Japan is recognising anime, manga, and video games not merely as cultural exports but as fundamental economic infrastructure.

The Policy Shift

Japan’s government is dramatically recalibrating its approach to the content sector, recognising anime, manga, and video games not merely as cultural exports but as fundamental economic infrastructure.

With overseas content sales reaching ¥5.8 trillion ($37.6 billion) in 2023 – surpassing semiconductor exports – the administration has set an ambitious target of ¥20 trillion ($130 billion) in annual overseas sales by 2033.

The Funding Gap

Despite this economic significance, Japan’s public investment has historically lagged behind competitors. The current budget allocation stands at only ¥25.3 billion ($164 million), prompting the ruling Liberal Democratic Party to demand a fourfold increase to over ¥100 billion ($651 million) to match international standards.

This disparity is stark: South Korea’s Ministry of Culture, Sports and Tourism commands a 2025 budget of 7.067 trillion won ($4.9 billion), with specific allocations including 13.5 billion won for comics and webtoon exports and 15.5 billion won for gaming industry support.

The United States, through state-level incentives in California alone, provides support valued at roughly ¥600 billion.

Strategic Implementation

Prime Minister Sanae Takaichi’s administration has earmarked ¥35 billion ($228 million) in the fiscal 2025 supplementary budget as the first tranche of a multiyear investment programme.

Key initiatives include establishing a domestically funded manga distribution platform to capture licensing revenue currently draining overseas, AI-driven localisation tools, and a certification system by 2028 to ensure adequate working conditions for creators.

Structural Challenges

The industry faces acute labour shortages driven by chronically low wages and excessive working hours – factors that have reduced annual anime output.

Industry insiders note that existing subsidies frequently fail to reach subcontractors, the operational backbone of production. The Japan Fair Trade Commission is preparing antitrust guidelines on subcontracting practices to address these inequities.

The View From The Beach

South Korea’s recent commitment of over $1 billion to animation through 2029, including a $140 million production fund expanding to $1 billion, demonstrates the competitive pressure Japan faces.

Korea’s pivot from preschool content to theatrical features and global streaming partnerships offers a template Japan appears keen to adapt.

Much here for other countries with less developed related sectors to learn from.

This post first appeared in the TNPS LinkedIn newsfeed.