KT Corporation (KT): Business Model Canvas [Dec-2025 Updated]

You're looking at KT Corporation's playbook as they aggressively shift from a traditional telecom giant to an AICT (AI + Information and Communications Technology) powerhouse, and frankly, the strategy is clear. We see this pivot in their key activities-developing proprietary AI like Mi:dm 2.0 and securing major partnerships with Microsoft and Meta-all built on their existing foundation, which still generated KRW 1.8096 trillion in wireless revenue in Q3 2025. The real action, though, is in the new streams: their AI and IT services hit KRW 317.6 billion in Q2 2025, showing the transformation is already underway. Dive into the full canvas below to see exactly how their key resources, like that extensive 5G network and their new AX Delivery Specialist Center, are being monetized to secure enterprise contracts and drive future value for shareholders.

KT Corporation (KT) - Canvas Business Model: Key Partnerships

You're looking at the core alliances KT Corporation has locked in as of late 2025 to power its pivot to an AICT (AI-driven communication technology) company. These aren't just handshake deals; they represent concrete capital commitments and specific technology integrations.

The Key Partnerships block is definitely where KT is placing its biggest bets for near-term revenue diversification away from traditional telecom sales, which are stagnating.

Here's a quick look at the scale of these strategic financial and technical alignments:

Partner	Nature of Collaboration	Financial/Scale Metric
Microsoft	AI Model Co-development (GPT-4o), Secure Cloud (SPC)	Joint investment of 2.4 trillion won (US$1.65 billion) over five years
DigitalBridge	Next-Generation AI Data Center Development	Potential investment up to multi-billion-dollar scale; DigitalBridge manages $108 billion in assets
Meta	Open-Source AI Model Enhancement	Resulting model, Llama K, is a 74B parameter language model
Palantir	Internal AI/IT Integration & Sector-Specific Sales	KT is the first South Korean firm in Palantir's Worldwide Partner Ecosystem; Exclusive sales rights in Korea's financial sector
Government	Network Security & Infrastructure Modernization	KT investing over 720 billion won in security over 5 years; Phishing detection accuracy target of 95 percent

Let's break down the specifics for each major partner, focusing on the numbers that matter for valuation.

Microsoft: Strategic AI and Secure Cloud collaboration

KT Corporation's deepening relationship with Microsoft centers on creating a Korea-tailored AI cloud platform. This isn't just about using their tools; it's about co-creating intellectual property.

• The five-year strategic partnership includes a joint investment of 2.4 trillion won (US$1.65 billion) in AI and cloud infrastructure.
• KT aims to generate 4.6 trillion won in cumulative sales from AI-related business during this five-year period.
• KT contributed 13 billion won (US$8.93 million) to launch a joint AI Transformation (AX) strategic fund, with Microsoft providing GPU resources.
• The goal is to launch a Korea-specific AI model based on GPT-4o by Q2 2025, complementing KT's in-house Mideum: 2.0 Base model with 11.5 billion parameters.
• KT expects its AI transformation business revenue to hit 1.4 trillion won by 2029, up from an estimated 269 billion won in 2025.

Palantir: Exclusive licensing for internal AI/IT capabilities

The alliance with Palantir positions KT to accelerate its internal AI transformation (AX) and gain exclusive go-to-market access in specific high-value sectors.

• KT became the first South Korean firm to join Palantir's Worldwide Partner Ecosystem following the agreement signed on March 12, 2025.
• KT will serve as the exclusive sales partner in Korea's financial sector, covering banking and insurance clients.
• The partnership includes co-developing the AIP Bootcamp, which was conducted about 1,300 times in the US last year.

DigitalBridge: MOU for multi-billion-dollar AI data centers

This Memorandum of Understanding (MOU) is about securing the physical backbone for AI growth, targeting massive, power-hungry facilities.

