Japan: Inward/ Foreign Investment

Japan's Foreign Exchange and Foreign Trade Act amendments, promulgated in June 2026, introduce significant changes to foreign direct investment screening procedures. These modifications expand regulatory oversight to include indirect acquisitions, mandate reporting of risk mitigation measures, and grant authorities enhanced powers to address national security concerns even after transactions are completed.

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...

On 22 November 2019, the Japanese Diet passed an amendment to the Foreign Exchange and Foreign Trade Act (FEFTA), introducing new controls on foreign investment.