KT to spend record $21 bn over next 5 yrs in digico sector, hire 28,000 new employees

South Korean telecom giant KT Corp. will spend record 27 trillion won ($21.4 billion) to advance telecommunications network and digital capacity and groom startups over the next five years, matching $20 billion-something investment schemes Korean groups of similar rank have been pouring out since last month.

It will hire 28,000 new employees and separately enhance contents worth 6 trillion won over the next five years.

Under plans announced Thursday, KT ranked 12 in terms of assets will invest 27 trillion won until 2026, higher than 23 trillion won investment plan pledged in 2018 for 2019-2023.

KT will spend 12 trillion won digico, or digital platform sector, which includes telco business such as network infrastructure and media and content business such as artificial intelligence, robots, and cloud.

In telco, KT plans to establish more Disaster Recovery Centers across the country, which currently is clustered in the capita area, to boost network reliability. The center is a back-up center that operates data recovery and computerized service in the advent of disasters.

KT also plans to enhance network stability by expanding indirect route of core services such as high-speed internet, internet protocol TV, and wireless service. The company is expected to preemptively research and develop key technologies related to next-generation infrastructure and sixth-generation (6G) network and also invest in network infrastructure that is the root to digital transformation and high-connected era.

In digico sector, KT will spent 1.5 trillion won in core new businesses such as AI, big data, and robots. It will nurture hyperscale AI projects such as multi cloud-based customer center Contact Center as a Service and image AI where AI analyzes images. The company also plans to expand its robot platform business.

KT has recently spun off its cloud business and set up KT Cloud as a separate entity. It will spend 1.7 trillion won in cloud and internet data center infrastructure.

The company plans to focus on AI infrastructure led by hyperscale AI computing (HAC), a graphics processing unit (GPU) infrastructure providing service, and expand into other AI platform and services. KT plans to boost national competitiveness by advancing specialized AI chips and establishing hyperscale GPU Farm.

KT will also spend 2.6 trillion won to boost media competitiveness and nurture K-contents. The company is considering investment to enhance its media value chain such as planning, production, distribution, and service, along with investment to secure content production and intellectual property.

KT will invest 3 trillion won in ventures and startups to secure digico capacity and share future growth opportunities. KT is currently in partnership with The Pinkfong Company, the creator of Baby Shark, cloud management company Megazone Cloud, and travel platform Yanolja. The company said that it will provide support so that ventures and startups stably settle foot in business and expand partnership.

KT also plans to focus capacity on finance, digital healthcare, and mobility sectors.

KT plans to directly hire 28,000 new employees over the next five years to contribute to labor shortage in IT sector and youth unemployment. The company is hoping to lead regional balance development by hiring regional talents and hire talented professionals including software developers regardless of their background.

In addition to the 27 trillion won investment, KT plans to set aside another 6 trillion won for media content purchases to provide customers with quality content and contribute to medial ecosystem development.

“Aggressive future investment and digital talent nurturing, as well as job creation will help boost national industry competitiveness,” said Ku Hyeon-mo, chief executive of KT. “The company will set ground as one that leads digital transformation and develops ecosystem by engaging in new projects in diverse industry sectors.”

Shares of KT were trading 1.74 percent lower at 36,800 won on Thursday morning.

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