KT Corp., a major South Korean mobile carrier, said Thursday it has signed an agreement with Kakao Corp.'s telecom unit Stage Five to develop an artificial intelligence-powered companion robot targeting children and the elderly.

Under the agreement, also signed by Taiwan-based Nuwa Robotics Corp. and the nongovernmental organization Ashoka Korea, the companies aim to release the companion robot in the first half of next year.

KT said the robot will feature basic movement, such as nodding its head and folding its arms, and also be equipped with interactive content based on the mobile carrier's smart speaker AI technology to serve as a companion to children and the elderly.

For example, the robot can be controlled by voice command and provide exercise services for children, as well as patient care services, such as providing instructions for taking medicine.

The agreement comes as KT has recently focused on developing robot-based services.

The telecom operator partnered with local restaurant franchise operator MFG Korea earlier this month to test its server robot at a restaurant in southern Seoul.

KT also bought a 10 percent stake in Hyundai Robotics Co., the largest industrial robot manufacturer in South Korea, earlier this year. (Yonhap)