A business report released by Cool Japan Fund Inc. records cumulative losses of 54 billion yen (approx. $332.64 million), in this photo taken on June 24, 2026. (Mainichi/Seiho Akimaru)
Cool Japan Fund Inc., a public-private fund overseen by the Ministry of Economy, Trade and Industry to pitch Japanese culture to foreign markets, had racked up 54 billion yen (approx. $332.64 million) in cumulative debt by the end of fiscal 2025. The government is now set to begin discussions toward consolidating or dismantling it.
The government-backed fund is one of several that were set up by central ministries and agencies as part of the country’s growth strategy under the second Shinzo Abe administration. Its targets included the domestic content industry including animation and television programs, as well as Japanese food, fashion and inbound tourism.
Established in 2013, the fund has so far approved investments in 83 projects worth a total of 204 billion yen (approx. $1.26 billion). However, instead of generating profit, it has posted losses almost every year.
For example, it invested 1 billion yen (approx. $6.16 million) in Anime Consortium Japan Inc., which streamed Japanese anime abroad, but it struggled against overseas video-streaming services, and ended up exiting the business after 2 1/2 years.
The government must confront the failures of public-private funds and review its policies to identify what the state should do to support Japan’s culture.
The role of public-private funds is to invest public money into sectors where the private sector alone struggles to expand, thereby attracting new investment. However, many companies have already gotten into video-streaming and other markets, and the competition is overheated.
From the outset it is hard to expect sound business judgment from a public-private fund. Yet Prime Minister Sanae Takaichi’s administration is eager to charge ahead with government-led investment without properly examining past failures.
The content industry is one of “17 strategic areas” the government announced in June. The government has shown a willingness to actively support the overseas expansion of anime, games and manga. It has also begun focusing on cultivating creators and artists who will be active internationally.
What emerges is a skewed mindset that treats culture, the arts and entertainment primarily as tools to earn foreign currency. That risks overlooking areas that truly require support.
National museums including art museums are valuable facilities that provide insight essential for creative activities. However, the government intends to reduce public funding for such institutions.
The National Theatre in Tokyo remains closed. The lack of opportunities to give performances threatens the transmission of staff expertise. Had the government rebuilt the facility as its own responsibility, there would not have been a gap of more than 10 years.
The government needs to ensure that the people carrying Japanese culture can pass it on to the next generation. It should shift to an approach that enriches the very soil in which culture grows.