TOKYO (TR) – The Japanese government is preparing to abolish or merge the controversial “Cool Japan Fund” after its accumulated losses swelled to a staggering 54 billion yen, vastly exceeding official targets, reports the Asahi Shimbun (June 23).
The public-private fund, officially known as the Overseas Demand Development Support Organization, had previously been mandated to cap its mounting deficit at 42.6 billion yen by the end of March 2026. However, sources revealed Tuesday that poor investment performances have already pushed the red ink to 54 billion yen.
The official financial results are expected to be released as early as Wednesday.
Initially tasked with promoting Japanese culture, content and products abroad, the embattled fund has hemorrhaged cash on various underperforming ventures. Its portfolio includes an investment in the marketing firm behind the upcoming “Junglia” theme park in Okinawa Prefecture.
Ryosei Akazawa, the Minister of Economy, Trade and Industry (METI), warned at a press conference on June 16 that missing the loss-reduction targets would trigger drastic measures. Consequently, METI will establish an investigative panel in July to determine the fund’s ultimate fate by the end of the year.
While integrating the failing organization with other state-backed financial entities remains an option on the table, patience within the administration appears to have run dry over the massive waste of funds.
“Abolition is unavoidable,” one government insider stated bluntly.
