Teikoku Databank: Bankruptcies Caused by Compliance Violations in Japan, 2025 Decline for the First Time in Four Years

Over 30% Decline in number of Regulatory Offenses and Misuse of Funds, While Large-Scale Compliance-Related Bankruptcies Stand Out

Survey on Bankruptcy Trends Among Companies with Compliance Violations in Japan (2025)

SUMMARY

In 2025, the number of bankruptcies due to compliance violations totaled 278 cases, marking the first decline in four years. By type of violation, “Financial Statement Falsification” accounted for the largest number, at 74 cases, while bankruptcies related to “violations of industry-specicic laws” and “misappropriation of funds” declined sharply. In many cases, companies did not go bankrupt even after compliance violations came to light, and the methods used in such violations are becoming increasingly sophisticated. Regardless of company size, there is a growing need for credit management through regular and detailed monitoring.

Teikoku Databank defines “bankruptcies due to compliance violations” as bankruptcy cases in which a compliance violation has been identified through its own investigation and has conducted a survey and analysis o f their occurrence.

Note 1: “Compliance violations” refers to intentional violations of laws and regulations, as well as acts that violate social norms or ethical standards.

Note 2: If a company was involved in multiple compliance violations, it was classified based on the primary violation.

Note 3: Figures may not necessarily match those previously announced, as additional cases may be counted retroactively for prior years.

Survey period: January 1, 2015 to December 31, 2025

Scope of survey: Bankruptcies involving liabilities of JPY 10 million or more and resolved through legal proceedings in Japan

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About Teikoku Databank

We are committed to providing outstanding business intelligence for actionable insights and high-quality decision making.

Our company was established in 1900, with the mission of “protecting corporations from fraud.” Since then, we have been continually fine-tuning the craft of gathering, maintaining and communicating business intelligence.

We are now proud owners of Japan’s largest corporate database, and have an extensive network across Japan and also internationally. With this, we are able to respond to diversified customers’ requests with high-quality information and a wide range of services, which includes

• Corporate Credit Research
• Targeted business list
• Market research
• Credit management support
• Online services
• Publications on bankruptcies, economic trends, and corporate attitudes

Source: Teikoku Databank America, Inc. (supplied)