KT: “AX revenue to at least double by 2028” ... AI business monetization accelerates

[Financial News] KT is accelerating efforts to monetize its artificial intelligence transformation (AX) business as it builds it into a new growth engine. The company plans to expand its AI data center (AIDC) infrastructure while broadening its business from customized AI development for companies to operations and upgrades, securing a stable revenue base.
At a conference call on its third-quarter results held on the 10th, KT set a goal of increasing AX revenue to at least double its 2025 level by 2028. Its cumulative AX revenue through Q3 this year rose 11.9% year over year.
KT highlighted “KT Token Factory” and “Agentic On” as core platforms for its enterprise AI business. Launched late last month, Token Factory offers at least 500 AI models and helps companies optimize their token usage and costs. In particular, it combines two approaches: running AI models directly on its own graphics processing unit (GPU) infrastructure and connecting to AI models from external providers such as OpenRouter. KT plans to expand its GPU infrastructure and develop the business to cover AI inference and model distribution.
Park Sang-won, head of KT's AX Business Division, said, “We plan to grow our in-house GPU inference and external model brokerage businesses in a balanced way,” adding, “We will also expand revenue synergies with our existing businesses by leveraging the precise billing and invoicing capabilities that telecommunications companies possess.”
Agentic On, an enterprise AI platform, is designed to let users combine the functions they need like building blocks. KT said it would use the platform to shorten the time needed to build customized AX solutions for individual companies and extend its reach across industries such as finance, manufacturing and the public sector. It is also expanding its “Managed AX” business, which covers operations and upgrades after AI systems are built.
AI infrastructure business is also showing results. KT said its B2B contract wins through Q3 were up at least 20% year over year. The increase was driven by large-scale AX projects secured in finance, defense and the public sector, including AIDC projects.
KT's affiliate kt cloud also reported a 7.7% year-over-year increase in third-quarter revenue, helped by higher data center utilization and growth in its public cloud business.
KT is also expanding data center capacity to meet demand for AI infrastructure. It set a goal of growing its AIDC capacity to at least 1 GW (gigawatt) by 2031. In the Seoul metropolitan area, it will focus development on sites with power and permits secured; outside the region, it plans to flesh out projects after confirming actual tenant demand.
AI adoption is also spreading across KT's internal operations. The company is applying AI to customer consultations, scheduling visits for fixed-line services and network operations to improve efficiency. Automating fixed-line service visit scheduling with AI reportedly increased the number of visits handled per employee per day from 6.5–7 to at least 8.
KT sees next year as a time to turn the foundations for growth in its AX business into actual revenue and profits. It said it would expand enterprise AI deployments using standardized models tailored to different industries while securing sustained revenue streams through Token Factory and Managed AX.
[email protected] Yoon Hong-jip Reporter