SK Telecom, KT, and LG Uplus, South Korea’s primary telecom providers, are transforming the telecommunications industry by concentrating on AI-driven B2B solutions as a key area for expansion. The companies restructured their organizations and refined their strategies in 2024 and are now ready to achieve tangible results in the AI-powered market in the upcoming years.
SK Telecom-SKT
SK Telecom, SKT, is prioritizing AI infrastructure and transformative solutions through the establishment of AI DC (Data Center) and AIX (AI Transformation) divisions, aiming to bolster its domestic and international presence.
SKT completed its Seoul Gasan AI Data Center in 2024, which underpins its subscription-based GPUaaS (GPU-as-a-Service), powered by NVIDIA, to support advanced AI operations across various industries.
Furthermore, SKT is enhancing its AI assistant, “Aster,” with plans to launch it in the North American market by 2025. CEO Yoo Young-sang envisions an “AI Superhighway,” integrating AI data centers, edge computing, and personal AI assistants to generate substantial revenue growth.
Korea Telecom – KT
KT is focusing on strategic partnerships and large-scale investments to create localized AI solutions.
KT has strengthened its collaboration with Microsoft to develop Korean-specific AI and cloud services and plans to invest 2.4 trillion won over the next five years to improve its AI and cloud platforms. KT’s CEO Kim Young-seop has highlighted the significance of generating substantial B2B outcomes through advanced technology partnerships with global leaders like Microsoft.
KT intends to launch a Korean-centric Large Language Model, LLM, based on GPT-4o, adapted to the requirements of the local market, by mid-2025.
LG Uplus
LG Uplus has taken a slightly different approach by focusing on creating a comprehensive AI ecosystem under the leadership of CEO Hong Bum-sik. The company has identified AI transformation (AX) as its core strategy and established the AI Agent Promotion Group to drive innovation.
LG Uplus is also partnering with startups to expand its AI portfolio and plans to generate 2 trillion won ($1.5 billion) in annual revenue from AI-driven B2B services by 2028.
CEO Hong has stressed the importance of building a robust AI ecosystem that creates barriers to entry for competitors, ensuring long-term success in the market.
The South Korean telecom sector is on the brink of a major transformation as these companies push forward with their ambitious strategies. South Korea’s telecommunication giants are making significant strides in AI advancements.
SK Telecom is spearheading global expansion with its cutting-edge AI solutions, KT is focusing on developing localized AI applications tailored for the Korean market, and LG Uplus is fostering a sustainable AI ecosystem to support future growth.
These combined efforts solidify South Korea’s position as a global leader in AI-driven telecommunications, setting new standards for innovation and collaboration. The year 2025 is poised to be a pivotal year for these initiatives, with the potential to reshape the telecommunications landscape and other industries.
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