South Korean telecom giant KT will invest 18 trillion won over the next five years to reposition itself as an AI transformation platform company, new CEO Park Yoon-young announced at a press briefing on the 6th at the Pullman Ambassador Eastpole in Seoul. The investment spans AI data centers, undersea cables, network upgrades, and a push into tokenized digital finance - marking one of the most capital-intensive AI pivots by an Asian telecommunications operator this year.
Park, who took office in March, used his first press conference to frame KT's future around what he called AX - artificial intelligence transformation - for public sector, industry, and individual customers. "As a national key telecommunications operator, KT will be responsible for connection infrastructure while supporting the AX of the public, industry, and individuals," Park said.
The 18 trillion won breakdown
The investment splits across three areas. Information security and IT innovation will receive 4 trillion won over three years. Network improvements - including perceived quality upgrades and early work on 6G, satellites, and data center interconnections - account for 8 trillion won. The remaining 6 trillion won, spread over five years, targets AI infrastructure directly. Of that, 5 trillion won funds a new AI data center with 1GW of capacity, while 1 trillion won goes toward undersea cables, a bet that global cable traffic linked to AI data centers will surge.
For leaders tracking how telecom operators allocate capital around AI, this breakdown signals a dual focus: shoring up core network competitiveness while building compute infrastructure that generates new revenue streams. The undersea cable investment also hints at ambitions beyond South Korea's borders.
Token factories and stablecoins
Beyond infrastructure, KT plans to build a token factory - a platform handling token creation, brokerage, and billing - and enter the digital financial platform market using stablecoins, cryptocurrencies pegged to fiat currencies to reduce volatility. The combination places KT in direct competition with fintech and blockchain infrastructure plays, a departure from traditional telecom revenue models.
The stablecoin push arrives as regulators across Asia tighten rules around digital assets. KT's existing customer base and network scale could offer distribution advantages, though the company disclosed no timeline or regulatory approvals.
Why this matters for executives and strategy
KT's announcement is a case study in how incumbent infrastructure companies are restructuring around AI - not through small experiments but through multi-year capital commitments that reshape the balance sheet. For AI for Executives & Strategy practitioners, the breakdown matters: 8 trillion won still flows to the legacy network business, while 6 trillion won targets AI compute and connectivity assets that generate entirely new revenue models. The token factory bet adds a layer of platform economics on top of pure infrastructure.
The leadership angle is equally instructive. A newly installed CEO used his first press briefing to anchor the company's identity to AI infrastructure, not incremental telecom growth. As Park put it: "Even in the AX era, where the scope of connections expands centering on AI, KT's essence of being responsible for Korea's connections remains unchanged. We will solidify the essence of the telecommunications business and achieve definite growth on that foundation to drive Korea's leap as an AX powerhouse." The AI Learning Path for CEOs offers frameworks for executives navigating similar transformation mandates - where the core business must fund the bet on what comes next without losing investor confidence in either.
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