Hyundai FutureNet, the ICT affiliate of South Korea’s Hyundai Department Store Group, is joining forces with Microsoft Korea to develop AI services tailored to the retail industry.
Hyundai FutureNet announced on Tuesday that it had signed a strategic memorandum of understanding (MOU) with Microsoft Korea for “AX transformation and retail AI innovation.” The signing ceremony took place at Microsoft Korea’s office in Gwanghwamun, Seoul, with Hyundai FutureNet CEO Kim Sung-il and Microsoft Korea CEO Cho Won-woo among the key executives in attendance.
Under the agreement, the two companies will jointly pursue: ▲ establishing an AI security framework for Hyundai Department Store Group’s AI usage environment ▲ expanding AI-centric work environments ▲ developing retail-specialized AI agents ▲ identifying and commercializing new services.
Hyundai FutureNet plans to use this agreement to accelerate the group’s AX transformation. The company will first establish an AI security and governance framework to build a safe foundation for AI adoption, while expanding the deployment of Microsoft 365, a collaboration tool optimized for AI usage, across the group’s operations.
The company also intends to leverage Microsoft’s flagship AI solutions group-wide, including Microsoft AI Foundry, a platform for developing and operating generative AI models and agents; Azure AI, a cloud-based AI service; and Microsoft 365 Copilot, an AI assistant.
The two companies will also jointly develop next-generation AI agents. Hyundai FutureNet’s AI Lab, its dedicated AI research unit, will collaborate with Microsoft Korea’s AI specialist teams to develop AI agents specialized for the retail industry, and jointly design and validate new retail AI services to identify offerings that can be applied to actual business operations.
“This MOU represents a strategic collaboration to accelerate Hyundai Department Store Group’s AI transformation and strengthen its retail innovation competitiveness,” said Kim Sung-il, CEO of Hyundai FutureNet. “Together with Microsoft Korea, we will drive the full spectrum of AI innovation—from building the foundation for AI adoption to developing retail AI agents and commercializing new services—to deliver tangible results.”
Hyundai FutureNet, the ICT arm of Hyundai Department Store Group, has led the group’s digital transformation (DT) efforts. This agreement marks an expansion beyond traditional DT into AI-based work innovation and the creation of new services.
Industry observers expect this collaboration to accelerate AI adoption across the retail sector. In particular, combining AI agents with Hyundai Department Store Group’s offline retail channels and customer data could generate synergies in areas such as personalized shopping experiences and store operational efficiency.
Microsoft has been steadily expanding its AI partnerships with South Korean companies. Through this agreement, Microsoft Korea adds another AI solution deployment case in the retail sector.