Japan Post Group Announces Leaders' Resignation

Economy

Tokyo, Dec. 27 (Jiji Press)--Japan Post Holdings Co. <6178> on Friday announced the resignation of three group company presidents after the group received administrative punishments for improper sales of "Kampo" insurance products.

Masatsugu Nagato, president and chief executive officer of Japan Post Holdings, will resign after the turn of the year. Former internal affairs minister Hiroya Masuda will succeed him, taking the helm of the huge group rocked by the sales scandal.

On Friday, the Financial Services Agency ordered Japan Post Insurance Co. <7181> and Japan Post Co., the mail delivery arm of the holding company, to suspend part of their operations for three months through March 2020. The agency also issued a business improvement order to the two units and their parent.

Meanwhile, the internal affairs ministry issued a business improvement order to Japan Post Holdings and Japan Post Co. The ministry's action also included a business suspension order meted out against the mail unit.

"It is a serious problem, and a drastic improvement is needed," internal affairs minister Sanae Takaichi told a press conference after a cabinet meeting.

[Copyright The Jiji Press, Ltd.]

Jiji Press