• The collaboration explores developing large-scale AI factory-type data centers capable of scaling up to gigawatt facilities.
• The required investment for these facilities is estimated to be up to multi-billion-dollar.
• This move helps deploy capital from DigitalBridge's third value-add fund, DBP III, which secured $11.7 billion in total commitments.
• DigitalBridge currently manages approximately $108 billion in digital infrastructure assets globally as of September 2025.

Meta: Collaboration on Llama K open-source AI model

KT is leveraging Meta's foundational open-source work to build a high-performance, Korean-centric large language model (LLM).

• Llama K is an enhanced Korean-language version based on Meta's Llama-3.3 model.
• The model is available in two sizes: 11B (11 billion parameters) and 74B (74 billion parameters).

Government: Contracts for 5G infrastructure and network security

KT is heavily involved in national security and infrastructure contracts, which often involve multi-year, stable revenue streams.

• KT plans to invest over 720 billion won in information security over the next five years.
• Of that security spend, 340 billion won is earmarked for strengthening zero-trust architecture and security monitoring.
• KT is commercializing KT AI Voice Phishing Detection 2.0 in H2 2025, trained on over 25,000 voice phishing audio samples, targeting a detection accuracy of 95 percent (up from 91.6 percent).
• Telecom cyberattacks increased by 22% YoY in 2025, underscoring the priority of these security partnerships.

Finance: draft 2026 CapEx forecast based on DigitalBridge MOU by Friday.

KT Corporation (KT) - Canvas Business Model: Key Activities

The Key Activities for KT Corporation center on leveraging its core network assets while aggressively pivoting toward AICT (Artificial Intelligence and Communication Technology) services, as evidenced by 2025 financial performance.

AICT Transformation (AX) and solution development.

KT Corporation is executing a full-scale transformation into an AICT Company, establishing the AX (AI Transformation) division in March 2025. This activity is directly reflected in the growth of the AI and IT business segment. For the second quarter of 2025, sales from the AI and information technology business jumped 13.8% year-on-year, reaching 317.6 billion won. In the first quarter of 2025, AI and IT revenue had already shown a 10.2% rise compared to the same quarter the prior year. The company projects its full fiscal year 2025 consolidated revenue to exceed KRW 28 trillion. KT also reported cumulative orders worth over 800 billion won in its AI businesses as of early 2025, spanning AICC and logistics.

KT Corporation's commitment to this transformation is also seen in its capital allocation; total CapEx up to the third quarter of 2025 for KT and its main subsidiaries accounted to 1 trillion 963.7 billion won.

Operating nationwide 5G and fiber optic networks.

Maintaining and evolving the core network remains a critical activity, supporting both traditional telecom revenue and the new AICT push. As of the third quarter of 2025, the 5G penetration rate stood at 80.7% of all handset subscribers. The company reported 26.45 million wireless subscribers at the end of March 2025. Wireless service revenue for Q3 2025 was 1 trillion 809.6 billion won, a 4.0% year-on-year increase. Broadband revenue, driven by GiGA Internet subscribers, increased 2.1% year-over-year in Q2 2025.

Here are the key network and subscriber metrics from recent quarters:

Metric	Period End Date	Value
Total Wireless Subscribers	March 31, 2025	26.45 million
5G Penetration Rate	September 30, 2025	80.7%
Q3 2025 Wireless Revenue	Q3 2025	KRW 1.8096 trillion
Q2 2025 Operating Revenue (Total)	Q2 2025	KRW 7,427.4 billion

Commercializing proprietary Korean AI models (Mi:dm 2.0).

KT Corporation commercializes its proprietary large language model, Mi:dm 2.0, which was released as open source in July 2025. This positions KT as the first Korean company to open-source a commercial-grade Korean-language LLM with over 11 billion parameters for unrestricted commercial use. The model comes in two versions:

• - Mi:dm 2.0 Base version with 11.5 billion parameters.
• - Mi:dm 2.0 Mini version with 2.3 billion parameters.

