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Postal Reform Law passed the Japanese Parliament

Published: 2 May 2012
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 The current postal law privatized and broke up the Japan Public Postal Corporation into the Japan Post Group in October 1, 2007. It has been exposed inconvenience to customers and workers. The Japan Postal Group (JPGU) welcomed this legislation leading to eliminate many problems created by the postal privatization. The main points of this legislation are to reorganize the Japan Post Group (JP Group), to sell off the financial section shares of JP Holdings, and so on.



This legislation makes it possible to restructure the current five-company structure into a four-company system, merging the Japan Post Service and the Japan Post Network to resolve the problem of segmented operations between the two companies. The merged company will expand its operations so it can meet users' specific needs. The merger will allow delivery people to make deposits for customers. This new law obligates post offices to provide universal postal and financial services across Japan.



The revised law stipulates that the JP Holdings should sell all of its Japan Post Bank, and Japan Post Insurance shares "as early as possible." This legislation can allow the government to retain control of the banking, mail and insurance for years to come.

When it finishes disposing of more than half of the two companies' shares, they will be allowed to enter new business fields through the simplified procedure of reporting the government.



The Great East Japan Earthquake exposed negative perspectives of postal breakups. Working efforts of postal workers were blocked by the postal law restricting business flexibility of Japan Post Group. The legislation of the postal reform law will eliminate inconvenience. At the same time, according to this new postal reform act, profits from the sale of two-thirds of the shares of Japan Post Holdings will be used to help reconstruct the earthquake- and tsunami- hit Tohoku region.



As for the JPGU, this new postal reform legislation is not exactly the same as what JPGU has asked for the DJ government. The Japanese parliament has been divided between the ruling party of DPJ and opposition camps. JPGU had to accept second best postal legislation. This legislation makes it possible to halt the excessive postal privatization undertaken by former Prime Minister Junichiro Koizumi.