Planned for Second Quarter
Expanding Role as an "AICT Core Service Provider"
Kim Young-seop, CEO of KT, stated, "This year, we will accelerate efforts to achieve tangible results with Microsoft." At a press conference held on the 4th (local time) at the Mobile World Congress (MWC) 2025 in Barcelona, Spain, he said, "KT will establish itself as an accelerator leading the acceleration of artificial intelligence transformation (AX) in South Korea this year." KT's goal for this year is for its AI business to account for 12% of the company's total revenue.
Last September, KT signed a five-year partnership with Microsoft to collaborate in the fields of AI, cloud, and information technology (IT). They announced plans to jointly develop a "Korean-style AI" using OpenAI's GPT-4o and Microsoft's small language model Phi.
In the second quarter of this year, KT plans to commercialize the Korean-style AI, which is an adaptation of GPT-4o tailored for Korea, along with the KT Secure Public Cloud (SPC). The Korean-style AI goes beyond simple Korean language processing to comprehensively and deeply understand Korean spirit, methods, and knowledge, incorporating Korea's society, history, and national perspectives, and complies with domestic systems and regulations. KT is developing this AI in collaboration with Microsoft.
Oh Seung-pil, Head of KT's Technology Innovation Division, said, "ChatGPT has shortcomings such as lacking knowledge about Korea or not fully understanding Korean sentiment, so we are developing a Korean-specific model." The completed Korean-style AI will be utilized in corporate AX solutions across public sectors, finance, manufacturing, and distribution. The KT Secure Public Cloud, to be launched around the same time, will also be prepared to comply with Korean laws and regulations.
CEO Kim also announced that an AI collaboration organization with Microsoft will be launched this month. He explained, "In the first quarter, we will establish an AX Delivery Center, a talent group composed of about 300 experts from both companies," adding, "It will be an organization that accumulates world-class artificial intelligence transformation (AX) capabilities and can swiftly execute customer-tailored AX business development and AX projects required by enterprises."
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