Government to Control Paycheck of KRX Employees
By Yoon Ja-young
Staff Reporter
Korea Exchange (KRX), the country's stock market operator, was designated a public institution Thursday, putting its employees, famous for high salaries get, under government control. The KRX union, however, said it would organize protests against the move.
The Ministry of Strategy and Finance said it has added nine organizations, including the KRX, to the list of public institutions. Those designated as such are subject to audit by the Board of Audit and Inspection and are under government control regarding their budget and workforce.
Seventeen organizations including the Financial Supervisory Service, meanwhile, were deleted from the list. Currently, there are 297 public institutions.
The government noted KRX's lax management. The bourse operator has piled up over one trillion won in retained earnings thanks to the commission it gets from stock investors. However, it was reluctant to lower the commission. Thanks to the easy money making structure, KRX employees get over 100 million won annual salaries on average.
However, there is some controversy regarding the designation. The union points out that the government privatized the bourse operator back in 1988. Now, it is going back. Some law professors say that KRX, a private corporation whose stocks are owned by securities companies, can't be designated as a public institution.
The government, however, said that the bourse operator was de facto a public institution, making over 70 percent of its income from its monopolistic stock and bond trading facilities. Current law states that those making over 50 percent of their income from a monopolistic business can be designated as a public institution. It also pointed out that the KRX was engaged in public services such as overseeing and regulating the stock market.
The union is fiercely protesting, and said it would consider a strike. Management also said that it would think about taking legal action, including filing a petition with the Constitutional Court.