The company also plans to release a model that trains GPT-4 with Korean ways of thinking in collaboration with Microsoft.

Managing KT Cloud and data center infrastructure.

The Cloud and Data Center business is a significant growth driver, capitalizing on increased demand from global customers and AI Cloud needs. KT Cloud revenue saw a 20.3% year-on-year increase in the third quarter of 2025. In the second quarter of 2025, KT Cloud revenue grew 23% year-on-year. The utilization rate at a data center operated by KT Cloud surpassed 90% as of mid-2025. The company's overall operating profit for Q2 2025 reached KRW 1,014.8 billion, more than doubling from the previous year, partly due to growth in cloud and data center services.

Real estate development and asset management (KT Estate).

KT Estate contributes to profitability through asset efficiency, including the sale and development of idle assets. KT Estate revenue in the third quarter of 2025 increased 23.9% year-on-year to 186.9 billion won, supported by strong hotel performance and new development projects. This contrasts with a 2% year-on-year revenue increase reported for KT Estate in the second quarter of 2025. Between 2024 and the first half of 2025 year-to-date, the cash-in from Real Estate asset efficiency activities totaled 268.4 billion won, with a reported profit of 80.9 billion won on a consolidated basis.

Finance: draft Q4 2025 cash flow forecast by next Wednesday.

KT Corporation (KT) - Canvas Business Model: Key Resources

You're looking at the tangible and intangible assets KT Corporation relies on to deliver its AICT (AI, Cloud, ICT) focused value propositions. These resources are the foundation for their push into the AI transformation market.

Network Infrastructure: The Physical Backbone

KT Corporation's physical assets are extensive, underpinning both legacy services and next-generation offerings like 5G and cloud computing. Fixed broadband services across South Korea rely heavily on fibre networks, a result of initiatives like the Ultra Broadband Convergence Network (UBcN). By late 2025, almost two thirds of all mobile connections in South Korea are on 5G networks. The adoption rate for 5G specifically reached 65.8% of all mobile phone subscribers based on data closest to September 2025. KT is actively improving its network structure, planning to complete separation of wired and wireless Internet networks by 2025 to ensure service survivability against failures.

The overall South Korea telecom MNO (Mobile Network Operator) market size in 2025 is valued at USD 40.34 billion, showing the scale of the environment KT operates within.

Proprietary AI Models: The Intellectual Core

KT has developed and deployed several proprietary and co-developed AI models, central to its Korean-native AI strategy. These models are designed to deeply internalize Korean culture and language nuances.

Model Name	Type/Basis	Parameter Count	Key Feature
Mi:dm 2.0 Base	Self-developed, Korea-centric AI	11.5 billion	General-purpose tasks, excels in Korean knowledge.
Mi:dm 2.0 Mini	Self-developed, distilled from Base	2.3 billion	Lightweight, optimized for on-device/limited GPU environments.
SOTA K	Hybrid, co-developed with Microsoft	Not specified	Combines GPT-4o performance with refined Korean socio-cultural context.
Llama K	Enhanced Korean version of open-source	74B (based on Llama-3.3)	Improved instruction-following and reasoning in Korean.

The earlier Mi:dm model was already integrated into services like the AI Contact Centre (AICC), Genie TV, AI phone services, and the 100-call customer helpline. KT is the first Korean firm to open-source a commercial-grade Korean-language LLM with over 11 billion parameters.

Data Center Capacity and KT Cloud Platform

KT Cloud is a significant asset, with its revenue expanding 21.3% YoY to W221 billion in 4Q24, and the company forecasts annual cloud revenue to surpass W1 trillion starting in 2025. A major component is the Gasan IDC, a hyperscale facility in Seoul, which is scheduled for completion by 2025. This facility is designed to house over 100,000 servers and utilize 26 megawatts of power. KT Cloud's overall goal was to secure 100 megawatts of data capacity by 2025. For context, the Greater Seoul Area data centre capacity reached 533MW in 1H 2025.

