Will Chunghwa Post Lend NT$300 Billion to Taipower? Chunghwa Post Clarifies: Funds via Bank Time Deposits, Not Direct Loan

(Taipei, June 17) Reports suggest that Taiwan Power Company (Taipower) will receive a special NT$300 billion loan from eight state-owned banks, with funds sourced from Chunghwa Post's interbank time deposits. Today, Chunghwa Post stated that its fund utilization includes various methods such as placing time deposits with banks to earn interest, and it is not directly lending money to any enterprise.

Media citing Reuters reported that Taipower will obtain a NT$300 billion special loan from eight state-owned banks to alleviate financial pressure caused by frozen electricity prices. The loan term is three years with an interest rate of approximately 1.85%. The funding source follows the previous model used for CPC Corporation’s special financing, where Chunghwa Post provides funds via time deposits.

The Transportation Committee of the Legislative Yuan today reviewed the 2026 Central Government Budget, specifically the operational budget of Chunghwa Post under the Ministry of Transportation and Communications.

KMT legislator Hung Meng-kai pointed out that Chunghwa Post's annual operating revenue is budgeted at over NT$170 billion. Some media reported that due to Taipower’s losses, the Ministry of Economic Affairs coordinated to redirect NT$300 billion from Chunghwa Post—nearly double its annual revenue.

Hung questioned whether this amount, derived from user deposits and life insurance funds, should be lent to Taipower. If Taiwan's energy structure remains unchanged, Taipower may continue to incur losses and face repayment difficulties. Without clear terms on interest rates and repayment schedules, suddenly transferring funds from Chunghwa Post to Taipower would be unacceptable to depositors. If such financing proceeds, it should be reviewed by the Legislative Yuan’s Transportation Committee.

Chunghwa Post Chairman Wang Kuo-tsai stated that the company currently manages approximately NT$7.6 trillion in postal savings and NT$1 trillion in life insurance funds. According to Article 18 of the Postal Savings and Remittance Act, funds can be used in multiple ways, including purchasing stocks, government bonds, and placing time deposits with banks to earn interest. The scale of past interbank time deposits has been around NT$1 trillion.

Wang noted that during last year’s implementation of the New Young Citizen Homeownership Scheme, NT$20 billion was placed as time deposits, and Chunghwa Post earned interest—“This is not Chunghwa Post directly lending money to any enterprise.” He emphasized that such fund deployment is routine.

Wang added that this time, the mechanism remains the same: Chunghwa Post places funds as time deposits to earn interest, and the eight major banks subsequently lend to Taipower or CPC. “Our role is simple: investment via time deposits.”

In response to KMT legislator Lu Ming-che’s concern about whether Chunghwa Post would bear responsibility if Taipower defaults on its loan, Wang clarified that Chunghwa Post is purely a deposit holder. Any loan-related issues, including interest and defaults, are between the banks and Taipower or CPC.

(Editor: Huang Ming-hsi) 1150617

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