Gov’t to sell all shares in postal savings, ‘kampo’ firms

The government plans to sell by 2017 all the shares in planned companies that will inherit state-run postal savings and “kampo” life insurance services, the Yomiuri Shimbun said Tuesday.

The step is intended to make the two companies completely independent of a government-affiliated holding company and funnel their funds into private markets, the newspaper said.

The government will include the step in a draft bill to be mapped out early next year to privatize the state-backed Japan Post, which is in charge of mail delivery, postal savings and life insurance services, the daily said.

The draft bill will not require the planned postal savings and life insurance companies to use post offices to provide their services, it said.

The government adopted a blueprint last September to privatize the state-backed Japan Post in stages beginning in 2007 and complete the process in 2017.

Under the plan, Japan Post will be divided into four companies to be placed under a holding company. Of the four, three will inherit mail delivery, postal savings and life insurance services, respectively, and the remaining firm will manage over-the-counter services at post offices.

Initially, the government will own all the shares in the four companies under the holding company. The blueprint calls for the government to continue to hold at least one-third of the shares even when the privatization process is completed in 2017.