Introduction Starting April next year, Japan is set to initiate a “taxi company exclusive” ride-sharing service. This decision has sparked debate and raised questions about whether entrusting this to the traditionally resistant taxi industry can genuinely support regional life and the economy, especially in depopulated areas. Background and Decision This summer, the discussion around ride-sharing suddenly gained momentum in Japan, culminating in the government’s decision on December 20th to launch a restricted version of ride-sharing from April. Contrary to the global standard of ride-sharing, which typically involves new legal frameworks like a specific “Ride-Sharing Business Law,” Japan’s version will operate under existing laws and be limited to taxi companies. This...

Introduction Minna no Ginko, hailed as Japan’s first digital bank, commenced its operations in May 2021 amid much fanfare. Launched by Fukuoka Financial Group (FG), one of the leading regional banking groups, it was the first internet bank established by a regional bank. Major newspapers and online media lauded its business model as an innovative departure from traditional banking. Current State of Affairs However, the bank’s operational reality paints a grim picture. Initially projecting to turn a profit in its third year, Minna no Ginko is now facing its third consecutive year of losses. With a staggering loss of 2.7 billion yen in its September interim results, significantly higher than...

Introduction In a significant move within the Japanese automobile industry, Masanori Katayama, Chairman of Isuzu Motors, is set to become the new chairman of the Japan Automobile Manufacturers Association (JAMA) starting January 2024. This announcement was made by Akio Toyoda, current JAMA chairman and chairman of Toyota Motors, during a press conference on November 22, 2023. Breaking Tradition Traditionally, the role of JAMA chairman has alternated among the heads of Japan’s leading automakers: Toyota, Nissan, and Honda. Katayama’s appointment from Isuzu, primarily a commercial vehicle manufacturer, marks a departure from this custom. Toyoda explained this decision by highlighting the looming “Logistics 2024 Issue,” a reference to upcoming regulations on truck...

Introduction LINE Yahoo, a major IT company in Japan, recently faced a significant setback. In November, the company announced a potential data breach impacting approximately 440,000 users of the LINE app, with confirmed leaks in about 390,000 cases. The Data Breach The leaked information included details that could potentially identify users, such as age, gender, and call frequency, covering over 20 different data points. Additionally, around 22,000 pieces of data considered private under Japan’s constitution’s “secrecy of communications” were believed to have been leaked. Government Response Following the breach, Japan’s Minister of Internal Affairs and Communications, Junji Suzuki, criticized the company at a press conference for failing to protect user...

In September 2023, Tohoku University was selected as a candidate for the International University of Excellence, supported by a university fund. With a fund size of 10 trillion yen, expectations are high, but can it curb the decline in research capabilities? This article analyzes its system design and policy process. The university fund, managed by the Japan Science and Technology Agency, involves borrowing financial investment funds to create and market-manage a fund that supports specific universities in becoming world-class research universities. The plan is to contribute 300 billion yen annually. For universities to be accredited, they need to strengthen their research and administrative systems. Government documents appraise universities like Harvard...

Japanese companies and their leaders’ risk-averse nature have led to missed growth opportunities in the global market. To overcome this, a fundamental enhancement and development of management personnel are crucial. Entrepreneurship involves understanding one’s capabilities and taking on market and technological risks while developing unique strategies for creating new value and returns. However, a study by Yasuhiro Arikawa, an associate professor at Waseda University, in 2017 showed that Japanese companies ranked 26th out of 27 major countries in risk-taking and last in return on assets (ROA). This highlights the issue of low returns due to a lack of risk-taking. Japanese firms face various challenges due to this risk aversion. They...

Nikkei Inc., renowned for its economic news coverage, is set to cease publication of two of its specialty papers, Nikkei Sangyo Shimbun and Nikkei Veritas, by the end of the year. This decision comes amidst a challenging climate in the declining newspaper industry, exacerbated by surging costs for newsprint and a shortage of writers. Despite Nikkei’s relative advantage over other national newspapers, its flagship paper has seen its circulation halve from its peak, and growth in digital subscriptions has stagnated. The company marks the 50th anniversary of the Nikkei Sangyo Shimbun this October, a publication born to compete with the Nikkan Kogyo Shimbun during the industrial boom. It is known...