The planned listing of the shares of Japan Post Holdings and its two financial units this fall puts the postal privatization initiated a decade ago in its final phase, but uncertainties remain regarding the full privatization of Japan Post Bank and Japan Post Insurance as well as the future shape of the Japan Post group's business. The government and the holding company are urged to clarify as quickly as possible the path for full privatization of the group's financial arms so these units can draw up their future business plans.
Privatization of the formerly state-run postal services began with a law enacted in 2005 under the administration of Prime Minister Junichiro Koizumi. Currently, the government holds all of the shares of Japan Post Holdings, which in turn 100 percent owns Japan Post Bank, the operator of the former Yucho postal savings system, and Japan Post Insurance, which runs the former Kampo life insurance service.
As their shares get listed on the Tokyo Stock Exchange, likely in early November, the government plans to gradually reduce its stake in Japan Post Holdings to a little more than a third of the total, while the holding company would sell off the Japan Post Bank and Japan Post Insurance stocks until its stake in each of the financial arms goes down to around 50 percent.