South Korea’s telecom giant KT Corp. announced plans to strengthen software development for connected cars with an aim to generate sales of 500 billion won ($436.2 million) a year in this sector by 2022.
According to its business plan revealed on Thursday, the wireless carrier said it will go beyond providing car network connections to building software that help run internet-enabled vehicles. In addition, it will gradually apply its artificial intelligence (AI) services to vehicles after a test run with automakers, the company said.
“Starting 2018, revenue from connected car business is expected to be reflected (in our overall sales) as we have already won over 200 billion won worth of orders,” said Kim Joon-geun, head of the IoT business unit at KT. “We plan to focus on platforms and contents to become a major automotive software player.”
The firm has sealed deals with 13 automakers across six countries for its connected car services so far. It has partnered with Hyundai Motor Co., the country’s largest automaker, for the past 13 years, and in the recent two years has forged alliances with Mercedes-Benz and other major carmakers in Europe and Japan. The telecom company expected that its platforms and software would be mounted on 75 percent of all connected cars to be released in Korea this year, with this number to reach 91 percent by 2020.
The company plans to improve GiGA Drive, its platform for IoT vehicles, and promote it by forming partnership with global automakers. The platform supports communication networks, infotainment services, real-time management and big data analysis.
KT also aims to bolster its in-car entertainment business and enable hands-free voice control using its AI platform GiGA Genie.
By Kim Gyu-sik
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]