Kan weighs limiting foreign land ownership

The Yomiuri Shimbun

Prime Minister Naoto Kan has said the government will consider restricting purchases of domestic land by non-Japanese individuals and foreign corporations, for national security reasons.

"[The government] wants to study the issue. I'll instruct the justice minister to study it, and put together our ideas," Kan told the House of Councillors Budget Committee Friday.

Kan's remarks were in response to a question from Kuniko Koda of the Democratic Party of Japan, who asked, "Do you plan to consider imposing restrictions on land purchases that merit consideration from a national security standpoint?"

The Alien Land Law of 1925 authorizes the government to regulate land acquisition in areas important to the defense of the nation. However, the government ordinance that designated specific areas as subject to such restrictions was abolished just after the end of World War II, rendering the law effectively toothless.

"Issues may include how to differentiate between land important to national security and, for example, land in [Tokyo's] Ginza that can be bought by [foreign entities]," the prime minister told the committee.

"Another issue is how the Alien Land Law could be brought into play. I want these matters studied," Kan said.

Objections to domestic land purchases by non-Japanese have been raised following a South Korean citizen's purchase of a hotel neighboring a Self-Defense Forces facility in Tsushima, Nagasaki Prefecture.

Critics have said such purchases could pose problems for national defense.

However, imposing restrictions on such deals is seen as problematic because of potential clashes with the Constitution, which guarantees all individuals and groups the right to own assets, and the potential to discourage investment from overseas.

Justice Minister Minoru Yanagida said during interpellations at the committee, "This is an issue that requires us to discuss various matters with other ministries and agencies."

Meanwhile, Kan expressed support for New Komeito member Kazuyoshi Shirahama's proposal of large-scale aid to entrepreneurs.

Kan said: "It's an attractive proposal that inspires people to dream. I'll instruct Economy, Trade and Industry Minister [Akihiro] Ohata here and now to consider it."