Japan is set to launch the Cool Japan Fund Inc on Monday. This fund aims to pump about USD1 billion of public funds into private companies. The goal is to boost soft exports such as food and drink, fashion, and animated movies. This was according to a report published by South China Morning Post.
There are some experts who questioned the necessity of using taxpayers' money for private companies. Nobuyuki Ota, Cool Japan Fund Inc's chief executive, said this move targeted companies keen for international expansion.
Ota said, "A state-backed fund can do what private investors cannot. Private investors sell their assets once their investment targets becomes profitable. We can be a long-term investor, because it takes time for those small companies to grow."
The fund will have a starting capital of JPY37.5 billion. By March, the fund will grow to JPY60 billion. According to Yoshiaki Akamatsu, a Ministry of Economy official, the fund will eventually reach JPY90 billion by March 2015, China South Morning Post reported.
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