Japan’s weak yen is systematically dismantling the country’s small business sector. Corporate bankruptcies in the first half of the year hit their highest level since 2022, driven largely by a currency that keeps making imports more expensive while the businesses buying them keep getting smaller.
The numbers paint a brutal picture
In fiscal 2025, Japan recorded 10,505 corporate bankruptcies among companies with liabilities of at least 10 million yen. That figure, tracked by Tokyo Shoko Research, represents roughly a 3.6% to 4% increase year-over-year and the highest total in over a decade.
Firms with liabilities under 100 million yen accounted for 76.7% of all bankruptcy cases.
January saw 887 corporate failures, the highest January figure since 2013. April brought 883 cases, a 6.6% annual increase and a 12-year high for the month.
