Defense Minister Shinjiro Koizumi on Tuesday welcomed a recent decision by the state-backed Development Bank of Japan to lift restrictions on investments in defense-related businesses.
At a press conference, Koizumi said the DBJ’s move to allow investments in weapons and related products, except for inhumane weapons banned under international treaties, would encourage Japanese startups to enter the defense sector and help strengthen the industry.
“As defense minister, I welcome this decision,” he said.
Japan has increased its defense spending in recent years amid growing threats from countries such as China and North Korea.
Some government-affiliated financial institutions have restricted investments involving weapons and related products, effectively preventing venture capital firms backed by those institutions from investing in defense-related businesses, according to the minister.
He warned that continued reluctance among domestic investors could enable foreign firms to dominate the sector, potentially undermining Japan’s efforts to build its own defense innovation ecosystem.
The Defense Ministry will continue urging financial and investment institutions to support startups entering the defense field and help strengthen the industry, he added.
In April, the Japanese government revised limits on defense equipment exports to enable the sale of weapons overseas, marking a significant shift in defense policy for a country that has touted itself as a “peace-loving nation” under its war-renouncing Constitution since its defeat in World War II.
© KYODO
