{
  "id": 2330350,
  "title": "Gov't to dissolve Cool Japan Fund after heavy losses of $340 million",
  "url": "https://urgent.news/2026/08/21/govt-to-dissolve-cool-japan-fund-after-heavy-losses-of-340-million",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-21T07:39:47.000Z",
  "source": {
    "name": "The Mainichi",
    "slug": "the-mainichi",
    "url": "https://mainichi.jp/english/articles/20260821/p2a/00m/0na/015000c"
  },
  "original_language": "en",
  "account": "The Japanese government has decided to dissolve the Cool Japan Fund Inc., a public-private investment fund that is burdened with substantial cumulative losses, according to sources on August 20. The Ministry of Economy, Trade, and Industry has also decided not to allocate funding for the organization in its 2027 budget proposal. The fund, established in 2013 during then-Prime Minister Shinzo Abe's second term, has been unable to generate returns on its investments, resulting in a total loss of 54 billion yen, or approximately $340 million.\n\nThe Ministry concluded that it would be challenging to secure funding for the organization, prompting its decision to dissolve the Cool Japan Fund. Consequently, the organization will no longer be able to make new investments. At the end of July, the Ministry convened an expert panel to discuss potential reorganization or consolidation of the fund. However, government sources indicate that arrangements are being made under the assumption that the fund will be dissolved.\n\nThe focus now shifts to the timing of the fund's closure and the determination of responsibility. Public-private funds are investment entities jointly funded by both government and private-sector companies. The Cool Japan Fund was created as a flagship initiative to promote the government's \"Cool Japan\" strategy, which aims to increase overseas demand for Japanese culture, products, and services. However, the fund's cumulative losses have continued to rise due to the underperformance of its investment portfolio, with significant losses in companies like Spiber Inc., a biomaterials startup in Yamagata Prefecture. Spiber faced an out-of-court restructuring process after its liabilities surpassed its assets in fiscal 2025.",
  "summary": "TOKYO -- The Japanese government has decided to dissolve Cool Japan Fund Inc., a public-private investment fund saddled with massive cumulative losses",
  "key_points": [
    "Japanese government dissolves Cool Japan Fund due to $340 million losses.",
    "Fund established in 2013, unable to generate returns on investments.",
    "Ministry concludes challenging to secure funding, ending new investments."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}