Japan Post vows to keep rural mail service
The new holding company running Japan’s postal service promised it would continue serving unprofitable rural areas.
Japan Post Holdings Co., beginning a 10-year privatization of some 24,000 post offices, said it would create a fund to maintain the old Postal Services Agency’s nationwide “universal service,” even as it pursues profitability amid growing competition.
Some 240,000 postal workers, who lost their status as public workers, began wearing new uniforms Monday.
A company spokesman said no system troubles had been reported with the changeover.
With the privatization, the company, which also controls insurance and banking, became the world’s biggest commercial bank, with more than USD 3.1 trillion in assets, eclipsing Citigroup Inc.’s USD 2.22 trillion.
Despite banking-industry opposition, the company’s Japan Post Bank subsidiary plans to start mortgage and credit-card businesses, the Kyodo News service reported.
It also seeks alliances with banking rivals with consumer, business and financial-products investment experience, the news agency said.
It is in talks with Shizuoka, Japan’s Suruga Bank Ltd. to collaborate on home loans, the agency said.
Within three years, the holding company plans to spin off Japan Post Bank and Japan Post Insurance Co. and list them on the Tokyo Stock Exchange, leaving the company to focus on mail delivery and counter service, Kyodo News said.
