KT to Set up KT Cloud to Expand Cloud and IDC Business

KT announced on Feb. 15 that it will establish KT Cloud, a new corporation, by spinning off its cloud/internet data center (IDC) business through stock distribution. Yoon Dong-sik, a vice president with expertise in the cloud business, was tapped as first president of the new company. 

KT will push for a revision of its articles of association at its regular general shareholders’ meeting in March to introduce dividend in kind of subsidiary shares. The move is intended to enhance corporate value. 

“With the launch of this new corporation, we will create new business opportunities in the rapidly growing cloud/IDC market through aggressive investment and cooperation with partners,” Yoon said.

Meanwhile, KT said it will participate in a capital increase of 500 billion won by Megazone Cloud, Korea’s No. 1 cloud managed service provider (MSP), along with MBK Partners and IMM Private Equity (PE). KT’s investment this time amounts to 130 billion won. Earlier, when Megazone Cloud attracted Series A investment, KT indirectly participated through its subsidiary KT Investment.