KT announced on October 28th (local time) in San Francisco that it has signed a memorandum of understanding (MOU) with Kyndryl, the world's largest IT infrastructure services company, to cooperate on AI-based digital transformation (AX) business initiatives.
Under this agreement, KT plans to expand its differentiated AX services targeting B2B clients. The two companies will leverage KT’s telecommunications and AI capabilities alongside Kyndryl’s extensive experience in building and managing global IT infrastructure to jointly pursue projects in AI, cloud, and security within Korea.
Kyndryl, founded in 2021 as a spin-off from IBM’s infrastructure services division, serves thousands of clients across more than 60 countries, offering system design, deployment, operation, and modernization services.
The primary focus of the collaboration includes expanding AX into regulated industries, such as finance and public sectors, joint research on security architecture, and strengthening KT employees’ AX capabilities. KT also aims to modernize its IT infrastructure through this partnership.
Particularly, the two companies plan to participate together in AX projects tailored for regulated industries. According to Korea’s Fourth Cloud Computing Basic Plan (2025–2027), public cloud service contracts are expected to grow from 500 billion won in 2024 to 1 trillion won by 2027. Additionally, the Financial Services Commission has announced a roadmap to improve network separation in financial sectors, increasing demand for state-of-the-art AX solutions.
To provide industry-specific, compliant AX services, KT and Kyndryl will jointly develop security architectures based on AI, cloud, and network technologies. This aims to establish a trusted IT environment for customers while reinforcing KT’s internal security governance.
Furthermore, utilizing Kyndryl’s global workforce and training programs, KT will operate joint educational initiatives to enhance its employees’ expertise in AX. The goal is to strengthen customer-specific AX services and discuss modernization strategies for core IT infrastructures like ERP systems with Kyndryl.
Petra Goude, President for Strategic Markets at Kyndryl, expressed enthusiasm about the partnership: “We are pleased to collaborate with KT to accelerate its IT infrastructure modernization and AI deployment. This partnership will support KT in delivering more agile and efficient services in the AI era.”
Jung Woo-jin, head of KT’s Strategy and Business Consulting Division, stated, “Through this cooperation, we will further enhance our AI, cloud, and security capabilities and strengthen our global execution power. We are committed to providing stable and reliable AX services to key industries such as public and finance sectors.”
