Takaichi faces scrutiny over media spending and company d...

Recently released political fund reports have put Prime Minister Sanae Takaichi and Defense Minister Shinjiro Koizumi under scrutiny over publicity spending and company donations in the past year.

The Mainichi Shimbun reported on 28 November that Takaichi spent more than 80 million yen – over half a million US dollars – on publicity for the 2024 Liberal Democratic Party (LDP) leadership race, followed by Koizumi, who spent about 20 million yen, and former Prime Minister Shigeru Ishiba, who spent only about 0.42 million yen.

The report reveals that the publicity costs in LDP leadership races – while so modest as to qualify as chicken feed in comparison with the no-holds-barred corporate spending wars that have been routine in American political campaigns since the US Supreme Court’s 2010 decision in Citizens United v. FEC – are high when seen in the Japanese context.

Due to stricter rules that have resulted from historical scandals and recent LDP slush fund scandals, the Japanese public is sensitive about company donations to politicians.

The ’24 election

The 2024 LDP leadership race was held in September 2024 after Prime Minister Fumio Kishida announced his resignation following the party’s slush fund scandals and public mistrust over the party’s ties with the Unification Church.

Takaichi, who won the most votes in the first round, ultimately lost to Ishiba in the runoff – though her run that year is believed to have paved her way to winning in the 2025 leadership race, after Ishiba announced his resignation, and becoming prime minister in October 2025.

According to the funding report of Takaichi’s fund-managing organization, 83.84 million yen was used for publicity before and during the 2024 race. This is much higher than the total of under 10 million yen spent for publicity in her first run in 2021.

Breakdowns show major spending on digital operations: 33 million yen in “advertising expenses” paid to an Osaka-based agency specializing in video production and social media, and 5 million yen to a corporation led by the late campaign strategist Shinnosuke Fujikawa for “website planning and production.”

For printed materials, the group spent a combined 45.84 million yen on leaflet printing, stuffing, and mailing.

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Although the LDP’s election management committee had banned mailing PR documents to members before the official campaign period, Takaichi’s team had already initiated mailing procedures before the ban. More than 300,000 party members nationwide reportedly received the leaflet. Complaints prompted the committee to issue a warning to Takaichi. Still, the leaflet is believed to have boosted her support from party members.

Koizumi, who made his first run and placed third in the 2024 race, was the second-highest spender on publicity after Takaichi. His fund-managing organization and party chapter reported paying 20.23 million yen to a Tokyo PR company for “leadership election publicity support.” Shortly after the race, he also paid 29.19 million yen in “campaign expenses” to a Tokyo firm specializing in branding, though the link to the leadership race is unclear. He additionally paid 13 million yen to a company that conducted public-opinion research during the campaign. He ultimately finished third in the 2024 race, and he lost to Takaichi in the 2025 race.

Ishiba, the eventual winner of the 2024 race, reported far smaller publicity spending. His fund-managing organization and party chapter reported minor costs, including 390,000 yen for leaflet production and 30,000 yen for creating social media banners – far below the amounts spent by Takaichi and Koizumi.

The LDP leadership race is not governed by the Public Offices Election Act, meaning there are no spending caps or mandatory reporting rules. While the party bans costly activities such as mailing PR documents or using automated phone calls, violations carry no penalties, which raises concerns in the public that heavy social media advertising may continue unchecked.

Also on November 28, NHK reported that two LDP local chapters led by Prime Minister Sanae Takaichi and Defense Minister Shinjiro Koizumi each received a 10 million yen corporate donation in 2024 – exceeding the annual limit set based on the company’s capital size under Japan’s Political Funds Control Act.

Political fund reports released by the Nara election management committee showed that the LDP’s Nara 2nd district chapter, headed by Takaichi, recorded a 10 million yen donation from a Tokyo-based company in August 2024. Also, political fund reports released by the Kanagawa election management committee showed that the LDP’s Kanagawa 11th district chapter, led by Koizumi, likewise received a 10 million yen donation from an Osaka-based company in December 2024.

The company that donated to Takaichi’s chapter has capital of 100 million yen, while the company that donated to Koizumi’s chapter has capital of 10 million yen. Under the Political Funds Control Act, which sets annual donation caps based on a company’s capital size, both companies are limited to ¥7.5 million per year – meaning each donation exceeded the legal ceiling by 2.5 million yen.

Takaichi’s office told NHK that although it had provided the donor with information on the legal limits, it had “misidentified the company’s size.” The office said an administrative error was discovered, and that the excess amount was returned, and the fund report corrected after consulting with the company. Koizumi’s office told NHK it had been unaware of the company’s capital size. The office said the excess amount was immediately returned, and that the refund will be recorded in this year’s fund report to be published next year.

History of political funding scandals

Japan has experienced a series of political funding scandals, including the Lockheed scandal in 1976, the Recruit scandal in 1988, and the Tokyo Sagawa Express scandal in 1992, which sparked public outrage over “money politics.” In 1993, the LDP lost control over the government for the first time since its founding in 1955. The following year, under the coalition government headed by former Prime Minister Morihiro Hosokawa, the Political Fund Control Act was revised, tightening donation limits and reporting requirements.

However, the LDP’s slush fund scandals in 2023 and 2024 highlighted ambiguities in the current system and have raised concerns about whether politicians and their staff fully understand and strictly follow the rules. Ensuring transparency in both the sources and uses of funds will be crucial for the LDP to restore the public trust lost in these scandals.

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Banning corporate contributions, as proposed by the LDP’s current coalition partner, Nippon Ishin no Kai (Japan Innovation Party), and included in their coalition agreement – though with an unclear timeline – will continue to be one of the key issues in Diet discussion.

Based on Takaichi’s comparatively heavy spending on publicity and social media advertising during her 2024 LDP leadership race, it is not difficult to see how her cabinet’s high approval ratings – 72%, according to the latest survey by the Yomiuri Shimbun at the end of November, unchanged from immediately after she took office – may be partly attributed to her focus on public opinion and her expertise in publicity strategy.

While some media outlets have directly compared and ranked her cabinet’s approval ratings with those of previous cabinets including Ishiba’s cabinet, such comparisons may be misleading given not only the differences in socio-economic environments and political climates during their respective administrations but also the levels of their spending on social media marketing.

Recent reports on company donations and publicity spending by Takaichi and Koizumi highlight that the media and to some extent the general public will continue to play a critical role in holding the party and its senior members accountable. At the same time, diverse media perspectives are essential. Among major Japanese news outlets, The “left-leaning” Asahi Shimbun and Mainichi Shimbun have been comparatively more critical of Takaichi than the “right-leaning” Yomiuri Shimbun and Sankei Shimbun.

Peter Chai (Kai Shibata) is a doctoral researcher at the Graduate School of Political Science, Waseda University. His research areas are political sociology, comparative politics and public opinion. His research methodology is survey analysis, and his regional focus is East Asia. His articles have been published by Nikkei Asia, East Asia Forum and The Diplomat.