Editor's Note: This article is the 10th installment in our series on Asia's top 100 companies, exploring the strategies, challenges, and innovations driving the region's most influential corporations.
SEOUL, March 13 (AJP) - South Korean telecommunications company KT Corp. has undergone a remarkable transformation from a state-owned telephone company into a diversified digital platform player.
As it expands across Asia and beyond, KT is navigating an increasingly competitive global technology landscape while redefining its role in the digital economy.
Established in December 1981 as Korea Electric Communication Corp., KT was tasked with modernizing the country's outdated communication systems amid severe telephone shortages.
In its early years, the company introduced pioneering services such as wireless paging in 1982 and international direct dialing in 1983. By 1984, it had developed electronic switching systems, laying the groundwork for the nation's modern telecommunications infrastructure.
The company’s trajectory shifted significantly in 2002 when it fully privatized, allowing greater operational flexibility and market-driven strategies.
The transition ushered in a series of technological advancements, including the launch of VDSL service in 2002, gigabit internet in 2014, and 10-gigabit internet in 2018. KT also played a pivotal role in popularizing IPTV services, transforming media consumption in South Korea.
Shift to digital platforms
Over the past decade, KT has repositioned itself as a "Digico," a digital platform company extending beyond traditional telecommunications. This shift has seen the firm venture into artificial intelligence, cloud computing, big data analytics, and industry-specific digital transformation solutions.
Through its B2B brand, "KT Enterprise," the company provides comprehensive digital services to clients across healthcare, finance, and media sectors.
On the global front, KT has pursued strategic infrastructure projects to bolster its international footprint. A flagship initiative, the "Asia Link for Advanced Performance of High-speed Access" (ALPHA) project, aims to enhance connectivity in the Asia-Pacific region through a new undersea fiber-optic cable network linking South Korea with Japan, the Philippines, Indonesia, Malaysia, Singapore, and Vietnam.
The company’s satellite arm, KT SAT, recently launched Koreasat-6A in 2024. The geostationary satellite, set to commence operations in 2025, will provide communication services for government, military, and broadcasting sectors, reinforcing KT's position in multi-orbit satellite services.
KT has also demonstrated its technological prowess through global projects such as the "Global GiGA Island" initiative in Bangladesh, which increased internet speeds on Moheshkhali Island from 0.2 Mbps to 100 Mbps, benefiting 320,000 residents.
Additionally, KT has provided free public WiFi in national parks in Phnom Penh, Cambodia, and plans to introduce AI-powered K-Box solutions in local elementary schools.
In the Middle East, KT has expanded its presence through a memorandum of understanding with Hyundai E&C and STC Group to develop smart city infrastructure under Saudi Vision 2030. The partnership includes building data centers and IT systems to support autonomous driving and digital transformation initiatives in Saudi Arabia.
As artificial intelligence reshapes industries, KT is making strategic investments. The company is collaborating with Databricks to drive AI advancements in Korea, particularly in regulated industries. KT also plans to launch a "Korean AI" model in the second quarter of 2025, designed to capture the nuances of Korean culture, language, and historical perspectives.
CEO Kim Young-shub's strategy includes reducing the company's reliance on telecommunications revenue (currently 95 percent) and expanding AI-driven business to 12 percent by 2025. This includes the creation of an AI Transformation Delivery Expert Center staffed with 300 specialists and a collaboration with Microsoft to launch a Korean AI model by mid-2025.
Domestically, KT faces stiff competition, holding a 27.3 percent market share against SK Telecom’s 33.6 percent and LG Uplus’s 22.7 percent. While KT has strong coverage in rural areas, improving 5G performance remains a priority to challenge SK Telecom's dominance.
As KT navigates evolving industry dynamics, its commitment to technological advancement and strategic partnerships positions it as a key player in the global digital economy.
By leveraging its expertise in 5G, AI, and digital transformation, KT is shaping its future as a global digital platform leader.
reporter
Candice Kim
candicekim1121@ajupress.com
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