Japan’s Ministry of Finance revealed on Wednesday that it is setting up a new improvement plan for Cool Japan Fund, the public-private company that the Japanese government employs to fund projects as part of its “Cool Japan” program. If it cannot make Cool Japan Fund profitable by the end of fiscal year 2025, the Ministry may consolidate it. This is the second time Cool Japan Fund has needed revised plans.
The Ministry of Finance revealed earlier this year that it may have to restructure or abolish Cool Japan Fund if it does not improve its business performance. As of the end of fiscal year 2021, Cool Japan Fund had a debt of 30.9 billion yen (about US$221 million).
The organization’s cumulative debt at the end of fiscal year 2020 was 23.1 billion yen (about US$169.7 million). The company announced an improvement plan in May 2021 to keep the deficit at 25.7 billion yen (about US$188.8 million). However, the debt still expanded.
The subcommittee considered that profits may improve with the recovering economy after the COVID-19 pandemic. The organization plans to put together a final plan by fall.
“Cool Japan” is a program supported by the Japanese government and various companies that promotes modern Japanese culture such as anime and manga abroad. The program revolves around the premise that Japan’s strength in business and international affairs lies in anime, manga, films, fashion, and other fields of Japanese arts and entertainment content.