politics
Japan Enacts Bill to Subsidize Nationwide Post Office Network
Parliament approved annual subsidies of about ¥65 billion starting in fiscal 2027 and eased requirements on Japan Post Holdings to sell stakes in its banking and insurance units.
The Japan TimesAudio version
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Japan’s parliament enacted a bill on Friday to revise postal privatization laws and authorize annual government subsidies to maintain the country’s post office network. The Upper House passed the measure by majority vote at a plenary meeting on June 19, 2026, after the Lower House approved it on June 16.
The government will provide about ¥65 billion ($403 million) in subsidies each year beginning in fiscal 2027, drawing from dividends on shares it holds in Japan Post Holdings.
The legislation requires Japan Post Holdings to retain equity stakes above one-third in both Japan Post Bank and Japan Post Insurance for the foreseeable future. Before the revision, Japan Post Holdings had been required to dispose of those stakes as early as possible.
The bill designates community-oriented services, including work for local governments, as core post office operations that must continue unless they interfere with other functions.
It also directs Japan Post, the mail and parcel delivery company wholly owned by Japan Post Holdings, to raise operational efficiency through digital technologies and more effective use of business resources. The Japan Times reported that the changes aim to strengthen the group’s financial base while preserving nationwide service.
