September 30, 2024 – In a landmark agreement, KT Corporation and Microsoft have announced a multibillion-dollar, five-year partnership aimed at transforming the landscape of artificial intelligence (AI) and cloud technology in South Korea. This collaboration promises to enhance digital capabilities for over 650,000 businesses and 17 million consumers throughout the nation.
Microsoft and KT Corporation unveiled a five-year, multibillion-dollar partnership over the weekend that will drive AI Transformation for more than 650K businesses and 17M consumers across Korea: https://t.co/j26r4hMwyo
The agreement, which solidifies ongoing discussions that began in June, marks a significant investment in AI and Information and Communications Technology (ICT). It will see KT provide approximately $450 million in network and data centre infrastructure to Microsoft over the next 15 years. Both companies aim to leverage their strengths to drive innovation across various sectors, including public and regulated industries.
Development of Custom AI Solutions
One of the key elements of this partnership involves the creation of customised AI models tailored to the unique needs of the Korean market. KT and Microsoft will collaborate to engineer a version of OpenAI’s GPT-4o and explore adaptations of Microsoft’s Phi language models, utilising KT’s rich datasets on Korean culture and industries. These models will facilitate the development of AI-driven customer service applications, such as chatbots, and provide industry-specific solutions for businesses.
Shinhan Bank, a leading financial institution in Korea, expressed enthusiasm about the partnership. “We are delighted with the partnership between KT and Microsoft, which presents a valuable opportunity to enhance our digital competitiveness,” a spokesperson stated. “By utilizing the KT GPT model, specialised in Korean language and financial services, we aim to deliver innovative AI-driven services to the domestic financial consumers.”
Launching Korean Sovereign Cloud Solutions
In conjunction with custom AI solutions, the partnership will also focus on launching Secure Public Cloud services. This sovereign cloud solution, built on Microsoft Cloud for Sovereignty, will cater specifically to Korean-regulated industries. The initiative aims to ensure compliance with local privacy regulations while providing access to cutting-edge cloud and AI features on Azure.
Establishing an AI Transformation Service Company
KT plans to establish a new AX-specialised service company to accelerate AI transformation for Korean businesses. This entity will deliver advanced Microsoft Cloud and AI solutions, supported by Microsoft’s professional consulting resources over the next three years. The initiative aims to broaden its impact, extending eventually to other markets, including the ASEAN region.
Advancing AI Research and Development
The partnership will also establish a co-innovation centre to foster AI development and prototyping using Microsoft technologies. KT is committed to nurturing new AI startups and creating an ecosystem to support nationwide AI transformation. As part of this effort, Microsoft will provide technical expertise and Azure credits to bolster the growth of the AI sector in South Korea.
Enhancing Workforce Skills
A significant aspect of the collaboration involves upskilling KT’s workforce. Microsoft will aid in equipping over 19,000 KT employees with cloud and AI skills, while supporting more than 5,800 AX specialists. This training is intended to empower employees to drive the successful transformation of KT into an AICT company.
KT President and CEO Young-Shub Kim remarked, “The partnership with Microsoft presents a pivotal opportunity, not only for technological collaboration but also for expanding Korea’s AI foundation and driving transformative innovation across industries and daily life.” Similarly, Microsoft Chairman and CEO Satya Nadella noted, “Our strategic partnership brings together KT’s industry expertise with the power of our entire tech stack, from Azure AI to Microsoft 365 Copilot.”
Conclusion
The KT and Microsoft partnership signifies a robust step forward in Korea’s AI and cloud landscape, promising to deliver tailored solutions, foster innovation, and enhance digital capabilities. As these two industry leaders embark on this transformative journey, the impact on the public and private sectors, as well as on everyday consumers, is poised to be significant.
