Taiwan's Post Offices to be incorporated from Jan 1

The Directorate General of Posts at the Ministry of Transportation and Communications said it will be incorporated as Chunghwa Post Corp from Jan 1.

The Directorate General of Posts runs the island’s post offices and also owns Directorate General of Postal Remittances and Savings Banks (DGPRSB) that conducts operations such as deposits, loans and life insurance.

“Upon its incorporation, the state-run entity will have a capital of 40 bln twd and capital reserves of 60 bln twd,” an official from the Directorate General of Posts said.

Chunghwa Post Corp will also include DGPRSB.

The MoTC vice minister Chang Chia-juch will temporarily chair Chunghwa Post Corp until the Executive Yuan or the cabinet decides on the new chairman, likely in early January.

“The new chairman will have to prepare, within one year, a scheme for privatisation (for Chunghwa Post Corp),” the official said.

In Taiwan, a privatisation will result in the government’s stake falling bel ow 50%.