KT Corp. Chief Executive Officer Kim Young-shub said the company is set to launch a new artificial intelligence collaboration unit with Microsoft this month as part of its strategic push into AI.

Speaking at a press conference in Barcelona on Tuesday, Kim unveiled plans to establish an AI Transformation Delivery Center, solidifying KT's commitment to AI innovation alongside Microsoft.

“The AX Delivery Center will be a talent hub comprising over 300 experts from both companies,” the CEO said. “It will focus on accumulating world-class AX capabilities, developing customer-centric AI solutions and swiftly executing AX projects tailored to corporate needs.”

In addition to forming the specialized center, KT has restructured its internal organizations to bolster AI expertise among employees.

Measures include introducing an AX-prioritized job classification system, creating industry-specific AX communities and launching an AI education center covering key sectors such as education, healthcare, defense, energy and shipbuilding.

KT's deepening partnership with Microsoft follows a landmark agreement signed in October, which outlined a five-year, 2.4 trillion won ($1.6 billion) collaboration in AI and cloud technology.

The CEO said, “We will accelerate our efforts to achieve tangible results with Microsoft this year.”

Through the dedicated AI unit, the two companies aim to expand into the enterprise AI transformation solutions market while developing Korea-specific sovereign AI models and cloud platforms.

Kim highlighted KT's ambition to commercialize its “Korean AI” model and security public cloud by the second quarter of this year.

“Korean AI is designed not only to process the Korean language but to deeply understand Korean culture, values and history while ensuring compliance with local regulations and security frameworks,” he said.

The telecom carrier plans to integrate its large language model, Mi:dm, with Microsoft's AI solutions and various open-source models to create market-optimized AX solutions for Korea.

According to KT, the SPC will offer high-security cloud services in full compliance with domestic laws and regulations.

KT is also preparing to introduce a business-to-consumer AI service in the second quarter, competing with offerings such as SK Telecom's A. and LG Uplus' ixi O.

As part of its broader AI strategy, KT will begin operating an AX strategic fund this month.

The fund, jointly financed by KT and Microsoft, aims to support AI transformation among startups and small to mid-sized enterprises while fostering an AI-driven ecosystem led by KT.

Additionally, the fund will facilitate the stable procurement of GPUs. Under the agreement, KT will invest 13 billion won, while Microsoft will contribute equivalent GPU resources.

By Jie Ye-eun (yeeun@heraldcorp.com)