Japanese authorities have abruptly tightened visa regulations for foreign entrepreneurs and permanent residents, raising management-visa capital requirements sixfold to 30 million yen.
Capital Requirements and the Closing of Small Businesses
For eight years, 45-year-old Seok-jin Choi operated a Korean restaurant near Kanda Station in Tokyo. Last month, he served his final meals to regular customers before shutting down operations entirely. When Choi launched his business in 2018, a wave of popular interest in Korean cuisine fueled a steady stream of patrons. Even the COVID-19 pandemic failed to derail his enterprise, as government subsidies helped sustain foreign small business owners through the downturn.
That stability vanished when the Japanese government overhauled the business manager visa criteria. Authorities increased the mandatory capital requirement from 5 million yen to 30 million yen in a single adjustment. Business owners must also now employ at least one full-time staff member. Previously, applicants could secure a management visa by meeting either the capital threshold or the employment condition. Data from Tokyo Shoko Research shows that among corporations established in Japan in 2024, only 1,491 possessed a capital of 30 million yen or more, excluding sole proprietors.
Choi described the policy as a crushing blow to long-term foreign residents. “Around me, people ask how desperate I am, but despair at least allows you to make a plan,” Choi said, according to Hankookilbo. “This is no different from taking away even the hope that the future can get better.”
The Expansion of Permanent Residency Restrictions
The regulatory tightening extends far beyond commercial management visas. The Japanese government introduced new guidelines raising income thresholds for permanent residency applications, requiring applicants to consistently earn above the national average. Projections indicate that the income requirement for single-person households will rise from roughly 3 million yen to 4.5 million yen.
Authorities also instituted stricter penalties for administrative oversights. Missed payments for taxes or social insurance can now trigger the revocation of permanent residency. Furthermore, application fees jumped twentyfold from 10,000 yen to 200,000 yen, while status-change and renewal fees increased by up to twelvefold to 75,000 yen. Immigration data cited by Hankookilbo shows that between January and July, 1,159 management visa holders left Japan without completing re-entry procedures—nearly 3.8 times the 303 departures recorded during the same period the previous year.
| Visa Regulatory Area | Previous Requirement | New Requirement |
|---|---|---|
| Management Visa Capital | 5 million yen | 30 million yen |
| Permanent Residency Fee | 10,000 yen | 200,000 yen |
Political Shifts and the Rise of “Japan First” Platforms
The legislative tightening follows significant gains by the right-wing Sanseito party during the July House of Councillors election. Campaigning on an “Japan First” platform, the party capitalized on public discontent regarding a 30-percent rise in foreign residents and a ninefold increase in inbound tourists between 2020 and 2024. Despite empirical data showing that business visa abuse remains exceptionally rare—with only five management visas revoked nationwide last year for lack of active operations—ruling and opposition parties alike have adopted restrictive postures.
Sanae Takaichi defended the policy adjustments in a parliamentary address, stating that the fundamental approach to accepting foreign nationals is under review.
Uncertainty in Tokyo’s Korean Enclave
In Tokyo’s Shin-Okubo district, long-term foreign merchants report an atmosphere of unprecedented anxiety. Min-ju Kim, a permanent resident who has operated a restaurant in the neighborhood for over two decades, noted that current tensions surpass even the 2012 anti-Korean protests. Kim expressed fears over stringent labor audits targeting businesses that employ non-Korean Southeast Asian staff, warning that rigid compliance checks threaten the viability of immigrant-run establishments across the capital.
Researchers caution that these regulatory actions risk undermining broader economic stability.
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