News On Japan

Online Tutoring Service Megasta Enters Bankruptcy

TOKYO - Online tutoring provider Banzan, which operates the popular service Megasta, received a court decision on February 17th to begin bankruptcy proceedings, triggering confusion and anger among parents and tutors after the company abruptly halted all operations.

Megasta, known for its online lessons that incorporate AI tools, had gained popularity as a remote learning service, but late last Friday night the company suddenly announced it would suspend all business activities without prior notice.

“We have decided to halt all of our operations,” the company said in a brief statement, and the Tokyo District Court issued a decision the following day to begin bankruptcy proceedings against Banzan.

A reporter who visited the company’s office building found a notice posted stating that operations had ceased, but there were no signs of staff inside.

Parents using the service voiced outrage over the sudden shutdown.

“It’s unforgivable. Just unforgivable,” said one man whose fifth-grade child had been enrolled in Megasta. He paid 1.36 million yen in tuition in a lump sum in October last year but said his child received less than half of the promised lessons.

“The emotional damage to my child is the biggest issue. My kid burst into tears on the spot. We’re talking about children here. For people involved in education, this is the lowest,” he said.

Some schools had also planned to introduce Megasta as part of their curriculum. Wakayama Nanryo High School had partnered with Banzan last year and was preparing to begin using Megasta lessons in its correspondence program from April, but those plans have now been scrapped. The online classes had been seen as a crucial support measure for a high school struggling with staff shortages, and administrators are now scrambling to find a replacement tutoring provider.

“We wish they had said something earlier. We had various plans on our side,” said chairman Mikihiko Kai of Wakayama Nanryo High School.

Confusion has also spread among tutors. A male instructor working through another tutoring service run by Banzan said he is owed about 800,000 yen in unpaid compensation covering the past three months, which included the peak of the exam preparation season.

“That was a period when I sacrificed sleep and worked in a state of exhaustion to help my students pass their exams,” he said.

He said the first sign of trouble came three weeks ago when he received a late-night email from the company claiming a system failure had delayed payments. Two weeks later, the explanation changed, with the company citing account freezes due to leasing-related problems. On the day payments were supposed to be made last Friday, the company instead announced a unilateral halt to all operations.

“I have nothing but distrust. As someone involved in education, I don’t feel any sincerity from them,” he said.

Questions remain over what will happen to unpaid compensation for tutors and tuition already paid by families. JNN sought comment from Banzan, but the company has not responded to requests for interviews.

Source: TBS

News On Japan
POPULAR NEWS

The Japan Meteorological Agency (JMA) announced that an El Niño phenomenon is believed to have developed this spring, warning that Japan is likely to experience above-average temperatures nationwide this summer despite the climate pattern's traditional association with cooler summers.

Narita International Airport Corporation is expected to announce next month that it will apply to the national government for project certification as part of the process to enable compulsory land acquisition for the construction of a new runway at Narita Airport, according to sources familiar with the matter.

A fire broke out at Arima Inari Shrine near the Arima Onsen hot spring resort area in Kobe on the night of June 9th, destroying multiple buildings and leaving an elderly Shinto priest and his wife with minor injuries.

Japan's national soccer team arrived in Nashville, Tennessee, on June 8th from Monterrey, Mexico, where it had been conducting a pre-World Cup training camp, and held its first practice session at its base camp for the FIFA World Cup in North America.

A prolonged eruption at Sakurajima on June 7th blanketed parts of Kagoshima City in volcanic ash, turning roads gray and prompting long lines of vehicles seeking car washes after a plume of smoke rose 1,300 meters above the crater.

MEDIA CHANNELS
         

MORE Business NEWS

The Bank of Japan is set to raise its policy interest rate from 0.75% to 1.0% at its monetary policy meeting on June 15th and 16th, a move that could mark another step in the central bank's gradual shift away from ultra-loose monetary policy as inflation remains elevated and the yen continues to weaken.

The contemporary corporate field across Japan is undergoing a profound digital transformation as forward-thinking organizations strive to maintain their market competitiveness in a globalized economy.

Japan's corporate goods prices rose 6.3% in May from a year earlier, marking the fastest pace of increase in more than three years as higher oil and petrochemical costs linked to tensions in the Middle East pushed up wholesale prices.

The Bank of Japan is increasingly expected to raise its policy interest rate to 1.0% at next week's monetary policy meeting, responding to growing concerns that inflation could rise faster than previously anticipated due to soaring oil prices and other cost pressures.

The number of restaurant bankruptcies in Japan reached a record high for the January–May period, highlighting mounting pressures from rising costs, labor shortages, and increasingly cautious consumer spending.

Casio Computer, the company behind some of Japan’s most iconic consumer electronics including calculators, digital cameras, electronic musical instruments, and the G-SHOCK watch, is pursuing a new strategy aimed at reviving its tradition of product innovation.

Nippon Steel plans to invest up to $2.5 billion, or approximately 400 billion yen, over the next three years in the Mon Valley Works steel complex in Pennsylvania, one of the key facilities operated by U.S. Steel, the American steelmaker it acquired in 2025.

Japan's economy grew at an annualized rate of 1.8% in the January–March quarter of 2026, according to revised gross domestic product (GDP) data released by the Cabinet Office, with the figure marked down from the preliminary estimate due largely to weaker-than-expected capital investment.