The Korea Exchange saw its operating income rise last year, reigniting a dispute about the current trading fee system.

The KRX, the country’s bourse operator, earned 421.2 billion won ($375.3 million) in operating income last year, up 6.3 percent, or 25.3 billion won, from a year earlier.

Of the operating income, trading fees accounted for 342.2 billion won. The sizable profits are providing ammunition to brokerages and financial firms, which demand a cut in trading fees.

The improved earnings for the KRX were bolstered by the increase in stock transactions last year, sparked by the eurozone fiscal crisis that prompted many retail investors here to reconfigure their portfolios and reduce exposure to risky assets.

The greater turnout in terms of stock trade orders placed by retail investors translated into bigger profits for the KRX, and brokerages continued to argue that the fees should be cut.

The amount of trade orders was valued at 17 trillion won in 2011, up about 20 percent from a year earlier.

The criticism came as the KRX remains a public company. Even though the bourse operator has long pushed for a change in the designation, the government shows no sign of allowing the KRX to change its identity from a public agency to a private one.

Brokerages pointed out that the KRX should overhaul the trading fee system as it unfairly collects an excessive amount of fees, taking advantage of its monopolistic position. Under the current system, brokerages pay a commission that goes up in accordance with the amount of money changing hands. The fixed-rate system tends to bring a sizable income to the KRX.

The KRX earlier said it would cut the fees it collects from securities houses in the second quarter of this year.

The KRX is set to hold a shareholder’s meeting on Mach 13 and handle key issues such as dividend payout.

By Yang Sung-jin (insight@heraldcorp.com)