KT to lead mutual growth with SMEs through smart technology

KT CEO Koo Hyun-mo, left, with Startup Minister Park Young-sun, center, and INNOBIZ President Cho Hong-rae, right, during a mutual growth partnership ceremony held at the company's headquarters in Seoul, Tuesday. / Courtesy of Ministry of SMEs and Startups

By Baek Byung-yeul

KT will provide technological support using its 5G network-based artificial intelligence (AI) technology and smart factory technology to small and medium enterprises (SMEs) and small business owners, the telecommunications company said Tuesday.

It said the Ministry of SMEs and Startups has chosen the mobile carrier as an “inclusive company.”

“KT has become the first company in the telecommunications industry to be designated as an 'inclusive company' by the startup ministry,” a KT official said. “This means KT will voluntarily share its technological knowhow and infrastructure not only with its contractors but also other small and medium enterprises and small business owners to achieve mutual growth.”

KT said it signed an agreement with the Ministry of SMEs and Startups and its affiliate INNOBIZ to cooperate on boosting 5G technology-based contactless services. The ceremony featured Startup Minister Park Young-sun, KT CEO Koo Hyun-mo and INNOBIZ President Cho Hong-rae.

Since May, the startup ministry has been designating prominent companies such as Samsung Electronics, Hyundai Motor, Kia Motors and Naver as inclusive companies.

With this mutual growth partnership, KT will work on providing technological support in three parts ― smart factory, contactless services and support for small business owners.

To allow more SMEs to adopt the smart factory system, the startup ministry and KT will provide 24 billion won ($20.6 million), while KT will also provide low-interest loans to SMEs through its financial fund.

In terms of contactless services, KT will team up with the startup ministry's affiliate the Korea Institute of Startup and Entrepreneurship Development and will provide a job education and training program to help SMEs and prospective entrepreneurs utilize AI technology.

KT will also use its affiliates such as K Shopping and K Shop as distribution channels to sell products developed by SMEs. About 200 KT smartphone retail shops will be utilized as after-sales service centers.

To encourage more consumers to visit shops run by small business owners, KT will promote startup ministry-certified shops on its navigation app ONE NAVI.

The startup minister has vowed to provide support for the success of this mutual-growth business model.

“I expect this agreement, which focuses on vitalization of 5G-based contactless services, will become a breakthrough in this difficult economic situation,” Park said.

“While the importance of contactless businesses has emerged amid the COVID-19 pandemic, I would like to express my gratitude to KT for providing the mutual-growth business model. The government will provide active support for the success of this business model.”

KT also expects the mutual-growth partnership will help SMEs and small business owners hit hard by the prolonged pandemic.

Koo said the telecommunications company will “try its best to contribute to the digital innovation of Korea by providing technological support to small business owners who are struggling due to the pandemic.”