TLDR: South Korean telecommunications giant KT Corporation has announced a record-breaking second quarter in 2025, with operating profit surpassing 1 trillion won for the first time in its history. This significant achievement is attributed to strong growth in its core telecommunications business, a burgeoning artificial intelligence (AI) and IT segment, and strategic contributions from its subsidiaries.
Seoul, South Korea – KT Corporation, a leading telecommunications provider in South Korea, has reported an unprecedented financial performance for the second quarter of 2025, with its operating profit exceeding 1 trillion won (approximately $720 million USD) for the first time. The company announced on August 11, 2025, that its operating profit surged by 105.4% year-on-year to 1.0148 trillion won, while sales increased by 13.5% to 7.4274 trillion won during the same period. Net profit also saw a substantial rise of 78.6% to 733.3 billion won, surpassing market expectations.
This remarkable growth is largely driven by KT’s strategic focus on artificial intelligence (AI) and its robust core telecommunications operations. The AI and IT business segment recorded a 13.8% increase in sales, reaching 317.6 billion won, fueled by rising demand for AI solutions. KT is actively pursuing its transformation into an ‘AICT’ company, a fusion of AI, telecommunications, and information and communications technology.
KT’s AI strategy involves a two-pronged approach: developing its proprietary AI models and collaborating with global tech giants. The company plans to introduce various AI models in the third quarter, including ‘Mi:dm 2.0,’ its independently developed AI model, ‘GPT-K’ co-developed with Microsoft, and ‘Llama-K’ based on Meta’s model. Furthermore, KT is set to launch services that integrate cloud, network infrastructure, and data solutions through a partnership with global AI platform company Palantir.
Beyond AI, the company’s core mobile business demonstrated solid growth, with sales rising 1.6% year-on-year. The proportion of 5G subscribers reached an impressive 79.5% of total mobile subscriptions, contributing significantly to revenue. The fixed-line business also saw a 1.4% increase in sales, supported by a growing number of internet service users and higher sales in media and IPTV services, with IPTV subscribers reaching 9.49 million.
Subsidiaries played a crucial role in the group’s overall profitability. KT Estate, the real estate subsidiary, generated approximately 390 billion won in operating profit from the sale of Lotte East Pole Apartments. KT Cloud, the AI subsidiary, saw its sales increase by 23% year-on-year due to the expansion of AI data centers and cloud services. Additionally, cost reduction initiatives, including a 7.7% decrease in labor costs, further bolstered profitability.
The company also benefited from a significant increase in its subscriber base, partly due to customers migrating from a competitor following a hacking incident. KT’s strong financial performance has led to increased shareholder returns, with the company declaring a dividend of 600 won per share, a 20% increase year-on-year, and announcing a 250 billion won share buyback plan.
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Despite being excluded from a recent government-backed sovereign AI initiative, KT has stated that this outcome does not determine the success or failure of its AI business, reaffirming its commitment to its dual AI strategy. This robust quarter underscores KT’s successful diversification and its aggressive push into the high-growth AI sector, positioning it strongly for continued expansion in the latter half of the year.
