JAPAN: Ministry of Finance Publish List of Classifications of Listed Companies Regarding FEFTA Prior-Notification Requirements

Monday May 11 2020

On 8^th May 2020, the Ministry of Finance published a list of over 3000 companies of which 518 companies in 12 sectors are deemed important to Japan’s national security.

This list classifies listed companies in Japan into the following categories regarding the prior-notification requirements on inward direct investment under the Foreign Exchange and Foreign Trade Act:

• (1) Companies conducting business activities only in non-designated business sectors (subject to post-investment report only);
• (2) Companies conducting business activities in designated business sectors other than core sectors; or
• (3) Companies conducting business activities in core sectors

Under the Foreign Exchange and Foreign Trade Act, in principle, investors are required to determine whether they need to submit prior-notification or not.  This list is prepared for the benefit of investors in making such decision. This list is based on the surveys to listed companies (conducted during March 18 – April 24, 2020), and information in their Articles of Associations and Annual Securities Reports. The classification in the list and the actual classification at the time of investment may differ in cases including where there are changes in the company’s business activities.

Click on the link above for further information.