Japan Shifts Focus from Cool Japan Fund to New Content Grants
By Editor • August 21, 2026 • 1 min read
Japan is set to dismantle the financially troubled Cool Japan Fund as it pivots towards a new initiative aimed at enhancing the global presence of Japanese content. Reports indicate that the Ministry of Economy, Trade and Industry (METI) will exclude the fund from its fiscal 2027 funding requests.
Established in 2013 under former Prime Minister Shinzo Abe, the Cool Japan Fund aimed to promote Japanese products and culture abroad. However, it faced persistent challenges, primarily due to its inability to identify promising investments, leading to significant losses. By the end of fiscal 2025, the fund recorded accumulated losses of around ¥54 billion ($368 million).
Notable failures included a ¥14 billion investment in the failed biomaterials company, Spiber. METI's industry minister, Ryosei Akazawa, acknowledged the fund's management issues, stating that its executives bore primary responsibility.
In place of the Cool Japan Fund, METI is expanding its IP360 program, which provides grants for creative projects rather than equity investment. With a budget of ¥35 billion, the initiative aims to boost overseas sales of Japanese content to ¥20 trillion by 2033. Experts believe this new approach may yield more effective results by applying lessons learned from past failures.
Source: www.japantimes.co.jp
