KT is speeding up a corporate reorganisation as it launches a new CEO system, and its artificial intelligence (AI) strategy has also entered a phase of redesign. With results from its existing businesses somewhat sluggish, analysis says a review of the AI business direction has become unavoidable.

KT carried out a reorganisation and executive reshuffle immediately after appointing Park Yun-young (박윤영) as CEO on March 31. KT's goal is to seek a leap into an "AX platform company" through personnel renewal and organisational efficiency. As key executives who oversaw AI strategy left one after another, KT has effectively entered a process of reshaping its AI leadership.

Key personnel including Chief Technology Officer (CTO) Oh Seung-pil (오승필) and Bae Soon-min (배순민), head of the AI Future Lab, left the company. In January, former Chief AI Officer (CAIO) Shin Dong-hoon (신동훈) moved to NC AI. Yoo Seo-bong (유서봉), head of the AX Business Headquarters, and Yoon Kyung-ah (윤경아), head of the Agentic AI Lab, are also reported to have left.

KT reorganised its research and development (R&D) organisation into the "AX Future Technology Institute" and created a new "AX Business Division". KT said it would strengthen its next-generation technology development organisation and focus on securing differentiated AI technology. It also said it created the AX Business Division to strengthen competitiveness and accelerate growth in the B2B AX field.

In the industry, analysis says the changes reflect the limits of KT's AI strategy so far. Under former CEO Kim Young-seob (김영섭), KT promoted a shift to an "AICT company" combining telecommunications, IT and AI, but a prevailing assessment says results fell short of expectations.

KT not being included in an elite team for a government-led independent AI foundation model project is cited as a symbolic case. While rivals were included in the elite team as their capabilities were recognised, KT failed to pass the preliminary round and suffered a blow to its pride. Its in-house large language model (LLM) "Mideum" also drew an assessment that it did not generate as much response as expected. Expectations for its partnership with Microsoft have also fallen compared with the early stage of cooperation.

Against this backdrop, the newly launched Park system is shifting the centre of gravity of its AI business strategy to business-to-business (B2B) AI transformation (AX). In a letter to employees sent shortly after taking office, Park emphasised that he would develop KT into a national core telecommunications operator responsible for the present and future of South Korea's network and into an AI platform company leading the AI era.

The same direction is reflected in appointments for the heads of the newly formed AX Future Technology Institute and AX Business Division. Choi Jung-kyu (최정규), head of agentic AI group at LG AI Research and an executive director, has been nominated to head the AX Future Technology Institute. He led development of LG AI Research's large-scale AI "Exaone". Last year, he received the Bronze Tower Order of Industrial Service Merit from the Ministry of Science and ICT in recognition of his contribution to expanding the AI ecosystem by developing Exaone and releasing it in open-source form. The industry's broad assessment is that the appointment aims to bring in a successful AI model development case.

Park Sang-won (박상원), hired to lead the AX Business Division, previously served as CEO of Samjong KPMG Consulting. KT said it would build an AX expert group to drive AX transformation for domestic public and corporate customers and expand its position in the market. As it announced the reorganisation, KT explained the background to Park's hiring by saying he has experience collaborating with global platform companies and leading many large AX projects.

In the industry, an assessment has emerged that KT is staking its survival on B2B. An industry official said, "Isn't this a reorganisation that shows choice and concentration?" The official added, "It must have learned a lot from being dropped from Dokpamo."

There are limits as well. The biggest task is the leadership vacuum in technology. An industry official said, "The key is how quickly it can rebuild its AI technology development system," adding, "Mideum also needs to secure a major reference that the market can recognise." The official also said KT needs to establish a new growth engine, especially after Shin, who led development of "MideumK 2.0", left the company.

The official said, "The success or failure of Park's AI business depends on how quickly it can translate into B2B results," adding, "This is a time when the roles of newly hired figures are important."