Koo Hyun-mo (61), former KT president who joined in 1987 as a researcher at the Institute for Economic and Business Research of Korea Telecom, KT's predecessor, and rose to the chief executive officer (CEO) post at KT. Koo is now devoted to nurturing the next generation in the industrial engineering department at KAIST and the College of Engineering at Seoul National University. The KAIST course titled "New businesses in the AI era," offered as a special lecture by a former practitioner and CEO, has gained popularity by word of mouth.
Koo served as CEO for three years from Mar. 2020 to Mar. 2023, succeeding Chairman Hwang Chang-gyu. Since privatization in 2002, only three insiders at KT have become CEO: former President Lee Yong-kyung (2002), former President Nam Joong-soo (2005), and Koo.
A graduate of Seoul National University's industrial engineering department with master's and doctoral degrees in management engineering from KAIST, Koo is regarded as a leader with insight into technological trends. During his tenure as KT CEO, Koo often sent the message that "only leaders who understand artificial intelligence (AI) can enable corporations to survive," emphasizing leadership that connects technology and business. In particular, Koo is considered a key figure who laid the groundwork for KT's push to transform into an AI company.
Koo emphasized shifting away from a telecom-centered business structure to a digital platform corporation and pursued an overhaul centered on AI. Presenting the commercialization of large-scale AI, AI infrastructure innovation, and fostering future talent as three key strategies, Koo led the expansion of KT's AI business. As a result, in 2022, KT surpassed 25 trillion won in revenue for the first time since its founding, marking the best performance among all past CEOs.
In January this year, Koo published a book titled "The Sharpness," reflecting on the role of corporate leaders in the AI era. Although widely recognized as an AI expert, when asked why Koo does not write books on AI, Koo smiled and said, "The pace of AI technology development is like lightning; by the time you write a book, the content is already outdated," adding, "I probably won't publish an AI book."
Koo's recent interest is discovering AI venture companies and facilitating consolidation with corporations that need them to build an AI ecosystem. ChosunBiz met with Koo on Oct. 15 to ask about changes in leadership in the AI era and the direction Korea should take in the global AI race. The following is a Q&A with Koo.
— What direction should Korea take in the global AI race?
"It is difficult to catch up with the United States and China in foundation model areas of artificial intelligence (AI), such as large language models (LLMs). But Korea is strong in manufacturing and healthcare. In new business areas that combine AI with specific industries, Korea can also become No. 1 globally.
AI government transition is also a field where Korea has strengths. During the electronic government transition promoted in 1997, the government budget executed created work for corporations, which helped grow Korea's information and communications technology (ICT) industry. The AI government transition project will not only improve government efficiency but also serve as an opportunity to grow Korea's AI industry."
— What is the biggest technological change that will reshape Korea's ICT industry?
"AI will drive the biggest changes in Korea's ICT industry. However, because AI is an area where technology advances rapidly and the future is hard to predict, active investment and cooperation by the government and corporations are necessary. In particular, the government should focus on building AI infrastructure and developing a sovereign AI model, while corporations should play a role in boosting competitiveness by leveraging AI."
— The influence of global big tech companies like Google and Microsoft (MS) is growing.
"Services created by U.S. corporations such as Instagram and Spotify have already become mainstream, and in the cloud market, excluding the public and financial sectors, Amazon Web Services (AWS) and Google Cloud hold high shares. Before long, we will also compete with Chinese robots in the physical AI market. We cannot win in every domain. But in some areas, a world No. 1 must emerge.
In the past, because competition was domestically focused, we were remiss in developing services from a global perspective and entering overseas markets. Now we must develop services from the outset with competition against the United States and China in mind, and conduct marketing and sales accordingly. This is why integrating AI into the aforementioned manufacturing and healthcare sectors is important."
— Global big tech companies are encroaching even on telecom infrastructure. How should Korean telecom companies differentiate?
"Global big tech companies' encroachment on telecom infrastructure is an issue for the entire ICT industry. The point at which Korean telecom companies can differentiate themselves through AI transformation lies in application services combined with AI. In the AI era, the role of telecom operators must also change, and actively developing and providing AI-based application services will be an important competitive edge. The role of network operators should focus on technological innovation and providing services based on it."
— There is a saying that changing organizational culture is harder than securing technology for AI and digital transformation.
"Digital transformation and AI transformation require changes in organizational culture as well as technological change. If you introduce technology but do not change work processes, there is no change. With AI adoption, only the speed of work increases; if the employees using it do not pursue performance, the utility declines. Corporations with a performance-oriented organizational culture are advantageous in AI transformation.
One of the most vigorous organizational culture innovations attempted at KT was the "No. 1 workshop." The No. 1 workshop is an in-house program where all stakeholders gather, set aside ranks, and stay together for two days and one night to derive solutions through discussion to solve on-site problems. Executives in charge would listen to the solutions, decide whether to adopt them, execute them, and share the results. The adoption rate at the time was high, around 70%. Over the past decade or so, it has taken root as KT's way of working and played a major role in transforming KT into a performance-oriented organization."
— What was the first thing KT had to change to transform from a telecom-centered corporation to an AI- and data-centered corporation?
"To transform into a digital platform corporation, setting a new vision was the first necessity. Next, cultivating AI experts was important. We invested to train 300 advanced AI experts and 2,000 basic experts. In this process, we secured the survivability of the telecom network while simultaneously pursuing service innovation centered on AI and data. A transformation into a digital platform corporation that combines AI and cloud technologies was necessary."
— What are the qualities of a "good corporate leader" in the AI era?
"With the advent of the AI and data era, the role of traditional leadership is changing. In the past, leaders guided teams based on knowledge and experience, but now many employees first turn to AI to push their work forward. Leaders are now in a position to compete with AI.
Leaders in the AI era must not be mere managers who transmit knowledge and experience, but leaders who drive innovation. Leaders should emphasize the organization's mission and vision and create an environment where employees can learn and grow. In addition, "co-workership (cooperative leadership)" will become important. Leaders should be partners who work with team members to drive change."
— KT, in its unique structure as a "privatized public corporation," is required to balance managerial autonomy and public interest.
"Because KT is a private corporation, I personally do not like the expression "privatized public corporation." It is clear that, as a private corporation, public interest is important, but I do not think KT should be treated like a public corporation. Institutional improvements matter, but the proper recognition by stakeholders is more important. With proper recognition, controversy will also diminish."