Establishment Of A Security Clearance System In The Economic Security Sector

On May 10, 2024, the Diet passed the Act on the Protection and Utilization of Important Economic Security Information (the "CESI Act"). The Act provides for the establishment of a new security clearance system in the economic security sector.

In Japan, the Act on the Protection of Specially Designated Secrets (the "SDS Act") already exists as a law providing for a security clearance system. However, the SDS Act only covers highly sensitive government information (i.e. top-level and general-level designated secrets) and does not protect less sensitive information (i.e. confidential information). For this reason, the CESI Act was established to protect confidential information in the economic security sector, the protection of which has recently become increasingly important.