KT Corp., a South Korean telecom giant, said Thursday it has formed business ties with IBM Korea and local major banking firm Woori Bank to develop artificial intelligence (AI) technology for financial services.

The three will establish an AI lab to develop new services, such as an AI-based language model specifically designed for the financial sector and an asset management system that uses AI technology to make quick and accurate market predictions, according to a statement from the telecom operator.

The move aims to boost Woori Bank's efforts to integrate more digital and AI technology into its services.

The agreement came as KT expands into new online business services from its traditional telecom-focused services.

In March, KT CEO Ku Hyeon-mo vowed to increase sales from its digital platform services to account for half of the company's total by 2025. (Yonhap)