Real Estate Portfolio

KT actively manages its property assets, including offices and hotels, as part of its value-up program, which involves selling non-core and idle real estate. The financial impact of this strategy was evident in 1Q25 and 2Q25, where the company expected to recognize one-off gains from the Gangbuk real estate development project, generating approximately W500 billion in operating profit across those two quarters. Looking at the balance sheet as of September 30, 2025, the sum of property and equipment, investment properties, and other non-current assets domestically stood at W19,724,402 million KRW.

AX Delivery Specialist Center

To execute its AI transformation (AX) strategy, KT established the AX Delivery Specialist Center in the first quarter of 2025. This center is staffed by approximately 300 experts, a mix of KT employees and Microsoft specialists, focused on developing and implementing customized AI solutions for enterprise clients. That's a solid team to drive immediate project execution.

KT Corporation (KT) - Canvas Business Model: Value Propositions

You're looking at what KT Corporation is promising its customers and investors as of late 2025. It's a clear pivot toward AICT (Artificial Intelligence and Information and Communications Technology), moving beyond just being a traditional telecom provider.

High-speed, ubiquitous 5G and GiGA Internet connectivity remains a core offering, underpinning their entire digital platform strategy. The network maturity in South Korea is world-class, making this a reliable proposition.

• 5G penetration reached 80.7% of the total mobile subscriber base as of the end of the third quarter of 2025.
• By late 2025, almost two thirds of all mobile connections are on 5G networks.
• Broadband revenue in Q3 2025 grew 2.3% year-over-year to 636.7 billion KRW, directly supported by GiGA Internet subscriber growth and value-added services.
• KT celebrated reaching a cumulative total of 10 million high-speed internet subscribers.

For the enterprise segment, the focus is heavily on customized AI Transformation (AX) solutions, often in partnership with global tech leaders like Microsoft. This is where KT sees significant revenue acceleration.

• KT expects double-digit growth in AI/IT revenue for the full year 2025.
• AI IT business revenues saw a 13.8% year-over-year increase in the second quarter of 2025.
• The company established the 'AX Delivery Institute' with approximately 300 talent, including global experts, to swiftly implement corporate AX projects.
• KT is committing KRW 1 trillion over five years to bolster cybersecurity, which is critical for enterprise cloud and AI adoption.

The Secure Public Cloud (SPC) offering is positioned as legally compliant within Korea, a key differentiator in a market sensitive to data sovereignty. This service is a direct output of the AICT transformation strategy.

• KT plans to launch KT Secure Public Cloud (SPC) services in partnership with Microsoft in the second half of 2025.
• The company also planned to unveil KT Secure Public Cloud (SPC) services in the second quarter of 2025.
• Revenues from KT Cloud specifically were up 23% in Q2 2025, driven by data center momentum and DBO project wins.

In the media space, integrated media and content via Genie TV and premium plans is evolving into an all-in-one platform experience, leveraging AI integration.

• The media business posted growth of 3.1% year-over-year in Q3 2025, driven by IPTV subscriber net additions and premium plan sales.
• KT is investing 500 billion KRW by 2026 to drive its media AI strategy, which includes an AI agent on Genie TV.
• The new Genie TV Disney+ ModeunG Plan consolidates content, offering access to approximately 160,000 VOD titles.
• The promotional price for this premium package is 19,900 KRW per month with a three-year contract.

For the capital markets, KT is signaling a commitment to stable shareholder return, though the exact target percentage can vary based on reporting metrics.

• The stated value proposition is a 50% adjusted net profit dividend.
• The Q3 2025 dividend was declared at 600 KRW per share, maintaining a payout level 20% higher year-over-year for the first three quarters.
• KT announced plans for a share buyback and cancellation program worth KRW 250 billion in 2025, part of a larger KRW 1 trillion shareholder return initiative through 2028.

