Overview Of The FEFTA Regulation

Until recently, Japan had very lenient foreign investment control which allowed Foreign Investors (as defined in FEFTA (defined below) and set forth below) to invest in almost any industry. However, this has been changing over the past several years as Japan follows the global trend of controlling investments in assets or industries that may give Foreign Investors access to sensitive technologies or information.

This article is intended to provide an up-to-date overview of the key features of Japan's foreign investment control regulations and discuss some common issues Foreign Investors frequently encounter.

With very limited exceptions, the Foreign Exchange and Foreign Trade Act of Japan ("FEFTA") is the only foreign investment control legislation in Japan. The primary method of control under FEFTA is the requirement that a filing be made before Foreign Investors make an investment into companies in certain business sectors, with such notice triggering a