The new KKTK or Korrbureau was installed in Vienna in the Modenapalais in Herrengasse. A year later, it was moved to the imperial arsenal in Renngasse, and integrated into the military command. Its first director was General Josef Wilhelm von Gallina (1820–1883), a theoretician of war movement and later chief of staff of the Austrian army. Ludwig Hirschfeld, hired in 1861, took the post of secretary general in 1866. Swiss scientist Karl Brunner von Wattenwy, former physics professor at the University of Bern, who headed the Swiss telegraph administration from 1853 to 1857, became responsible for the same service in Austria and remained there for the rest of the decade. Von Wattenwy was recruited to develop the Austrian telegraph network and boost infrastructure. It was a time when Austria was carrying out the reforms desired by the liberal parties. On June 19, 1861, MP Eduard Herbst proposed four committees to work on a new constitution, including one to institute more press freedom. From 1862 to 1867, however, the freedom of the press granted was affected, as another law allowed any news outlet to be immediately suspended in the event of war or near war.
In June 1866, during the Austro-Prussian War, at the Battle of Sadowa, Prussia defeated Austria, in part thanks to the telegraph. The Austrian army once more first announced a victory and denied its defeat, just like seven years earlier.
After the war, liberals acquired a majority in the Reichsrat. The press was selling, but small newspapers, mostly conservative, had to buy news from the mainstream liberal newsroom. The government then appointed Edward Warrens as the head of KKTK, mostly to serve the domestic press. Warrens was also close to Friedrich Ferdinand von Beust, who would become Minister-President of Austria in February 1867.
The news agencies cartel established in 1859 predicted that the Habsburg realms would be explored by Wolff alone, but in 1866, KKTK began negotiating an agreement with both Havas and Wolff, prompting Reuters to try to gain a foothold in Vienna as well. During the same month, Herbst proclaimed his ideals of freedom. In 1867, he became Minister of Justice in the Auersperg cabinet. In January 1867, the Foreign ministry, now under Von Beust, gained control over KKTK. The agency was then refounded, during the compromise to turn Habsburg Austrian into the Austrian-Hungarian dual monarchy. Its activity is carried away for two years, as the liberal administration allowed the proliferation of daily newspapers. But, as KKTK was still very dependent on Wolff for news from abroad, in February 1867 the Austrians opened a bureau in Prague, and then in May another one in Trieste.
On May 30, 1869, Havas and Wolff signed with KKTK a news exchange agreement, changing its news from Prague, Agram, Pesth and Lemberg for that of Western Europe and Wall Street.
Between 1887 and 1889, German chancellor Otto von Bismarck endeavored to "torpedo the existing alliance between the major world agencies and generalists, Reuters, Havas, Associated Press and the Continental Agency (Wolff), to replace it with a "telegraph Triple Entente" grouping together the German, Austrian and Italian agencies (Agenzia Stefani). It failed, however. During the last decade of the century, the chairman of the Italian Council, Francesco Crispi, promoted the breaking up with Havas, which he accused of propagating false or biased information against Italy, or encouraging France's foreign policy. A mutual exchange agreement was signed by Stefani with Wolff, and KKTK joined, as well as with Reuters, to allow governments to control and censor, if necessary, news from and abroad. As a result, the cartel was further loosened, which made room for Stefani and KKTK to grow.
The KKTK was greatly reduced during World War I. In November 1918, in the aftermath of the Central Powers defeat, Austria was proclaimed a republic and KKTK was split: each bureau in the former empire became the headquarters for a new national agency: the office in Budapest was taken by the Magyar Távirati Iroda (MTI), the one in Prague became the ČTK and the one in Agram (Zagreb) was added to the new Avala agency in Yugoslavia.
The KKTK delegate in Paris, writer Paul Zifferer, who was also press officer and cultural attaché to the Austrian embassy in Paris, presented himself at Agence Havas to explain that the KKTK "had completely renounced the pre-war errors" and refused to "receive anything other than German information" from Wolff. He proposed Allied agencies to centralize news from the Balkans and to disseminate their information there, but was refused. On December 17, 1919, then KKTK director, Joseph Karl Wirth (later chancellor of the Weimar Republic), signed another contract with Havas and Reuters for ten years, which made it a simple repeater of the other agencies in Austria, while Havas became a news collector by opening an office in Vienna.