Here is a quick look at some of the key financial metrics underpinning these value propositions for the 2025 fiscal year performance through Q3:

Metric Category	Specific Metric	Value (2025 YTD/Latest)
Overall Financial Target	Consolidated Revenue Target (FY 2025)	Over KRW 28 trillion
Connectivity Performance	5G Penetration Rate (Q3 End)	80.7%
Media Value Proposition	Genie TV VOD Titles Available	Approximately 160,000
AI/Cloud Growth	KT Cloud Revenue Growth (Q2 YoY)	Up 23%
Shareholder Return	2025 Share Buyback Program Amount	KRW 250 billion

Finance: review the impact of the KRW 1 trillion five-year security investment on 2026 CapEx projections by next Tuesday.

KT Corporation (KT) - Canvas Business Model: Customer Relationships

You're looking at how KT Corporation manages the connection with its customers, which is critical given the intense competition in the South Korean telco landscape.

For your B2B clients, KT has established a dedicated consulting pipeline. They launched the AX Delivery Expert Center in March 2025, staffing it with 300 personnel. This team is structured to include 200 KT employees and 100 world-class AI experts sourced from Microsoft to develop customized Artificial Intelligence (AI) solutions for corporate customers. This focus helps shift the business structure away from the 95 percent revenue reliance on traditional telecommunications.

Customer support leans heavily on digital channels. The KT Customer Center operates as Korea's largest Artificial Intelligence Contact Center (AICC), actively using solutions like counseling assist, voicebot, and chatbot. The company is pushing for AI-driven services to hit annual revenues of at least 1 trillion won by 2025.

For premium subscribers, the service experience is being enhanced with AI. For instance, the Q2 2025 net income surge of 78.6 percent year-over-year supports ongoing service improvements, with the Return on Equity (ROE) hitting 15.2 percent. The 5G adoption rate has already surpassed the high 70 percent mark, indicating broad uptake of premium data services.

Building customer trust is a major focus, especially around security. KT announced a proactive security innovation plan involving an investment of more than KRW 1 trillion over the next five years. This move is intended to nearly double the annual security budget from its current level of over 100 billion won to approximately 200 billion won a year, starting in 2026. This is a serious commitment to preemptive defense; they definitely want to show customers they are serious about data protection.

Here is the breakdown of that KRW 1 trillion security investment:

Area of Investment	Allocated Amount (KRW)	Goal/Detail
Zero-Trust Architecture Enhancement	340 billion won	Completing the zero-trust security framework.
Global Security Partnerships	20 billion won	Strengthening cooperation with firms like Microsoft and Google.
Cybersecurity Workforce Growth	50 billion won	Increasing personnel from 162 to 300 experts.
AI Voice Phishing Detection 2.0	(Service Improvement)	Targeting 95 percent accuracy, aiming to prevent over 200 billion won in damages.

The relationship with shareholders is managed through a value-up plan. KT plans to complete a share buyback of KRW 250 billion on August 13, 2025, as part of a larger commitment. The overall plan includes an additional share buyback totaling KRW 750 billion over the next three years. The company also maintains a shareholder-friendly dividend policy, with the Q2 dividend set at KRW 600 per share, marking a 20 percent year-over-year increase.

The capital distribution strategy is quite clear:

• Intention to spend KRW 250 billion on repurchases annually in FY25-28.
• Consensus 2025 dividend payout ratio estimate is 34 percent.
• ROE for Q2 2025 reached 15.2 percent.

KT Corporation (KT) - Canvas Business Model: Channels

You're looking at how KT Corporation gets its services-from mobile plans to massive cloud infrastructure-into the hands of customers as of late 2025. The channel strategy is clearly bifurcated, supporting both massive consumer reach and targeted enterprise delivery.

The direct sales channel is critical for KT Corporation's enterprise and government push, aligning with its AICT (Artificial Intelligence and Communication Technology) transformation. While the exact size of the direct B2B sales force isn't public, the results show this channel is gaining traction.

