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Japan's Lower House Passes Economic Security Information Protection Bill

15.04.2024

## Japan's Lower House Passes Bill for Economic Security Information Protection

On April 9th, the Lower House of Japan's parliament passed a bill that will require individuals in the private sector to undergo government background checks for access to critical economic security information. This move comes amidst growing concerns about protecting sensitive economic data and enhancing international collaboration on cutting-edge technologies.

The bill received support from the ruling coalition, as well as opposition parties, ensuring its passage during the current Diet session. This multi-party support reflects the increasing recognition of the importance of safeguarding economic security.

The new legislation will add "economic security" as a fifth area covered by the Law on the Protection of Specially Designated Secrets, which already encompasses defense, foreign affairs, counterintelligence, and counterterrorism. This expansion will likely subject more private-sector employees to background checks.

Under the system, designated information in economic areas that could affect Japan's national security will be protected. Only individuals who pass government background checks will be authorized to handle such information. These checks will delve into various aspects of an individual's life, including criminal records, financial status, and family ties.

The government justifies the legislation by highlighting Japan's position as the only G7 member without such a system. Officials believe it will facilitate participation in international joint research and development projects on advanced technologies.

However, the bill has faced criticism from some quarters. Concerns have been raised about the potential for overly broad information designation, the exemption of Cabinet ministers from background checks, and the potential disadvantages faced by employees who refuse checks.

Despite these concerns, the bill's passage reflects a growing awareness of the need to protect sensitive economic information and enhance international collaboration in this critical area.