End of the Line for Cool Japan Fund?

Over ¥140 Billion in Government Investment

According to the Cool Japan Fund’s fiscal 2025 business report released on June 24, revenue plummeted by 88% from the previous year to ¥4.4 billion, as the organization recorded a net loss of ¥15.7 billion.

The Cool Japan Fund was established in November 2013. Up to April 2026, a total of ¥151.3 billion in capital was invested, of which the Japan government contributed ¥140.6 billion. The aim has been to link Japan’s cultural appeal with industry growth, and the Japan government and private companies pooled funds to provide continuous investment in projects related to overseas promotion of Japanese creative content, regional specialties, and traditional products, as well as tourism industry initiatives.

Opened as a hub for promoting Japanese culture from Osaka to the world, Cool Japan Park Osaka was one of the initiatives that received funding from the Cool Japan Fund. (Photo taken on February 23, 2019. © Jiji.)

A total of ¥204 billion has been injected into 83 projects to date, including overseas initiatives and medium- to long-term programs that would otherwise pose a high risk and be difficult for private companies to invest in alone. However, with more and more projects being withdrawn without having recovered the initial capital, the result has been huge accumulated losses piling up year after year, and serious doubts are being raised as to whether this is an effective way to develop overseas demand and revitalize Japanese industry.

An Ever-Widening Deficit

Since 2019, the Ministry of Economy, Trade, and Industry has formulated three investment plans setting out minimum targets to be achieved. In the revised November 2022 plan, the target was to halt further accumulated deficit by fiscal 2024 and then reduce losses to ¥42.6 billion in fiscal 2025. However, the deficit continued to grow and this target remained unattainable.

Minister of Economy, Trade, and Industry Akazawa Ryōsei previously stated that if the target was not met, the ministry would “consider taking concrete steps either to abolish or merge the fund with other bodies,” and a review panel is expected to be formed soon.

Data Sources

• Fiscal 2025 business report (Japanese) from Cool Japan Fund
• May 2026 report on Cool Japan Fund (Japanese) from the Ministry of Economy, Trade, and Industry
• Summary of Industry Minister Akazawa’s post-cabinet meeting press conference on June 16, 2026 (Japanese) from the Ministry of Economy, Trade, and Industry

(Translated from Japanese. Banner photo: The ribbon-cutting ceremony for the launch of the Cool Japan Fund on November 25, 2013. © Jiji.)