During a regular shareholders’ meeting, KT Corporation announced it would increase its efforts to shift from a telco (telecommunications company) into a digico (digital platform company). Although it experienced management activity restrictions due to the pandemic, KT continued to prepare for its communication-based digico transformation. KT’s CEO Koo Hyun-Mo, who headed the meeting at the KT R&D Center, shared that KT has finalized preparation processes.
“By 2025, we will increase digital platform sales by 50% to drive the company’s growth and return more profits to our shareholders,” said Koo. As CEO Koo stated, the company’s digitalization is highly advantageous and presents more opportunities, especially in the current non-face-to-face era. Following the recent growth and demand for digital transformations, KT aspires to grow beyond and enhance its stagnant telecom platform. According to KT, it would optimize its communication technologies and capabilities to grow into a comprehensive media content provider. The largest South Korean telecommunications firm also plans to improve its strengths, including AI, cloud, media content, biotech, and more.
Moreover, to promote corporate management transparency, KT appointed two new executive directors and one outside director. KT selected Park Jong-Wook and Kang Kook-Hyun for the executive director positions due to their expertise and direction regarding digico growth. KT also reappointed Lee Kang-Cheol as an outside director for his ESG command and capabilities.
Venturing Into Digital Logistics and Bio-Healthcare
In addition to its existing business agendas, KT would include two new target projects to speed up its post-telecom restructuring. To this end, KT stated it would launch a cargo transportation and freight forwarding business to advance its logistics operations. KT would also establish a medical device manufacturing and sales business to promote its cloud-based technologies and big data businesses.
Increasing Original Content Production
Aside from accelerating its transformation towards becoming a digico, KT also plans to improve its business portfolio and media content. Koo also noted that recently, South Korean media businesses and original content continue to increase, leading to heightened market competition.
KT established the KT Studio Genie to reinforce its competitive advantage, which secures IP sources, content production and distribution, and value chain. Moreover, KT announced it would increase its original content projects by releasing over 100 shows and acquiring over 1,000 IPs.
