The government said Friday it has selected former Sumitomo Mitsui Banking Corp. President Yoshifumi Nishikawa to run the holding company that will oversee the privatization of the postal system.

Japan Post, a state-run entity that offers postal services, is to be split into four units that will operate under a holding company beginning in October 2007. The five firms will be fully privatized over 10 years.

Under the postal system privatization laws enacted last month, the holding company will own postal savings, life insurance, mail service and the post office network companies.