Channel Focus Area	Relevant Financial Metric (Q3 2025)	Growth/Penetration Metric
AI & IT Services (B2B/Enterprise Channel)	AIIT Business Revenue (Q2 2025): KRW 317.6 Billion	AIIT Business Revenue Growth (Q2 2025 YoY): 13.8%
KT Cloud Platform Delivery	KT Cloud Sales (Q3 2025): KRW 249 Billion	KT Cloud Sales Growth (Q3 2025 YoY): 20.3%
B2B Telecom & AIIT Services (Combined)	B2B Service Revenue Growth (Q2 2025 YoY)	4.5%

The growth in KT Cloud sales to KRW 249 Billion in the third quarter, up 20.3% year-on-year, clearly shows the platform delivery channel is a major success story for enterprise service distribution.

For the consumer base, KT Corporation relies on a broad physical and digital footprint. The nationwide network of retail stores and service centers handles everything from new 5G device sales to customer support, directly serving the mobile customer base.

• Wireless Business Sales (Q3 2025): KRW 1.8096 Trillion
• 5G Subscriber Penetration (Q3 2025)

Profitability in the wireless segment is tied to the adoption rate through these channels, with 5G penetration hitting 80.7% as of the third quarter of 2025.

Online portals and mobile applications serve as the primary self-service and digital sales channels. These platforms manage customer service interactions and drive sales for the core telecom offerings. The fixed-line revenue, which bundles Internet and IPTV, reflects the reach of these digital touchpoints.

Fixed-line Sales (Internet and IPTV combined, Q3 2025): KRW 1.3319 Trillion, a 1.5% year-on-year rise. High-speed Internet subscribers reached 10 million in May 2025, indicating the scale of the broadband customer base managed through these digital interfaces.

The KT Cloud platform is a distinct channel for AI and IT service delivery, separate from the traditional telecom sales channels. This is where the AICT transformation is most visible in channel performance.

KT Cloud Metric	Value (Q3 2025)	Year-over-Year Change
Revenue	KRW 249 Billion	20.3% increase

This platform acts as the digital storefront for advanced services like the proprietary LLMs and data center usage.

For media consumption, the IPTV set-top boxes and media content platforms are the direct delivery mechanism for entertainment services, bundled within the fixed-line segment.

• Fixed-line Sales (Including IPTV, Q3 2025): KRW 1.3319 Trillion
• Total Consolidated Operating Revenue (Q3 2025)

The overall Q3 2025 Operating Revenue was KRW 7.1267 Trillion, showing how the combined performance of all these channels-from direct B2B to IPTV-drives the top line.

KT Corporation (KT) - Canvas Business Model: Customer Segments

You're looking at the customer base for KT Corporation as of late 2025, and honestly, it's a mix of the traditional and the aggressively new. The company is clearly pushing its AICT (Artificial Intelligence and Communication Technology) transformation, but the sheer volume of its legacy telecom customers still forms the foundation.

The customer segments are quite distinct, spanning from individual phone users to global enterprise clients needing specialized cloud infrastructure. Here's how those groups break down based on the latest figures from the third quarter of 2025.

Mass-market consumers (Mobile, Broadband, IPTV subscribers) represent the largest volume base, though revenue growth is shifting to higher-value services.

• Mobile subscribers were approximately 24 million as of early 2025.
• 5G penetration across the subscriber base reached 80.7% by the end of Q3 2025.
• Wireless revenue for Q3 2025 stood at KRW 1,809.6 billion, marking a 4% year-over-year increase.
• Broadband internet revenue for Q3 2025 was KRW 636.7 billion, up 2.3% year-on-year.
• Home telephony revenue saw a decline, reporting KRW 160.9 billion in Q3 2025, down 6.6% year-over-year.

The Enterprise and B2B clients seeking AI and IT solutions are the focus for high-margin growth, even with some short-term restructuring impacts.

