KT CEO Park Yoon-young Announces 18 Trillion Won Investment in Telecom and AI Over Next Three Years

By Na Seon Hye Posted : July 6, 2026, 14:08 Updated : July 6, 2026, 14:08
KT CEO Park Yoon-young presents the company's 'AI Transformation (AX) Platform Company' strategy during a press conference on July 6 in Seoul. [Photo=Yonhap News]

"KT aims to be an AI Transformation (AX) Platform Company that helps customers grow and enhance their competitiveness in the AI era," said Park Yoon-young, CEO of KT, during a press conference on July 6 at the Pullman Ambassador Seoul East. Park emphasized that strengthening the core of telecommunications is essential for KT to evolve into an AX Platform Company, stating, "Just as KT has connected people and data, we will now connect people with AI and AI with AI."
To achieve this, KT plans to invest approximately 18 trillion won over the next three years to enhance cybersecurity and network competitiveness while expanding its AI infrastructure. The company also aims to develop new businesses in the AI era, including a Token Factory and stablecoin initiatives.
KT has identified the Token Factory and stablecoin business as future growth drivers. Park noted, "As the AI industry grows explosively, a new economic unit called tokens has emerged. With the shift from flat-rate to usage-based AI services, it is crucial for companies to determine the most efficient models and how to use tokens rationally."
He highlighted the 'Token Gateway' as a core component of the Token Factory. "No one does billing better than telecom companies," Park stated, explaining that KT's extensive billing capabilities, combined with the Token Gateway and AI Data Center (AIDC), could create new business models.  
KT CEO Park Yoon-young discusses the company's 'AI Transformation (AX) Platform Company' strategy during a press conference on July 6 in Seoul. [Photo=Yonhap News]

The company is also preparing to enter the stablecoin market. Park mentioned that KT Group possesses the necessary capabilities for issuance, settlement, and customer ecosystem management, stating, "We are currently conducting proof of concept (PoC) internally and will prepare the business in line with legislative developments."
KT will also make significant investments to strengthen its core telecommunications business. The company plans to invest about 12 trillion won in cybersecurity, information technology (IT), and network sectors over the next three years. Of this amount, approximately 4 trillion won will be allocated to cybersecurity and IT to establish a zero-trust security framework and integrate security operations governance. KT's Strategy Office head, Heo Tae-jun, noted, "Investments will begin in the second half of this year, with about half of the total investment expected to be executed next year."
The company will separate the roles of Chief Information Security Officer (CISO) and Chief Privacy Officer (CPO) and double its cybersecurity workforce. Lee Sun-joo, head of KT's Talent Management, announced plans to hire around 140 employees in September and to establish a collaborative program with Seoul National University to cultivate security personnel in the long term.
In the network sector, KT plans to invest approximately 8 trillion won to secure future network technologies, including 6G, satellites, and data center interconnections (DCI), to enhance customer experience.
In the satellite business, KT SAT will take the lead. Park stated, "A recent announcement regarding the national low-orbit satellite project indicates that KT SAT must play a significant role in control and operation," emphasizing that KT SAT is the best company in South Korea for satellite management and operations.  
KT CEO Park Yoon-young discusses the company's 'AI Transformation (AX) Platform Company' strategy during a press conference on July 6 in Seoul. [Photo=Yonhap News]

KT will also expand its investment in AI infrastructure, planning to invest about 5 trillion won to establish a total of 1 gigawatt (GW) of AIDC. Park stated, "Our investments will be driven by actual demand rather than scale competition," adding that KT's strength lies in its operational experience, which enhances efficiency.
KT plans to differentiate its AIDC expansion between metropolitan and non-metropolitan areas. Kim Bong-kyun, head of KT's Enterprise Division, explained, "In the metropolitan area, we will aggressively expand once development issues such as power supply are resolved, while in non-metropolitan areas, we will first secure tenant demand before investing." He added, "For AIDC to operate effectively, connectivity is key," emphasizing that the connection between international traffic and data centers, as well as wired and wireless networks, is KT's greatest differentiator.
Regarding the potential merger with KT Cloud, Park stated that it is currently under review.
To address the growing global AI traffic, KT plans to invest about 1 trillion won in submarine cables, aiming to increase its international submarine cable capacity from approximately 38 terabits per second (Tbps) to over 128 Tbps. Park noted, "As AIDC expands, we expect international data traffic to increase significantly," and mentioned that due to the high investment costs, KT will seek to collaborate with global tech giants to expand capacity.
In its business-to-business (B2B) sector, KT will expand AI services focusing on finance, public, manufacturing, and healthcare sectors. The company plans to provide agentic AI to the financial sector and develop sovereign AI-based services for the public sector. In manufacturing and healthcare, KT aims to participate in projects such as the Physical AI demonstration project led by the Ministry of Science and ICT.
In the business-to-consumer (B2C) sector, KT will introduce hyper-personalized services that allow customers to design their own plans and benefits. The company plans to analyze usage patterns to recommend tailored services and digitize the entire process from subscription to customer support.
KT will continue its collaboration with Microsoft, which was initiated under former CEO Kim Young-seob. Park stated, "We are collaborating well in terms of customer understanding and optimization by exchanging KT Cloud resources centered around Azure." The company will also continue to pursue partnerships with global AI firms, including Palantir, and expand collaborations with domestic AI companies such as Upstage, Rebellion, and Saltlux.
Additionally, Park mentioned that the media business restructuring related to the merger of Tving and Wavve is currently under review.



* This article has been translated by AI.

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