KT aims to reduce reliance on telecommunications

KT CEO Ku Hyeon-mo speaks during a press conference during MWC 2022 held in Barcelona on Wednesday. [KT]

KT CEO Ku Hyeon-mo pledged to develop more new businesses to reduce telecommunications exposure.

It aims to make investments and sign deals related to artificial intelligence, cloud computing and media. Ku made the comments on Wednesday during MWC 2022 in Barcelona.

He said the company will continue to focus on integrating high technology into digital services, especially for enterprise customers and government.

KT largely refers to these businesses as “Digico” units, as opposed to its previous network subscription-based model, and sees them as a growth engine.

“My top priority was to expand the range of areas in which KT could operate when I was appointed CEO two years ago,” Ku said at a press conference at the show.

“At the time, KT’s business was centered around network subscriptions for consumers, but as a result, revenues stabilized for 15 years,” he said.

Ku announced the transition two years ago, citing a growing number of companies interested in digitizing their internal systems.

Cloud computing was introduced as a primary offering to capture the new target consumer.
KT now claims a 41% market share in the local internet data center business, and that share increases to 70% by limiting the customer base to those in financial and public companies, according to Ku.

The company announced last month that it would spin off its cloud business and call it KT Cloud, in a bid to further grow the business.

In the same month, the company invested 130 billion won ($109 million) in MegazoneCloud, a local cloud services startup.

Another area of ​​focus is creating original content programming through KT Studio Genie and developing synergies with related KT services, such as Olleh TV, Seezn, Skylife, and Storywiz, a webtoon and web novel platform. .

“We plan to produce 15 series and release 9 series this year,” said Yoon Kyung-lim, head of group transformation division at KT. He said the company aims to get them on popular streaming services like Netflix.

BY PARK EUN-JEE [[email protected]]