Mishandling of classified information, alleged cozy ties with contractors, a spate of fraudulent allowance claims and a dysfunctional chain of command — a string of scandals involving the Self-Defense Forces has put the spotlight on Japan’s ability to convince its partners that it’s ready to shoulder a larger security role and persuade the public of the legitimacy of a defense spending hike.
The mishandling of what Japan calls “specially-designated secrets” has been especially worrisome, with Defense Minister Minoru Kihara telling a parliamentary inquiry last week that “strict control” of this information “is a crucial foundation to strengthen defense cooperation with our allies.”
“These accidents shouldn’t occur,” he said.
The latest episodes — in which dozens of unvetted members of the Maritime Self-Defense Force were found to have had access to classified data on the positions of vessels — have exposed troubling issues with the SDF’s handling of secrets.
The United States, Japan’s sole ally, has long seen the SDF’s shortcomings in the handling of sensitive information as the force’s Achilles’ heel.
In 2014, in the face of fierce public opposition, Tokyo adopted legislation to improve its information-security framework with the goal of boosting its reliability with international partners. A recent law expanded the scope of security checks to the economic realm.
While the scandals are unlikely to halt momentum for closer security cooperation between Japan and its security partners, experts say they will raise some alarm bells, including in Washington.
“Even though Japan has made progress in improving its culture, legal framework and systems for information security, these kinds of events are a setback to the growth of U.S. confidence,” said James Schoff, senior director at Sasakawa Peace Foundation USA.
Following high-level talks among the allies’ top diplomats and defense chiefs late last month, U.S. Defense Secretary Lloyd Austin tried to assuage concerns, commending Kihara for his leadership in tackling the scandal.
However, it has already chipped away at progress made in Japan’s push to build up trust and revive a moribund defense sector.
The country’s growing involvement in bilateral and multilateral security initiatives, including the development of fighter jets with the United Kingdom and Italy, will also require stricter checks and balances in line with the reality on the ground.
The tough security environment — marked by North Korean provocations, increased Chinese assertiveness around Asia, and Russia's invasion of Ukraine — has pushed the government to bolster military spending — up to ¥43 trillion ($296 billion) over five years through 2027 — while pursuing multilateral cooperation with a variety of regional actors.
This increased commitment has put a strain on the SDF, a force of approximately 250,000 that has long struggled with chronic recruitment issues.
Establishing clear rules on information handling has been at the center of lawmakers' attention, with the government now mulling over legislation on cybersecurity in the next session of parliament.
In some cases, however, legislative endeavors have not been accompanied by a thorough understanding of the reality on the ground, said military journalist Sucho Montani, a former MSDF lieutenant commander.
“The information at the center of the episode this time, including the position of vessels, loses its secret value relatively fast,” Montani said, adding that, when the government established the secret-designation system, it didn’t think about setting specific criteria according to the importance of the secret.
For this reason, the U.S. won’t be particularly upset with the mishandling of secret info, Montani argues, pointing instead to more entrenched issues within the SDF as an organization.
“The U.S. has a system to keep information secret only for a short amount of time,” he said. “In Japan, once you designate something as a secret, that remains a secret forever.”
On top of the information-security issue, an ongoing internal investigation over cozy ties between the MSDF and a large-scale contractor might have additional repercussions on the standing of the defense industry.
Last month, the Defense Ministry started a probe over the relationship between the MSDF and manufacturing giant Kawasaki Heavy Industries (KHI) — whose employees allegedly wined and dined MSDF members while working together on submarine repairs, with funds obtained through fictitious transactions.
Together with Mitsubishi Heavy Industries, KHI — a staple of Japan’s defense industry since the Meiji Era (1868 to 1912) — is one of only two domestic contractors providing the MSDF with submarines.
A potential ban of KHI from future defense contract bidding would affect the procurement of equipment in the long-term and have a wider impact on the defense industry.
Rigid limitations on the sale and export of military gear have kept domestic demand limited solely to the SDF for decades, hampering the growth of a full-fledged sector.
Now that the government is ready to pour billions of yen into the industry, whether domestic contractors will be able to gain an advantage against foreign competitors remains to be seen.
“Japan’s defense units in these big firms have not been exposed as much to international competition, and Japan cannot afford that anymore,” Schoff said. “This has to be taken seriously.”
In response to the scandals, the Defense Ministry last month handed down a rare mass punishment of more than 200 individuals, from uniformed personnel to senior officials, though Kihara himself has rejected calls to resign.
”The punishment goes in two directions: It serves as an apology to the U.S. for mishandling information, as well as one to the Japanese public for the submarine case, which is actually more scandalous,” Montani said.
The scandals will also be another headache as the ruling party and the government debate when to start a planned tax hike to fund the defense outlays.
Although the administration of Prime Minister Fumio Kishida — beset by a large-scale slush funds scandal — remains committed to the hike, it has so far postponed any decision on its timing.
Last month, the Finance Ministry announced it would allocate approximately half of an ¥851 billion tax-revenue surplus to defense spending.
However, the scandals are sure to curtail the room for political maneuvering in prioritizing spending on defense over other areas, while also further increasing pressure from opposition parties for a review of defense spending, especially ahead of the next session of parliament.
Meanwhile, the yen’s current weakness has already raised doubts over Japan’s ability to carry out the defense hike as originally planned, throwing into question the political costs of continuing to back it.
“I feel very displeased,” former Defense Minister Itsunori Onodera said last week of the scandals. “I strongly hope that the (Defense Ministry and SDF) can rebuild after strongly reflecting on its shortcomings.”
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