South Korea’s KT Corp. announced a major restructuring on November 29, consolidating its business-to-business (B2B) operations into a new “enterprise” division. The newly formed enterprise division will merge KT’s AI, cloud, and platform units, providing a full range of services from product planning to deployment in these areas.
Additionally, KT has formed a dedicated media division to manage its various media operations, which include Genie Music, KT Skylife, KT Studio Genie, and Genie TV. As part of this restructuring, the company has made key executive appointments to strengthen its AI capabilities.
In early November, 2,800 employees accepted voluntary resignation offers, marking a significant step in the company’s strategic shift. Despite these changes, KT exceeded its earnings forecasts for the third quarter, with B2B revenue growing by 2.5 percent, driven by advancements in AI services.Â
CEO Kim Young-shub highlighted the need for efficient management during this transition, emphasizing KT’s goals to lead the B2B IT market through global collaborations while maintaining secure and network operations.
The company’s reorganization includes integrating its B2B and AI divisions and merging the Enterprise Division with the Strategy and New Business Division, which focuses on AI convergence projects.Â
This newly unified entity will handle AI, cloud, and platform services, providing end-to-end solutions from product planning to execution. Ahn Chang-Yong, who currently heads the Enterprise Division, will continue to lead the consolidated organization as it explores new business opportunities in AI and related sectors.
As part of its broader transformation, KT is also reorganizing its consulting division, creating a Strategy and Business Consulting Division. This expanded unit will play a key role in the company’s AICT strategy, focusing on AI-driven transformation projects and partnerships with global tech companies.Â
KT has already formed a five-year AI partnership with Microsoft to co-develop AI models and cloud services tailored to the needs of Korean businesses. The new consulting division will consist of three branches: the GTM Headquarters, TMO Headquarters, and SPA Headquarters, each tasked with specific functions related to AI projects, IT implementation, and strategic collaborations.
KT’s efforts to reshape its media and content businesses are also part of the restructuring. The Media Platform Business Unit, previously under the Customer Division, will be spun off into a new Media Division.
Kim Chae-hee, who previously led KT’s strategic planning, will lead the newly formed Media Division, further consolidating the company’s media and AI-focused business endeavors.
The newly formed Strategy and Business Consulting Division will focus on three key areas: IT strategy, exploring next-generation IT initiatives, and strengthening partnerships with both domestic and global tech firms. A major component of this restructuring is KT’s recent five-year partnership with Microsoft, valued at 2.4 trillion won ($1.7 billion), which aims to accelerate AI advancements.Â
KT aims to lead the B2B IT market through global partnerships and ensure the continued stable operation of its network. It strives to earn the trust and recognition of both customers and the wider public.
