Taiwan Post Will Corporatize by June 2002

Taiwan Post Will Corporatize by June 2002
September 28, 2001 — Perris Lee , Dow Jones: “Taiwan plans to corporatize its Directorate General of Posts that is currently governed by the transport ministry, by June next year, an official at the ministry said Friday. The official, who declined to be named, said the ministry is also considering a Ministry of Finance suggestion to turn the posts unit into a financial holding company, as its businesses encompass postal services, accepting deposits and insurance and funds transfers. The posts unit is the largest depository unit in Taiwan with total deposits of up to NT$3 trillion (US$1=NT$34.526). It also controls one of the ‘big four’ government funds that occasionally intervenes to support the stock market. The transport ministry will submit to the Cabinet a bill on the corporatization plan soon and hopes that the bill will be passed during the current legislative session ending November. Assets of the corporation, which will be 100% state-owned and will tentatively be named Chunghwa Postal Co. Ltd., are still being evaluated, the official said. Sources said the company could be capitalized at between NT$20 billion and NT$40 billion. Long-term efforts will be aimed at privatizing the corporation, the official said, but added that given the market conditions, that plan would probably be put off indefinitely.”