Is 'Cool Japan' Actually Cool? Or Just a $3 Billion Government Spending Disaster?

When the government tries to decide what’s “cool,” it usually ends badly

Written from Aoyama, Tokyo

The Government Decided to Make Japan “Cool”

In 2013, the Japanese government launched an ambitious project: make Japanese culture “cool” on the global stage.

They created the Cool Japan Fund (officially called “Public-Private Partnership Platform for Promoting Japanese Creative Industries Overseas”). The government poured in ¥90 billion ($600 million) of taxpayer money to invest in companies that would export Japanese culture to the world.

The vision was grand:

  • Spread anime, manga, fashion globally
  • Open “Cool Japan” branded stores overseas
  • Build theme parks showcasing Japanese culture
  • Make Japan a cultural superpower

Sounds great, right?

Here’s the problem: it failed spectacularly.

The Numbers Don’t Lie

As of 2022, the Cool Japan Fund had accumulated ¥30.9 billion ($200 million) in losses.

Let me repeat that: $200 million in taxpayer money, gone.

The Ministry of Finance reviewed the fund’s performance and delivered a damning verdict: “Consider consolidation or abolition of the organization.”

That’s bureaucrat-speak for: “This is a disaster. Shut it down.”

But it gets worse.

When Cool Japan Invested in “Cool” Companies

The fund invested in dozens of companies. Most of them failed or underperformed. Let me give you some examples.

Cool Japan Park Osaka (2018-2023)

The Pitch:
A massive facility in Osaka showcasing Japanese culture. Restaurants, shops, entertainment—a cultural hub for tourists and locals alike.

The Reality:

  • Opened in 2018
  • Tenants kept leaving
  • Customers stayed away
  • Effectively bankrupt by 2023

The Lesson:
You can’t manufacture culture in a shopping mall.

A Recent Controversy (2025)

In June 2025, Japanese business media outlet NewsPicks reported on another Cool Japan investment that drew fierce criticism online.

According to the reports:

  • The fund invested ¥8 billion ($50 million) in a marketing consultancy
  • That company ran a theme park called “Immersive Fort Tokyo”
  • The theme park posted ¥2.4 billion ($16 million) in losses and closed after just two years
  • Reports alleged that public funds may have flowed to related “family companies”

The company involved denied wrongdoing and called the reports “misleading.” But the damage was done.

On social media, the reaction was swift:

  • “This is basically embezzlement of public funds”
  • “How did Cool Japan not see this coming?”
  • “Another taxpayer-funded failure”

Whether the allegations are true or not, the fact that they gained traction reveals a deeper truth: people no longer believe in Cool Japan.

Why Does This Keep Happening?

The pattern is clear. Government-backed “cultural projects” fail over and over. Why?

Because bureaucrats can’t decide what’s cool.

Let me explain the fundamental contradiction:

How Real Culture Works

✅ Emerges organically from the streets
✅ Created by passionate individuals
✅ Driven by creativity, not profit
✅ Evolves naturally over time
✅ Nobody planned it

How Cool Japan Works

❌ Designed in boardrooms
❌ Decided by government committees
❌ Driven by investment returns
❌ Based on 5-year plans
❌ Everything is planned

You see the problem?

The Irony: Japan’s Culture Is Actually Cool

Here’s the funny part: Japanese culture doesn’t need government help to be cool.

Japan’s actual cultural exports—the stuff people around the world genuinely love—succeeded without Cool Japan:

  • Anime: Created by underpaid artists in small studios, not government-funded corporations
  • Manga: Published by independent publishers, not state-backed ventures
  • Street Fashion: Born in Harajuku and Shibuya, not in Cool Japan Park
  • Ramen: Small shops run by obsessive chefs, not theme park restaurants
  • Video Games: Made by companies like Nintendo and Sony—long before Cool Japan existed

All of this happened organically. The government didn’t create it. In many cases, the government initially opposed it (anime and manga were seen as “low culture” for decades).

And yet, these are the things that actually made Japan cool.

The Pattern Repeats Everywhere

This isn’t unique to Cool Japan. The same mistake happens all over Tokyo.

Walk around and you’ll see:

  • Brand-new “innovation hubs” with nobody inside
  • Corporate-backed “cultural spaces” gathering dust
  • Government-funded “trend centers” that feel sterile

Meanwhile, the real trendy spots? They’re:

  • A 40-year-old ramen shop with 8 seats
  • An independent bookstore run by one person
  • A tiny coffee stand where the barista knows your name

These places succeeded because they solve real problems and offer real value—not because a committee decided they were “cool.”

What the Government Should Actually Do

If the Japanese government genuinely wants to support culture, here’s what would actually work:

✅ DO THIS:

  • Deregulate: Make it easier to start small businesses
  • Support creators directly: Affordable studio space, grants for artists
  • Protect independent venues: Help small theaters, live houses, galleries survive
  • Get out of the way: Let culture evolve on its own

❌ DON’T DO THIS:

  • Decide what’s “cool” in a boardroom
  • Invest taxpayer money in theme parks
  • Create government-backed “cultural hubs”
  • Try to manufacture trends

The Bigger Picture: When Governments Try to Control Culture

This isn’t just a Japanese problem.

China has spent billions on “soft power” initiatives—state-run Confucius Institutes, government-funded films, orchestrated cultural campaigns. Most of it falls flat because it feels manufactured.

The Soviet Union tried to export “socialist culture” for decades. Nobody cared.

Why? Because culture that’s controlled from above feels lifeless.

The most successful cultural exports in history—Hollywood, K-pop, British rock music—all emerged from relatively free markets with minimal government interference.

Japan’s strength was always its vibrant, chaotic, bottom-up culture. Trying to “manage” that culture killed what made it special.

My Take: Living in Aoyama, Watching This Unfold

I live in Aoyama, one of Tokyo’s trendiest neighborhoods. I watch new “cultural hubs” and “innovation centers” open all the time.

And I’ve learned to recognize the pattern:

Big budget + Government backing + “Cultural mission” = Empty building in 2 years

Meanwhile, the tiny coffee shop down the street that opened last year? Packed every morning. Why? Because the owner makes great coffee and people actually want it.

That’s it. No 5-year plan. No government funding. No “cultural creation strategy.”

Just someone who cares about coffee.

That’s what “cool” actually looks like.

Final Thoughts

Cool Japan has failed. The numbers prove it. The closed theme parks prove it. The ¥30 billion in losses prove it.

But Japanese culture hasn’t failed. It’s thriving—just not where the government is looking.

The real “Cool Japan” is:

  • The teenager designing clothes in their bedroom and selling them on Instagram
  • The indie game developer working alone in a tiny apartment
  • The ramen chef perfecting their broth recipe for 20 years
  • The manga artist drawing until 3 AM because they love the story

None of these people needed a government fund. They just needed to be left alone.

So here’s my advice to the Japanese government:

Stop trying to decide what’s cool.
Stop throwing taxpayer money at “cultural hubs.”
Stop creating investment funds for things you don’t understand.

Just get out of the way.

Cool will happen on its own. It always has.

About the Author:
I’m a Tokyo local living in Aoyama. I’ve watched Cool Japan fail in real time, and I’ve also watched real culture succeed without any help from the government. This article reflects my personal observations and opinions.