KT will expand its AI transformation (AX) business in the distribution sector, building on the cloud migration of NongHyup Agri Holdings’ agricultural online mall, NH Sing Sing Mall.

KT said on Aug. 18 it signed a memorandum of understanding with NongHyup Agri Holdings and Microsoft Korea at KT’s Gwanghwamun Building West office in Jongno district, Seoul, to drive AI and cloud-based distribution AX innovation.

The cooperation follows KT’s public cloud migration project for NH Sing Sing Mall. KT migrated the mall’s on-premises systems and infrastructure, network and security environment to a Microsoft Azure-based setup. The revamped NH Sing Sing Mall began service in July.

The three companies will expand cooperation beyond cloud migration to customer experience innovation using AI. They will jointly pursue new AX projects in distribution and e-commerce, AI-based customer service innovation, advancement of data-driven marketing and embedding AI capabilities centered on frontline operations.

They will also build a personalised recommendation service and marketing system for NongHyup Agri Holdings’ key businesses, including distribution and food, using customer, product and order data. They will introduce agentic AI services in which AI understands and handles tasks such as consultation inquiries, order checks and delivery guidance on its own.

KT will oversee the overall project, including identifying and designing AX tasks and building and operating an AI contact centre (AICC). NongHyup Agri Holdings will provide a testbed environment based on project status and frontline data. Microsoft Korea will support AI and cloud technologies, including Azure, and implementation of services.

Ju-yang Kim (김주양), CEO of NongHyup Agri Holdings, said the cloud migration of NH Sing Sing Mall was an important turning point that raised distribution competitiveness for its agricultural products through digital technology. He said the company will work to broaden sales channels for farms in producing regions and to make a tangible contribution to increasing farm income, based on expanded AI infrastructure.

Sang-won Park (박상원), executive vice president and head of KT's AX business division, said the successful public cloud migration of NH Sing Sing Mall was the starting point for AI-based distribution innovation. He said KT will use its experience in AX design, buildout and operations, as well as its agentic AI capabilities, to work with NongHyup Agri Holdings and Microsoft Korea to identify new AX business models in distribution.