Publication of the “Report on the Appropriate Framework for the Inward Direct Investment Screening System” – Proposed Amendments to the Foreign Exchange and Foreign Trade Act (Inward Direct Investment Screening System)
Introduction On January 7, 2026, the Subcommittee on Foreign Exchange and Other Transactions of the Council on Customs, Tariff, Foreign Exchange and Other Transactions published its “Report on the Appropriate Framework for the Inward Direct Investment Screening System” (the “Report”). When the Foreign Exchange and Foreign Trade Act (the “FEFTA”) was amended in 2019 (effective …
Introduction of Mandatory Nationality Reporting Requirements in Real Estate–related Transactions
Introduction Based on the instructions issued by Prime Minister Takaichi at the Meeting of Relevant Cabinet Ministers on November 4, 2025, regarding “the appropriate use and management of national land, including the framework for rules on land acquisition,”[1] public comment procedures have been initiated to amend relevant cabinet and ministerial ordinances to introduce mandatory nationality …
Navigating Japan’s Semiconductor M&A Landscape: Recent Trends and Practical Insights for Foreign Investors
Introduction Semiconductors are a critical foundation of the modern economy, evolving from conventional electronic components into indispensable technologies supporting AI, robotics, smartphones, cloud computing, and advanced manufacturing. The global semiconductor market reached USD 630.5 billion in 2024 and is projected to exceed USD 1 trillion by 2030.
Ministry of Economy, Trade and Industry Releases Draft “Economic Security Management Guidelines”
Introduction In recent years, the international environment surrounding companies has rapidly shifted from an era in which free cross-border economic activity was taken for granted to one in which companies must design their business operations taking into account geo-economic risks. For Japanese companies that may be affected by such changes in the environment, it has …
Recent Amendments to Japanese Employment and Labor-Related Laws
Introduction By the end of 2026, Japan will implement a series of significant amendments to labor and occupational health and safety regulations, reflecting a growing emphasis on workplace safety. These changes, driven by forthcoming guidelines from the Ministry of Health, Labour and Welfare (MHLW), will require employers to adopt new compliance measures across a range …
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Legal Risks Arising from Inaccurate Price and Country of Origin Information on Invoices: Ensuring the Accuracy of Export Documentation
Introduction Nagashima provides a wide range of legal services concerning trade transactions, including security export control, economic sanctions compliance, and related matters for Japan, the United States, China, Europe, and other jurisdictions.
Summary of the 2025 Amendments to the Whistleblower Protection Act
Introduction On June 4, 2025, Japan amended the Whistleblower Protection Act, further enhancing protections for whistleblowers while strengthening sanctions for violations and expanding administrative enforcement powers. This is the first amendment in five years since the 2020 revision. Notably, the amendment introduces a clause providing that any dismissal or disciplinary action taken within one year …
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The New Act on Security Interests by Assignment – Significant Changes to Security Interests over Movables and Receivables: Impact on Priority and Perfection Rules
I. Introduction The Act on Contracts for Security Interest by Assignment and Retention of Title (the “Act”), enacted on May 30, 2025, and promulgated on June 6, 2025, is expected to take effect by 2027 (within two years and six months from its promulgation date).
Tokyo Stock Exchange Tightens Rules on MBOs and Controlling Shareholder Buyouts: Enhanced Disclosure and Minority Protection
Introduction On July 22, 2025, the Tokyo Stock Exchange (the “TSE”) introduced revisions to its Code of Corporate Conduct with respect to management buyouts (“MBOs”) and controlling shareholder buyouts (the “Code”) to strengthen fairness and transparency in such transactions.
Digitalization of Civil Litigation Procedures in Japan
I. Introduction The digitalization of civil litigation procedures in Japan began with the introduction of teleconferencing and video conferencing systems under the 2010 amendment of the Code of Civil Procedure. The use of teleconference had become widely adopted, enabling parties or their representatives located far from the courts to participate in preparatory proceedings to arrange …
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