KT and SK Telecom compete for dominance in South Korea's AI market

South Korean telecommunications giants KT and SK Telecom are competing to lead the ‘Everyone’s AI’ initiative, aiming to integrate artificial intelligence into the daily lives of the national population.

KT is pursuing a connectivity-based strategy called ‘Ieum Inside.’ This approach focuses on building an open AI ecosystem by embedding AI functions directly into existing services used by over 60 million people. Through a consortium including Daum, Musinsa, Zigbang, and EBS, KT aims to provide seamless AI experiences within familiar platforms, such as real estate alerts or personalized shopping recommendations, rather than requiring users to switch to a separate app. This strategy is supported by KT’s ‘Token Factory’ platform, which optimizes resource allocation and improves processing efficiency.

In contrast, SK Telecom is focusing on an ‘executable AI’ strategy. Rather than just providing information, SKT’s AI agents are designed to perform end-to-end tasks. This includes handling complex actions such as making reservations, processing tax refunds, or assisting with administrative procedures like resident registration. SK Telecom’s approach aims to bridge the digital divide by making AI accessible through various channels, including voice and text, to assist users in sectors ranging from healthcare to finance.