Rising Costs and Yen Depreciation Lead to Surge in Bankruptcies

TOKYO, Jun 10 (News On Japan) - The number of corporate bankruptcies in Japan last month surpassed 1,000 for the first time in nearly 11 years.

According to Tokyo Shoko Research, there were 1,009 corporate bankruptcies nationwide in May involving liabilities of 10 million yen or more, marking a 42% increase compared to last year.

The total liabilities amounted to 136.769 billion yen, a 50% decrease from the previous year.

This is the first time since July 2013, approximately 10 years and 10 months ago, that the number of bankruptcies has exceeded 1,000 in a single month.

By industry, the service sector accounted for the largest share at 32%, followed by construction at 19% and wholesale at 13%.

The most common cause of bankruptcies was poor sales performance, with 753 cases reported. Additionally, there were 87 bankruptcies attributed to rising prices, the highest number since the COVID-19 pandemic began in 2020.

Moreover, the number of bankruptcies involving companies that utilized the government's zero-interest, unsecured loans, known as 'zero-zero loans,' also reached a record high of 67, matching the figure in March.

Tokyo Shoko Research noted that the combination of the end of COVID-19-related support measures, yen depreciation, rising prices, and labor shortages is putting significant pressure on business operations.

The annual number of bankruptcies is expected to exceed 10,000 this year for the first time in 12 years.

Source: ANN

Fire Engulfs Waste Plastic Plant in Ibaraki

A large fire that broke out late on November 23rd at a waste plastic recycling plant in the city of Bando in Ibaraki has continued to burn for roughly 18 hours, with no clear timeline for containment. The blaze was first reported at around 10:40 p.m. on November 23rd when nearby residents alerted firefighters after seeing flames and smoke rising from the site.

Japan’s Labor Shortage Pushes Thousands of Firms Toward Failure

A deepening labor shortage is increasingly weighing on the Japanese economy, forcing businesses to shorten operating hours or scale back services and generating massive lost opportunities that are estimated to reach 16 trillion yen in fiscal 2024.

Japan Plans Major Increase in Immigration Fees

The Japanese government is moving to substantially raise fees for residence-related administrative procedures for foreign nationals, aiming to secure stable funding for its foreign resident policy as the number of foreign residents in Japan continues to grow.

Year-End Jumbo Lottery Sales Begin With 1 Billion-Yen Dream

Sales have begun for the Year-End Jumbo Lottery on November 21st, offering a combined 1 billion yen for the first prize and bonus numbers, prompting long queues of people hoping for a once-in-a-lifetime windfall.

Hokkaido Struggles to Dispose of Culled Bears

Culling of bears in Hokkaido has surged to unprecedented levels this fiscal year, with 963 animals killed across the prefecture as sightings and human attacks rise at a record pace, prompting local governments and disposal facilities to struggle with the sheer volume of carcasses awaiting processing.

MEDIA CHANNELS

MORE Business NEWS

The Mystery Behind Japan's Consumer Price Index

The steady rise in food prices in Japan has become unmistakable, with some items increasing by as much as 10% in September 2025, yet the overall consumer price index shows growth of only around 3%, leaving many wondering why the gap is so large and whether official data truly reflects the burden households feel.

3% of New Tokyo Condos Acquired by Overseas Residents

The share of people with overseas addresses purchasing newly built condominiums in Tokyo reached 3% in the first half of this year, according to a government survey that sheds light on growing concern that short-term transactions by foreign buyers may be contributing to rising property prices.

Guide to Buying a Condo in Japan

Condominium prices continue to surge across Japan, prompting renewed debate over whether the market will cool and how households should navigate the choice between buying and renting. A detailed analysis from housing loan comparison service MogeCheck highlights the factors driving prices upward, the limits of proposed regulations, and the shifting landscape of mortgage options.

Japan’s Core Consumer Prices Rise 3.0% in October

Japan’s nationwide consumer price index excluding fresh food rose 3.0 percent in October compared with the same month a year earlier, according to data released by the Ministry of Internal Affairs and Communications, with the pace of inflation expanding for the second consecutive month as the index reached 112.1 and broad-based price revisions pushed up the cost of food items across the country, including a 53.4 percent jump in coffee beans and a 40.2 percent rise in rice that continued the upward momentum seen since the autumn.

Japan Expects 7.47 Million Tons of Rice Harvest, Up 10% From Last Year

Japan’s Ministry of Agriculture, Forestry and Fisheries has announced that the country’s main crop rice harvest for the 2025 season is expected to reach 7.468 million tons, marking an increase of 676,000 tons from the previous year and representing growth of roughly 10 percent.

Japan’s Real Estate Sector Targets Short-Term Condo Flipping

The Real Estate Companies Association of Japan has drafted a policy that would prohibit the resale of condominium units before they are handed over to buyers, an effort aimed at curbing speculative short-term flipping that has been cited as one factor behind the sharp rise in condominium prices.

Manufacturing Surge Lifts Japan’s Core Machinery Orders

Core machinery orders — a leading indicator of private-sector capital investment — rose in September, with the Cabinet Office reporting that orders excluding ships and electric utilities climbed 4.2 percent from the previous month to roughly 920 billion yen. It marked the first increase in three months.

Fiscal Deterioration Could Weaken Yen Under Takaichi Policies

Takaichi’s administration is moving closer to finalizing its economic package aimed at easing the strain of rising prices, with the government preparing a set of measures that include a gasoline tax cut, fresh investments across 17 priority fields and expanded subsidies for electricity and gas bills.

< 2 3 4 5 >