Japan Weighs Scrapping Cool Japan Fund After 38.3 Billion Yen Losses

1 articles · Updated · Japan Today · Jun 13

38.3 billion yen in cumulative losses by fiscal 2024 have pushed the government toward considering whether to scrap the Cool Japan Fund, a public-private vehicle launched in 2013 to promote Japanese culture overseas.
Poor returns from domestic startup investments drove the losses, and the fund likely missed its fiscal 2025 cumulative-loss target after Spiber Inc.—which received 14 billion yen—entered out-of-court debt restructuring talks.
Regulations require a review or reorganization if a public-private fund misses its annual cumulative performance target three times; Cool Japan already failed in fiscal 2020 and 2021.
151.3 billion yen had been invested in the fund by March 2026, including 140.6 billion yen from the government, underscoring broader criticism that such state-backed investment vehicles need tighter oversight.