Japan's PM Wants Postal Privatization

Share this article:
Prime Minister Junichiro Koizumi yesterday proposed privatizing Japan's postal service by 2017, according to the Associated Press.


The plan calls for splitting Japan Post into separate businesses for mail delivery, banking services and insurance starting in 2007. A fourth company would handle employee salaries and manage post office properties, according to the AP.


The companies would be grouped under a holding company at first, but the umbrella organization would have to sell its shares in the banking and insurance enterprises by 2017.


The prime minister's plan mandates that the new company have a duty to provide universal postal service nationwide, including in isolated areas where maintaining a presence might be unprofitable. The government would set up a $9.3 billion fund to help.


Koizumi hopes to win over opponents to the plan in his own Liberal Democratic Party so he can submit legislation to Japan's parliament this month, but he may face a tough battle. There is a risk that his plan, designed in part to subject the postal service to market discipline, will enable the revamped company to overwhelm existing domestic private banks because of its size, the AP reported.


Japan Post has savings deposits of $2.1 trillion, more than three times those of Mitsubishi Tokyo Financial Group Inc., which at $626 billion is Japan's largest private holder of deposits.


Japan's postal system has 25,000 branches while the country's seven nationwide banks combined have only 2,606 branches.


Melissa Campanelli covers postal news, CRM and database marketing for DM News and DMNews.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters


Share this article:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in News

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in News

Target Names Retail Veteran Brian Cornell as CEO

Target Names Retail Veteran Brian Cornell as CEO

He leaves the top job at PepsiCo Foods to take the spot vacated by Greg Steinhafel in the aftermath of the data breach.

NBA Names Insurance Exec as its CMO

NBA Names Insurance Exec as its CMO

Nationwide and State Farm veteran Pamela El takes the league's marketing helm next month.

Bloomberg Names Bigley CMO

Bloomberg Names Bigley CMO

Communications chief Deirdre Bigley is appointed head of global marketing for the business and financial news company.

Copyright © 2014 Haymarket Media, Inc. All Rights Reserved
This material may not be published, broadcast, rewritten or redistributed in any form without prior authorization.
Your use of this website constitutes acceptance of Haymarket Media's Privacy Policy and Terms & Conditions.