Korea Telecom has joined forces with Microsoft in a groundbreaking, multibillion-dollar AI partnership set to revolutionize the digital landscape in South Korea. Over the next five years, this strategic collaboration aims to implement AI-powered solutions across various sectors, including finance, healthcare, and education, reaching over 650,000 businesses and 17 million consumers.
Central to this ambitious partnership is the development of AI models tailored for the Korean market. The two tech giants will create a localized version of OpenAI’s GPT-4o, leveraging KT’s vast data resources. These AI models will serve both consumer and enterprise needs, utilizing Microsoft’s Copilot Studio and Azure AI Studio for development.
Additionally, the collaboration entails launching sovereign cloud services for Korea’s public sector and regulated industries. KT’s “Secure Public Cloud,” built on Microsoft’s Cloud for Sovereignty, will empower businesses and government agencies to comply with stringent data security regulations while adopting advanced AI and cloud technology.
“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,” said KT CEO Young-Shub Kim. This partnership will enable KT to evolve rapidly into an AICT company with unmatched competitiveness in domestic and global markets.
Microsoft Chairman and CEO Satya Nadella echoed this sentiment, stating, “We will help accelerate the AI transformation of Korean organizations across the private and public sectors and build new AI-powered experiences for millions of consumers.”
To ensure businesses can seamlessly adopt AI, KT plans to launch a new company dedicated to delivering AI solutions powered by Microsoft. This entity will initially focus on the Korean market before expanding into Southeast Asia. Over the next three years, Microsoft will offer extensive support and consulting to establish and grow this new venture.
Further bolstering this collaboration, KT and Microsoft will set up a co-innovation center in South Korea. This center will drive AI research, assist businesses in developing new AI solutions, and support AI startups, promoting innovation across the industry.
