Recruit scandal

The Recruit scandal (リクルート事件, Rikurūto jiken) was an insider trading and corruption scandal that forced many prominent Japanese politicians to resign in 1988.

This article is part of a series on the
Liberal Democratic Party (Japan)
History 1950s 1955 System Soviet–Japanese Joint Declaration of 1956 U.S.-Japan Security Treaty 1960s Three Non-Nuclear Principles 1970s Lockheed bribery scandals Treaty of Peace and Friendship between Japan and China 1980s Recruit scandal Japanese asset price bubble 1990s Recruit scandal Lost Decades 2000s 2001 Central Government Reform Postal service privatization 2010s Abenomics Moritomo Gakuen scandal 2020s
Main ideology Conservatism Japanese nationalism
Related ideology Anti-communism Corporate statism Economic conservatism Economic interventionism Economic liberalism Elitism Ethnic nationalism Liberal conservatism Liberalism Classical liberalism Conservative liberalism Historical revisionism Monarchism Neoconservatism Neoliberalism National conservatism Paternalistic conservatism Progressive conservatism Right-wing populism Social conservatism Traditionalist conservatism Ultranationalism
Related organizations Association of Shinto Shrines Central Intelligence Agency Dentsu Japan Business Federation Japan Conference Japan lobby Japan Medical Association Junior Chamber International Japan Local support groups Pasona Unification Church
Media Sankei Shimbun
Related topics Factions in the Liberal Democratic Party Politics in Japan
Conservatism portal  Japan portal

Recruit is a human resources and classifieds company based in Tokyo.[1] Its chairman, Hiromasa Ezoe, 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 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, former Prime Minister Yasuhiro Nakasone, and Chief Cabinet Secretary Takao Fujinami. In addition to members of the LDP government, leaders of the Komeito, Democratic Party of Japan, and Japan Socialist Party 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 and Keizō Obuchi).

The chairmen of NTT, the Yomiuri Shimbun, and the Nihon Keizai Shimbun 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's opposition party victory in 1993, which briefly interrupted the LDP's otherwise continuous reign over Japan.