Over ¥140 Billion in Government Investment
The Cool Japan Fund, created to turn Japan’s cultural appeal into overseas demand and industrial growth, has instead accumulated deepening losses and now faces a fundamental review over whether it should be abolished or merged.
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Over ¥140 Billion in Government InvestmentOver ¥140 Billion in Government Investment
According to the Cool Japan Fund’s fiscal 2025 business report, released on June 24, revenue plunged 88 percent from the previous year to ¥4.4 billion, while the fund posted a net loss of ¥15.7 billion.
According to the Cool Japan Fund’s fiscal 2025 business report released on June 24, revenue plummeted by 88% from the previous year to ¥4.4 billion, as the organization recorded a net loss of ¥15.7 billion.
The Cool Japan Fund was established in November 2013. By April 2026, a total of ¥151.3 billion had been invested as capital, of which ¥140.6 billion came from the Japanese government. Its purpose was to connect the appeal of Japanese culture to industrial growth: the government and private companies pooled funds to provide sustained investment in projects promoting Japanese creative content, regional specialties, and traditional products overseas, as well as initiatives in the tourism industry.
The Cool Japan Fund was established in November 2013. Up to April 2026, a total of ¥151.3 billion in capital was invested, of which the Japan government contributed ¥140.6 billion. The aim has been to link Japan’s cultural appeal with industry growth, and the Japan government and private companies pooled funds to provide continuous investment in projects related to overseas promotion of Japanese creative content, regional specialties, and traditional products, as well as tourism industry initiatives.
To date, ¥204 billion has been committed to 83 projects, including overseas initiatives and medium- to long-term programs whose risk would otherwise make it difficult for private companies to invest on their own. Yet as an increasing number of projects have been withdrawn without recovering their initial capital, enormous accumulated losses have mounted year after year, and serious doubts are being raised about whether this is an effective means of cultivating overseas demand and revitalizing Japanese industry.
A total of ¥204 billion has been injected into 83 projects to date, including overseas initiatives and medium- to long-term programs that would otherwise pose a high risk and be difficult for private companies to invest in alone. However, with more and more projects being withdrawn without having recovered the initial capital, the result has been huge accumulated losses piling up year after year, and serious doubts are being raised as to whether this is an effective way to develop overseas demand and revitalize Japanese industry.
An Ever-Widening DeficitAn Ever-Widening Deficit
Since 2019, the Ministry of Economy, Trade, and Industry has drawn up three investment plans setting minimum targets to be met. In the revised plan of November 2022, the target was to stop the accumulated deficit from growing any further by fiscal 2024, and then to reduce losses to ¥42.6 billion in fiscal 2025. But the deficit continued to expand, leaving that target out of reach.
Since 2019, the Ministry of Economy, Trade, and Industry has formulated three investment plans setting out minimum targets to be achieved. In the revised November 2022 plan, the target was to halt further accumulated deficit by fiscal 2024 and then reduce losses to ¥42.6 billion in fiscal 2025. However, the deficit continued to grow and this target remained unattainable.
Economy, Trade, and Industry Minister Akazawa Ryōsei had previously stated that, should the target not be met, the ministry would “consider taking concrete measures, including abolishing the fund or merging it with another body,” and a review panel is expected to be established shortly.
Minister of Economy, Trade, and Industry Akazawa Ryōsei previously stated that if the target was not met, the ministry would “consider taking concrete steps either to abolish or merge the fund with other bodies,” and a review panel is expected to be formed soon.
Data SourcesData Sources
- Cool Japan Fund fiscal 2025 business report (Japanese)
- Fiscal 2025 business report (Japanese) from Cool Japan Fund
- Ministry of Economy, Trade, and Industry May 2026 report on the Cool Japan Fund (Japanese)
- May 2026 report on Cool Japan Fund (Japanese) from the Ministry of Economy, Trade, and Industry
- Ministry of Economy, Trade, and Industry summary of Industry Minister Akazawa’s post-cabinet meeting press conference on June 16, 2026 (Japanese)
- Summary of Industry Minister Akazawa’s post-cabinet meeting press conference on June 16, 2026 (Japanese) from the Ministry of Economy, Trade, and Industry