Young-Jin Kim: Thank you for the two questions, Mr. Jeong. And your first question was about the inflationary pressures such as the power costs. The inflationary pressures, including the utility cost has been observed across the board and KT is the same though, we have seen inflationary pressures regarding electricity and some of the commission and fees as well and this has had impact on our numbers. And if you look at our utility, electricity cost, especially it has increased in double digits Y-o-Y basis based on the steep increase of the unit cost of power. However, we have been making continuous effort to replace equipment and facilities that have been showing low energy efficiency and we have been working to optimize our equipment and facilities.
At the same time, we have been making effort to achieve structural cost reduction as well. And other than domain utility and fees costs in order to enhance cost competitiveness in our overall businesses, we have been improving our business processes to become more efficient. We have been also leveraging AI and DX technologies to further increase our cost — improve our cost structure. For example, there may be some commissions regarding the opening of new handsets. So, we have been encouraging self-opening of new handsets for our customers so that we can enhance the efficiency of our after service network in this area. Also, we have been applying AI to our call centers and these efforts have led to higher productivity and also efficiency. And we will be making continuous effort to achieve structural improvement to enhance both productivity and efficiency by improving our overall business processes.
And of course, these are not one-off efforts. These are sustainable structural improvements. So, they should have continued positive impact to our business. And then your second question was regarding the KT strength in the AI competition in Korea. So, on the 31st of October, we launched our large AI service, MIDEUM and we will be starting our corporate business with our MIDEUM service in earnest very soon. We launched 4 [ph] services from light to the large, super large models with the MIDEUM service. So currently, our service line-up can satisfy every corporate size and purpose. We also work with KT Cloud to offer the full AI stack with the MIDEUM service. This means that even if the required customer does not have the infrastructure for development and learning for the AI service, we can offer the full package.
So, this will significantly reduce the cost of introducing AI for our customers and also, we can offer customized services to our customers. Like you’ve mentioned, there are many players entering the large AI market. I believe that KT has largely 3 key strengths as key competitiveness against our peers. The first is that we offer the light service all the way up to the super large service. So, we are able to offer customized services for all of our customers. And the second is that we offer the full stack, including the Korean AI software, hardware and so on. We are the only Korean operator — we are the only operator in Korea that can offer the full stack of AI because we have cloud and AI and the cloud form of the KT group and the customers can leverage these capabilities of KT to develop customized services that will satisfy the exact need for their own business.
And our MIDEUM is embedded in the Korean system. So, compared to our global competitors in terms of the answers that the AI can provide and in terms of the security of the overall AI system, I believe we have the competitive edge. And however, initial goal would be to penetrate the private LLM market in Korea because we have strong B2B customer base and our current capabilities can help customers develop customized LLM models. We believe that the private LLM market will be a good start. At the same time, we have existing AI services such as AICC and GiGA Internet. So, the large AI model can be applied to these existing services to boost profitability of these services. At the same time, they can be applied to our own business to boost the overall productivity and efficiency, further contributing to the profitability of the company.
Seung-Hoon Chi: Thank you. We can move on to the next question.
Operator: The following question will be presented by Joonsop Kim from KB Securities.
