[Warning] Is the Era of “1 Million Yen Cremations” Upon Us…? The Crisis of “Japanese Funerals” Being Bought Out by Foreign Capital

Problems Are Piling Up

“Cremation fees are too high for families to cremate their loved ones”—While the Japanese have become quite accustomed to the constant stream of price hikes, the idea that they might not even be able to hold a funeral… such a terrifying scenario could very well become a reality.

In late May, news that Kosaido Holdings was considering selling its subsidiary, Tokyo Hakuzan, to the U.S. investment fund “Kohlberg Kravis Roberts” sent shockwaves through the funeral industry.Tokyo Hakuzan operates six of the seven private crematoriums located in Tokyo’s 23 wards. It is an industry giant with a share of approximately 70 percent of cremations in the capital.

“Kosaido HD rushed to downplay the reports immediately after the news broke, stating, ‘No decision has been made at this point,’ but specific figures—including a ‘sale price in the range of 150 billion yen’—were reported. There is no doubt that negotiations are underway.”“The person who became Kosaido HD’s largest shareholder in 2022 was Mr. Lai Yiwen (63), chairman of ‘Laox Holdings.’ Since he is known as a shrewd businessman, all eyes are on what business decisions he will make,” said a reporter from the business section of a national newspaper.

Tokyo Hakuzan has frequently been in the news for raising its cremation fees. Until 2020, the fee was less than 60,000 yen, but it has been gradually increased—citing rising fuel costs, among other reasons—and currently stands at 87,000 yen. This represents a price hike of nearly 50% over the past six years.

Reports of this sale have raised concerns about further increases in cremation fees. Mitsuru Torii, chairman of the Tokyo Funeral Services Cooperative Association, is sounding the alarm.

“The ‘Act on Cemeteries, Burials, etc.,’ which governs cremation, does not permit the local government with jurisdiction to interfere in the management of private crematoriums. In other words, if Tokyo Hakuzan were sold to a foreign investment fund, and the fund were to set the cremation fee at 1 million yen per body, legally, no one would be able to overturn that decision.
Some might say, ‘If you’re concerned about the price, just use a cheaper public crematorium,’ but it’s not that simple. Aside from Tokyo Hakuzan, there are only three crematoriums—both public and private—within the 23 wards.They are located in Edogawa, Ota, and Itabashi wards—all far from the city center—and there isn’t a single one in the western part of the metropolis, such as Suginami Ward. Transporting the deceased to a distant crematorium—a journey taking over an hour after the casket is carried out—is simply unrealistic. Once the price is set, the vast majority of Tokyo residents will have no choice but to comply.”

There are other concerns as well.

“Including its affiliated companies, Hakuzan holds 18 patents, such as those for cremation furnaces. Once it falls into the hands of an investment fund, we may be faced with exorbitant patent royalties in the future. The company has also accumulated customer data on many prominent figures, including members of the Imperial Family. The fact that personal information could fall under the jurisdiction of foreign capital also poses a risk,” (ibid.)

The root of the problem is that Tokyo’s crematoriums are effectively under the oligopoly of Tokyo Hakuzan. With no alternatives available, cremation fees continue to skyrocket. Users are voicing their dissatisfaction. The president of a long-established funeral company in Tokyo sighs.

“We’re already receiving complaints like, ‘Back in my hometown, it’s only a few thousand yen. Why is it so expensive here?’ In rural areas, publicly operated crematoriums are the norm, and even the highest fees are only 20,000 yen, so I understand why people want to complain, but there’s nothing we can do about it.”

“We’ve been calling for this for four years”

On June 3, Governor Yuriko Koike (73) and the Association of Mayors of the 23 Special Wards submitted a petition to the Ministry of Health, Labor and Welfare requesting greater authority for local governments. The following day, June 4, the “Study Group on Crematoriums,” comprising mayors of cities, towns, and villages as well as experts, held its first meeting.

However, Mr. Torii, mentioned earlier, says, “While I appreciate that the review has begun, they should have taken action much sooner.”

“Our association has been consistently raising the issue that ‘there are problems with crematorium operations’ for the past four years. Following Tokyo Hakusen’s decision to introduce a fuel surcharge and implement a significant increase in cremation fees, we have been urging the Tokyo Metropolitan Government to amend laws to allow it to intervene in cremation fees and to build additional crematoriums.
Now that this has become a social issue, what we want to see discussed urgently is the construction of small-scale crematoriums. Even if there are no legal issues, the construction of crematoriums within Tokyo is strictly restricted by municipal ordinances. Since amending these ordinances does not involve the national government, it should be possible to do so quickly.”

How is the Tokyo Metropolitan Government responding to the proposals from funeral service providers and the concerns voiced by Tokyo residents? The Tokyo Metropolitan Government’s Bureau of Health and Medical Services responded to an inquiry from FRIDAY as follows:

“The special wards with supervisory authority (Editor’s note: the wards where Tokyo Hakusen’s crematoriums are located) joined the Metropolitan Government in requesting that the national government establish legal frameworks regarding the management of private crematoriums in November of last year and June of this year.In the study group we have recently established, we will examine how to address future increases in cremation demand and the appropriate level of administrative involvement in the management and operation of crematoriums.”

On June 5, a Democratic Party of Japan-affiliated faction in the Tokyo Metropolitan Assembly submitted a petition to Governor Koike calling for the public operation of private crematoriums. Secretary-General Yoko Takei appealed, “The operation of crematoriums must not be used as a money-making scheme.”It will be too late once Japan’s funeral industry has been bought out by foreign capital. Swift action is required.

From the June 26–July 3, 2026, combined issue of *FRIDAY*