Telecom companies eye AI as new growth engine

KT's booth at World IT Show 2025, held from April 24 to 26 in Seoul / Courtesy of KT

Telecom giants KT, SK Telecom and LG Uplus are sharpening their focus on artificial intelligence (AI) as the next big catalyst for growth, with all posting first-quarter earnings from doubling down on AI-centered digital transformation (AX) strategies to redefine their future business.

The three companies released their first-quarter earnings in the past week. KT, which recorded an operating profit of 688.8 billion won ($485.85 million) in the first quarter, saw a 10.2 percent rise in AI and IT-related revenue compared to the same period last year, with the company strengthening its AI contact center and IT-related build-out projects.

LG Uplus saw a 15.6 percent increase in its operating profit at 255.4 billion won with the scaling up of its AI-powered business-to-business (B2B) infrastructure service. It shared that since launching AX, it has been showing steady growth, recording a 0.4 percent increase at 118.9 billion won revenue from its solution businesses, such as smart mobility and the AI contact center.

Meanwhile, SK Telecom's operating profit jumped 13.8 percent to 567.4 billion, with its AI data center business growing 11.1 percent compared to the same period last year.

Screens demonstrating LG Uplus' AI agent ixi-O at its headquarters in Yongsan District / Korea Times file

Scoring a solid start with the first quarter, the companies are planning to accelerate their AI-driven strategies even more, going from advanced data centers to on-device AI services and global partnerships.

KT shared that it will further utilize partnerships with tech firms to strengthen its AI-related businesses. It is working with Microsoft to jointly develop a Korean language-specialized AI model and a secure public cloud, aiming to launch them in the second quarter.

The company has also joined hands with Palantir to integrate the global AI platform company’s core AI solutions into KT’s cloud and network infrastructure, tailored to the local market.

Sk Telecom's AI agent Aster / Courtesy of SK Telecom

Last month, the company also shared its plans to integrate AI technology into its media business, such as introducing an AI agent on Genie TV and pursuing AX in the entire content production process with its newly established division, AI Studio Lab.

“KT will accelerate our shift to an AICT company by focusing on B2B AX business,” KT Chief Financial Officer Jang Min said during the conference call to announce its first-quarter earnings, on Friday.

LG Uplus also shared its plans to expand AI across both consumer and B2B touchpoints, deepening collaborations with global giants like AWS and Google, during the first-quarter conference call on Thursday. The company is planning to enhance the features of its AI agent, ixi-O, with Google to introduce the service worldwide.

“We will focus on using AI services to offer trust and security concerns, which are our core differentiators,” LG’s Chief Financial Officer Yeo Myung-hee said, adding that the company aims to utilize AI technology to prevent voice phishing and data breaches.

SK Telecom is staking its future on AI infrastructure at scale, rolling out its strategy AI Pyramid 2.0 earlier this year. It will focus on AI data centers, including developing a subscription-based AI cloud service and building small-scale modular AI data centers and hyperscale AI data centers.

The company has run an open beta service for its global AI agent Aster in the U.S. this March and is planning to make the official launch in the latter half of this year. It is also set to officially launch its B2B AI service, A. Biz, in the first half of the year.