KT, NHN launch cloud subsidiaries

South Korea’s second-largest wireless carrier KT Corp. launched a cloud computing subsidiary on Friday. 

Cloud computing is the on-demand availability of computer system resources like data storage and computing power without the costs of building and maintaining data centers.

KT Cloud is a spin-off from the telecom company’s cloud and internet data center businesses. The major data centers owned by KT Corp. will now be under KT Cloud. 

The subsidiary is wholly owned by the parent company and aims to reach 2 trillion won in revenue by 2026.

KT Vice President Yoon Dong-sik was appointed as the cloud arm’s CEO. 

Going forward, KT Cloud plans to develop its own graphic processor units (GPUs) and artificial intelligence semiconductor chips.

Tech giant NHN Corp. also launched a cloud subsidiary on the same day.

Just like its KT counterpart, NHN Cloud is also a spin-off of the parent company’s existing business in cloud management and artificial intelligence. 

NHN began its cloud technology in 2014, specialized for the gaming industry. 

The internet conglomerate’s chief information officer Paik Do-min and the head of the cloud business Kim Dong-hoon were appointed as co-CEOs. 

Paik is in charge of the company’s direction and human resources management while Kim is tasked with overseeing its business strategy. 

Write to Da-Eun Choi at max@hankyung.com
Jee Abbey Lee edited this article.