Japan is a distinctively shaped nation; a gracefully curving archipelago that is considerably longer than it is wide. As a result, its major cities form a chain along the length of the country, connected by highways and the tracks of the famous shinkansen bullet train. Fukuoka City is the westernmost of these metropolises, located on the island of Kyushu. With approximately 1.66 million residents, Fukuoka is the largest city on Kyushu and the fifth most populous city in Japan. Along with Sapporo, Sendai, and Hiroshima, Fukuoka is one of the regional hub cities represented by the acronym 札仙広福 (sassenhirofuku), each of which is home to regional branches of major companies and organizations headquartered in Tokyo and Osaka.

Fukuoka is about 880 km from Tokyo, a journey that takes about two hours by plane or five hours by shinkansen. Interestingly, the distance between Fukuoka and Seoul is only about 540 km, making Japan’s westernmost city closer to the capital of neighboring South Korea than its own, while Busan is a mere 214 km away. Looking west over the East China Sea, Shanghai is almost the same distance from Fukuoka as Tokyo. While Tokyo and Osaka have prospered as the economic centers of Japan, the physical distance between them and major cities in nearby countries has sometimes been a barrier to international partnerships. Fukuoka may not be the center of Japan, but it is the closest major Japanese city to a foreign country. This article focuses on Fukuoka’s efforts to become an international metropolis on par with Osaka and Tokyo, to which its close proximity to the continent is key.

A new international finance center

Fukuoka’s goal is to become an international finance center by taking advantage of its proximity to the continent. To this end, the city is working to attract major players in the asset management industry and fintech, as well as the BCP operations of financial institutions. Specifically, the city is trying to promote the immigration of foreign financial institutions and personnel. Spearheading this effort is the Global Finance Center (GFC), which provides invaluable support for those looking to establish a corporate base in Japan and expand their operations. The GFC helps with a range of official procedures, such as obtaining visas and subsidies, and provides consultations on finance-related licenses, introductions to relevant experts and organizations, and other support. New arrivals to Fukuoka will also find plenty of support for daily life, including assistance with housing and the locations of hospitals with foreign-language capabilities.

More than 32 institutions have already established operations in Fukuoka, including Taiwan Bank, Taishin International Commercial Bank, Boston Consulting Group, EY Strategy and Consulting, Hong Kong-based MCP Holdings Limited, and many other finance-related companies. Many of these are based in relatively nearby countries, such as Taiwan, Hong Kong, Singapore, and Vietnam. But it’s not only the location that has attracted many companies to Fukuoka—the city offers subsidies to cover the cost of corporate registration, as well as travel and accommodation expenses for companies considering such an expansion. If a company does make the decision to expand operations to Fukuoka, they can receive subsidies for market research, corporate registration, recruitment, and other associated costs, as well as subsidies for office rent.

These subsidies are the result of a recent plan by the national government to transform Tokyo, Osaka, and Fukuoka into international financial cities. As the smallest of the three cities, Fukuoka has risen to the challenge with fervor, and the rewards of its efforts are already showing.

A National Strategic Special Zone

As well as being one of the most advanced municipalities in Japan in terms of global business start-ups and job creation, Fukuoka City has been designated as a National Strategic Special Zone. This national government designation allows a city special freedom to deregulate and implement new systems. If such a system produces excellent results, it can be expanded to the entire country. Fukuoka has already used its special status to become a role model for the creation of an internationally competitive business environment. Some of the innovations most relevant to international start-ups include: an employment and labor consultation center; relaxed criteria for residential status for start-up personnel; fewer restrictions for securing business premises for foreign start-ups; an HR matching center; tax reductions for foreign start-ups; and special exceptions for Certificate of Eligibility issuance for overseas IT engineers.

The Fukuoka City website includes a detailed list of incentives and support in Japanese only.

The aforementioned measures barely scratch the surface of Fukuoka’s efforts to pave the way for start-ups to find success in Japan. Furthermore, the city is actively soliciting ideas from entrepreneurs who wish to take advantage of its special zone status and planning to incorporate their suggestions in its future strategy.

Fukuoka City's Support for Start-ups

In the previous section, we discussed Fukuoka City's active use of the deregulation powers afforded by the special zone system to support start-ups. In this section, we’ll talk further about the aforementioned GFC, which is located in FUKUOKA GROWTH NEXT, a start-up support facility where entrepreneurs can gather together. Equipped with rental offices, coworking and event spaces, and meeting rooms, the GFC is the perfect facility for start-ups looking for somewhere to operate. In addition to consultations, the GFC also offers a start-up café where you can consult with lawyers, tax accountants, and other specialists. The Fukuoka City Employment and Labor Center, which provides free consultations with lawyers and labor and employment professionals as well as various support services, is also found here. A Japanese-style standing bar is also located in the facility, providing a space for people to casually drop by to make new connections over a drink.

The building also hosts events such as entrepreneurship courses, practical workshops on creating landing pages, and pitch contests, all aimed at bolstering the city’s thriving start-up ecosystem. The Fukuoka City Incubate Certification Mark is issued to those who pass the screening process and make use of the facilities offered by FUKUOKA GROWTH NEXT. This is the first such initiative in Japan, and it gives a sense of the city's commitment to boosting the start-up ecosystem.

So far, we have discussed how Fukuoka City is taking advantage of its location and access to the world. Hungry to compete with Tokyo and Osaka, anyone thinking about starting a business in Japan should seriously consider coming here.

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