Message from the Governor & CEO

We express our deepest sympathies to those affected by the 2024 Noto Peninsula Earthquake.

This year, Japan Finance Corporation (JFC) has set forth the mission: "As an expert in policy-based financing, creating futures together by providing support for reassurance and challenges." Since JFC's establishment 15 years ago, we have responded to the unprecedented challenge of supporting businesses in the COVID-19 pandemic, thereby further deepening our cooperation with private financial institutions. With the government placing a great deal of emphasis on supporting start-ups, the environment surrounding start-ups has also been changing drastically. Furthermore, with an increasing number of businesses striving to develop and expand into overseas markets, JFC's support for overseas business development has also been progressing.

In light of recent changes, JFC reexamined itself and has stipulated its role and purpose as its "mission" to ensure that it continues to be an organization that can respond to future changes.

In accordance with this mission, JFC will continue to support businesses by encouraging each and every employee to act autonomously and take on the challenge of change, thereby steadily fulfilling its role as a policy-based financial institution.

Roles of Japan Finance Corporation

Japan Finance Corporation is a policy-based financial institution that carries out financing within a scope determined by applicable laws and budgets, which are based on government policy for SMEs and micro/small businesses, agriculture, forestry, and fishery policy, etc., with the aim to complement financing carried out by private financial institutions.

JFC's primary role is to meet the capital needs, including small sums, of those starting new businesses, those dealing with natural disasters or a change in business environment, and to serve the capital procurement needs of Japan's SMEs and micro/small businesses and those engaged in business in the fields of agriculture, forestry, or fisheries.

Exercise of Safety Net Functions

Despite the post-COVID-19-pandemic recovery trend in Japan, natural disasters such as the 2024 Noto Peninsula Earthquake, price hikes, and shortage of human resources have combined to create a difficult business environment for many businesses that support the Japanese economy and local communities.

JFC has continued to provide detailed financial support to businesses and has focused on business improvement and revitalization through measures such as promoting the use of the COVID-19 Hybrid Subordinated Loan Program. To this end, we have cooperated extensively with each region's private financial institutions. The future outlook remains unclear, but we are stepping up collaboration with private financial institutions, Chambers of Commerce and Industry, Societies of Commerce and Industry, and others, working with all supporting organizations to prop up businesses in order to provide them with effective financial support, as well as to bolster and restructure their financial foundations.

Future Measures

With a strong awareness of its role as a policy-based financial institution, JFC will create frameworks that can respond to any crisis, including natural disasters such as earthquakes and typhoons, pandemics, and changes in the business environment due to economic circumstances, and consistently implement safety net functions in any situation.

Additionally, we will perform our risk-taking function and continue to focus our efforts on supporting business fields that need prioritized support, including business foundation, start-ups, new businesses, business revitalization, business succession, overseas expansion, sustainable growth of agriculture, forestry, and fisheries, and social business, thereby contributing to the growth and development of the local economy while supporting businesses that are willing to take on challenges.

(Support for business foundation, start-ups, and new businesses)

JFC has actively supported business foundation, start-ups, and new businesses through pioneering efforts in the area of start-up support. Some of these companies have later been listed on the stock exchange after doing business with JFC and have become leading forces in the Japanese economy. Start-ups are positively impacting society in terms of economic growth and job creation while also becoming the solution to new social issues. We will continue collaborating with private financial institutions, venture capitals, universities, etc. to provide financial support while organizing business matching and other events to support growth.

(Support for business succession)

In Japan, supporting business succession is becoming increasingly important against the backdrop of the aging of management personnel and other factors. To provide support for business succession in fields critical to local regions, we will enhance our information-collecting abilities and identify key needs-acting as a bridge linking local hopes to the next generation. We will also collaborate with the Chamber of Commerce and Industry, Societies of Commerce and Industry, and other relevant organizations in each region to conduct initiatives such as business matching.

(Support overseas expansion)

For business operators, overseas expansion not only links the growth of the global economy to that of their companies' but is also important for diversifying risks and contributing to the resilience of the business. JFC supports these efforts through both financial and informational means and will continue to expand its circle of support organizations to help resolve issues faced by businesses pursuing overseas expansion.

In addition, JFC will also support businesses that utilize foreign human resources for business activities in Japan.

(Support sustainable growth of agriculture, forestry, and fisheries businesses)

Many agriculture, forestry, and fisheries businesses continue to face a difficult business environment influenced by soaring feed, fertilizer, and fuel prices. Meanwhile, in response to these changes in the business environment, some businesses are proactively working to shift to sustainable management through such means as increasing the scale of operations, saving manpower, exporting products, reducing the burden on the environment, and promoting collaboration between crop cultivation and livestock farming. JFC is committed to supporting the sustainable growth of agriculture, forestry, and fisheries businesses by providing financial support and assisting in developing sales channels.

We sincerely hope for your further understanding and support in the future.

July 5, 2024

TANAKA Kazuho
Governor & CEO