• B2B service revenue reported a modest 0.7% year-over-year growth in Q3 2025.
• The AI and IT business revenue saw a 5.7% year-over-year decrease in Q3 2025 due to structural enhancement efforts.
• This contrasts with Q2 2025, where the AI IT business revenue had grown 13.8% year-over-year, driven by cloud and design/build projects.
• KT is aggressively aiming to increase the share of sales from its AI and IT sectors from a prior 6% of service sales to over 19% by 2028.

Government and public sector organizations are key targets for KT's new AI capabilities. For instance, KT secured early contract wins for AI platform build projects from entities like the Gyeonggi provincial government.

Global customers utilizing data center and cloud services are driving significant growth in the KT Cloud subsidiary.

• KT Cloud revenue grew 20.3% year-on-year in Q3 2025.
• This growth was explicitly tied to higher data center usage by global clients and expanding AI Cloud demand.

Finally, the Real estate tenants and hotel guests (KT Estate) segment contributes meaningfully to overall group revenue.

• KT Estate revenue in Q3 2025 was KRW 186.9 billion, a jump of 23.9% year-on-year.
• This strong performance was supported by the hotel business and new pre-sale development projects.

Here's a quick look at the revenue contribution from the key growth and established segments for the third quarter of 2025, based on the reported subsidiary revenues:

Customer Segment Driver	Q3 2025 Revenue (KRW billion)	Year-over-Year Growth
Wireless (Mass-Market)	1,809.6	4.0%
Broadband Internet (Mass-Market)	636.7	2.3%
KT Estate (Real Estate/Hotel)	186.9	23.9%
KT Cloud (Global/Cloud)	(Implied from 20.3% growth)	20.3%
B2B Services (Enterprise Telecom/Network)	(Implied from 0.7% growth)	0.7%

What this estimate hides is the exact subscriber count for broadband and IPTV, but the revenue trends show where the momentum is right now. Finance: draft 13-week cash view by Friday.

KT Corporation (KT) - Canvas Business Model: Cost Structure

You're looking at the major outflows for KT Corporation as of late 2025, focusing on the hard numbers that drive the business. Honestly, these figures show where the capital is actually going to maintain and advance their network and AI ambitions.

Capital Expenditures (CapEx) is a big one for any telco. Total CapEx up to the third quarter of 2025 for KT Corporation and its main subsidiaries hit KRW 1.9637 trillion. To give you a bit more detail on that investment, KT's separate basis CapEx for that period was KRW 1.3295 trillion, while major subsidiaries accounted for the remaining KRW 634.2 billion.

Operating Expenses (OpEx) for the third quarter of 2025 came in at KRW 6.5886 trillion. This represented a 6.4% increase year-on-year, driven by increases in cost of goods sold, cost of services, and selling expense.

Here's a quick look at the key financial metrics we have for the period:

Metric	Period	Amount (KRW)
Cumulative CapEx (KT & Subsidiaries)	9M 2025	1.9637 trillion
Operating Expense	Q3 2025	6.5886 trillion
KT Separate Basis CapEx	9M 2025	1.3295 trillion
Major Subsidiaries CapEx	9M 2025	634.2 billion
R&D Expense	3M ended Mar 31, 2025	61,413 million

Network maintenance and infrastructure upgrade costs are inherently tied up in that CapEx figure, which is focused on maintaining and evolving the network. Beyond the regular CapEx, KT has made a significant commitment to security, planning to invest a cumulative KRW 1 trillion in information security over 5 years. This is a step up from their previous annual spend of about KRW 120 billion to KRW 130 billion for security purposes.

For AI and IT research and development (R&D) investment, the most granular figure I have is for the first quarter of 2025. Research and development expenses for the three-month period ended March 31, 2025, were KRW 61,413 million. This supports their AI multimodal strategy, including the launch of new AI models like SOTA K and Llama K.

