Opinion on the Draft Cabinet Ordinance for Revising the Enforcement Ordinance of the Postal Privatization Law

JBA finalized its opinions on the Draft Cabinet Ordinance for Revising the Enforcement Ordinance of the Postal Privatization Law and Draft Order on Business Restrictions in the Transition Period of the Postal Savings Bank and Postal Insurance Company on June 22 in the Planning Committee, and submitted them to the Financial Services Agency on June 26.

The opinion paper stressed the importance of reducing the business scale of Postal Savings and ensuring fair competition with private financial institutions. Furthermore, JBA asked in the paper that (1) The sale of insurance products of the Postal Insurance Company that the Postal Savings Bank may conduct be subject to governmental approval, as the sale of insurance is not included in the current postal savings businesses, and (2) The Postal Savings Bank be required to submit documents for judging whether it may disrupt fair competition with other financial institutions, when submitting applications for approval of additional businesses.