KT's Token Factory Offers 500+ AI Models, Cuts Token Usage by 25%

Responding to AI token demand... select and manage models on one platform
Prompt compression technology cuts token usage by up to 25%
Data sovereignty and security... expansion to B2C planned
Korea's first partnership with global routing leader OpenRouter

#. A global research and development (R&D) company with around 500 employees recently faced a challenge. It had introduced a single artificial intelligence (AI) model to improve work efficiency, but employees began subscribing individually to various AI models suited to their departments. The company now needed to determine which AI models were being used and to manage different token usage levels and costs at a glance.

Park Sangwon, head of KT's AX Business Division and executive vice president, explains the direction of KT's AI business at a press conference held at the West Building in Gwanghwamun, Jongno-gu, Seoul, on the 27th. Photo by Noh Gyeongjo

KT has unveiled Token Factory, an integrated platform that provides access to more than 500 AI models from Korea and abroad and can reduce AI token usage by up to 25%.

KT said at a press briefing held on October 27 at the West Building in Gwanghwamun, Jongno-gu, Seoul, that it will officially launch Token Factory on October 30. In partnership with global AI aggregation platform OpenRouter, KT will begin with business-to-business (B2B) services and plans to expand into the business-to-consumer (B2C) market in the future.

Token Factory is an AI inference platform that brings multiple AI models together on a single platform. It analyzes the intent and complexity of user queries in real time, automatically routing tasks that require advanced reasoning to premium models and simple tasks such as summarization and translation to cost-effective large language models (LLMs). The platform uses Auto Model Router, KT's proprietary AI model-routing technology.

KT said its automatic routing technology can reduce token usage for operating AI services by up to 25%. By combining the platform with its decades of experience in telecommunications billing and settlement systems, KT allows customers to pay only for the tokens they actually use, reducing their costs.

Lee Jin-hyung, head of KT's AX Business Division and managing director, said, "We have advanced our prompt-compression technology to remove unnecessary repetitions and reduce the number of input tokens, improving processing efficiency while preserving the meaning of queries and maintaining comparable response quality. To reduce concerns about losing data sovereignty due to reliance on overseas AI services, we provide AI inference services directly from KT data centers in Korea."

Lee Jinhyung, head of KT's AX Business Division, explains the AI platform "KT Token Factory" at a press briefing held at the West Building in Gwanghwamun, Jongno-gu, Seoul, on the 27th. Photo by Noh Gyeongjo

The partnership with global platform OpenRouter also gives Token Factory room to expand. KT plans to develop it into an "AI hub" connecting AI models and users in Korea and abroad.

OpenRouter connects hundreds of global AI models through a single application programming interface (API). KT plans to broaden its partnerships with domestic and international technology companies, including Uracle and CAST AI, which specialize in AI coding and agents, and Timely, a provider of AI workspaces for businesses. It will also strengthen cooperation with Upstage, Daum, and other members of the "AI for Everyone" consortium.

Park Sangwon, head of KT's AX Business Division and an executive vice president, said, "The AI market is rapidly shifting from a competition over who can build better models to one over who can help people use AI more easily and efficiently. Building on Token Factory, which extends the connectivity, billing, and security capabilities KT has developed in its telecommunications business to AI services, we will support customers' AX transformation and develop the platform into a key driver of growth for Korea's AI ecosystem."

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