Content production and cost of services sold are reflected in the OpEx breakdown. You saw revenue from content subsidiaries dip in Q3 2025 due to fewer original title productions. The operating expense increase in Q3 2025 specifically cited an increase in cost of goods sold and cost of services. The cost structure also includes significant fixed costs you'd expect from a major telecom, such as:

• Employee benefit cost for Q1 2025 (3 months): KRW 1,121,835 million.
• Depreciation for Q1 2025 (3 months): KRW 715,828 million.
• Commissions for Q1 2025 (3 months): KRW 394,628 million.

Finance: draft 13-week cash view by Friday.

KT Corporation (KT) - Canvas Business Model: Revenue Streams

You're looking at the hard numbers that drive KT Corporation's top line as of late 2025. Honestly, the story here isn't just about the legacy telecom business; it's about how the growth in digital infrastructure is reshaping the revenue mix. Here's the quick math on the key streams based on the latest reported figures.

The core mobile segment remains substantial, but its growth is now incremental compared to the high-flying digital services. For the third quarter of 2025, the Wireless/Mobile Service Revenue hit KRW 1.8096 trillion, showing a 4% year-over-year increase, with 5G penetration reaching 80.7% by the end of Q3. That's solid, but look where the real percentage gains are coming from.

The fixed-line and broadband services show stability, not explosive growth. The Fixed-line/Broadband Internet Revenue for Q3 2025 was KRW 636.7 billion, which is a 2.3% year-over-year rise, helped by GiGA Internet subscribers and premium plan uptake. To be fair, the older Home Telephony revenue is shrinking, falling 6.6% year-over-year to KRW 160.9 billion in the same period.

The AI and IT focus is clear, though the reported figures show some lumpiness. While the prompt specifies the Q2 2025 figure, the AI and IT Services Revenue for the second quarter of 2025 was KRW 317.6 billion, marking a 13.8% jump on-year then. For Q3 2025, the AI/IT business revenue actually came down 5.7% year-over-year, which suggests the lumpiness of large project recognition is definitely a factor you need to watch.

The infrastructure plays are delivering strong, compounding growth. KT Cloud and Data Center Revenue saw its growth rate for Q3 2025 hit 20.3% year-on-year, fueled by global clients using data centers and rising AI cloud demand. Similarly, the property arm is performing well; KT Estate revenue for Q3 2025 was KRW 186.9 billion, a massive 23.9% increase year-on-year, thanks to the hotel business and new development projects.

Overall, the consolidated picture for Q3 2025 was an Operating Revenue of KRW 7.1267 trillion, up 7.1% year-over-year. This top-line growth was supported by a mix of these streams, plus one-time real estate sales gains.

Here's a breakdown of the key Q3 2025 revenue components we've discussed:

Revenue Stream Segment	Q3 2025 Amount (KRW)	YoY Growth (Reported)
Wireless/Mobile Service Revenue	1.8096 trillion	4%
Fixed-line/Broadband Internet Revenue	636.7 billion	2.3%
KT Estate Revenue	186.9 billion	23.9%
Home Telephony Revenue	160.9 billion	-6.6%
B2B Service Revenue	N/A	0.7%

When you map out the growth engines, you see the strategic shift clearly. It's not just about connectivity anymore; it's about the digital backbone.

• Wireless/Mobile Service Revenue: Q3 2025 was KRW 1.8096 trillion.
• AI and IT Services Revenue: Q2 2025 AI/IT sales were KRW 317.6 billion.
• Fixed-line/Broadband Internet Revenue: Q3 2025 was KRW 636.7 billion.
• KT Cloud and Data Center Revenue: Q3 2025 Cloud growth was 20.3% YoY.
• Real Estate/Rental Revenue: Q3 2025 KT Estate revenue was KRW 186.9 billion.

Also, remember the Media business posted growth of 3.1% year-over-year in Q3 2025. Finance: draft 13-week cash view by Friday.