The was an

insider trading Insider trading is the trading of a public company's stock or other securities (such as bonds or stock options) based on material, nonpublic information about the company. In various countries, some kinds of trading based on insider informati ...

and corruption scandal that forced many prominent Japanese politicians to resign in 1988.

Recruit __NOTOC__ Recruit can refer to: Military * Military recruitment * Recruit training, in the military * '' Rekrut'' (English: Recruit), a military recruit or low rank in German-speaking countries * Seaman recruit Books *''Le Réquisitionnaire'' (E ...

is a human resources and classifieds company based in Tokyo. Its chairman, , offered a number of shares in a Recruit subsidiary, Cosmos, to business leaders and senior politicians shortly before Cosmos went public in 1986. Following the public offering, Cosmos's share price skyrocketed, and the individuals involved in the scheme saw average profits of ¥66 million each. Although only seventeen members of the

Diet Diet may refer to: Food * Diet (nutrition), the sum of the food consumed by an organism or group * Dieting, the deliberate selection of food to control body weight or nutrient intake ** Diet food, foods that aid in creating a diet for weight loss ...

were involved in the insider trading, another thirty were later found to have received special favors from Recruit. Among the politicians involved in the scandal were Prime Minister

Noboru Takeshita was a Japanese politician who served as Prime Minister of Japan from 1987 to 1989 during the bubble economy. Takeshita led the largest faction at the time in the Liberal Democratic Party, which he inherited from Kakuei Tanaka, from the 1980s ...

, former Prime Minister Yasuhiro Nakasone, and Chief Cabinet Secretary

Takao Fujinami (December 3, 1932 – October 28, 2007) was a Japanese politician, former Chief Cabinet Secretary and House of Representatives member. Born in Ise, Mie Prefecture, Fujinami was first elected to the House of Representatives in 1967 as a Lib ...

. In addition to members of the LDP government, leaders of the

Komeito , formerly New Komeito and abbreviated NKP, is a conservative political party in Japan founded by lay members of the Buddhist Japanese new religious movement Soka Gakkai in 1964. Since 2012, it has served in government as the junior coalit ...

Democratic Party of Japan The was a centristThe Democratic Party of Japan was widely described as centrist: * * * * * * * to centre-left liberal or social-liberal political party in Japan from 1998 to 2016. The party's origins lie in the previous Democratic ...

, and

Japan Socialist Party The was a socialist and progressive political party in Japan that existed from 1945 to 1996. The party was founded as the Social Democratic Party of Japan by members of several proletarian parties that existed before World War II, including ...

were also found to be involved. As a result, Takeshita's cabinet was forced to resign, although some of its members returned to political prominence later (including future prime ministers

Kiichi Miyazawa was a Japanese politician who served as Prime Minister of Japan from 1991 to 1993. He was a member of the National Diet of Japan for over 50 years. Early life and education Miyazawa was born into a wealthy, politically active family in Fukuyama ...

and

Keizō Obuchi was a Japanese politician who served as Prime Minister of Japan from 1998 to 2000. Obuchi was elected to the House of Representatives in Gunma Prefecture in 1963, becoming the youngest legislator in Japanese history, and was re-elected to his ...

). The chairmen of NTT, the ''

Yomiuri Shimbun The (lit. ''Reading-selling Newspaper'' or ''Selling by Reading Newspaper'') is a Japanese newspaper published in Tokyo, Osaka, Fukuoka, and other major Japanese cities. It is one of the five major newspapers in Japan; the other four are ...

'', and the ''

Nihon Keizai Shimbun ''The Nikkei'', also known as , is the flagship publication of Nikkei, Inc. (based in Tokyo) and the world's largest financial newspaper, with a daily circulation exceeding 1.73 million copies. The Nikkei 225, a stock market index for the Tok ...

'' were also involved in the scandal. Despite the breadth of the Recruit Scandal across party lines, the LDP was hurt most significantly by the scandal. It is often said to be one of the main causes of

Morihiro Hosokawa is a Japanese politician and noble who was Prime Minister of Japan from 1993 to 1994, leading a coalition government which was the first non- Liberal Democratic Party (LDP) government of Japan since 1955. After a funding scandal in early 1994, h ...

's opposition party victory in 1993, which briefly interrupted the LDP's otherwise continuous reign over Japan.

References

{{Authority control 1988 in Japan Economic history of Japan Heisei period Political scandals in Japan Politics of Japan Politics of Post-war Japan Recruit (company)

See also

References