The Lower House in Japan recently approved a bill that mandates private-sector individuals to undergo government background checks for clearance to access economic security information. The legislation, which gained support from a variety of parties including the ruling coalition and opposition parties like the Constitutional Democratic Party of Japan, Nippon Ishin, and the Democratic Party for the People, is set to be enacted during the current Diet session.
defense, foreign affairs, counterintelligence, counterterrorism, and now, economic security. This would require more individuals in the private sector, including company employees, to undergo stringent security clearance checks to handle designated critical information that could impact Japan's national security.
The new legislation includes measures to punish leaks of designated information, with potential penalties of up to five years in prison or a fine of 5 million yen. The rationale behind introducing this security clearance system is to align Japan with other Group of Seven countries, enhance collaboration on international research projects, especially in advanced technologies, and bolster the protection of vital economic information given the rising tensions between the United States, China, and Europe.
During the legislative process, opposition parties raised concerns about the scope of information to be protected, exemptions for Cabinet ministers from background checks, and the potential impact on corporate activities and employees. However, after certain revisions were made, the bill was supported by opposition parties for its inclusion of annual reporting to the Diet on critical economic security information designation and security clearance system implementation status. Despite some dissenting votes, the bill passed with considerable support, signaling a shift in approach from the opposition parties towards enhancing Japan's economic security measures.