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Technology
20 October 2025

KT And Samsung SDS Lead South Korea AI Push

New innovation hubs and national computing centers signal a major public-private effort to accelerate artificial intelligence development in South Korea.

On October 20, 2025, South Korea took a major leap forward in the race to become a global leader in artificial intelligence, unveiling a series of bold initiatives that highlight the country’s ambitions and the growing role of public-private partnerships in high-tech development. At the heart of these moves are KT Corporation and Samsung SDS, two of Korea’s most prominent technology firms, each staking their claim as central players in the nation’s AI future.

According to Asia Today, KT launched its much-anticipated 'KT Innovation Hub' on October 20, 2025, in the Gwanghwamun West building in Seoul. Spanning approximately 595 square meters, the hub is designed as a flagship platform for business-to-business (B2B) clients eager to explore and implement AI-driven business transformations. The hub’s creation is the result of a close collaboration between KT and Microsoft, blending domestic expertise with global know-how. The project, as described by KT, is the company’s first step in establishing itself as a national AI platform provider and a leader in South Korea’s AI industry.

The Innovation Hub is more than just a showpiece. It’s divided into four interactive spaces, each tailored to foster collaboration and what KT calls "AX engagement"—a term that encapsulates the fusion of artificial intelligence (AI) and user experience. The AX Gallery, for instance, offers hands-on experiences with AI solutions through voice commands and touch panels. The centerpiece of this gallery is the "Multi Agent" system, a cutting-edge technology that allows multiple AI agents to collaborate autonomously to generate reports or perform complex tasks—no need for users to issue commands to each AI individually. It’s a glimpse into a future where AI systems work together seamlessly, reducing the friction and complexity that often plague enterprise technology deployments.

Other spaces in the hub, such as the Conference Room and Develop Studio, are designed for more in-depth consultation and rapid prototyping. Here, KT and Microsoft’s technical teams work side by side with clients to design custom AI roadmaps. The process is impressively nimble: solutions can be prototyped and evaluated in as little as five days. For example, a business seeking to automate its customer service center can quickly see a demonstration of an AI-powered customer agent, trained on the company’s own knowledge base. This rapid turnaround is a major selling point for companies wary of the long, uncertain timelines often associated with digital transformation projects.

KT’s AXD division, responsible for AI consulting, plays a central role in this process. Together with Microsoft’s technical staff, they offer industry-specific consulting and engineering services, aiming to make advanced AI accessible even to firms with little prior experience. As KT puts it, the Innovation Hub is designed to "provide opportunities for transformation based on real experiences for companies unfamiliar with AX." Microsoft, for its part, has supported the hub’s launch with its global network, strategic sales expertise, and workshop programs. The ambition doesn’t stop at Korea’s borders: KT plans to evolve the Innovation Hub into a regional base for AI research and industrial application across the broader Asia-Pacific region.

Jeong Woo-jin, KT’s Executive Vice President of Strategy and Business Consulting, summed up the company’s aspirations at the hub’s launch. “KT is achieving meaningful results in internal AX innovation through cooperation with Microsoft,” he said. “We will make KT Innovation Hub a central base for building the AX ecosystem by industry in Korea and lead the country as a pioneer in AI.”

While KT is building the infrastructure for AI adoption at the enterprise level, the South Korean government is simultaneously pushing ahead with a massive national initiative to create an AI computing “superhighway.” As reported by Digital Daily, the Ministry of Science and ICT is set to receive business proposals for the National AI Computing Center on October 20 and 21, 2025. The project, which has a total investment of around 250 billion won, aims to build a world-class computing backbone for AI research and development.

The government’s plan is ambitious. By 2028, the center aims to deploy at least 15,000 advanced graphics processing units (GPUs), scaling up to 50,000 GPUs by 2030. This immense computing power will underpin the development of new AI models and services, supporting both public and private sector innovation. The center will also serve as a hub for developing AI convergence technologies and business infrastructure, including cloud and data centers. The funding model is notable: roughly 70% of the investment will come from the government, with the remaining 30% provided by private companies, reflecting South Korea’s commitment to fostering public-private cooperation in technology development.

Several of Korea’s largest IT companies are vying for a leading role in this initiative. Samsung SDS, in particular, has emerged as the front-runner, reportedly forming a consortium with other tech giants like Naver, Kakao, and KT itself. This alliance, which brings together some of the country’s fiercest competitors, underscores the scale and significance of the project. According to industry insiders, the Samsung SDS consortium is preparing to submit its business plan, with Gwangju or a location in the Jeolla provinces as potential sites for the center.

Samsung SDS’s commitment to the project was reiterated by CEO Lee Jun-hee at the REAL Summit 2025, held in September. “We are positively considering participation in the National AI Computing Center project,” he told reporters. “Samsung SDS believes we can contribute to the government’s goal of making Korea one of the world’s top three AI powers.” The government, for its part, has streamlined the bidding process to encourage participation, removing requirements for domestic semiconductor adoption and allowing a single consortium to be awarded the project if no competitors emerge. This flexibility is intended to reduce investment risk and give companies greater freedom to propose innovative solutions.

Both the KT Innovation Hub and the National AI Computing Center represent a broader shift in South Korea’s approach to technology development. Rather than relying solely on government funding or private enterprise, these initiatives are emblematic of a new era of collaboration, in which public and private actors work together to build the digital infrastructure of the future. The stakes are high: as global competition in AI intensifies, countries that can rapidly deploy and scale advanced computing resources will have a significant advantage.

As the dust settles on these announcements, one thing is clear: South Korea is determined to be more than just a fast follower in the AI revolution. With industry leaders like KT and Samsung SDS at the helm, and the government providing both funding and vision, the country is positioning itself as a true innovator—one that other nations will be watching closely in the years to come.