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‘Are You Making Money?’ Inside Japan’s Sex Industry

OSAKA - The arrest of the head of Japan’s largest sex industry scout group just five days after a public warrant was issued has cast fresh light on the shadowy business of so-called “sex industry scouts,” a system believed to have generated more than 44 billion yen and allegedly involved ties to organized crime.

The suspect, identified as Hiroaki Kobata, chairman of the scout group Natural, was arrested on Amami Oshima in Kagoshima Prefecture after evading police for around a year, with investigators suspecting that he paid 600,000 yen to a yakuza member three years ago to secure permission to conduct scouting activities in entertainment districts, an allegation he denies.

Police estimate that Natural, which reportedly had around 1,500 members nationwide, earned approximately 44.5 billion yen in a single year by introducing women to sex industry establishments and collecting referral fees known as “scoutbacks” from the businesses.

So what exactly are sex industry scouts, and how do they operate? Reporting in Osaka’s busy nightlife districts suggests that such approaches remain common, with women describing being casually stopped on the street and asked vague questions such as whether they are “making money” or “looking for work,” without explicit mention of the type of job involved.

One woman said scouts typically avoid specifics, referring only loosely to “night work,” before offering to introduce them directly to a store, often exchanging LINE contacts and arranging a later meeting. Others reported receiving unsolicited direct messages on social media from strangers claiming they can introduce them to any kind of job, including sex work or hostess positions.

The investigation also spoke with a woman in her early 20s who began working at a sex industry establishment after being approached in Tokyo’s Kabukicho district two years ago, believing it would be a quick way to earn money. She said the scout accompanied her to the shop on the first visit, but communication afterward was limited to LINE messages.

Once she started working, however, the reality was very different from what she had been told, with earnings far lower than promised and services she had explicitly said she could not provide being treated as if they were included. When she raised concerns, she said the scout eventually blocked her, leaving her feeling she should never have responded to the street approach.

From the business side, a former sex industry operator in Kansai explained that while major recruitment websites can cost around 1 million yen to use with no guarantee of applicants, scouts provide a more certain pipeline of workers, since payments are only made after a woman actually starts working. In his case, scoutbacks amounted to 10 to 15 percent of a worker’s sales.

However, following revisions to the law that made scoutback payments illegal, some operators who cut ties with scouts said they were subjected to harassment, including repeated demands for money, unwanted cash-on-delivery parcels, and defamatory posts on social media warning customers away from their shops.

Although dealing with scouts has become a clear risk for businesses, some establishments are believed to continue such relationships, particularly those operating without fixed storefronts, even months after the legal changes took effect.

A three-hour investigation in Osaka found more than 10 suspected cases of customer solicitation, mainly linked to host clubs, but no clear examples of sex industry scouting during that period. Still, police later spoke with a man arrested on suspicion of pressuring women into illegal sex industry work, who said the practice would never disappear because it requires no special skills and can be done by anyone.

Experts warn that despite tougher enforcement, the situation is likely to remain a cat-and-mouse game. Professor Takeoka of Ritsumeikan University said that while penalizing businesses that pay scoutbacks may cut off funding at the source and have some effect, demand from sex industry operators has existed for decades and will not vanish, meaning activities may simply move further underground.

He also cautioned that women recruited by scouts face the risk of being sent to unlicensed or unregistered establishments, adding that cooperation between businesses and police, including information sharing and reporting harassment, will be essential as authorities continue their crackdown on the dark side of the scouting business.

Source: KTV NEWS

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