Seoul: KT Corp., a major South Korean mobile carrier, announced plans to cancel 1 trillion won (US$726 million) worth of treasury shares by 2028 in an effort to enhance its corporate value. The company outlined this strategy as part of its “value-up program,” which focuses on improving profitability and transforming KT into a comprehensive artificial intelligence (AI) and information technology (IT) company.

According to Yonhap News Agency, KT aims to achieve a return on equity (ROE) of 9 to 10 percent by 2028 by restructuring low-growth businesses and selling non-core assets, including idling properties. This target marks an increase from the current ROE of 6 percent. Additionally, KT plans to boost the ratio of its AI and IT businesses within overall sales from the current six percent to over 19 percent by 2028.

The company reported total sales of 26.38 trillion won for the year 2023. The planned share buyback, aimed at enhancing shareholder value, is set to occur over four years beginning in 2025. This i
nitiative aligns with KT’s broader strategy to fortify its market position and financial performance.

Last month, KT announced a significant partnership with Microsoft Corp., aiming to generate a cumulative 4.6 trillion won in sales by 2029. In September, both companies signed a five-year agreement to jointly invest 2.4 trillion won in advancing AI technologies. This collaboration focuses on developing new AI models tailored to the Korean language and culture, as well as creating new cloud services for Korean corporate customers.