A strong rebranding trend that puts "artificial intelligence (AI)" front and center is sweeping South Korea's IT and telecommunications industry. Companies are redefining their identities by directly reflecting AI in corporate names or adding AI to service names. Some also warn that focusing only on rebranding without real technical capabilities could instead erode market trust.

◆ IT companies change names... industry groups join in

The most noticeable recent change in the IT and telecom industry is corporate name changes. After ChatGPT emerged in late 2022, a generative AI boom that began in 2023 has continued, prompting a series of cases in which companies are even changing their names.

In May last year, SK C&C changed its name to "SK AX". The company set a goal of becoming a global top-10 AX company within 10 years. Edtech company Riiid also changed its name in September last year to "SocrAI" and said it would open a new educational paradigm for the AI era. Security company Fasoo changed its name last month to "Fasoo AI" and signaled an evolution from a data security company into one that supports AX security.

Industry groups are doing the same. The Korea Software Industry Association changed its name in June last year to the Korea Artificial Intelligence and Software Industry Association (KOSA). On April 17, the Korea Software Testing Association changed its name to the Korea Artificial Intelligence and Software Testing Association and stressed it would play an expanded role that also covers the AI industry.

The industry says branding that adds AI has effectively become a standard. The trend is also quickly spreading to products and services. TmaxSoft is trying to shed its image as a middleware company by putting forward "Continuum AI" and seeking to transform into an AI platform company. Hancom is also accelerating its shift to an AI-centered business, including by signaling a first-half launch of an "AI Orchestrator" platform that connects and coordinates various AI agents.

The telecom industry is also showing a clear trend of declaring a transformation into AI companies beyond traditional "network" technology. KT, since CEO Park Yoon-young (박윤영) took office, has promoted an "AX platform company" and strengthened its business-to-business focused AI transformation strategy. SK Telecom is emphasizing building a value chain spanning infrastructure, models and services through an "AI full-stack" strategy. LG Uplus has also identified ambient AI and physical AI as future growth engines.

◆ 'Name value' put to the test amid overheated AI competition

The rebranding competition that puts AI up front is being interpreted as a survival strategy beyond simple marketing. That is because value chains across industries are being reshaped after the spread of generative AI, and not being classified as an AI company could be a disadvantage in market assessments.

Kim Dae-jong (김대종), a professor in the School of Business Administration at Sejong University, said, "In a reality where AI leads the economy and industry, it is a natural step for many companies to brand themselves around AI." He added, "In particular, for listed companies, it appears that some calculation is involved in integrating AI to induce higher evaluations in the stock market."

Still, concerns over the rebranding fever are also growing in and outside the industry. Critics point to cases where companies put AI front and center but their actual technological competitiveness does not back it up. The market sees the next 1 to 2 years as a period to separate the wheat from the chaff. It is also being analyzed that as time passes, the gap could quickly widen between companies that prove results and those that do not.

Kim said, "If you put forward only AI without properly building technological capabilities, it could instead become an occasion to lose trust." He stressed, "The most important thing is to build substance that lives up to the name."