METI Moves to Scrap Cool Japan Fund After ¥54 Billion in Losses
Updated
Updated · The Japan Times · Aug 21
METI Moves to Scrap Cool Japan Fund After ¥54 Billion in Losses
3 articles · Updated · The Japan Times · Aug 21
Summary
Japan's trade ministry plans to drop the Cool Japan Fund from its fiscal 2027 investment and loan request, effectively setting up the loss-making vehicle for abolition.
¥54 billion in accumulated losses by fiscal 2025 drove the move after years of criticism that the 2013 fund lacked investment discipline and backed weak projects, including a roughly ¥14 billion bet on Spiber.
An expert panel launched last month is weighing whether to dismantle the fund or fold it into other institutions, with a decision due by year-end; some government capital may not be recovered.
METI is shifting support to its grant-based IP360 program, backed by ¥35 billion in the fiscal 2025 supplementary budget, to fund development and overseas expansion of Japanese content without taking equity stakes.
The ministry still aims to lift overseas sales of Japanese content to ¥20 trillion by 2033, betting the new structure can avoid the fund's failures.