News On Japan

Corporate Bankruptcies in Japan Surge

TOKYO, Apr 09 (News On Japan) - Japan witnessed over 9,000 corporate bankruptcies nationwide in fiscal 2023 for the first time in nine years.

According to Tokyo Shoko Research, there were 9,053 cases of corporate bankruptcy (with debts of 10 million yen or more), marking a 31% increase from the previous fiscal year, which had 6,880 cases. The total debt amounted to 2.463 trillion yen.

This resurgence to over 9,000 cases hasn't been seen since the fiscal year 2014, which recorded 9,543 cases. All ten industry sectors experienced an increase in bankruptcy cases, with the "services and others" sector leading with 3,028 cases, a 34% increase from the previous year.

The construction industry faced the largest growth rate, with a 39% increase to 1,777 cases, attributed to the rising costs of materials, labor, and a shortage of workers. The primary cause of bankruptcy was identified as "sales slumps," accounting for 6,624 cases (a 35% increase), but bankruptcies due to high prices (684 cases, a 73% increase) and labor shortages (191 cases, a 141% increase) have also surged dramatically.

Tokyo Shoko Research points out that the business model for small and medium-sized enterprises has been built on the premise of low interest rates. With the potential removal of the Bank of Japan's negative interest rate policy, there's a strong possibility that corporate bankruptcies may further increase, particularly after the summer.

Source: ANN

News On Japan
POPULAR NEWS

Japanese astronaut Takuya Onishi has been appointed commander of the International Space Station (ISS), becoming the third Japanese to assume the role.

Transportation of a 150-meter railway rail—the longest in the world—manufactured at a steelworks in Kitakyushu City, began on April 18th. The rail will be delivered to Hokkaido over the course of about four days for use in the Hokkaido Shinkansen extension project.

The Japan Society for the Study of Obesity has issued a warning about the health risks of excessive thinness and poor nutrition among women, positioning what it calls 'women's underweight and malnutrition syndrome' as a newly recognized health condition.

Once a familiar and comforting presence on urban streets, Japan's cherished ramen stalls are quietly fading away as stricter regulations, an aging workforce, and evolving consumer preferences make their survival increasingly difficult.

A bear attacking a live deer outside a hotel in Kamikawa, Hokkaido, has shocked onlookers and prompted heightened alert from local authorities.

MEDIA CHANNELS
         

MORE Business NEWS

Rapidus has begun operating a trial production line for cutting-edge 2-nanometer semiconductors this month at its plant in Chitose, Hokkaido. The launch marks a major milestone for Japan’s domestic semiconductor ambitions and has triggered a surge in land prices, new developments, and an influx of related companies into the city.

Consumer prices in Japan rose by an average of 2.7% in fiscal 2024, marking the third consecutive year of inflation above 2%—a stretch not seen since the bubble economy era. But despite similar inflation figures, consumer sentiment today is far less optimistic.

A factory that converts discarded tempura oil into jet fuel using a world-first method has officially begun full-scale operations in Tahara City, Aichi Prefecture.

A groundbreaking ceremony was held on April 15th in Tomakomai, Hokkaido, for one of Japan's largest data centers, which is scheduled for completion in fiscal 2026.

Rice prices in Japan have surged dramatically, with 5-kilogram bags now commonly priced in the 3,000 to 4,000 yen range and in some cases exceeding 6,000 yen including tax. This price surge has caught consumers off guard, and supermarkets are experiencing both high prices and shortages.

Nissan’s new president, 46-year-old Ivan Espinosa, may symbolize change for the struggling automaker. However, his appointment raises eyebrows: Espinosa previously served as head of product planning—a role directly tied to the decline in the company’s brand appeal.

While the purpose of World Expositions has evolved over time, the 2020 Dubai Expo hosted 98 business events, drawing over 25,000 participants from more than 130 countries, both in-person and online. Events covered themes like space and medicine, offering opportunities for companies to hold negotiations.

Mitsubishi Motors has suspended shipments of new vehicles to its dealerships in the United States, citing uncertainty over the impact of new U.S. tariffs on imported cars imposed by the Trump administration.