“Upcoming Amendments to Japan’s Foreign Direct Investment Regulations⁠”

[⁠Overview⁠]
On January 7, 2026, the Council on Customs, Tariff, Foreign Exchange and Other Transactions (an advisory body to the Ministry of Finance) released a report outlining the direction of the upcoming amendments to Japan’s Foreign Exchange and Foreign Trade Act (FEFTA). A bill reflecting the report is expected to be submitted during the current ordinary session of the Diet.
While the report recommends streamlining the screening process by narrowing the scope of designated businesses and transactions subject to prior notification, it also proposes new measures—including (i) regulation of certain indirect acquisitions (e.g., acquisitions of shares in a foreign parent company that directly holds shares in a Japanese company) and (ii) call-in powers for certain investments in non-designated businesses—that could affect not only inbound investments into Japan, but also overseas M&A transactions where the target is not a Japanese company.
The expected impact may differ between (i) Chinese-linked investors, sovereign wealth funds, and other investors likely to be treated as “High-Risk Foreign Investors,” and (ii) other investors. High-Risk Foreign Investors would be subject to indirect acquisition regulations more broadly and could also be subject to call-in powers, whereas other investors are expected to be covered by the indirect acquisition rules only in a more limited range of cases and would not be subject to regulations on the call-in powers.

In the webinar, we explain the proposed direction of the amendments and discuss practical implications, organizing the discussion under three pillars: (1) streamlining the screening process and ensuring effectiveness, (2) strengthened regulation in response to changes in the national security environment, and (3) enhancement of enforcement capacity and information dissemination.

We have recently distributed a newsletter on this topic. Please refer to it here: https://www.morihamada.com/en/insights/newsletters/131341
 

[⁠Target Audience⁠]
We warmly invite individuals to join us from corporations, investment firms, financial advisors, consulting firms and financial institutions, and attorneys affiliated with foreign law firms (excluding attorneys practicing Japanese law), as well as those involved in business divisions, corporate planning, international business, and legal departments who have an interest in inbound investment practices in Japan.
* Please kindly note that we may decline your registration if you are a student.

[⁠Notes⁠]
* Free of charge⁠.
* Although this webinar is being held for your informational purposes⁠, please refrain from providing such information to others or quoting it to the press without our prior consent⁠.