[Exclusive] KT to Pursue KT Cloud Merger: "AI Data Centers as Growth Engine"

Integrated AI, Cloud, and Network Services at Once
Reintegration Considered After Ban on Duplicate Subsidiary Listings

Yoonyoung Park, CEO of KT, Yonhap News Agency

Yoonyoung Park, CEO of KT, is pursuing a plan to reintegrate KT Cloud, which was spun off four years ago. With the recent rapid advancement of artificial intelligence (AI) increasing the importance of the data center (DC) business, and the expansion of telecommunications companies into the realm of "AI infrastructure providers," KT is strategizing to offer AI, cloud, and network services in a unified manner. Furthermore, the government's recent prohibition of dual listings by subsidiaries of large corporations has effectively blocked KT Cloud's IPO, further boosting momentum for a potential merger with KT Cloud.

According to the IT industry on June 25, CEO Park has recently begun organizational restructuring as part of plans to bring KT Cloud back under KT. Bonggyun Kim, Vice President and Head of KT Enterprise, has taken on the additional role of CEO of KT Cloud, signaling the countdown to a merger. In a recent meeting with senior executives, CEO Park remarked that "split listings could become a significant issue when subsidiaries go public," and indicated that, instead of floating KT Cloud, he is considering an aggressive push into the enterprise customer market through reintegration.

Industry analysts view CEO Park’s decision to have the Head of KT Enterprise concurrently lead KT Cloud as a strategic move aimed at creating synergy between B2B sales operations, keeping a potential reintegration in mind. Having previously served as Head of KT’s Enterprise Business Division, CEO Park is well-versed in B2B sales and is expected to further accelerate corporate business initiatives through the merger of KT Cloud.

If KT Cloud is reintegrated, AI, cloud, DC, and network services could be delivered as an integrated package to B2B customers. The rapid development of AI is making the data center business even more critical, and KT is said to be laying the groundwork to transform itself into an AI infrastructure provider by combining telecommunications, cloud, and data center operations.

An industry official stated, "CEO Park is the leading expert on B2B business within KT," adding, "With last year's hacking incident forcing the company to bear significant costs and with core businesses underperforming, KT appears to be seeking a breakthrough by reintegrating KT Cloud."

Meanwhile, KT Cloud recorded sales of 997.5 billion won last year, up 27.4% from the previous year. Growth was driven by increased data center utilization and a rise in public AI cloud contracts.

This content was produced with the assistance of AI translation services.