Scout Natural Rebranded as Smile Amidst Unchecked Expansion

“If you engage in prostitution, you can quickly repay your advances.”

Since late last year and into this year, a serious issue has surfaced in Tokyo’s Kabukicho (Shinjuku Ward) concerning problematic host clubs. These clubs used a system called “advance payments,” allowing female customers to accumulate large debts. Consequently, many women turned to prostitution, sparking significant social criticism.

 

In response to this issue, Kabukicho’s host club industry completely abolished advances starting this April. However, reports indicate little change in the situation. 

“It’s just a change in name from ‘advance payments,’ but the situation of burdening female customers with substantial debts hasn’t improved much. According to investigations by the nonprofit organization ‘Association of Parents Protecting Youth,’ which supports women affected, consultations have been ongoing since its establishment last July, with reports of around 75 cases totaling approximately 450 million yen in advances disclosed. Some individuals owe more than 50 million yen each,” (national newspaper’s social affairs reporter)

Currently, such conversations are still commonplace. Advances have morphed and continue to exist in various forms. This involves scout groups responsible for soliciting customers. A knowledgeable individual, Mr. A, deeply laments the current state of affairs within Kabukicho’s host club industry.

“After April, there are still establishments burdening women with high debts. Currently, they cannot arrange advances inside the club. However, they’ve found a loophole in this rule: they arrange advances outside the club, before entry. Scouts play a significant role in exploiting this ban on advances.

Scouts who lure girls say, ‘Tell me how much you want to spend, and I’ll negotiate with the host club so you can put it on credit before entering.’ The term ‘advance payment’ has even been changed to ‘pre-entry payment.’ They’re getting girls into debt before they even enter and letting them have fun inside. Even though host clubs faced criticism and declining profits, they’ve teamed up with scout groups to keep the advance payment system going. Both sides benefit, rebuilding their relationship based on shared interests.”

“Scouts” originally referred to groups that introduced women to jobs in places like adult entertainment venues. However, according to Mr. A, they now also engage in catch activities like attracting customers, responding to demand from the host club industry.

 

Among these scout groups, Natural boasts the largest scale in the country. With roots primarily in Kabukicho, they have a wide-reaching presence across Japan’s entertainment districts, reportedly comprising over 1,000 members. Needless to say, customer solicitation violates the Adult Entertainment Business Law and nuisance prevention ordinances, making it illegal. The Metropolitan Police Department has been vigilant of Natural, classifying them as a “Tokuryu” (anonymous and fluid criminal group), and arrested their top executives for organized crime violations last November. Since then, their visibility in media and reports has decreased.

However, “Natural” has changed its name and continues to exist. Mr. A continues.

“Even though their top executives were arrested, the leadership remains intact. Their influence hasn’t diminished. They’ve changed their name to ‘Smile’ and continue to solicit customers around Shinjuku Station as usual. Until last summer, they mainly operated outside Kabukicho, primarily in the vicinity of Shinjuku Station, with only club-employed individuals soliciting within Kabukicho itself. Around February this year, facing social criticism and Kabukicho’s decline, they began expanding into Kabukicho itself. Besides using the name ‘Smile,’ they also operate under the name ‘Shokai Navi.’ They use multiple names to appear as different groups from ‘Natural.’

 

Unfortunately, to recover profits, more clubs are teaming up with these scout groups. I’ve heard they have around 1,500 members combined between ‘Smile’ and ‘Shokai Navi.’ Their influence seems to be expanding rather than contracting.” 

The scout groups, evolving and expanding like amoebas by changing names, are reportedly in a close relationship even with key figures in the host club industry responsible for enforcement. Another source from the host club industry continues:

“Recently, videos surfaced showing the former top executive of ‘Natural,’ who was arrested last year, and representatives from major host clubs partying together extravagantly. While there are still catchers employed by club owners in Kabukicho, collaborating with ‘Smile’ doesn’t pay off for large venues. It’s become tougher than last year.” 

In early December last year, Kenichi Yoshizumi, the mayor of Shinjuku Ward, along with representatives from major host clubs in Kabukicho, held a press conference announcing the formation of an industry group aimed at eliminating advance payments. However, according to Mr. A, it’s practically falling apart.

“After the press conference, representatives from the 18 major host groups who attended tried to hold discussions on Zoom several times, but now only about four groups continue to participate. The industry union has yet to even launch. The groups that withdrew seem to prioritize their relationship with ‘Smile.'”

As long as this situation persists, achieving true industry integrity, especially in resolving the ‘advance payment issue,’ seems far from achievable through mere rhetoric. What’s urgently needed is decisive action backed by real implementation to bring about meaningful change.