Japan Industry Ministry Drops Capital Hike Plan for Stake-Backed Fund
Tokyo, Dec. 11 (Jiji Press)--Japan's industry minister Hiroshige Seko said Tuesday his ministry will drop a fiscal 2019 capital increase plan for state-backed Japan Investment Corp., embroiled in an executive pay dispute.
"Due to an effective management vacuum, we have no choice but to withdraw the 160-billion-yen request under the government's fiscal loan and investment program," Seko told a press conference.
The remarks came after all of the public-private investment fund's nine private-sector board members offered their resignations on Monday due to differences over investment policies and their salaries, which had been criticized as being too high from within the government, including the prime minister's office. In the meantime, two directors from government ministries will stay on.
The ministry supervises the fund, which was established in September through the reorganization of Innovation Network Corp. of Japan with the aim of investing in growth fields to strengthen Japan's competitiveness.
Seko also said JIC took over from INCJ enough funds to continue investment operations for the time being and that the industry ministry plans to review the structure of JIC by spring next year and make a budget request if necessary.
[Copyright The Jiji Press, Ltd.]