A panel urged the education ministry Thursday to allow two stock companies to establish a college and a graduate school.
The proposal by the Council for University Chartering and School Juridical Persons will pave the way for the first establishment of higher education institutions by stock companies, pending official approval from the Education, Culture, Sports Science and Technology Ministry on Monday.
The two companies are Tokyo Legal Mind K.K., which runs prep schools for the bar examination, and Digital Hollywood, which operates business schools.
The college set up by Tokyo Legal Mind will have openings for 160 students and will primarily tackle national exams, including civil service exams.
The graduate school run by Digital Hollywood, meanwhile, will aim to train its 80 students to become producers and directors for TV programs, movies and game software.
Speaking at a news conference, Tokyo Legal Mind President Katsuo Sorimachi said the school will offer curricula that fit the needs of students and parents.
"We would like to run the business by grasping the needs of consumers and attract students in this age of declining birthrates," he said.
In its proposal, the panel said the two schools meet the minimum standards for such establishments, while requiring the two companies to further strengthen their management bases.
Private companies' entry into public education will start in April, when a stock company will launch a junior high school in Mitsu, Okayama Prefecture.