AIDC Secures Additional 1GW & 90Tbps of Submarine Cable; Token Factory & Stablecoin Take Shape
KT presented 'AX Platform Company' as its new corporate vision, combining its capabilities as a national key telecommunications operator with AI transformation (AX). The plan is to transform into a platform business operator that encompasses AX demand from the public, industrial, and individual sectors, with two pillars: strengthening the essence of communication, such as information security and networks, and expanding AI infrastructure.
KT CEO Park Yoon-young held his first press conference since taking office at the Pullman Ambassador Seoul Eastpole Hotel in Gwangjin-gu, Seoul on the 7th and announced this strategy.
Based on the results of sequentially inspecting information security and network facilities, sales and customer centers, and submarine cable and research and development (R&D) sites during his first 100 days in office, CEO Park unveiled a roadmap that weaves 'solid essence' and 'certain growth' into a virtuous cycle.
KT is investing 4 trillion won in the information security and IT sectors, which is double the amount from the previous three years.
We will establish a continuous prevention and response system based on Zero Trust principles and reorganize the governance system by integrating security operations dispersed across IT and networks.
It is also carrying out an organizational restructuring that separates the Chief Information Security Officer (CISO) and the Chief Privacy Officer (CPO) and doubles the information security workforce.
The plan is to invest 8 trillion won in the network sector to secure leadership in future technologies such as 6th generation mobile communication (6G), satellite, and data center interconnection (DCI).
In the satellite sector, it announced that it would maintain communication sovereignty in disaster and security situations by expanding the operational capability of five geostationary (GEO) satellites to low Earth orbit (LEO) satellites.
A separate amount of 6 trillion won was allocated for the construction of AX infrastructure.
They explained that they will invest approximately 5 trillion won to secure an additional 1GW of demand-based AIDC and expand AI edge infrastructure near industrial sites to provide an ultra-low latency inference environment nationwide.
The plan is to invest 1 trillion won in submarine cables to increase supply capacity by more than 90 Tbps and to attract investment from global big tech companies for domestic AI data centers (AIDC) to become an 'Asia AX connectivity hub'.
As new growth businesses, they put forward a 'Token Factory' and a stablecoin-based digital financial platform.
Token Factory is a business model that supports the creation, brokerage, and billing of tokens by combining billing and settlement capabilities accumulated from telecommunications network operations with a 1GW AIDC.
KT cited Goldman Sachs Research, which forecasts that global token consumption will increase 24-fold over the next four years.
In the stablecoin business, the plan is to build the entire value chain from issuance to the real-world usage ecosystem by combining K-Bank's 16 million customer base, BC Card's 3.5 million merchant payment and settlement capabilities, and KT's network and security infrastructure.
In terms of partnerships, the company announced that it will maintain its existing cooperation with Microsoft while diversifying its scope of collaboration to include global AI companies such as Google and Palantir, as well as domestic AI companies such as Upstage, Rebellion, and Saltlux.
CEO Park Yoon-young said, “We will further solidify the essence of the telecommunications business and achieve solid growth on that foundation to drive Korea to leap forward as an AX powerhouse.”